PROPERTY developer Sunland Group (ASX: SDG) is expecting to post a lower full-year result in FY16, but the profit will be solely driven by solid growth in its underlying operations.
The company revealed it will deliver a full-year net profit of between $25 million and $29 million in FY16.
This compares with $30.1 million in FY15, a result that was boosted by $8 million in asset sales during the period. The FY15 profit from core development earnings came in at $22 million.
Managing director Sahba Abedian, who addressed shareholders at the company's AGM in Brisbane today, says the latest forecast represents growth of between 13 and 31 per cent based on the FH15 operating result.
The FY15 profit compared with $14.25 million a year earlier, and reflects the company's push into higher volume high rise products in recent years, particularly in Brisbane and the Gold Coast.
"In 2016, we anticipate earnings growth of between 13 per cent and 31 per cent from the group's core operating segments as a number of major projects approach completion," says Abedian.
"The broad range reflects a number of projects scheduled to settle on the cusp of the financial year end and therefore subject to the actual settlements achieved.
"The board of directors intend to pay a fully franked dividend for the 2016 financial year of 7c, payable in two instalments anticipated in March 2016 and September 2016."
Sunland spent $82 million on site acquisitions in FY15 and is now gearing up for some of its biggest projects in a decade in both Brisbane and the Gold Coast.
The Abian high rise in Brisbane is under construction and closing in on a sellout, while the company has two twin-tower projects on the drawing board for Brisbane and the Gold Coast Grace on Coronation at Toowong and The Mariner at Mariner's Cove on the Gold Coast.
Sunland has just announced a note issue to raise up to $50 million and continues to undertake a share buyback to support its capital management program.
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