PEET LIMITED ersonal use only
RESIDENTIAL SALES MOMENTUM UNDERPINS FUTURE EARNINGS
1H22 Results Summary
ersonal use only
Operating1 and | $20.6 |
Statutory Profit | |
After Tax | million |
103% | |
OPERATING EARNINGS
OF 4.3 CENTS
PER SHARE
103%
DIVIDEND OF
2.25 CENTS
PER SHARE
FULLY FRANKED
GEARING2 OF
27.5%
1,809
LOTS3 SOLD
19%
INCREASE ON
1H21
CASH AND
UNDRAWN
FACILITIES
>$140m
1,251
LOTS3 SETTLED
26%
EBITDA4 MARGIN
5%
$817m
CONTRACTS
VALUE ON HAND
49%
INCREASE ON 30 JUNE 2021
2
NEW PROJECTS
COMMENCED SALES/
DEVELOPMENT
Notes: | ||
1 | Operating profit is a non-IFRS measure that is determined to present the ongoing activities of the Group in a way that reflects its operating performance. Operating profit excludes unrealised fair value | |
gains/(losses) arising from the effect of revaluing assets and liabilities and adjustments for realised/(unrealised) transactions outside the core ongoing business activities | ||
2 | Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash)/(Total assets less cash, less intangible assets) | |
3 | Includes equivalent lots | 1H22 RESULTS | FEBRUARY 2022 | 2 |
4 | EBITDA is a non-IFRS measure that includes effects of non-cash monetary in investments in associates and joint venture |
STRONG PLATFORM FOR GROWTH
• | Strong culture, brand and customer focus |
• | Leading Australian developer of residential |
only• | communities with a proven track record for |
over 125 years | |
Large, nationally diverse land bank provides | |
use | economies of scale to deliver a wide range |
of product at lower cost | |
• | Extensive capabilities in acquisition, design, |
delivery and marketing | |
• | Proven ability to expand business into new |
ersonal | opportunities such as townhouses and low- |
rise apartments | |
• | Well established funds management |
capability with long term retail and | |
institutional capital partners | |
Notes: | |
1 Includes equivalent lots |
Land bank of 42,630 lots1
Land bank of
$14.3bn
gross
development
value
51 projects
nationally
Range of
affordable
product
appealing to all buyer segments
1H22 RESULTS | FEBRUARY 2022 | 3
DELIVERING AGAINST OUR STRATEGY
Portfolio well positioned for positive growth and value creation
STRATEGY | KEY 1H22 ACHIEVEMENTS |
ersonal use only
INVEST
ENHANCE
EXPAND
MAINTAIN
Invest in high quality land in strategic locations across country
Enhance, plan and create communities and homes targeting the low to middle market segment
Expand product offering and geographic presence to appeal to wider variety of customers
Maintain strong capital management
- Full ownership of Flagstone City and University of Canberra projects on long dated terms
- Sale of broadacre land holding in QLD for $80 million post 1H22
- One townhouse site (QLD), one low-rise apartment site (WA) and two land projects (SA & VIC) acquired during 1H22
- Two new projects commenced development/sales during 1H22 with a further three projects to be launched during 2H22
- c.76% of landbank under development
- Broadened product offering to townhouses and low-rise apartments
- Pipeline of approx. 1,000 townhouses/low-rise apartments
- Gearing1 of 27.5% - expected to be in the range of 30% to 40% during CY22 due to significant level of construction activity and acquisitions of Flagstone City and University of Canberra
- QLD broadacre site sold for $80m post 1H22 - settlement contracted for 1H23
- Sales price represents an 83% premium to book value
- $58m of $75m non-core asset divestment program under contract with settlement proceeds expected FY22/23
Notes: | |
1 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets) | 1H22 RESULTS | FEBRUARY 2022 | 44 |
GROUP PRIORITIES AND STRATEGIC FOCUS
Strategic focus on optimising land bank for future growth and value creation
Continue to leverage large scale national portfolio to further improve returns only• Accelerate production to meet current demand and increase operating cash flows
- Sales momentum continuing into 2H22
• Continue to focus on improving project returns and operating margins
- Embedded margins driven by strong price growth over the past few years
• Continue to balance the portfolio between land and built form projects and useincrease weighting to east coast markets
- Remain focussed on the right product in the right markets
Continue to assess capital recycling opportunities
• Assess further divestment opportunities to maximise market cycles to unlock value ersonalwhere appropriate
- Continue to develop FM/JV initiatives with existing and new capital partners
- Evaluate "super lot" opportunities within portfolio
C nsider selective acquisitions to restock pipeline when appropriate
Key trends underpinning our strategy
- Current residential fundamentals remain strong with demand expected to remain elevated over the near-term
- Supply unable to satisfy buyer demand due to limited land availability
- Population growth driving development in major cities
- Major cities will continue to attract the majority of population growth
- Increased net overseas migration Population growth expected to drive volume growth over time following the reopening of international borders
1H22 RESULTS | FEBRUARY 2022 | 5
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Peet Limited published this content on 23 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2022 23:11:09 UTC.
