Cedar Woods Properties Limited
Annual Report 2008

Plain-text annual report

ANNUAL REPORT2008 ABN 47 009 259 081 VictoriA Western AustrAliA COntents MELBOURNE WANNEROO Carine GEELONG PORT PHILLIP BAY private estate Cedar Woods’ objective .................................................. 2 About Cedar Woods ....................................................... 3 2008 highlights ............................................................... 4 Report to shareholders .................................................... 6 Overview of projects ........................................................ 10 Investor summary ............................................................ 16 Corporate directory.......................................................... 18 Well lOCAted pROjeCts In gROWth CentRes Harrisdale For restdale PERTH ROCKINGHAM MANDURAH 1 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT2008 CEdAR WOOds’ ObjECTIvE cedar Woods’ primary objectiVe is to create Value for shareholders through groWth in earnings. IN mEETINg OUR PRImARy ObjECTIvE WE sEEk TO:- communicate the company’s progress to shareholders and the investment community; satisfy customers’ expectations through excellence in property development; align the interests of the company and its employees and provide employees with the opportunity for growth and development; have our citizenship recognised by the communities in which we operate and be recognised as environmentally responsible; and maintain the highest ethical standards. 2      AbOUT CEdAR WOOds AbOUT CEdAR WOOds Cedar Woods Properties Limited is an Australian property development company. The company was established in 1987 and has been listed on the Australian securities Exchange since 1994, trading under the security code ‘CWP’. Its market capitalisation is approximately $150m. The company’s principal interests are in urban land subdivision and built form development for residential, commercial and industrial purposes. Its portfolio of assets is located in Western Australia and victoria. The board and management of Cedar Woods have extensive experience in the property industry, with particular expertise in adding value to land holdings through the achievement of government and local authority approvals and the planning and design process. Cedar Woods has consistently generated profits and dividends for shareholders, whilst achieving excellence in product delivery, as recognised by several national awards and many “Environmental Excellence” and most the categories “best Residential recently, including state awards, Estate”, “best high density development.” Cedar Woods’ projects are sensitively developed with consideration for environmental and community interests and built to a high quality that is renowned in the marketplace. Purchasers of the company’s land and developed products have often enjoyed strong capital appreciation in their investments. Through the rapid expansion of its built form development portfolio, Cedar Woods has earned a reputation of delivering high quality apartments for both the owner-occupier and investor market. The company has a strong focus on shareholder value and its record in delivering quality developments to the market has produced a strong earnings stream, providing high returns to shareholders. 3 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT2008 2008 hIghLIghTs A record profit of $20.6m; earnings per share increased 10%; strong pre sales from Melbourne projects; the company wins two State Government tenders in WA; and funding secured for future growth. 2008 financial results summary YEAR EnDED 30 JunE 2008 2007 % ChAnGE Revenue Net profit after tax Total assets Net bank debt Net bank debt to equity - 30 june Interest cover Key shareholder information YEAR EnDED 30 JunE basic earnings per share dividends per share – fully franked Total shareholder return (1 year) Net asset backing per share shares on issue – end of year shareholders’ equity stock market capitalisation at 30 june share price $m $m $m $m % x ¢ ¢ % $ m $m $m $ 81.9 20.6 90.0 18.6 185.0 155.6 80.6 96.1 4.2 63.8 89.0 5.8 (9.0) 10.8 18.9 26.3 7.1 (27.6) 2008 2007 % ChAnGE 37.3 18.0 (44) 1.52 55.1 83.9 151.6 2.75 33.9 17.0 20 1.31 54.8 71.6 286.2 5.22 10.0 5.9 (64) 16.0 0.5 17.2 (47.0) (47.3) Return on equity of 24% exceeded the minimum acceptable return of 12% and return on capital achieved of 19% exceeded the minimum benchmark of 14%. Reference should be made to the financial performance summary on page 16 of this annual report which tables the financial performance of the company over the last 5 financial years. Commentary on the performance of the individual projects in the company’s portfolio is set out on pages 10 to 15 of this report. 