LISTED Brisbane property developer Sunland Group (ASX: SDG) has provided earnings guidance of between $27 million and $30 million in net profit after tax for the 2018 financial year.
The guidance figure is slightly down on FY17 and the company says this is a reflection of the "cyclical nature" of the market.
"The guidance for FY18 reflects the cyclical nature of the property market, and a number of projects scheduled to settle on the cusp of the financial year end, whilst increasing the core dividend profile," says Sunland in an ASX announcement.
Group managing director, Sahba Abedian (pictured) says residential markets along the east coast had been affected by tightening lending standards and a decline in the international investor market.
"There is a rationalisation taking place and projects that were once earmarked for delivery are now somewhat being reassessed in light of different funding arrangements," Abedian says.
Sunland has eight new major projects planned for delivery in 2018 worth a total of $1.4 billion which are mostly in south east Queensland.
These include the Marina Concourse at Royal Pines, with 60 per cent pre-sales of the 110 residential apartments, and The Lakes Residences at Mermaid Waters where all 67 homes had sold.
"Sunland enters FY18 in an active phase of delivery, with 14 residential projects under construction in Queensland, New South Wales and Victoria," says Abedian.
Abedian says the focus on south east Queensland was designed to capitalise on the overpriced Sydney and Melbourne residential markets with residents from Australia's two biggest cities expected to migrate north in search of affordable housing.
The board of directors announced it will pay a fully franked dividend for the 2018 financial year of 11 cents, payable in two instalments of 5 cents and 6 cents.
Sunland's national portfolio currently comprises 6,270 residential lots, retail, and commercial assets with a total end value exceeding $4.7 billion.
Shares in the property developer closed Wednesday at $1.70, down 0.5 per cent.
Business News Australia
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