This article is from the Australian Property Journal archive
DEVELOPER Peet is expecting mixed market conditions to prevail over the coming year, and despite having several high-margin projects in the challenging Victoria and ACT/NSW markets, says it is well-positioned for FY25 and expecting earnings growth.
Its exposure to Victoria and the NSW/ACT resulted in lower sales and settlements over FY24, which dragged down EBITDA from $107 million in FY23 to $66.7 million, while EBITDA margin fell from 29% to 21%.
It also attributed the result partially to the settlement of the New Beith property in Queensland in FY23.
During FY24, 2,504 sales were achieved across the group, up from 1,399 in FY23, an uplift of 79%, thanks to strong market conditions prevailing across Western Australia, Queensland and South Australia.
The group achieved 2,418 settlements across its development, funds management and joint venture projects in FY24, compared to 2,594 settlements in FY23, down 7%.
“Heading into FY25, conditions in WA, Qld and SA continue to be strong supported by enquiries at elevated levels, while Victoria and ACT/NSW continue to be challenging although enquiry trends have improved,” said Peet managing director and CEO Brendan Gore.
The performance resulted in an operating and statutory earnings per share of 7.77c for FY24, compared to operating and statutory earnings per share of 14.79c in FY23.
“The group remains well-positioned to navigate the current environment, including having projects in Victoria and ACT/NSW that are ready to benefit from a recovery in those markets and the capital to implement an appropriate delivery program in response,” Gore said.
“Subject to continuing market conditions and the timing of settlements, and supported by more than $480 million in contracts on hand, Peet is well-positioned for FY25, with expectations for earnings growth and strong operating cash flows.”
Gearing was of 34.8%, up from 27.7%.
Net interest-bearing debt was $314.5 million, compared with $253.3 million, while cash and available debt facility headroom was $140.6 million. Weighted average debt maturity was at more than three years.