4      2008 HigHligHts 2008 hIghLIghTs 5 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT2008 REPORT TO shAREhOLdERs 2008 annual result In 2008 Cedar Woods delivered a record profit of $20.6m. In 2008 the company achieved another strong profit, resulting in further growth in dividends to shareholders. Earnings per share growth met the company’s target of 10% pa, increasing from 33.9 cents to 37.3 cents. This was a particularly pleasing result given the difficult year experienced by financial and property markets. Unfortunately, despite the achievement of record earnings per share, the company share price experienced a significant decrease as events on financial markets negatively impacted the Australian stock market, in particular the property sector. your board is confident that the underlying market value of the company’s assets is significantly higher than the current share price reflects. gearing (net bank debt to equity) at 30 june 2008 was 96%, above the preferred range of 20 - 75% due to the impact of a number of built form projects and the company’s investment in developments that will provide future earnings. Interest cover was 4.2, slightly below the minimum target of 5. capital management and the 2008 diVidend The directors have declared a fully franked final cash dividend of 10 cents, bringing the full year payout to 18 cents (17 cents in 2007). The final dividend will be paid on 31 October 2008. The dividend reinvestment plan (dRP) will be available for the final dividend. The dRP has been partially underwritten, with funds raised to be used for working capital purposes. 6 57,189200410.010,25357,189200512.012,40075,130200615.030.316,20880,520200717.033.918,55390,008200818.037.320,55781,94120.223.3Dividend per share (cents)Earnings per share (cents)Net profit after tax ($’000)Revenue ($’000)the economy and the property marKet The national economy is slowing, with the Federal government forecasting Australian gdP growth of 2.75% for Fy2009, significantly lower than the 4.3% achieved in Fy2007 and 3.5% forecast for Fy2008. Consumer and hence homebuyer confidence has been hit with the combined effects of interest rate increases, higher petrol prices and global financial market volatility. however, with the Reserve bank recently reducing the cash rate by 0.25% it is apparent we are past the peak in the current interest rate cycle. The Western Australian residential market has been in decline for the last 12 months, with both building starts and finance approvals trending downwards since mid 2007. With declining affordability, the rate of sales has slowed and building commencements have dropped. REPORT TO shAREhOLdERs likely to continue The subdued conditions are through Fy2009. however, the medium to long term outlook is much brighter, as the state’s economy continues to perform strongly and demand inbound migration is expected to stimulate the property market in due course. for housing created by In victoria there has been a steady increase in the population in the last 12 months, and pent up demand in the market is starting to build. building approvals have been trending upwards over the last year and housing starts are increasing. Established house prices increased 23% in 2007 and levelled out in 2008. The residential vacancy rate remains at an historical low and is helping to support activity in the first home-buyer market. demand for new housing lots is anticipated to remain robust over the next 12 months. 7 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT2008 REPORT TO shAREhOLdERs projects despite subdued market conditions in WA, the company’s residential projects performed well, experiencing a steady level of buyer activity through the financial year. The board was pleased to see the completion of two important apartment projects during the year, with the second stage of the Nautilus Apartments in Rockingham and the Waterline Apartments in halls head both completed. In melbourne, the company successfully launched two major new projects and these were keenly received by the market. In march 2008 the long awaited first two stages of Williams Landing were released and in june 2008 the first stage at Carlingford was launched. At both estates, a high level of presales has already been achieved with revenue and profit from these lots anticipated to be delivered in Fy2009. details of progress at the projects commence on page 10. corporate objectiVes and strategy The Corporate Plan guides the management team’s activities and provides a five year outlook for the company, projecting earnings growth and other key performance indicators under various scenarios. Consistent delivery of 10% pa growth in earnings per share places a company in the upper half of listed industrial companies and this target has been retained