Cedar Woods Properties Limited (ASX: CWP), established in 1987 and based in West Perth, Australia, is a leading, national developer of residential communities and commercial developments.
The company has a diversified product mix which includes land subdivisions in emerging residential communities, apartments and townhouses in vibrant inner - middle ring neighbourhoods, as well as complementary supporting retail and commercial facilities. Cedar Woods’ developments aptly reflect its unwavering commitment towards quality.
On May 7th, 2019, the company disclosed its Third Quarter FY19 Operational Update for the three months to March 31st, 2019, whereby Cedar Woods has reported that the company is on track to deliver strong increase in earnings for the full financial year 2019 (FY19), building on the positive first half of FY19 and achieving significant progress at a number of its key projects during the quarter.
In the half-year report to 31 December 2018, Cedar Woods reported a revenue of $204.1 million along with a profit of $30.81 million. The net assets were valued at around $373.26 million including net cash and cash equivalents of $2.65 million.
Besides, the company mentioned in its FY19’s third quarter operational update, that it expects a positive medium-term earnings outlook on the back of $249 million in pre-sales, which is 8 per cent higher relative to the $230 million at the same time last year.
The Managing Director of the company, Nathan Blackburne, commented, “Our strategy to diversify by geography, product type and price point is serving us well as the market conditions remain challenging nationally, with the softening of sales rates in recent months. As an industry, we are facing tighter lending to customers, uncertainty on tax policy and softer consumer sentiment generally.”
New projects are also being launched in several markets including Victoria, Western Australia, Queensland and South Australian regions. Cedar Woods’ balance sheet remains robust with net bank debt-to-equity expected to remain within the lower end of the Company’s target range.
The company has ample capacity to fund new acquisitions and existing projects and is actively evaluating both land and built-form opportunities across multiple states.
Also, during the March 2019 period, the company added a 20.2-hectare site directly adjacent to the Company’s best-selling project, Ariella, in Brabham to its Western Australian land holdings at a purchase price of $28.25 million, with payment on deferred terms due to be settled by July 2019, from private landowners West Swan Pty Ltd and Minx Pty Ltd, and is expected to contribute to earnings from FY21 onward.
The property is zoned Urban and is expected to yield approximately 380 lots. It is near major transport routes via Lord Street and will appeal primarily to first and second homebuyers.
The company has earned a reputation for delivering long-term shareholder value supported by its disciplined approach to acquisitions, the epitome of its aesthetic designs, and the development of dynamic communities that meet the ever-evolving client requirements.
With around 80.12 million outstanding shares, the CPW stock price settled the day’s trading at AUD 5.440, down by 4.225% (as on May 7th, 2019).
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