REPORTING SEASON: Lend Lease Group (LLC)
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Figure 1: Lend Lease Group 12 month chart
Lend Lease (LLC) FY15 result meets expectations boosted strong housing demand
– Lend Lease Corporation (LLC) reported a solid result for the full year ended 30 June 2015, despite a 25% slide in its Net Profit After Tax (NPAT). LLC had advised the market that it could not replicate prior results as it came off a bumper FY14, adding that they expected to achieve a net profit of $604 – $628Million for FY15. LLC’s result was boosted by the sale Bluewater shopping centre in the UK (Kent) for $485Million.
– LLC’s Australian business unit performed well with the strength in property demand boosting profit after tax which rose by 40.2%. Its Australian Property Development business delivered record land-lot settlements of 3,822, up 26% over the year with strong sales from Barangaroo. While LLC’s Aussie engineering and services unit pushed its construction profit down 14% (Y/Y). Lend lease’s American division also increased by 14.2% underpinned by growth in military housing demand.
– The areas of weakness for LLC were in Asia and Europe where its operating business profits fell. In Asia the profit slipped 76.5% as LLC purchased new properties, without boosting sales in the region. In Europe LLC’s unit profit fell by 74.9% (hit by the Bluewater sale) while the pipeline remains strong and presales of units are also tracking ahead of plan.
– Lend Lease said the estimated value of its pipeline increased by 19% (Y/Y) to $44.9Billion, and funds under management lifted by 31% to $21.3Billion
– LLC will pay a final dividend for shareholders of $0.27 on the 18th of September 2015