More annual reports from Cedar Woods Properties Limited:
2023 ReportPeers and competitors of Cedar Woods Properties Limited:
Trafalgar Property Group plcANNUAL REPORT 09 R E P O L E V E D Y T R E P O R P G N N N W D R A W A I I ABN 47 009 259 081 The Landings at Mariners Cove, Mandurah CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2009 CONTENTS cONTENTs Cedar Woods’ objective About Cedar Woods 2009 Highlights 2009 Financial results summary Key shareholder information Report to shareholders Overview of projects Investor summary Corporate directory 2 2 3 3 3 5 9 13 15 cONTENTs ii cEDAR WOODs’ OBjEcTIVE Cedar Woods’ primary objective is to create value for shareholders through growth in earnings. 109 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2009 CEDAR WOODS’ OBJECTIVE cEDAR WOODs’ OBjEcTIVE 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 of 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. ABOUT cEDAR WOODs commercial and industrial purposes. Its portfolio of assets is located in Western Australia and Victoria. in the property The board and management of Cedar Woods have extensive industry, with particular experience 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 state awards, including the categories “Best Residential Estate” and “Environmental Excellence” and most recently, “Best High Density Development”. for Cedar Woods’ projects are sensitively developed with consideration community environmental 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. and 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 $120m. The company’s principal interests are in urban land subdivision and built form development for residential, Through the rapid expansion of its build 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. 2 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2009 2009 HIGHLIGHTs a net profit of $9.3m; earnings per share of 16.2 cents; significant reduction in debt and ongoing funding in place; strong pre sales in place for FY2010; and earnings growth expected to exceed 10% for FY2010. 2009 FINANcIAL REsULTs sUMMARY YEAR ENDED 30 JUNE 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 at 30 June Return on equity Return on capital $m $m $m $m % x ¢ ¢ % $ M $m $m $ % % 2009 107.1 9.3 162.7 47.9 51.4 2.2 2009 16.2 7.0 (44.7) 1.60 58.2 93.3 82.6 1.42 9.9 11.7 2008 % ChANgE 81.9 20.6 185.0 80.6 96.1 4.2 30.1 (54.9) (12.1) (40.6) (44.7) (47.6) 2008 % ChANgE 37.3 18.0 (43.9) 1.52 55.1 83.9 151.6 2.75 24.5 19.0 (56.6) (61.1) (0.8) 5.3 5.6 11.2 (45.5) (48.4) (14.6) (7.3) Reference should be made to the financial performance summary on page 14 of this annual report which tables the financial performance of the company over the last 5 financial years. 3 CEDAR WOODS’ OBJECTIVE Nautilus Apartments, Rockingham 4 REPORT TO sHAREHOLDERs 509 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2009 REPORT TO ShAREhOLDERS REPORT TO sHAREHOLDERs By the Chairman and Managing Director 2009 ANNUAL RESULT In 2009 Cedar Woods delivered a profit of $9.3m. In 2009 your company achieved a net profit of $9.3m (2008 – $20.6m), equating to earnings per share of 16.2 cents (2008 – 37.3 cents). The result was achieved in difficult conditions, particularly during the first half of the financial year as the impact of the global financial crisis took its effect on the local property and stock markets. The company share price experienced a significant decrease in the first half of the financial year but has since rebounded strongly off its lows. Your board remains confident that the underlying market value of the company’s assets is significantly higher than reflected in the current share price. Gearing (net bank debt to equity) at 30 June 2009 was 51%, well within the preferred range of 20 – 75% and down from 96% in 2008, as the company received income from a number of projects in the second half, in particular the first revenues from its Melbourne projects. Times interest cover was 2.2, down from 4.2 in 2008 and below the company’s target of 5. Interest cover is anticipated to rise significantly next year as earnings improve and interest rates remain at low levels. 2009 2008 2009 2008 2007 2007 2006 2006 2005 2005 7.0 16.2 9,263 7.0 18.0 16.2 9,263 18.0 17.0 107,076 37.3 20,557 107,076 81,941 37.3 33.9 20,557 81,941 18,553 90,008 17.0 15.0 33.9 15.0 12.0 12.0 30.3 23.3 57,189 23.3 12,400 20.2 57,189 20.2 30.3 18,553 90,008 16,208 80,520 16,208 80,520 12,400 75,130 75,130 Dividend per share (cents) Dividend per share (cents) Net profit after tax ($’000) Net profit after tax ($’000) Earnings per share (cents) Earnings per share (cents) Revenue ($’000) Revenue ($’000) 6 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2009 CAPITAL MANAgEMENT AND ThE 2009 DIVIDEND In accordance with the dividend policy, your board has declared a fully franked final dividend of 7 cents per share (2008 – 10 cents). The final dividend will be paid on 30 October 2009. The dividend reinvestment plan will be available for the final dividend, providing shareholders the opportunity to acquire additional shares at a 2.5% discount to the average market price of the shares during the price calculation period. ThE ECONOMY AND ThE PROPERTY MARkET The national economy has slowed significantly over the last 12 months, with economic growth expected to be between 0% and 1% for 2009, as Australia continues to battle headwinds caused by the global economic downturn. Consumer and hence homebuyer confidence has been hit by an increase in the unemployment rate but this has been offset by the effects of interest rate reductions and fiscal stimulus packages. The Reserve Bank lowered the cash rate to 3% as an emergency response to economic conditions prevailing earlier in the year but recent data