- Long time Australian developer Cedar Woods Properties (CWP) has recorded a significant slump in its interim profits
- Cedar released its half-year results on Wednesday, delivering $10.2 million in net profits compared to last year’s $30.8 million
- Despite the reduction, shareholders were reassured the second half of this year and 2021 will be fruitful
- According to Wednesday’s report, up to $340 million in pre-sales are expected in the second half of the 2020 financial year
- Shares in Cedar Woods are down to $8.00 per share today, slumping 2.32 per cent since opening
Business and residential developer Cedar Woods Properties (CWP) has maintained its position that the best is still yet to come after delivering significantly lower profits in its latest interim report.
The developer, which was established in 1987, released its first-half results for the 2020 Financial Year on Wednesday.
Results released by the publicly-traded company revealed net profits fro this half of $10.2 million. Despite being lower than last year’s $30.8 million, the company reiterated that the earnings are within guidance.
Cedar Woods Managing Director Nathan Blackburne says the best is yet to come in the latter half of the financial year and well into 2021.
“The completion of significant development stages during this period underpins a significantly stronger second half when we will see three new projects deliver revenue for the first time,” Nathan Blackburne said.
“Consistent with our strategy of counter-cyclical purchasing, we acquired three quality developments in Western Australia and Victoria during the first half, supplementing our national portfolio to more than 9400 dwellings, lots and offices.”
A number of Cedar Woods properties have also been shortlisted for upcoming industry awards from the Urban Development Institute of Australia.
At the forefront of the company’s portfolio is the ‘Solaris’ residential project in Western Australia’s Forrestdale.
Comprising of 301 units, Solaris is expected to contribute to earnings over five years, starting from 2020.
With Cedar Woods putting its money where its mouth is, the board of directors announced interim dividends at 12.5 cents per share — although this is 18 cents lower than this time last year.
According to the company, the decision is still in line with giving 50 per cent of full-year net profits to its shareholders.
“[Recent] acquisitions contribute to a healthy forward development pipeline that will continue to diversify our portfolio by geography, product type and price point,” Nathan added.
Cedar Woods states the end of last December already shows $340 million in pre-sales that are expected to make waves later this year and into the next.
Shares in Cedar Woods on the Australian market shifted to the red on Thursday, faltering by 2.32 per cent to hit $8.00 at 11:19 am AEDT.