Western Australia’s leading apartment development company Finbar Group (ASX: FRI) says it expects to report a net profit of approximately $11 million for the financial year ended 30 June 2022, an increase of approximately 15% on the previous financial year.
Finbar records the strongest sales period since FY15 with 443 lots sold to the value of $293.7 million. AT238 will be the next project completion, with revenue expected in the second half of FY23.
Finbar will pay a second-half dividend of $0.02 per share, fully franked. Combined with the interim dividend of $0.02 per share, the full-year dividend is $0.04 per share.
The improved FY22 profit was predominantly built upon the completion and settlement of 89 sold lots to the value of $41.5 million at the company’s wholly owned Dianella project, which occurred in the first half of the financial year, along with the sell-down of all remaining residential lots across all other completed projects.
An increase in valuation in the company’s Karratha project on the back of a 6% increase in rental revenue has also provided a $5.1 million uplift in value for the benefit of the results (after provision for taxation). Pelago Apartments in Karratha remains an attractive wholly owned asset for Finbar, where it is seeing continual increases in rental rates and strong occupancy in a city aligned closely to resource sector activity with no new apartment supply and no near-term entrants to the market.
Finbar ended the financial year with $32.9 million in cash.
The company expects $657 million in project value in FY24 on completion of the Civic Heart, Aurora and
The Point projects.