Cedar Woods Properties (CWP) H2 2024 earnings summary

Executive summary

• FY24 net profit after tax rose 28% to AUD 40.5 million, driven by a $19.9 million gain from the Williams Landing Shopping Centre sale, with revenue at AUD 386.3 million from 1,140 settlements.

• Presales reached AUD 559 million, up 25% year-over-year, with about 70% expected to settle in FY25.

• Maintains a diversified pipeline of over 10,000 lots/dwellings across 40 projects in four states, supporting future earnings.

• Strategic partnerships with QIC and Tokyo Gas Real Estate enable access to larger projects, diversification, and less capital-intensive growth.

• Strong ESG progress, including a 40% reduction in Scope 2 emissions, microgrid rollout, and high staff satisfaction.

Financial highlights

• Net profit after tax: AUD 40.5 million (up 28% year-over-year); EPS: 49.2c; return on equity: 8.8%.

• Revenue: AUD 386.3 million (down 1% year-over-year); gross margin steady at 25%.

• Final dividend of 17.0c, full-year 25.0c (up 23%), payout ratio 51% of NPAT, fully franked yield of 5%.

• Pre-sales at 30 June valued at AUD 559 million, up from AUD 448 million last year.

• Net bank debt reduced to AUD 120.1 million; gearing at 26.1% (net bank debt to equity); liquidity of AUD 156.8 million.

Outlook and guidance

• Targeting 10% NPAT growth for FY25, supported by strong pre-sales and a pipeline of over 10,000 dwellings/lots/offices.

• About 70% of pre-sales expected to settle in FY25, with the remainder in FY26.

• Revenue for FY25 expected to increase, with pre-sales already exceeding FY24 revenue.

• New projects in VIC, QLD, SA, and WA to contribute to FY25 and FY26 earnings.

• Market fundamentals and government incentives expected to underpin demand, though delivery timeframes may be affected by workforce and builder capacity.