suggests consumer confidence is improving and the cash rate will be lifted in coming months. The Western Australian residential market is showing early signs of recovery, with modest price growth recorded in recent months after two years of falling prices. Housing starts are expected to increase by 13% in FY2010, underpinned by strong population growth. In Victoria, demand for residential property held up over the last year, supported by robust population growth. The level of housing starts did not fall as it did in most other states and low growth is expected to continue in FY2010. Underlying demand continues to exceed supply and this should help support residential property prices. PROJECTS Although market conditions were difficult in WA, the company’s residential projects performed well. The boost provided by the Federal Government to the First Home Owners Grant stimulated the first home buyer sector and contributed to a strong second half across the company’s metropolitan projects. The board was pleased to see the completion of a new 76 lot stage in the Helena Valley Private Estate, a project that was initially completed by the company in the 1990’s. We look forward to launching new projects in FY2010 including an exciting new apartment project at Palm Beach, following our previous success with similar projects on the Rockingham foreshore. In Melbourne, the company successfully developed the initial stages of two major new residential projects at Williams Landing and Carlingford. Consequently, during the second half the company received revenues from the first settlements in these projects. Both projects continue to be popular with buyers, as a high level of presales has already been achieved on lots to be delivered in FY2010. A successful launch of the company’s third Melbourne project at Banbury Village saw 38 homes sold off the plan with the first 10 of these due for delivery late in FY2010. Details of progress at the projects commence on page 9. 7 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 whilst this target was not achieved in FY2009, the board considers that this target remains appropriate 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 sometimes utilises options or similar agreements as a way of securing new projects whilst progressing necessary approvals. This is part of a strategy to diversify and grow the 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 has undertaken a joint venture at the Mandurah Country Club and has also established its first syndicate company in Perth, Cedar Woods Wellard Limited, which is expected to realise its first revenues in FY2010. During FY2008 the company won two important government tenders to undertake development for two WA State Government entities, further details of which appear on pages 9-11. 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. SUSTAINABILITY REPORTINg Our environmental and community development report and overview of research and innovation is available as a separate web based Sustainability Report. This has been posted on our website, www.cedarwoods.com.au PEOPLE Despite difficult conditions, the company’s staff numbers have been maintained, thereby providing a platform for future growth in the Perth and Melbourne offices. The management team will be supplemented as the company takes on the co-development projects referred to above. 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 various programs. 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 2009 financial report. REPORT TO ShAREhOLDERS OUTLOOk We look forward to a period of growth as the company progresses its expansion in Melbourne and commences the development of several new projects. With these projects, the company is well positioned to capitalise on a market recovery, tentative signs of which are already appearing The company remains focused on its primary objective of growth in earnings and will manage the project portfolio to enable it to deliver consistent earnings growth into the future. The company will also remain highly selective in making further acquisitions. In contrast to FY2009, the timing of settlements of significant projects is anticipated to be evenly spread and therefore earnings should be more balanced between the two halves in FY2010. The company is well positioned, with a diverse product range and a large number of pre-sales in place and the board is confident of achieving strong profit growth in FY2010. 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 8 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2009 OVERVIEW OF PROjEcTs Western Australia – Land Development PROJECT DESCRIPTION Mariners Cove, Mandurah – Purchased in 1993, 196ha, 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 acre wildlife reserve complete with raised board walks, two bird hides and an interpretive centre. The reserve protects the Creery Wetlands, an internationally recognised waterbird habitat that is home to migratory birds from around the world. Mariners Cove won the State and National Urban Development Institute of Australia Environmental Excellence Awards in 2002 and 2003, respectively. It has also won the State and National UDIA awards for Best Residential Development (250 or more lots) in 2004 and 2005 respectively. Sutton heritage Site, Mandurah – Purchased in 1990, 2.24ha, remaining project life of 4 years. Part of the company’s award winning Port Mandurah canal estate, the company plans to redevelop the historic Sutton farm site 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, 139ha, remaining project life of 7 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 around 1200 dwellings plus primary and secondary schools. 