as the company’s primary objective. In pursuit of this objective, there are a number of key action items in the Corporate Plan that are adopted as performance targets by senior executives, sales managers and other employees. Twice yearly our audit and risk management committee assesses risk factors that may affect the company. In addition to specific risks affecting individual projects, there are general risks affecting our business sector: changes in the level of demand in the property market; increases in interest rates; change in government support for the housing sector; increased construction costs for both land subdivision and buildings; and increased competition and reducing affordability. The company’s strategies are directed at delivery of earnings growth and in particular addressing key risk factors as follows: Ongoing development of existing projects The company’s core competency is in property development and the company continues to ensure design, delivery and marketing maximise the return the company receives. Diversification of the property portfolio The company has entered into options or similar agreements for several exciting new projects in Western Australia and continues to seek ways to diversify and grow its portfolio. Identification and acquisition of new projects In recent years the company has supplemented its land bank with key acquisitions in Western Australia and victoria. These additions will contribute to earnings growth over the next five years. The focus remains on longer term prospects that provide the potential to add greater value through rezoning and approvals than projects purchased for immediate development. using joint ventures, syndicates and co-development arrangements to leverage the company’s skill base The company is undertaking a joint venture at the mandurah Country Club and in 2006 established its first wholesale syndicate in Perth, Cedar Woods Wellard Limited, which is expected to commence development in Fy2009. during Fy2008 the company won two important government tenders to undertake development for two WA state government entities, further details of which appear on page 12. Retaining ownership of income producing assets The company has started to build a portfolio of income producing assets that will provide a recurring income stream. This portfolio is likely to be expanded with assets that the company will develop at Williams Landing and at other estates where sites are designated for commercial or retail use. 8      REPORT TO shAREhOLdERs sustainability reporting This year we have transferred our environmental and community development report card and overview of research and innovation to a separate web based sustainability Report. This has been posted on our website, www.cedarwoods.com.au. people The company’s management team continues to be expanded to provide a platform for future growth in the Perth and melbourne offices. We have complemented our management team in the area of town planning in order to provide the requisite skills to address this increasingly complex and important area of the business. The company supports various industry groups, such as the Property Education Foundation of WA which focuses on improving the skill base of property professionals on which the company relies. The company helps the Foundation in attracting graduate level candidates to the development industry by participating in the annual internship program. board matters The board is conscious of its duty to ensure the company meets its performance objectives. during the year the board and its committees reviewed their respective charters and performance to ensure they were properly discharging their responsibilities. For more details of the corporate governance framework please refer to the ‘Investor relations’ page of the company website and the corporate governance statement in the 2008 financial report. outlooK Fy2009 will be an exciting year for the company as it progresses its expansion in melbourne and commences development and settlements at Williams Landing and Carlingford. With the first wholesale syndicate project moving into development and new projects with state government entities progressing, the company is well positioned to capalise on a market recovery. The company remains focused on its primary objective of growth in earnings and has managed the project portfolio to enable it to deliver consistent earnings growth. As a result, this enables the company to be highly selective in making further acquisitions. The company maintains its target of achieving 10% annual growth in earnings per share. For Fy2009 the majority of the revenue and earnings are expected to be delivered in the second half of the year and the company will provide guidance on Fy2009 