Cedar Woods Properties (CWP) H2 2024 earnings summary

Executive summary

• Net profit after tax for FY 2024 was AUD 40.5 million, up 28%, driven by a AUD 19.9 million gain from the Williams Landing Shopping Centre sale, with revenue at AUD 386.3 million from 1,140 settlements.

• 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, diversify funding, and support less capital-intensive growth.

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

• Presales reached AUD 559 million, up 25% year-over-year, with 1,201 lots sold.

Financial highlights

• Net profit after tax up 28% to AUD 40.5 million; EPS of AUD 0.492; return on equity at 8.8%.

• Revenue stable at AUD 386.3 million; gross margin steady at 25%.

• Final dividend of AUD 0.17, full-year AUD 0.25, 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.

• One-off profit of AUD 19.9 million from Williams Landing Shopping Centre sale offset higher finance costs.

Outlook and guidance

• Targeting 10% NPAT growth for FY 2025, supported by strong pre-sales and new project launches.

• About 70% of pre-sales expected to settle in FY 2025, with the remainder in FY 2026.

• Revenue for FY 2025 expected to increase, with pre-sales already exceeding FY 2024 revenue.

• New projects in VIC, QLD, and SA expected to deliver first earnings in FY 2025 and FY 2026.

• Conditions favorable in all states except Victoria, which remains subdued.