“The change in lending conditions has seen delays in buyers being able to secure finance approvals and more stringent assessment criteria impacting the availability of finance, particularly for first home buyers,” Mr Gore said.
“However, Peet expects a normalisation of the finance approvals process to emerge as property buyers become accustomed to financiers’ new lending requirements.”
Net profit for the half-year grew to $23 million from $21.7 million over the same period a year earlier, fuelled by an increase in settlements across the company’s portfolio.
Despite a previous focus on house and land projects in Melbourne, Peet has diverted its attention to “improving and affordable” markets elsewhere across the country and has divested non-core assets in Victoria to fund other projects. The company has no direct exposure to the weak Sydney market.
Capital from the sales of several Melbourne assets has been used to acquire sites in Queensland, Western Australia and South Australia over the past three years.
Last year Peet bought an 80-hectare property, funded by a new wholesale syndicate, in Perth’s northern coastal corridor with plans to develop more than 1000 homes.
“Peet’s large and diverse land bank with a low cost base that has exposure to affordable markets, its lowly geared balance sheet and with a strong visibility of future operating cash flows, including from new projects commencing development within the next two to three years, underpin Peet’s positive medium to long-term outlook,” Mr Gore said.
from Just News Viral https://ift.tt/2GK9Rbc
0 Comments