This article is from the Australian Property Journal archive
Sunland has reported a half-year net profit after tax of $33.7 million for the six months to December 31, 2006 ? up 0.2% over the same period last year.
The profit result was delivered despite revenue falling 27.7% during the period to $173.64 million. The source of the revenue was predominantly generated by the Urban Development and High Rise divisions.
The group has declared an interim dividend of 6.5 cents per security, up 8% compared to last year.
Sunland’s managing director Sahba Abedian said while the Australian property market has softened overall, the group has continued its profit growth through the establishment of the Funds Management arm and the launch of the land syndication, which comprised its three projects Clover Hill, Arbour on the Park and Bushland Beach.
“The directors reinforce that the group’s future direction will see a strong focus on the growth of the domestic and international division and the funds management arm together with the identification of opportunities for other development funds from its internal pipeline of projects,” he added.
Abedian said the second half will see significant contributions from Circle on Cavill (South Tower) and Avalon Apartments. Settlements for these projects commenced during January 2007 with $150 million settled to date.
Accordingly, Sunland is on track to continue its profit growth, and has upgraded its profit forecast to $85 million for the full year. This upgrade from $80 million follows the strong sales from the land portfolio, settlements of major projects and the balance sale of Sunleisure and Sunkids to MFS Limited.
Abedian said an emerging contributor was the fees generated from the UAE’s project management and design division together with the Sunland Diversified Land Fund.
“Going forward the Group is well advanced with its activities in the Middle East region, with the establishment of its office in Dubai and construction of Palazzo Versace and D1 now underway. Additional projects announced by the Group including Business Bay and the Dubai Waterfront development have further strengthened the international portfolio.
“The Dubai Waterfront project will be the first mixed use development undertaken by the Group its own right in the region, with an end value of approximately $860 million. This brings the international portfolio to $2.4 billion representing 45% of the total Sunland development portfolio which stands at $5.2 billion,” he concluded.
Australian Property Journal
