Western Australia’s leading apartment development company Finbar Group Limited (ASX:FRI) has reported a net profit of $1.3 million after tax for the first half of the 2024 financial year with sales revenue from completed apartments expected to flow in the second half.
The result is largely attributable to investment property revaluations due to there being no development project completions in the company’s core business of property development during the period.
The independent revaluation of investment properties saw mixed results with Pelago rental apartments in Karratha experiencing a valuation increase of $3.44 million after tax, reflecting the continued strength of the resources sector in the Pilbara region and the demand for accommodation in Karratha seeing limited new supply.
The Company’s investment property in East Perth, The Fairlanes office building, experienced a valuation impairment of $1.0 million after tax reflecting a shortened weighted average lease expiry profile and current vacancy levels.
Construction at Finbar’s flagship 335 lot 52.5% profit-shared Civic Heart project continues with the structure complete and the steel and glass roof feature currently being erected. Finbar has sold 263 lots to the value of $280 million in the $434 million project.
It is anticipated that practical completion for this project will be reached in late May 2024 with settlements for the sold lots expected to commence in June 2024.
Similarly, construction at Finbar’s at Aurora project in Applecross project continues with the structure now complete.
Finbar has sold 61 of the 121 lots to the value of $56.1 million in the $148.9 million project.
Based on the current progress and expected completion timeline it is expected that practical completion of this building will not be reached until July 2024 with settlements forecast to commence in July/August 2024.
Structural completion of the 176 lot The Point project in Rivervale is expected at the end of February 2024. To date, 146 lots to the value of $82.1 million have been sold in this 65% profit shared project. The Point project is currently anticipated to be fully completed in October 2024, with settlements at the $106.3 million project commencing thereafter.
Finbar Managing Director Darren Pateman commented: “Our Company is very much looking forward to the completion of major projects Civic Heart and Aurora mid-year so we can reward our patient shareholders and focus our efforts on commencing the next round of projects in our pipeline.”
