Strong full-year performance for Peet Group

Key results

  • Operating profit and statutory profit after tax of $44.8 million, up 5%
  • Earnings per share of 9.1 cents, up 5%
  • FY17 dividends of 4.75 cents per share, fully franked, up 6%
  • Revenue of $311.4 million with 3,077 lots settled
  • EBITDA of $91.1 million, up 2%
  • EBITDA margin of 29%
  • 2,186 contracts on hand as at 30 June 2017
  • Gearing of 21.4%

Financial commentary

The Peet Group today announced an operating profit and statutory profit after tax of $44.8 million for the year ended 30 June 2017, which represents an increase of 5% compared with last financial year.

The national property developer also announced an increase of 5% in earnings per share to 9.1 cents for the reporting period, compared to 8.7 cents per share in FY16.

Managing Director and CEO, Brendan Gore, said the results were achieved on the back of continuing strong conditions across the Group’s east coast markets.

“The Group has continued to achieve price growth in these key markets and particularly across the Victoria portfolio. There were also signs of improvement in the Queensland portfolio, with increased levels of enquiry and sales,” said Mr Gore.

Peet has reported EBITDA of $91.1 million during FY17, compared to $89.8 million in FY16, with a solid margin of 29%, slightly less than the FY16 margin of 32%.

Mr Gore said the margin is always impacted by the product mix developed and sold in line with prevailing market conditions; and in FY17 the margin was also affected by the substantial completion in FY16 of several successful projects across the country.

“Significantly, FY17 also saw a ramping up of production across the Queensland portfolio, particularly at Flagstone, where the initial focus has been on building market share and momentum,” he added.

“The Group was also pleased to announce the establishment of two new wholesale funds during the year. These funds involve the co-ownership of residential land development projects with Supalai Public Company, a real estate developer listed on the Thailand Stock Exchange, and projects in the strong western growth corridor of Melbourne (Newhaven, Tarneit) and Redbank Plains (Eden’s Crossing) less than 30 kilometres from Brisbane.

“These projects are expected to be strong contributors to the Group’s earnings over the next decade,” said Mr Gore.

In line with its strategy of managing its pipeline of projects with a focus on maximising return on capital, Peet sold an undeveloped englobo parcel in Rockbank, west of Melbourne, Victoria for $30.5 million. The sale is subject to planning-related conditions, with settlement expected to occur in FY18.


Operational commentary

The Peet Group achieved 3,000 sales during the year, with a gross value of $860.3 million, and 3,077 settlements with a gross value of $844.3 million for the full year. This represented a decrease of 8% and an increase of 7%, respectively, compared with FY16.

A number of new estates were successfully launched by the Group during the year, including Cornerstone and Newhaven in Victoria; Flagstone City and Eden’s Crossing in Queensland; Mt Pleasant in NSW/ACT and Movida in Western Australia. Together with the continuing strong conditions in Victoria, the activity from these new estates partially offset the effects of the completion in FY16 of successful projects such as Quarters and Livingston in Victoria, and Flagstone Rise and Warner Lakes The Reserve in Queensland.

More than half of the Group’s settlements were achieved in the second half of FY17 and, as at 30 June 2017, there were 2,186 contracts on hand, with a gross value of $545.7 million, providing strong momentum into FY18. This compares with 2,426 contracts on hand with a gross value of $545.7 million at 30 June 2016 and, while there is a decrease in the number of contracts on hand, their value is the same as last year reflecting, in part, strong price increases achieved across the east coast portfolio and the product mix sold during the year.

“The strength of the east coast portfolio also underpinned a pleasing increase in contribution from the Group’s Development business. Aston in Victoria made a significant contribution to earnings during the year and we received our first settlement revenue from the Little Green project in Victoria and Greenlea in Western Australia,” said Mr Gore.



Capital management

The Peet Group maintains a disciplined focus on capital management, and at 30 June 2017, the Group’s gearing stood at 21.4% (at the lower end of the target range of 20% to 30%), compared to 28.8% at 30 June 2016, following a strong increase in cash inflows from operations.

At 30 June 2017, the Group had interest-bearing debt (including Peet Bonds) of $249.8 million, compared with $266.9 million at 30 June 2016. Approximately 89% of the Group’s interest-bearing debt was hedged as at 30 June 2017, compared with 84% at 30 June 2016.

Peet enters FY18 with a strong balance sheet that will be applied towards the funding of significant opportunities secured over the last 12 to 18 months, and the development of existing projects. These include the Tonsley urban renewal project in South Australia, the University of Canberra project in the ACT and the Brabham project in Western Australia. These projects are expected to be long-term drivers of earnings in the years ahead.