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 – Purchased in 2003, 50ha, remaining project life of 1 year. As the name suggests, The Kestrels residential estate in Perth’s northern suburbs has focused on maintaining habitat and attracting prominent local bird species by maximising parkland and tree planting, and undertaking other revegetation initiatives. The Kestrels is another Housing Industry Association (WA) GreenSmart estate and won the 2006 City of Wanneroo Environmental Excellence Award. The estate will ultimately comprise over 500 dwellings. helena Valley Private Estate, helena Valley – Purchased in 2005, 8ha. The property is located in the Perth foothills next to the company’s original Helena Valley Private Estate developed 10 years ago. The new stage, comprising 76 residential lots and designed to preserve bushland and maintain the local rural setting was completed during FY2009. 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. RECENT AChIEVEMENTS AND STATUS ‘The Landings’ is a series of luxury canal townhouse stages being developed in the canal zone. Stage 1, comprising 8 townhouses, is now complete. Another 6 townhouses in Stage 2 will be completed in late 2009. Structure Plan approval is currently being negotiated through a public consultation and assessment process. The marketing of the first apartments is expected in 2011. All urban zonings are now in place and approval is being sought for the final masterplan. With most of the lots in recent stages now sold, the company is turning its focus to the prime land that surrounds the central lake and the land to the north of the estate which will offer views across significant public open space. The Kestrels has continued to be very popular with buyers. The final land release is currently being constructed, bringing to a close the company’s development, with the last lots expected to be sold during FY2010. The release was well received by the market with strong pent up demand. All but a few lots in the new stage were sold in FY2009 with the balance expected to sell during FY2010. 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 residential project aims to provide a wide choice of housing and lifestyle options for the growing Canning Vale community. The development is opposite a regional shopping centre and is set amongst attractively landscaped parklands and lakes with stunning water features. With the first two stages of residential lots almost sold out, the company released a new stage of lots in this popular estate. Comprising 17 standard residential lots and 26 strata title lots, the majority of these lots have now been sold. Emerald Park, Wellard – 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 suburbs, some 33km from the CBD, adjacent to the Kwinana Freeway and close to the recently opened Perth – Mandurah rail line, will bring enormous 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 cooperation with the Western Australian state government (LandCorp). Cedar Woods and the St Ives Group were selected through a highly competitive tender process as the preferred project partners. The redevelopment will include residential aged care, a retirement village, mixed use development and residential townhouses and apartments. The St Ives Group is one of the state’s leading providers of aged care and retirement housing. Construction of the first stage has recently been completed and the first settlements will commence in the first half of FY2010. Incorporating a display village and significant areas of parkland, stage 1 is expected to provide a springboard for future stage releases. A project agreement with the state government (LandCorp) is being finalised. The demolition of existing improvements, rezoning and masterplanning has commenced and these processes are expected to be completed in 2010. 9 OVERVIEW Of PROJECTS OVERVIEW OF PROjEcTs Western Australia – Land Development PROJECT DESCRIPTION Mariners Cove, Mandurah – Purchased in 1993, 196ha, 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 acre wildlife reserve complete with raised board walks, two bird hides and an interpretive centre. The reserve protects the Creery Wetlands, an internationally recognised waterbird habitat that is home to migratory birds from around the world. Mariners Cove won the State and National Urban Development Institute of Australia Environmental Excellence Awards in 2002 and 2003, respectively. It has also won the State and National UDIA awards for Best Residential Development (250 or more lots) in 2004 and 2005 respectively. Sutton heritage Site, Mandurah – Purchased in 1990, 2.24ha, remaining project life of 4 years. Part of the company’s award winning Port Mandurah canal estate, the company plans to redevelop the historic Sutton farm site 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, 139ha, remaining project life of 7 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 around 1200 dwellings plus primary and secondary schools. 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 – Purchased in 2003, 50ha, remaining project life of 1 year. As the name suggests, The Kestrels residential estate in Perth’s northern suburbs has focused on maintaining habitat and attracting prominent local bird species by maximising parkland and tree planting, and undertaking other revegetation initiatives. The Kestrels is another Housing Industry Association (WA) GreenSmart estate and won the 2006 City of Wanneroo Environmental Excellence Award. The estate will ultimately comprise over 500 dwellings. helena Valley Private Estate, helena Valley – Purchased in 2005, 8ha. The property is located in the Perth foothills next to the company’s original Helena Valley Private Estate developed 10 years ago. The new stage, comprising 76 residential lots and designed to preserve bushland and maintain the local rural setting was completed during FY2009. 