Lend Lease rises on Barangaroo sales
While the construction division's results were impacted by weakening market conditions and costs associated with restructuring, the group posted a $551.6 million net profit for the year to June 30, up from $501.4 million in the previous year.
Lend Lease did not issue earnings guidance but said the market consensus for next year was about $544 million.
The group warned in June that this year's earnings would be hit by lower construction earnings.
The final distribution was 20¢ a share, taking the full year pay out to 42¢, up 11 per cent.
On August 1, the group finalised the integration of the construction operations around its three core areas of building, engineering and services. That is likely to result in redundancies of between 250 and 300 people in coming months.
It said it would work with staff to explore every opportunity for redeployment as it consolidated its Abigroup and Baulderstone businesses.
Lend Lease chief executive Steve McCann, who renewed his managing directorship this week, said the engines for growth would be the residential communities and infrastructure development business.
He said the investment funds under management rose 17 per cent to $10.3 billion, helped by the Asian retail malls projects.
But Mr McCann said, while all assets on the balance sheet were for sale at the right price, the stake in Bluewater shopping centre in Britain was not close to being sold.
"There's still a number of projects that we've got our eye on in Australia and offshore. But the amount of embedded earnings in our pipeline means we don't need to pursue projects aggressively from here."
Lend Lease's planned developments globally have an end value of $37 billion, the largest in its history.
It has $17.2 billion in expected construction revenue and will boost that with the staged developments at Barangaroo, Darling Harbour and at the site of the 2012 London Olympics athletes' village.
In Australia, Mr McCann said the group was in discussions with a number of possible tenants to anchor the planned third office tower at Barangaroo.
Frequently Asked Questions about this Article…
Lend Lease's 10% profit increase was driven in part by residential sales at Barangaroo South and a $17.2 billion construction backlog. The group reported a net profit of $551.6 million for the year to June 30, up from $501.4 million the previous year.
No, Lend Lease did not issue formal earnings guidance. The company said market consensus for the next year was about $544 million, but it did not publish its own forecast.
Lend Lease announced a final distribution of 20¢ per share, bringing the full-year payout to 42¢ per share — an 11% increase compared with the prior year.
On August 1 Lend Lease finalised integration of its construction operations into three core areas — building, engineering and services — and said this consolidation of Abigroup and Baulderstone could lead to 250–300 redundancies in coming months, while it will explore redeployment opportunities for affected staff.
CEO Steve McCann identified residential communities and infrastructure development as the primary engines for Lend Lease's future growth.
Lend Lease's planned developments globally have an end value of $37 billion — the largest in the company's history — and it has $17.2 billion in expected construction revenue to be boosted by staged developments at Barangaroo, Darling Harbour and the 2012 London Olympics athletes' village site.
Investment funds under management rose 17% to $10.3 billion, a rise the company said was helped by its Asian retail malls projects.
According to CEO Steve McCann, the stake in the Bluewater shopping centre was not close to being sold — while the company said all assets on the balance sheet were for sale at the right price, Bluewater was not near a sale.
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