Subsequent to 30 June 2017, Peet issued $50 million of Series 2, Tranche 1 Peet Bonds, which further diversifies the Group’s debt structure and increases the weighted average maturity of Peet’s debt to more than three years.


Dividend payments

Subsequent to 30 June 2017, the Directors declared a final dividend for FY17 of 3.0 cents per share, fully franked. This brings the total dividend for FY17 to 4.75 cents per share, fully franked, which is an increase of 6% on the previous year (FY16: 4.50 cents per share, fully franked). The dividend is to be paid on Wednesday, 4 October 2017, with a record date of Friday, 22 September 2017.


Group strategy and outlook

The Group will continue to target the delivery of shareholder value and quality residential communities around Australia by leveraging its land bank; working in partnership with wholesale, institutional and retail investors; and continuing to meet market demand for a mix of product in the growth corridors of major Australian cities, with a primary focus on affordable product.

Key elements of the Group’s strategy for the year ahead and beyond include:

  • continuing to deliver high-quality, masterplanned communities, adding value and facilitating additional investment in amenity and services wherever possible;
  • managing the Group’s land bank of approximately 52,000 with a focus on maximising return on capital employed;
  • continuing to assess opportunities to selectively acquire residential land holdings in a disciplined manner under our funds management platform and as appropriate in market conditions; and
  • maintaining a focus on cost and the level of debt.

    FY18 will see the commencement of development of a further three projects on the east coast.

    Subsequent to the year end, it was announced that Peet was the Western Australian Government’s preferred proponent for final negotiations as development partner for a housing project on a 220-hectare landholding in Brabham – 22 kilometres from the Perth CBD. As part of the Brabham joint venture, Peet will establish a new fund with a wholesale investor to jointly develop the project, with Peet appointed as the development manager.

    The Peet Group’s portfolio of residential development landholdings, supported by a strong balance sheet, is well positioned for sustainable long-term growth and the outlook is generally supported by market fundamentals with sustained low interest rates and modest economic growth.

    The Australian residential property market conditions continued to differ across the States during FY17 and this is expected to continue during FY18 with conditions across Victoria, NSW/ACT and South Australia expected to remain supportive and the Queensland residential market expected to continue to improve due to its relative affordability. Conditions in Western Australia, while stabilising, are expected to remain subdued throughout FY18 and into FY19.

    “The Peet Group has moved into FY18 well-positioned to target growth on FY17 earnings, subject to market conditions and the timing of settlements, with earnings expected to be weighted to the second half,” said Mr Gore.


News and Events

Tonsley Village sales office

Introducing Tonsley Village – Adelaide’s most innovative new address

POSTED ON 16 Jan 2018

You can now be part of Tonsley Village, one of the most exciting and innovative residential developments in South Australia, which was officially launched by the Honourable Kyam Maher MLC, Minister for Manufacturing and Innovation, on Sunday 14 January.

Merry Christmas from Peet

Merry Christmas and Happy New Year

POSTED ON 21 Dec 2017

From all of us at Peet, wishing you a happy festive season with your family and friends.

Please note, Peet offices will be closed from Monday 25th December 2017, and will re-open on Tuesday 2nd January 2018. For Sales Centre opening hours, please check the estate website for details.

2017 Peet AGM

2017 Annual General Meeting

POSTED ON 29 Nov 2017

Our shareholders gathered in Perth today for our 2017 Annual General Meeting and heard from Chairman Tony Lennon and Managing Director and CEO Brendan Gore about the performance of Peet last financial year, and how we’re positioned for the year ahead. It was also pleasing to have two Board Members, Vicki Krause and Bob McKinnon, re-elected for another term with overwhelming support from shareholders.


L-R: Toby Long (General Manager Mirvac), Tony Gallagher (Regional General Manager, Peet Limited), Malcolm Leslie (Senior Project Director, Peet Limited), Mayor Tim Overall, Councillor Michele Biscotti, James Service (Chair of Googong Township)

Googong landmarks receive new Aboriginal names

POSTED ON 27 Nov 2017

Four prominent landmarks in the new township of Googong have been given Aboriginal names in recognition of the area’s Indigenous heritage which dates back more than 20,000 years.

Annual report 2017

2017 Annual Report

POSTED ON 25 Oct 2017

The Peet Group has a diversified land bank across all mainland state and territories, with a pipeline of approximately 52,000 lots worth $13.8 billion. This represents 17 years’ lot supply based on current sales rates.

