This article is from the Australian Property Journal archive
DEVELOPER Sunland Group Limited (ASX:SDG) has posted a positive result for the FY22 period, following strong levels of cash flow from property settlements.
Statutory net profit after tax was at $92.6 million, up 272% from FY21’s NPAT of $24.9 million.
Earnings per share were also up from the previous period at 69.5 cents, compared to 18.7 cents in FY21.
Total revenue was at $589.7 million, up from the previous corresponding period’s $28.3 million, while EBIT was at $157.2 million, up from $51.2 million.
Net tangible assets per share was at $2.60, up from $2.34 in FY21.
SDG disposed of various undeveloped inventory and investment properties over the period, resulting in $236.6 million in net proceeds and $61.5 million in profit after tax.
While also achieving a 24% development margin, exceeding the annual target of 20% return on costs.
The group currently has 394 projects either completed or under construction for a combined yield of $482 million. With 156 lots in said projects currently settled, 238 unsettled, with 233 of those lots currently contracted and five unsold.
Sunland saw a strong cash flow from property settlements over FY22 at $554.5 million, up 102% from $274.4 million in FY21.
Sunland successfully settled 328 lots in FY22, down from 458 in FY21, though the settlements over this year generated $344.1 million in property sales revenue, on the previous period’s $235.5 million.
The group’s debt to equity gearing was at 14%, down significantly from FY21’s 54%.
“The effective delivery of Sunland’s Strategy has allowed the Group to repay secured debt. Sufficient cash is being held to deliver the remaining projects in the portfolio and repay remaining external unsecured debt arrangements, and until that occurs, the Group is required to continue to comply with debt covenants of the remaining facility,” said Grant Harrison, company secretary at Sunland.
Sunland has not provided a guidance for FY23 at this time.
