This article is from the Australian Property Journal archive
WESTERN Australian apartment development Finbar (ASX: FRI) announced its 25th consecutive year of profit, after a strong year for the WA economy, despite a 2020 filled with market uncertainty due to the global pandemic.
Finbar posted a NPAT of $4.023 million, down 39.4% from $6.6 million on the pcp.
Revenue from ordinary activities was down 23.3% to $40.9 million from $53.4 million on the pcp.
“The results largely reflect the sell down on stock from previous reporting periods. Finbar was pleased to see market positivity and confidence growing into 2021 following the initial impact of the pandemic on financial markets,” said Darren Pateman, managing director of Finbar.
A final 2020 fully franked dividend per share of 1.0 cents was posted, down 66.67% from 3.0 cents on the pcp.
Finbar posted an EPS of 1.48 cents, down 39% from 2.44 cents on the pcp.
“$34.6 million in sales occurred in January alone, historically a quiet sales month for the industry, and is the highest level recorded since 2006,” said Pateman.
Rental assets, the Pelago in the Pilbara and Fairlanes on Adelaide Terrace, contributed 7% of the company’s earnings for the period. With full occupancy at the Pilbara and an increase in asset book values.
“Despite global uncertainty and ongoing restricted domestic and international travel, the Western Australian COVID situation is very stable and our economy remains in good shape, underpinned by sustained strong commodity prices,” he said.
Current assets totalled $118 million, up from $100 million in June 2020. While current liabilities have reduced from $81.3 million in June 2020 to $67.3 million for the period.
“We are seeing very strong and competitive buyer demand, not just for Civic Heart, but across our property portfolio as the residential market continues to heat up,” said Pateman.
There was an increase in total equity from $241.9 million in June, to $243.2 million.
“Perth’s property market is really beginning to gather momentum after years of sluggish growth and low supply. Western Australians are returning to live in Perth from interstate and overseas, and there are growing numbers of buyers and investors who have been watching from the sidelines waiting for the signals that Perth is moving into the next cycle,” he added.
The group currently has $469 million of projects under construction. With $544 million with development approval and an additional $355 million in its unapproved pipeline.
The group ended the period with $31.5 million in cash and ongoing cash flow, up from $31.2 million on the pcp.
“Finbar remains ideally placed with our project land pipeline already secured, a growing pre-sales book, good cashflows from debt free stock supporting a significant increase in capital works spend currently taking place. This gives us confidence in seeing growth in profits as these projects reach completion and revenues are recognised,” concluded Pateman.
An interim fully franked dividend of 2.0 cents was declared, unchanged from the previous period.
