SUNLAND DOUBLES EARNINGS
GOLD Coast development group Sunland has posted a net profit of $17.4m for the six months to December 31, up from $9.4m for the same time last year.
The company’s shareholders will receive a healthy 30c per share dividend — with Sunland directors among the biggest beneficiaries.
Shares controlled by founder Soheil Abedian will attract more than $15m, while son and managing director Sahba Abedian’s shares will score him $2.4m in dividends for the six months to December 31.
In a statement to the ASX, Sunland said it had almost doubled its earnings per share, from 7c to 13c, in the first half of the financial year and the company had net tangible assets of $2.59 per share, up from $2.56 for the same time last year.
The result follows a mass sell-down of Sunland assets, including the proposed sale of the Greenmount Hotel site for $42.3m to a company controlled by the Abedians.
The purchase, if it gets a green light from Sunland shareholders, won’t settle until April 2022.
The company has announced a strategic plan to cash in its assets, pay its liabilities and return the net to shareholders.
The clearance sale could see Soheil Abedian pocket about $130m for the company he started as a home construction outfit in 1984.
The group said its cashflow from property settlements had been strong at $198.6m for the half, compared with $55.8m for the same time last year.
“Progress of the strategy has been assisted by buoyant market conditions,” the company said in its statement to the ASX.
“Settlements of completed projects primarily located in southeast Queensland have contributed to revenue and together with settlements of other inventory, have generated a significant cashflow over the reporting period.
“The cash generated by the group has reduced debt under the working capital lines and enabled the directors to declare a fully franked interim dividend of 8c per share, plus a significant special dividend of 22c per share.”
Sahba Abedian said the group had reclassified its development projects as new, active and undeveloped projects — which are earmarked for sale.
“This has assisted in focusing on the delivery of the strategy and identifying capital requirements to develop and complete those projects identified as active and new projects,” he said.
Sunland said it had struck unconditional sales worth $43.4m on a childcare centre at its The Lanes project in Mermaid Waters; three commercial lots at the Heights in Pimpama; Marine Parade Labrador; and Carrum Downs in Victoria.
“These contracts are scheduled to settle over the next 15 months.“
Mr Abedian said directors would ensure the group managed risks associated with the new projects.
“It is expected these projects will be delivered over the course of the next two years,” he said.
“Funds generated will be allocated appropriately for working capital, project delivery, repayment of liabilities, and for returning net asset value to shareholders.”