SUNLAND ISSUES GUIDANCE AS IT CONTINUES ITS FOCUS ON SOUTH EAST QUEENSLAND
Written on the 23 November 2017 by David Simmons
LISTED Brisbane property developer Sunland Group (ASX: SDG) has provided earnings guidance of between $27 million and $30 million in net profit after tax for the 2018 financial year.
"The guidance for FY18 reflects the cyclical nature of the property market, and a number of projects scheduled to settle on the cusp of the financial year end, whilst increasing the core dividend profile," says Sunland in an ASX announcement.
Group managing director, Sahba Abedian (pictured) says residential markets along the east coast had been affected by tightening lending standards and a decline in the international investor market.
"There is a rationalisation taking place and projects that were once earmarked for delivery are now somewhat being reassessed in light of different funding arrangements," Abedian says.
Sunland has eight new major projects planned for delivery in 2018 worth a total of $1.4 billion which are mostly in south east Queensland.
"Sunland enters FY18 in an active phase of delivery, with 14 residential projects under construction in Queensland, New South Wales and Victoria," says Abedian.
The board of directors announced it will pay a fully franked dividend for the 2018 financial year of 11 cents, payable in two instalments of 5 cents and 6 cents.
Sunland's national portfolio currently comprises 6,270 residential lots, retail, and commercial assets with a total end value exceeding $4.7 billion.
Shares in the property developer closed Wednesday at $1.70, down 0.5 per cent.
Business News Australia
Author: David Simmons