Brisbane-based property developer Sunland Group has announced an after tax profit of $30.1 million for the full year ended 30 June 2015, an increase of 111% on the previous corresponding period’s result and exceeding guidance of $28 million.
Sunland Managing Director, Sahba Abedian, said that as the Group celebrates its 20 year anniversary as a listed entity, its three-pillar strategy of capital management, strategic portfolio replenishment and maintaining a conservative balance sheet had delivered a strong operational performance.
“During the financial year Sunland has maintained a counter-cyclical approach to site acquisitions and divestments, positioning the Group’s development portfolio to capitalise on the improving south-east Queensland residential markets,” Mr Abedian said.
“Strategic asset sales in 2015 across Melbourne and Sydney totalled $90.1 million, enabling Group capital to be redeployed to key growth areas in south-east Queensland, enhancing Sunland’s earning profile, and resulting in a special dividend to shareholders of 6 cents per share.
“A further $82 million in strategic site acquisitions have increased Sunland’s development portfolio by an additional 1,772 products with a total end value of $1.1 billion, increasing the Group’s total portfolio to 6,086 land, housing and multi-storey products with a total value of $3.7 billion.
Mr Abedian said these acquisitions included the flagship 42 hectare Lakeview development site on the Gold Coast and Sunland’s first residential housing development site in Brisbane, in the suburb of St LuciaMr Abedian said the premium location and strong architectural focus of Sunland’s residential communities, together with sound market conditions and improving development margins, resulted in strong operational outcomes and revenue growth during the 2015 financial year.
Sunland’s residential housing and urban development segment continued to support underlying earnings and cash flow throughout the course of the financial year, with major contributors including Concourse Villas and The Glades in Queensland, The Parc in New South Wales and Whyte in Victoria.
“During FY15 Sunland achieved 754 sales to the value of $509 million, representing a 20% increase in sales volume and a 31% increase in sales value (2014: 629 sales valued at $389 million),” he said.
“The luxury Abian high-rise development in the Brisbane CBD which is 98% sold out, coupled with price growth across the portfolio, contributed to the improved sales performance.
“The Group also achieved a 30% development margin across its land and housing portfolio which is well above the Group’s target margin of 20% return on development costs.”
Mr Abedian said the $279.7 million in revenue generated from 387 property settlements (2014: $178.0 million from 446 settlements) included the $90.1 million generated from strategic site sales across Melbourne and Sydney during the period.
“Sunland’s $250 million Abian tower development is scheduled for completion in mid-2017 and will be followed by a number of other multi-storey projects currently in the design and approval stages for One Marine Parade, Palm Beach, The Lakes and Mariner’s Cove (pictured) on the Gold Coast,” he said.
“The launch of the Grace on Coronation development in Brisbane, which was granted Development Approval from Brisbane City Council in June 2015, has been temporarily delayed due to an appeal against the approval.”