Lendlease (ASX:LLC) reported a statutory loss of $318 million for the first half of the fiscal year, a sharp reversal from the $48 million profit recorded in the prior corresponding period.
The real estate giant's bottom line was hit hard by $118 million in negative investment property revaluations and impairments.
While the construction arm showed signs of improvement, it was not enough to offset the drag from the developments business and global portfolio devaluations.
Despite the statutory dip, the group hiked its interim dividend to 6.2 cents and maintained its FY26 guidance, with outgoing CEO Tony Lombardo labeling the period a "transitional year" as the company eyes a stronger performance in the second half.
The increase in net tangible assets and the dividend bump suggest the board is projecting confidence in the underlying value of the portfolio.
Lendlease is currently navigating a complex restructuring phase, aiming for an earnings recovery of 28 cents to 34 cents per share by the end of the 2026 fiscal year.
"We anticipate stronger investments, development and construction earnings in the second half and into FY27," said CEO Tony Lombardo.