By Stuart Condie
SYDNEY–Australian real-estate developer Lendlease raised its interim dividend by 33% after trimming its first-half loss and flagging a strategy update before the end of the current fiscal year.
The ASX-listed company on Monday reported a net loss for the six months through December of 136 million Australian dollars (US$88.8 million), compared with a net loss of A$141 million a year earlier. Revenue slipped 5% to A$4.92 billion.
Core operating profit, a key metric for analysts and investors, fell 42% to A$61 million. The average analyst forecast had been for a core operating profit of A$164 million off revenue of A$6.23 billion, according to data compiled by FactSet.
Lendlease attributed what it called a modest core operating profit to difficult real-estate capital-market conditions, citing lower activity and lower property valuations.
Investment property valuations in Lendlease’s investments segment were down A$125 million. Lendlease also recorded A$56 million in redundancy costs, and made a A$22 million provision in relation to retrospective building remediation regulations in the U.K.
Directors raised the half-year dividend to 6.5 Australian cents, from 4.9 Australian cents a year ago.
Lendlease said it would hold a strategy update by late May. It expects fiscal 2024 gearing to be around the midpoint of its 10%-20% target range.
It sees an improved second-half performance from its development business, and a higher contribution from construction. It said its financial performance in Europe and the Americas would continue to be affected by challenged capital markets.
Write to Stuart Condie at [email protected]
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