Sunland revenue jumps 67, boosted by Abian tower settlements

Developer Sunland Group said its full-year revenue jumped 67 percent while profit rose 12 percent from the previous year to $35.3 million, helped by a rise in revenue from property sales.

The result was in line with the group’s outlook.

Sunland managing director, Sahba Abedian, said the improved earnings was due to its focus on the luxury multi-story sector.

“The strategic repositioning of the portfolio three years ago to return to the luxury multi-storey sector, and our expansion in to south-east Queensland residential markets, has delivered a strong financial performance for the year,” Abedian said. 

“This has been balanced by the continuance of our conservative capital management strategy and share buyback program, which has enhanced earnings per share and contributed to Net Tangible Asset per share growth consistently over the past eight years.”

The group announced a final dividend of 4 cents.

In addition, Sunland also announced a special dividend of 2 cents following the settlements at its luxury Abian residential tower (picture above) in the Brisbane CBD.

Sunland said it has a solid pipeline of 18 projects along Australia’s east coast, with 14 residential projects under construction in Queensland, New South Wales and Victoria.

“Throughout the course of the 2018 financial year we intend to launch a further eight projects, pending planning approvals and market conditions,” Abedian said.

During the financial year ended June 30, Sunland said it had launched three residential projects — Marina Concourse and The Lakes Residences on the Gold Coast, and 18 Macpherson Street in Warriewood in Sydney’s Northern Beaches. 

Its $3.9 billion portfolio comprises 5,601 land, housing and multi-storey housing.

Sunland’s revenue from property sales jumped 67% to $394.3 million from $235.6 million in 2016, generated from 597 settlements (2016: 443 settlements). 

“A major contributor to revenue was the luxury Abian residential tower in the Brisbane CBD, which commenced settlements in June 2017 and has increased the average revenue per lot due to the higher average contract price,” Sunland said in a media release. 

Other contributors to revenue include Magnoli Residences, the heights, and Ancora on the Gold Coast; Carré Residences and The Gardens in Victoria; and Dahlia Residences in New South Wales. The portfolio achieved an average return of 20%, in line with Sunland’s target development margin.

Sales volume increased 23% in FY17 with new project launches in Queensland and New South Wales, in addition to sales from the existing portfolio, with 524 sales completed to the value of $376.4 million (2016: 426 sales to the value $261.3 million). 

Contracted pre-sales for projects that have been released across the development portfolio total 641 as at 30 June 2017, with a combined value of $534.4 million.

Sunland’s multi-storey portfolio is primarily located in premium, high-growth locations across the Gold Coast.

Construction of the twin six-storey, mid-rise apartment buildings at Marina Concourse, located adjacent to the Royal Pines Marina, is scheduled for completion in mid-2018. 

Other multi-storey projects in the preliminary design and approval stages include 272 Hedges Avenue (high-rise), Greenmount Residences (medium-rise), One Marine Parade (high-rise), The Lakes (medium-rise), and Palm Beach (medium-rise). 

It has also acquired sites in Sydney (Mount Annan), Brisbane (Everton Hills), and the Gold Coast (Coolangatta and Mermaid Beach) totalling $65.5 million and added 579 allotments to the portfolio with an estimated end value of $689 million. 

The two site acquisitions on the Gold Coast, at Coolangatta and Mermaid Beach, are earmarked for luxury multi-storey residential developments which, pending planning approvals, will be launched in 2018.