The Group acquires, develops and markets residential land, predominantly under a capital-efficient funds management model.

Our focus is to create high-quality masterplanned residential communities for homebuyers across Australia, and achieve the best possible results for our shareholders, investors and partners, which include State and Federal Government agencies and major Australian institutions. These are in addition to our syndicate and company investors.

Download the 2017 Peet Limited Annual Report

OP LAKC 17 team

The OP LAKC 17 team complete Kokoda

POSTED ON 8 Sep 2017

Congratulations to the entire OP LAKC 17 team on their outstanding achievement having completed the gruelling 96km Kokoda Track in Papua New Guinea! The commitment, teamwork and physical and mental strength displayed by the Junior Legatees and their ADF mentors was impressive and their reflections along the way, captured in this video, incredibly moving. We are extremely proud to support Legacy Australia and to be able to share the experiences and wonderful achievements of these group of outstanding young Australians.

Brendan Gore speaking about Operation Legacy Kokoda Challenge

Operation Legacy Kokoda Challenge – ready for take off

POSTED ON 25 Aug 2017

As the group depart on Monday to take on the gruelling 96km track, hear from Peet Managing Director and CEO, Brendan Gore, on why we’re proud to be supporting some very special Legatees on this incredible journey.

FY17 Results Cover Image

Strong full year performance for Peet Group

POSTED ON 24 Aug 2017

The Peet Group today announced an operating profit and statutory profit after tax of $44.8 million for the year ended 30 June 2017, which represents an increase of 5% compared with last financial year. Managing Director and CEO, Brendan Gore, said the results were achieved on the back of continuing strong conditions across the Group’s east coast markets. “The Group has continued to achieve price growth in these key markets and particularly across the Victoria portfolio. There were also signs of improvement in the Queensland portfolio, with increased levels of enquiry and sales,” said Mr Gore.

Peet community partnership

Peet Community Partners

POSTED ON 19 Aug 2017

Supporting the community is in our DNA. Here are just some of the highlights of the wonderful local groups and organisations we have supported through our Community Partnership Program over the past year.


Peet teams up with the 'Experts in Fun'!

POSTED ON 7 Aug 2017

Our commitment to innovation keeps us looking for new ways to deliver exciting lifestyle opportunities for residents in our communities across the country. Peet is excited to have joined forces with ‘experts in fun,’ the Mamma Knows Melbourne team, in an exclusive partnership to guide the design and development of our parks and playgrounds at Cornerstone and Newhaven in the west, and Aston and Aspect in the north.


Training in full swing in preparation for Kokoda

POSTED ON 31 Jul 2017

Operation Legacy Australia Kokoda Challenge 2017 (OP LAKC 17) reached a significant milestone recently, by bringing together Legacy youth from across Australia and their Australian Defence Force (ADF) Mentors for the first time on Exercise POPONDETTA PRELUDE.

Lego Travellers at Lakelands

Lego Travellers visit Peet Communities

POSTED ON 24 Jul 2017

Peet has been thrilled to have the Lego Travellers touring its communities in Western Australia throughout July.

Googong Mums

Health and wellbeing at heart of Peet Communities

POSTED ON 18 Jul 2017

Lifestyles are evolving and Peet is creating communities that respond to the changing needs of homebuyers at all stages of life. Not surprisingly, more residents are making the most of the shared spaces – parks and open spaces that are designed as a kind of ‘communal backyard’ with places to get active and also relax with parklands, waterways, walking and cycling trails, BBQs, shelters, and play equipment.

Flagstone Bridge Opening

Flagstone Bridge Opening

POSTED ON 10 Jul 2017

We have a big, bold vision for Flagstone in Queensland where 12,000 homes and a complete city centre will be built over the next three decades and were excited to mark a major milestone on the project last week.


Peet preferred proponent for affordable housing project in Brabham

POSTED ON 5 Jul 2017

Peet is pleased to have been selected as the preferred proponent to partner with the WA Housing Authority to deliver the new Brabham project. With the potential to be home to thousands of residents with more than 3,000 dwellings, schools, neighbourhood shops and recreational areas, Brabham will be a major transit-oriented development linking the Swan Valley with the Perth CBD.

Lakelands Shopping Centre

Doors open at Lakelands Shopping Centre

POSTED ON 27 Jun 2017

The new Lakelands Shopping Centre opened its doors to hundreds of waiting shoppers on Wednesday 21 June and is now the largest shopping centre between Mandurah and Rockingham south of Perth. The 20,000sqm centre is anchored by Coles, K-Mart and ALDI and boasts more than 40 specialty stores.