earnings later in the year, as developments progress. We would like to thank our fellow directors, the management team and staff for their dedication over the past year, and all shareholders for their support. W G hAMES ChAIRmAN P S SADLEIR mANAgINg dIRECTOR 9 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT2008 OvERvIEW OF PROjECTs OvERvIEW OF PROjECTs WESTERn AuSTRALIA – LAnD DEvELOPMEnT PROJECT DESCRIPTIOn MARInERS COvE, MAnDuRAh RECEnT AChIEvEMEnTS AnD STATuS Purchased in 1993, 103ha, remaining project life of 5 years. A unique waterfront development close to the mandurah town centre, comprising a mix of canal lots, waterfront townhouses, parkland lots and estuary view lots, mariners Cove boasts a spectacular 230 hectare wildlife reserve complete with ‘The Landings’ is a series of luxury canal townhouse stages being developed in the canal raised boardwalks, two bird hides and an interpretive centre. The reserve protects the Creery Wetlands, an internationally recognised waterbird habitat zone. stage 1, comprising 8 townhouses, is almost sold out. Another 6 townhouses in that is home to migratory birds from around the world. mariners Cove won the state and National Urban development Institute of Australia Environmental stage 2 will commence soon. All but a few of the parkland lots remain and these are Excellence Awards in 2002 and 2003, respectively. It has also won the state and National UdIA awards for best Residential development (250 or more expected to sell out in 2009. lots) in 2004 and 2005 respectively. SuTTOn hERITAGE SITE, MAnDuRAh Purchased in 1990, 2.1ha, remaining project life of 4 years. Part of the company’s award winning Port mandurah canal estate, the historic sutton farm site is to be redeveloped for medium density waterfront apartments with private jetties. The heritage farm buildings have been restored with the cooperation of the heritage Council of Western Australia and will be retained as part of the redevelopment in a parkland setting, together with a heritage listed Norfolk pine tree, which is a local landmark. ThE RIvERGuMS, BALDIvIS Purchased in 2001, 114ha, remaining project life of 6 years. Located in Perth’s southern suburbs and only minutes from the new Perth - mandurah rail line and the Rockingham beaches, The Rivergums residential estate will ultimately provide over 1,000 dwellings. The estate boasts a network of lakes, wetlands, and beautifully landscaped parks. Environmental initiatives included restoration of a degraded wetland, conservation of the local frog population and the revegetation of the adjoining Tramway reserve. The Rivergums was also one of the first housing Industry Association (WA) ‘greensmart’ developments, promoting efficient energy and water use. ThE KESTRELS, TAPPInG development approval is currently being negotiated through a public consultation and assessment process. It is envisaged that a final approval will be granted at the end of 2008. The marketing of the first apartments is expected in 2009. All urban zonings are now in place and approval is being sought for the final masterplan. This year also saw construction of a second access road, new entry statement and provision of land to the department of Education and Training for a combined primary and high school. Purchased in 2003, 50ha, remaining project life of 3 years. As the name suggests, The kestrels residential estate in Perth’s northern suburbs has The kestrels has continued to be popular with buyers. A new land release is currently focused on maintaining habitat and attracting prominent local bird species by maximising parkland and tree planting, and undertaking other revegetation being constructed, leaving only two more staged releases before the project is complete. initiatives. The kestrels is another housing Industry Association (WA) greensmart estate and won the 2006 City of Wanneroo Environmental Excellence A site adjacent to the south of the estate will be developed by the department of Award. The estate will ultimately comprise over 500 dwellings. hELEnA vALLEY PRIvATE ESTATE, hELEnA vALLEY Education and Training into a new high school. Purchased in 2005, 8ha, remaining project life of 2 years. The property is located in the Perth foothills next to the company’s original helena valley Private Estate developed 10 years ago. This new stage, comprising 78 residential lots, has been designed to preserve bushland and maintain the local rural setting. Large residential lots reinforce the unique hills lifestyle. The location, close to the midland Regional Centre, the Perth airport and just 20 minutes from the Perth Cbd, ensures convenient access to work, education facilities, shopping and entertainment. Construction of the new stage is to commence in late 2008. marketing has already