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. RECENT AChIEVEMENTS AND STATUS ‘The Landings’ is a series of luxury canal townhouse stages being developed in the canal zone. Stage 1, comprising 8 townhouses, is now complete. Another 6 townhouses in Stage 2 will be completed in late 2009. Structure Plan approval is currently being negotiated through a public consultation and assessment process. The marketing of the first apartments is expected in 2011. All urban zonings are now in place and approval is being sought for the final masterplan. With most of the lots in recent stages now sold, the company is turning its focus to the prime land that surrounds the central lake and the land to the north of the estate which will offer views across significant public open space. The Kestrels has continued to be very popular with buyers. The final land release is currently being constructed, bringing to a close the company’s development, with the last lots expected to be sold during FY2010. The release was well received by the market with strong pent up demand. All but a few lots in the new stage were sold in FY2009 with the balance expected to sell during FY2010. 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 residential project aims to provide a wide choice of housing and lifestyle options for the growing Canning Vale community. The development is opposite a regional shopping centre and is set amongst attractively landscaped parklands and lakes with stunning water features. With the first two stages of residential lots almost sold out, the company released a new stage of lots in this popular estate. Comprising 17 standard residential lots and 26 strata title lots, the majority of these lots have now been sold. Emerald Park, Wellard – 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 suburbs, some 33km from the CBD, adjacent to the Kwinana Freeway and close to the recently opened Perth – Mandurah rail line, will bring enormous 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 cooperation with the Western Australian state government (LandCorp). Cedar Woods and the St Ives Group were selected through a highly competitive tender process as the preferred project partners. The redevelopment will include residential aged care, a retirement village, mixed use development and residential townhouses and apartments. The St Ives Group is one of the state’s leading providers of aged care and retirement housing. Construction of the first stage has recently been completed and the first settlements will commence in the first half of FY2010. Incorporating a display village and significant areas of parkland, stage 1 is expected to provide a springboard for future stage releases. A project agreement with the state government (LandCorp) is being finalised. The demolition of existing improvements, rezoning and masterplanning has commenced and these processes are expected to be completed in 2010. OVERVIEW Of PROJECTS 10 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2009 harrisdale – Project agreement being finalised, 30ha, project life of 7 years. This is a joint venture project with the Department of Housing that was awarded to Cedar Woods by competitive tender in 2008. The company’s focus on affordability and sustainability set it apart from its competitors. The project is strategically placed between the established suburb of Canning Vale and Armadale Regional Centre within Perth’s south-eastern urban corridor and has easy access to Roe, Tonkin and Kwinana Freeways. It lies adjacent to the Harrisdale Conservation Reserve and the Southern River local centre and schools and recreation facilities are nearby. On completion the project will include an exciting mix of local shops, offices and showrooms and over 450 new homes, townhouses and apartments built around several public open space areas. Social affordable housing will be integrated sensitively 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. Western Australia – Built form PROJECT DESCRIPTION Nautilus Apartments, Rockingham – Purchased in 2003, 0.55ha, project now complete. Nautilus Apartments are positioned adjacent the beach, parks and cafes of the Rockingham foreshore area. The 62 apartments in Stage 1 enjoy spectacular ocean views. Nautilus Stage 2 consists of a further 24 apartments behind Nautilus Stage 1. Residents have access to a private pool, gym and undercover parking. Both stages include commercial tenancies on the ground floor. Nautilus Apartment buildings have played a key role in the rejuvenation of the Rockingham town centre. 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 now incorporates a ‘Dome’ cafe. The balance of the site will comprise a Stage 2 development for which planning is underway. The fairways, Mandurah Country Club – 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 homes have been architecturally designed to blend in with the surrounding natural environment and to provide an exclusive address and unique lifestyle. 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. Victoria – Land Development and Built form PROJECT DESCRIPTION Williams Landing – Purchased in 1998, 275 ha (220ha developable), remaining project life of 14 years. A premium masterplanned community development is being delivered on the former RAAF Williams airfield, comprising 4 neighbourhoods with over 2000 dwellings and a major town centre. Significant state government infrastructure is planned for the site including a new freeway interchange and rail station. The new town centre will integrate directly with these transit facilities to create a showcase transit-oriented development. It is anticipated that the State Government will commence construction of the transport infrastructure in 2010. 