Sunland shines on back of $5m profit
SALES at Gold Coast developments – such as Magnoli Residences in Palm Beach – are set to feed into a bumper full-year profit for Sunland.
The Brisbane-based company reported its half-year results yesterday, recording a net profit of $5 million, up 45 per cent from $3.2 million in the previous period.
Revenue was up 22 per cent to $102.7 million from $84.2 million.
Sunland recorded 204 settlements worth $95.4 million in the half, compared to 120 settlements worth $79.9 million a year earlier.
Managing director Sahba Abedian said the bulk of the earnings are weighted towards the second half, including sales from its $240 million Abian highrise in Brisbane and Magnoli.
At Magnoli Residences, 69 lots are under contract for $51.1 million. Sunland said the remaining 19 are subject to expressions of interest from buyers.
Mr Abedian said the company’s portfolio remains tilted towards the “buoyant property market in the southeast corner”.
“We have an optimistic outlook. We are seeing a sound and sustained level of activity for southeast Queensland which is how we position our portfolio,” he said. He expects strong sales in southeast Queensland to continue.
“In Queensland, the median house price and the level of activity has been subdued for the years that Sydney and Melbourne were performing well. We are seeing the momentum come back (to southeast Queensland,” he said.
More than 50 per cent of Sunland’s development pipeline worth around $2 billion is on the Gold Coast.
About 22 per cent of its pipeline worth $857 million is in Brisbane.
Sunland said other Gold Coast projects where it has seen swift sales include The Lakes Residences at Mermaid Waters, where 52 of the 67 lots available are under contract for $46.8 million.
At least four new Gold Coast projects are due to launch in the second half, including One Marine Parade in Labrador.
Sunland reconfirmed fullyear net profit guidance of $35 million.
The company has bought back 4.5 million shares for $7.5 million since December.
Sunland declared a fullyfranked interim dividend of 4¢ a share. Shares closed unchanged at $1.79.