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Cedar Woods Properties (ASX:CWP) - Managing Director, Nathan Blackburne
Managing Director, Nathan Blackburne
Sourced: Cedar Woods
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  • Cedar Woods (CWP) has enjoyed record pre-sales of $426 million, up 17 per cent on the prior corresponding period and up 12 per cent from the previous record
  • The company has also updated its net profit forecasts for the financial year 2021 to approximately $32 million after-tax
  • Cedar Woods’ Managing Director, Nathan Blackburne, said success in generating pre-sales, coupled with a national pipeline of more than 8400 dwellings and lots, positions the company well for the future
  • Cedar Woods recently contracted to acquire a 40.7-hectare site in South Maclean, southwest of Brisbane, purchased for $12.5 million
  • The company said that with approvals already in place, the land will accommodate 500 residential lots plus a childcare centre and is expected to contribute to earnings over the medium term

Cedar Woods (CWP) has enjoyed record pre-sales of $426 million, up 17 per cent on the prior corresponding period and 12 per cent from the previous record.

The company has also updated its forecasts for the financial year 2021 to approximately $32 million after-tax , compared to $29 million forecast at the half-year, representing an increase of 53 per cent over FY20.

Cedar Woods Managing Director Nathan Blackburne said success in generating $426 million in pre-sales, coupled with a national pipeline of more than 8400 dwellings and lots, positions the company well for the future.

“Our high performing projects across four states are trading strongly, presales are at record levels and the business remains well-placed to grow earnings,” Blackburne said.

“With our strong balance sheet and ongoing support from financiers, we are able to make strategic acquisitions and continue to assess opportunities in a number of markets.

“We expect the improved buyer confidence and low interest environment which have underpinned our performance to endure for some time,” he concluded.

Cedar Woods recently contracted to acquire a 40.7-hectare site in South Maclean, southwest of Brisbane, purchased for $12.5 million.

The company said that with approvals already in place, the land will accommodate 500 residential lots plus a childcare centre and is expected to contribute to earnings over the medium term.

“The South East Queensland market is very attractive due to its relative affordability compared to Sydney and Melbourne and this South Maclean site will be one of the last remaining large-scale residential projects in the area to commence development, meaning it will benefit from the existing amenity in surrounding communities”, Cedar Woods chief operating officer Patrick Archer said.

Cedar Woods recently benefited from state and federal home construction stimulus packages, but now that the measures have ended, the company expects the market to soften slightly.

With rising rents and falling vacancy rates in most capital cities, Cedar Woods said that it anticipates investor sales will increase through the remainder of 2021.

On the market this morning, CWP is up 4.11 per cent and trading at 7.35 cents at 11:30 am AEST.

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