resulted in over 30% of lots being pre-sold and the balance of the lots are expected to be keenly sought by buyers from the local area. CAMBRIDGE WATERS, CAnnInG vALE Purchased in 2005, 15ha, remaining project life of 2 years. In an inner southern suburb only 20 minutes from the Perth Cbd, this medium density With the first two stages of residential lots almost sold out, the company will consider a residential project aims to provide a wide choice of housing and lifestyle options for the growing Canning vale community. The development is opposite further release of lots in this popular estate. Plans for high density development will be a regional shopping centre and is set amongst attractively landscaped parklands and lakes with stunning water features. considered over the coming year, as an alternative to a final residential lot stage. 10 11 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT2008 OvERvIEW OF PROjECTs OvERvIEW OF PROjECTs WESTERn AuSTRALIA – LAnD DEvELOPMEnT PROJECT DESCRIPTIOn EMERALD PARK, WELLARD RECEnT AChIEvEMEnTS AnD STATuS syndicate established in 2006, 47ha, remaining project life of 6 years. Cedar Woods Wellard Limited, an investment syndicate managed by the company, owns this exciting residential estate to ultimately comprise over 600 homesites, a school site and sports ground. Its location in Perth’s southern masterplan approval for the estate is nearing completion and construction of the first suburbs, some 33km from the Cbd, adjacent to the kwinana Freeway and close to the recently opened Perth - mandurah rail line, will bring enormous stage land release is expected to commence in late 2008. accessibility benefits to future residents. CARInE Project agreement being finalised, 8ha, project life of 5 years. The planned redevelopment of a former TAFE site in Perth’s middle northern suburb of Carine is the company’s first project to be conducted in conjunction with the Western Australian state government (LandCorp). Cedar Woods and the st A project agreement with the state government (LandCorp) is being finalised. The Ives group were selected through a highly competitive tender process as the preferred project partners. The redevelopment will include residential aged rezoning and masterplanning has commenced and these processes are expected to care, a retirement village, mixed use development and residential townhouses and apartments. The st Ives group is one of the state’s leading providers be completed in 2009. of aged care and retirement housing. hARRISDALE Agreement established in 2008, 30ha, project life of 5 years. Following on from Carine, Cedar Woods was awarded its second joint venture land development with the Western Australian state government, in this case to be conducted with the department of housing and Works. The harrisdale A project agreement with the state government (department of housing and Works) is project is a greenfield site within Perth’s south-eastern urban corridor and will comprise 640 homes and 40 businesses. Won as a result of a tender, it being finalised and the company has commenced its review of the existing masterplan. was the company’s focus on affordability and sustainability that set it apart from its competitors. The department of housing and Works has stipulated It is envisaged that construction of the first stage land release will start in 2009. that a component of social housing be provided throughout the estate. FORRESTDALE Purchased in 2005, 15ha, project life of 6 years. The company’s landholding in Forrestdale is a medium term project with the potential to yield 146 residential lots, including 3 unit sites. Located in Perth’s south-eastern corridor, the site forms part of a larger new urban precinct which includes new retail commercial centres and schools. This new urban area is close to the Armadale Regional Centre and with the extension of the nearby Tonkin highway benefits from good access to surrounding employment centres. This company’s land is part of a larger urban precinct which is expected to be developed in the medium term. The company continues to progress plans in order to capitalise upon development opportunities. WESTERn AuSTRALIA - BuILT FORM nAuTILuS APARTMEnTS, ROCKInGhAM Purchased in 2003, 0.55ha, project now complete. Nautilus Apartments are positioned adjacent the beach, parks and cafes of the Rockingham All apartments in the development have been sold. The company has leased the foreshore area. The 62 apartments in stage 1 enjoy spectacular ocean views. Nautilus stage 2 consists of a further 24 apartments behind Nautilus stage majority of the retail space on the ground floor and holds these properties for long term 1. Residents have access to a private pool, gym and undercover parking. both stages include commercial