Gold Coast developer doubles profit to $30m
GOLD Coast property developer Sunland Group is riding a wave of optimism in real estate, beating expectations and doubling its after-tax profit to $30.1 million for the year to June 30.
The firm beat last year’s profit figure of $14.3 million with the result also 50 per cent higher than original projections and $2 million above upgraded expectations.
Sunland managing director Sahba Abedian said the firm’s overall portfolio was sitting at 6086 land, housing and multistorey products with a total value of $3.7 billion, with the development portfolio at $1.1 billion.
“It’s a wonderful result,” Mr Abedian said.
“What we’re observing is five or six years of strategic activity coming to bear.”
The firm logged $509 million worth of sales (up 30 per cent) over the year, and redeployed capital into southeast Queensland after selling off $90.1 million worth of assets in Melbourne and Sydney.
Mr Abedian said a number of multi-storey developments would increasingly start to generate stronger contributions to earnings for the firm from 2017 onwards. The company’s pipeline is led by the $250 million Abian in the Brisbane CBD, which is 98 per cent sold and scheduled for completion mid-2017.
Sunland’s Grace on Coronation development in Brisbane was “temporarily delayed” because of an appeal, he said.
Total dividends over the year came in at 10¢ per share, which included a special dividend of 6¢ per share issued earlier. Shares were at up 1.5¢ to $1.61 at 3pm Wednesday.