Lend lease announced a 50% rise in profit to $822.9 million for the year to the end of June, saying the outlook is positive for the next three years.
The result includes the sale of Lend Lease’s interest in the Bluewater Shopping Centre in the UK, which generated a profit after tax of $485 million.
CEO Steve McCann said Lend Lease has been reshaped and refocused to deliver a significant pipeline of urban regeneration projects.
“We made further progress during the year on the Barangaroo South project in Sydney, with 100% pre sales of the first phase of residential apartments and the launch of the third and largest commercial tower with recent leasing commitments from PricewaterhouseCoopers and HSBC,” he says.
“We are continuing discussions with other potential tenants for International Towers Sydney.”
Construction business in Australia slipped, with profit after tax down 12% to $446 million due partly to higher bid costs in pursuing major engineering projects.
McCann says the outlook is positive.
“Forward pre sales in our residential development business and embedded returns in our existing pipeline clearly underpin our earnings visibility over the next three years,” he says.
Lend Lease is comfortable with consensus net profit after tax expectations of $604 million to $622 million for the current financial year.
The property developer declared a final distribution of 49 cents per security, unfranked.
Detail of the results:
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