tenancies on the ground floor. Nautilus investment. Nautilus won the 2008 Urban development Institute of Australia (WA) ‘best Apartment buildings have played a key role in the rejuvenation of the Rockingham town centre. high density development’ award. WATERLInE APARTMEnTS, MAnDuRAh Purchased in 2005, 0.45ha, remaining project life of 3 years. The Waterline Apartments occupy a prime beachfront location, directly opposite doddi’s beach in halls head, mandurah. stage 1 of this beachside development comprises 15 two and three bedroom luxury ocean view apartments and 3 luxury penthouses. Retail space on the ground floor will incorporate a ‘dome’ cafe. The balance of the site will comprise a stage 2 development for which planning is underway. Construction of the stage 1 ocean front apartments and commercial tenancy was completed this year and the remaining apartments are currently being marketed. The company is now exploring development options for stage 2. 12 13 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT2008 OvERvIEW OF PROjECTs OvERvIEW OF PROjECTs WESTERn AuSTRALIA – BuILT FORM PROJECT DESCRIPTIOn ThE FAIRWAYS, MAnDuRAh COunTRY CLuB RECEnT AChIEvEMEnTS AnD STATuS joint venture established in 2004, 0.9ha, project now complete. In a joint venture with the mandurah Country Club, the company has developed 25 prestigious townhouses with spectacular views overlooking the 8th green and 9th tee at The mandurah Country Club golf course in halls head. These The townhouses at The Fairways have been highly sought after. Construction was homes have been architecturally designed to blend in with the surrounding natural environment and to provide an exclusive address and unique lifestyle. completed this year and only a few of the townhouses remain for sale. Retention of significant trees and vegetation while optimising opportunities for views was of paramount importance in the design. ThE JETTY, PALM BEACh ROCKInGhAM Purchased in 2006, 0.2ha, project life of 3 years. The company is soon to commence this 4 storey beachfront development, opposite the landmark Palm beach jetty in Rockingham. The jetty will comprise 15 luxury three bedroom, two bathroom apartments, all with spectacular ocean views and the very best quality fit-out. A ground floor beachfront café is also planned. keen interest has already been shown for this prestigious apartment development, which is expected to be launched in 2009. vICTORIA – LAnD DEvELOPMEnT AnD BuILT FORM WILLIAMS LAnDInG, LAvERTOn Purchased in 1998, 220ha, remaining project life of 15 years. A premium masterplanned community development is being delivered on the former With zoning and masterplan approvals in place and substantial pre-sales achieved, RAAF Williams airfield at Laverton, comprising 4 neighbourhoods with over 2000 dwellings and a major new town centre. significant state government estate construction has commenced on the first two residential stages. The company infrastructure is planned for the site including a new freeway interchange and rail station. The new town centre will integrate directly with these transit is exploring future opportunities to develop and retain ownership of commercial buildings facilities to create a showcase transit-oriented development. anticipated in the town centre component. BAnBuRY vILLAGE, FOOTSCRAY Purchased in 2006, 9ha, remaining project life of 5 years. banbury village is a substantial urban renewal project comprising 300 new home sites, townhouses and apartments. The project is a premium housing development for melbourne’s inner west suburb of Footscray, some 6km from the melbourne Cbd. banbury village will not only look to the future for energy efficiency and sustainability but also embraces the past through the adaptive re-use of the heritage buildings on site. CARLInGFORD, LALOR Zoning and masterplan approvals are in place and the former industrial land has been substantially remediated to make ready for new residential development. Estate construction is anticipated to commence in 2009. Purchased in 2006, 56ha, remaining project life of 7 years. An infill project in melbourne’s northern suburb of Lalor, Carlingford is the first residential estate launched in the area in over a decade. Ultimately comprising 600 housing lots, its location boasts excellent transport links to melbourne’s Cbd and it is within easy reach of shopping, schools and the train network. The first stage of construction is due to commence in late 2008. substantial pre-sales have been achieved following a keen response from buyers in the local area. 14 15 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT2008 INvEsTOR sUmmARy 5 year financial performance summary – as reported FInAnCIAL YEAR 2008 2007 2006 2005 2004 All amounts in $’000 except where