Cedar Woods Properties targets 15% profit growth
Key points
- Cedar Woods Properties confirmed it is on track to deliver approximately 15% net profit after tax growth for FY27.
- The share price for Cedar Woods Properties rose 1.49% to $6.14 following the announcement.
- Strong presales of over $763 million are underpinning future earnings visibility across multiple financial years.
Cedar Woods Properties (ASX:CWP) announced it is on track to deliver a 15% increase in net profit after tax to approximately $75 million for FY27.
The projected growth compares to quarterly property sales that fell 57% year-on-year to 167 gross sales as Reserve Bank of Australia interest rate increases slowed buyer demand.
The company stated that its high level of pre-sold contracts will support future earnings and fund ongoing property development projects across Australia.
Cedar Woods reported $763 million in total presales at quarter end, with $380 million expected to settle in FY27, $316 million in FY28, and $67 million in FY29.
Cedar Woods management expects strong forward contract settlements to provide long-term revenue stability despite broader economic pressures.
Following the announcement, the Cedar Woods Properties share price was up to $6.14.
The company completed 311 property settlements during the first quarter of FY27, which tracks ahead of internal budgets towards a full-year target of 1,100 to 1,200 settlements.
Cedar Woods maintains $330 million in total corporate finance facilities, with 80% set to a three-year tenure and 20% to a five-year tenure.
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