Market ‘Headwinds' Impact Sales: Sunland

Queensland developer Sunland Group has announced a $31.3 million net profit for the fiscal year, exceeding the group’s guidance.

While the return surpasses Sunland’s guidance of $27 million to $30 million, the earning reflects an 11 per cent slide from the previous period.

The ASX-listed developer collected revenue from $290.4 million in property sales for the financial year, generated from 425 settlements.

These figures are down from $394.3 million and 674 settlements from the previous financial year, a drop of 26 per cent.

While market conditions affected sales during the year, Managing director Sahba Abedian said this financial year will present both challenges and opportunities for the nation's property market.

“Following a nine-year period of expansion, the Australian property market has entered an inevitable phase of consolidation and adjustment,” Abedian said.

“This is the natural consequence of the cyclical nature of our industry and evidenced by a reduction in the volume of property sales, a reduction in foreign investment, a tightening of the lending environment, and softening economic conditions."

Related: Sunland Buys Suburban Brisbane Site with Permit for 96 Homes

Sunland, which became an ASX-listed company in 1995, was founded in 1983 with a single luxury home on the Gold Coast.

As of June this year it has grown to hold a national portfolio worth $3.6 billion, comprising 4977 residential homes, urban land lots, multi-storey apartments and 27,000sq m of retail.

“Our Queensland projects contributed significant revenue to the full year result, including The Lakes Residences, Magnoli Residences, and The Terraces, and will continue to do so in the year ahead,” Abedian said.

Sunland's 18 Macpherson Street in Warriewood Sydney and Melbourne’s The Gardens in Chirnside Park are due for completion in 2019 having sold out.

Abedian said the group's strategy is focused on establishing the Company for the next phase of the cycle through strategic, counter-cyclical portfolio replenishment and the conservative management of its balance sheet.

This financial year will see Sunland continue to expand its portfolio with its strategy towards the owner-occupier market, with a focus on downsizers and first-home buyers.

"The Group's mid-rise portfolio will also continue to expand as part of an integrated housing strategy that enables us to mitigate risk through staged delivery," Abedian said.

Sunland will pay a final dividend of 6 cents a share, in addition to the special dividend of 2 cents a share paid in September last year.