stated Financial performance Revenue from ordinary activities Earnings before interest and tax Finance costs Operating profit before tax Income tax expense Net profit after tax Realised reserve 81,941 90,008 31,245 31,304 2,230 4,515 80,520 25,864 2,750 75,130 19,191 1,549 57,189 15,988 1,314 29,015 26,789 23,114 17,642 14,674 8,458 8,236 6,906 5,242 4,421 20,557 18,553 16,208 12,400 10,253 179 271 404 447 646 Net profit after tax plus realised reserve 20,736 18,824 16,612 12,847 10,899 Financial position Total assets Total liabilities shareholders' equity 185,019 155,561 196,365 130,470 101,073 83,918 127,917 83,946 71,643 Number of shares on issue - end of year ('000) 55,138 54,824 Key performance measures Earnings per share (cents) dividend per share fully franked (cents) EbIT margin (%) Interest cover (times) Return on equity (%) Investment in inventory during year Net tangible assets backing per share ($) Net bank debt Net bank debt to equity (%) share price - end of year ($) 37.3 18.0 33.9 17.0 38.1% 34.8% 4.2 5.8 24.5% 25.9% 46,002 73,799 1.52 1.31 80,633 63,735 96.1% 2.75 89.0% 5.22 68,448 54,536 30.3 15.0 32.1% 7.9 23.7% 52,952 1.11 28,974 42.3% 4.48 75,513 54,957 53,253 23.3 12.0 25.5% 6.0 22.6% 48,866 1.03 37,463 68.2% 2.31 94,717 46,885 47,832 53,228 20.2 10.0 28.0% 7.5 21.4% 56,026 0.90 23,157 48.4% 1.70 stock market capitalisation at 30 june 151,630 286,181 244,321 123,014 90,488 Number of employees at 30 june 33 26 27 25 20 16 INvEsTOR sUmmARy Financial performance, financial position and all key performance measures shown in the preceding table up to the year ended 30 june 2005 are shown as previously reported, based on financial accounting under Australian generally Accepted Accounting Practice (AgAAP). data for the years ended 30 june 2008, 2007 and 2006 is based on Australian equivalents to International Financial Reporting standards (AIFRs). diVidend and diVidend policy The current dividend policy is to distribute approximately 50% of the sum of the full year net profit after tax plus realised reserves. having paid an interim dividend of 8 cents per share in April 2008, the final dividend for the 2008 financial year is 10.0 cents per share, fully franked. The dividend will be paid on 31 October 2008. Certain changes have been made to comparative amounts to reflect changes in classifications in the current year. Returns to shareholders over 1, 3 and 5 years FInAnCIAL POSITIOn 1YR 3YR 5YR Earnings per share growth % share price growth % dividend growth % Total shareholder return % 10 (47) 6 (44) 17 6 14 11 21 23 21 29 shareholder discount scheme The company operates a shareholder discount scheme which entitles shareholders to a 5% discount off the listed purchase price of any residential lot at the company’s developments. A summary of the main terms and conditions follows: shareholders must hold a minimum number of 5,000 shares for at least 12 months before purchasing a lot to qualify for the discount; there is no limit to the number of lots which a shareholder may purchase under the scheme, subject to any statutory restrictions; and the shareholder discount scheme does not apply to combined house and land packages. The above is a summary of the main conditions and shareholders should apply to the company or visit the website for the full terms and conditions. 17    CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT2008 CORPORATE dIRECTORy ABN 47 009 259 081 directors William george hames, bArch (hons) mCU (harvard) LFRAIA, mPIA, FAPI (Econ) – Chairman Robert stanley brown, mAICd, AIFs – deputy Chairman Ronald Packer, bCom (UWA), AAPI, FAICd, solicitor supreme Court of England & Wales Paul stephen sadleir, bE, mbA, AAPI, FAICd, FRICs, mIE Aust – managing director share registry Computershare Investor services Pty Ltd Level 2, Reserve bank building 45 st georges Terrace PERTh WA 6000 auditor PricewaterhouseCoopers Timothy Robert brown, bA, LLb, m.Fin (Alternate for R s brown) Qv1 company secretary Paul samuel Freedman, bsc, CA, gAICd registered office and principal place of business Level 4, 66 kings Park Road WEsT PERTh WA 6005 250 st georges Terrace PERTh WA 6000 securities exchange listing Cedar Woods Properties Limited shares are listed on the Australian securities Exchange Limited. AsX Code: CWP Postal address : PO box 788 WEsT PERTh WA 6872 Phone: (08) 9480 1500 Fax: (08) 9480 1599 annual general meeting venue: kings Park Function Centre Email: email@cedarwoods.com.au Website: www.cedarwoods.com.au Time: 10.00am date: 7 November 2008 18 Cedar Woods Properties Limited Level 4, 66 Kings Park Road West Perth WA 6005 P.O. Box 788 West Perth WA 6872 P (08) 9480 1500 F (08) 9480 1599 E email@cedarwoods.com.au W www.cedarwoods.com.au 

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