Cedar Woods Half Year FY24 Financial Results

Cedar Woods (ASX: $CWP) has released its Half Year FY24 Financial Results, reporting a net profit after tax of $2.6m, total revenue of $123.2m, and earnings per share of 3.2c. The company's strategy focuses on growing its national project portfolio, diversifying by geography, product type, and price point to maintain broad customer appeal and perform well in various market conditions.

Executive Commentary

To grow our national project portfolio, diversified by geography, product type & price point, so that it continues to hold broad customer appeal & performs well in a range of market conditions.

Summary of Half Year FY24 Financial Results

Cedar Woods (ASX: $CWP) has announced its Half Year FY24 Financial Results, highlighting the company's strategy to grow its national project portfolio through new partnerships and a diversified portfolio. The company has entered into major partnering arrangements with QIC and Tokyo Gas Real Estate, aiming to expand operations, generate recurring fee income, and diversify funding sources. Additionally, the sale of Williams Landing Shopping Centre for $60m is expected to significantly reduce gearing and increase corporate finance facility headroom. With a strong presence in the more affordable markets and a portfolio of approximately 9,700 lots/dwellings in quality locations, Cedar Woods is well-positioned for medium-term earnings. The company anticipates a significantly stronger second half, driven by the sale of WLSC and planned residential settlements, with an expected full year FY24 NPAT in the range of $36m - $39m, subject to timing of settlements. The company's outlook remains positive, supported by strong enquiry and sales levels, a favorable macro-economic environment, and housing supply shortages nationwide. Cedar Woods is focused on developing 'shovel ready' projects and stages, partially de-risking future earnings and aiming for sustained improvement in sales volumes.