This article is from the Australian Property Journal archive
DESPITE a backdrop of challenging property conditions, Peet (ASX: PPC) has delivered a statutory profit of $15.5 million for 1H24.
For the half year ended 31 December 2023, operating profit was also at $15.5 million, compared to the $35.1 million in the previous corresponding period.
EBITDA was at $28.9 million during the half, compared to $55.0 million for the previous corresponding period.
Earnings per share were at 3.3 cents, down 56% from 1H23.
With a fully franked interim dividend of 1.5 cents per share declared.
“The solid first half performance was achieved despite ongoing challenges driven by a higher interest rate environment, inflationary pressures and a cautious sentiment prevailing across the residential sector,” said Brendan Gore, managing director and CEO at Peet.
Peet’s cash and available debt headroom of more than $123 million as at 31 December 2023, with gearing of 35.2% above the target range of 20% to 30%.
Peet achieved 1,106 lot sales over the half, with a gross value of $290.0 million and settlement of lots with a gross value of $323.5 million.
Peet has $75 million of Peet Bonds maturing on 7 June 2024.
Respectively, lot sales and settlements for the half were 82% and 11% higher than in 1H23.
The group also had contracts on hand with a gross value of $443.8 million.
“The material improvement in sales was especially evident across the WA portfolio where, for the first time in a number of years, increasing volumes is being accompanied by price growth. We expect the WA market to continue performing well into the second half of FY2024 following a prolonged period of below average long-term growth,” added Gore.
“The group continues to focus on executing its strategic objectives and maintaining a disciplined approach to capital management. It remains well positioned to navigate the current environment and to capitalise on an eventual recovery in the ACT and Victoria markets, where the Group has projects with significant embedded margins.”