Military Art Program

POSTED ON 1 Jun 2017

A unique exhibition of artworks from current and former serving defence personnel will be open – with some works available for sale – on the weekend of 25-26 June only at Wilkinson’s Gallery, Claremont Showgrounds. More than 100 works from participants in the Military Art Program Australia (MAPA), including representatives of Army (including SASR), Navy and Air Force, feature portraits, landscapes, abstracts and military war dogs, wildlife and other military and non-military subjects, a variety of sculptures and other works.


First Home Super Saver!

POSTED ON 10 May 2017

If you’re looking to take that first step on the homeownership ladder, the Federal Government’s First Home Super Saver Scheme will help you save for a deposit by salary sacrificing into your superannuation account.

Flagstone Central Park

Flagstone regional park

POSTED ON 9 May 2017

We have reached a major milestone at Flagstone, with construction of the $6 million first Phase of the Flagstone Central Park now underway! Designed to be a real destination for the whole Flagstone region the Park covers 10 hectares and will be delivered in stages over the next four years. Stages 1 and 2 will include active and passive recreation areas with an adventure theme, including a dog park and innovative skate plaza, which are due to open before the end of this year. Flagstone Central Park will also incorporate a village meeting place, multi-purpose sports field, play equipment, plenty of open space, walking trails and picnic areas.

Today's vision, Tomorrow's reality

POSTED ON 7 Apr 2017

Peet was pleased to be a gold partner of the 2017 UDIA National Congress which celebrated its 25th anniversary in Perth, welcoming industry leaders from around the country.

Aspect Norsta townhouses

Small lots on trend

POSTED ON 3 Apr 2017

Peet’s commitment to innovation has always been a key driver of its success. Today’s affordability pressures; changing demographics and lifestyles; and the need to limit urban sprawl have all contributed to the increased demand for smaller lots and built form options that don’t compromise on space or quality.


Strong half-year performance

POSTED ON 3 Feb 2017

Continuing strong conditions across the Peet Group’s east coast markets were reflected in our performance during the first half of the 2017 financial year. The Group recorded an operating profit after tax and statutory profit for 1H17 of $19.8 million – a 7% increase on the previous corresponding period. Improved margins and earnings were achieved on the back of price growth in both Funds Management and Development projects in the Victorian portfolio; the contribution of new projects across Australia; and Peet’s continuing focus on efficiencies across the business. It’s all made possible thanks to the dedication and commitment of our team and we thank each and every one of you for what you bring to the business.

Military art workshop

Art at sea helps WA forces this festive season

POSTED ON 7 Dec 2016

WA defence personnel are taking up ‘arms’ in the form of pencils and paints to help them cope with being far from family and home during this festive season. A new initiative is encouraging serving men and women to immerse themselves in drawing and painting while they are away on a tour of duty. The Art In The Field project provides individual art packs to defence bases, outposts and naval vessels to give military personnel an artistic alternative to the usual off-duty activities such as fitness, sports and games – with a high degree of therapeutic benefit.

Major General Stuart Smith AO, DSC, Legacy Australian Ambassador and former Legacy ward launched the OLAKC in Canberra

Peet proud to support the Operation Legacy Australia Kokoda Challenge 2017

POSTED ON 16 Nov 2016

Major General Stuart Smith AO, DSC, Legacy Australia Ambassador and former Legacy ward, has today launched a joint initiative which will see Australian Defence Force (ADF) Members mentor Legacy youth in a leadership development challenge, to commemorate the 75th anniversary of the Kokoda Campaign.

Peet Managing Direct and CEO, Brendan Gore, with Alongside

Alongside strengthens support for frontline families

POSTED ON 6 Sep 2016

More than half a million people make up Australia’s frontline, working as Defence or Emergency Services personnel, where exposure to trauma is unavoidable and there is an increased prevalence of mental health problems.

Major new South Australian project for Peet Group

Major new South Australian project for Peet Group

POSTED ON 30 Jun 2016

The Peet Group will partner the South Australian Government in the redevelopment of the residential component of Tonsley – a major new education, industry and residential precinct just 10 kilometres from the Adelaide CBD.


University of Canberra and Peet Plan $1.7 billion project

POSTED ON 30 Jun 2016

The University and Canberra and Peet have entered a conditional agreement for the proposed development of a new and innovative residential community in the ACT.


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