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 with energy efficient homes but also embrace the past through the adaptive re-use of heritage buildings on site. The former industrial land has been remediated to make ready for new residential development. A project agreement with the state government (Department of Housing) is being finalised and it is envisaged that construction of the first stage land release will start in late 2009. A display village in this first stage will be constructed to demonstrate the housing options and sustainability features of the project. 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. RECENT AChIEVEMENTS AND STATUS All apartments in the development have been sold. The company has leased the majority of the retail space on the ground floor and holds these properties for long term investment. Nautilus won the 2008 Urban Development Institute of Australia (WA) ‘Best High Density Development’ award. Construction of the Stage 1 ocean front apartments and commercial tenancy was completed in 2008 and the remaining apartments are currently being marketed. The company is now exploring development options for Stage 2. 21 of the townhouses at The Fairways have been sold with the remaining homes expected to be sold during the next 12 months. Keen interest has already been shown for this prestigious apartment development, which is expected to be launched late in 2009. RECENT AChIEVEMENTS AND STATUS With zoning and masterplan approvals in place and the first two residential stages completed, the company is moving forward with construction of 4 more stages. The company is also starting the detailed planning of the town centre component of the project. The first stages have been released and all 38 homes have been pre-sold. Civil construction has commenced and the first homes are expected to be delivered in FY2010. Carlingford, Lalor – 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 CBD and is within easy reach of shopping, schools and the train network. The first two stages have now been completed and sold. Substantial pre-sales have been achieved in the two subsequent stages as interest remains strong from buyers in the local area. 11 harrisdale – Project agreement being finalised, 30ha, project life of 7 years. This is a joint venture project with the Department of Housing that was awarded to Cedar Woods by competitive tender in 2008. The company’s focus on affordability and sustainability set it apart from its competitors. The project is strategically placed between the established suburb of Canning Vale and Armadale Regional Centre within Perth’s south-eastern urban corridor and has easy access to Roe, Tonkin and Kwinana Freeways. It lies adjacent to the Harrisdale Conservation Reserve and the Southern River local centre and schools and recreation facilities are nearby. On completion the project will include an exciting mix of local shops, offices and showrooms and over 450 new homes, townhouses and apartments built around several public open space areas. Social affordable housing will be integrated sensitively throughout the estate. A project agreement with the state government (Department of Housing) is being finalised and it is envisaged that construction of the first stage land release will start in late 2009. A display village in this first stage will be constructed to demonstrate the housing options and sustainability features of the project. 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 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. OVERVIEW Of PROJECTS surrounding employment centres. Western Australia – Built form PROJECT DESCRIPTION Nautilus Apartments, Rockingham – Purchased in 2003, 0.55ha, project now complete. Nautilus Apartments are positioned adjacent the beach, parks and cafes of the Rockingham foreshore area. The 62 apartments in Stage 1 enjoy spectacular ocean views. Nautilus Stage 2 consists of a further 24 apartments behind Nautilus Stage 1. Residents have access to a private pool, gym and undercover parking. Both stages include commercial tenancies on the ground floor. Nautilus Apartment buildings have played a key role in the rejuvenation of the Rockingham town centre. 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 now incorporates a ‘Dome’ cafe. The balance of the site will comprise a Stage 2 development for which planning is underway. The fairways, Mandurah Country Club – 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 homes have been architecturally designed to blend in with the surrounding natural environment and to provide an exclusive address and unique lifestyle. Retention of significant trees and vegetation while optimising opportunities for views was of paramount importance in the design. beachfront café is also planned. Victoria – Land Development and Built form PROJECT DESCRIPTION Williams Landing – Purchased in 1998, 275 ha (220ha developable), remaining project life of 14 years. A premium masterplanned community development is being delivered on the former RAAF Williams airfield, comprising 4 neighbourhoods with over 2000 dwellings and a major town centre. Significant state government infrastructure is planned for the site including a new freeway interchange and rail station. The new town centre will integrate directly with these transit facilities to create a showcase transit-oriented development. It is anticipated that the State Government will commence construction of the transport infrastructure in 2010. 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 with energy efficient homes but also embrace the past through the adaptive re-use of heritage buildings on site. The former industrial land has been remediated to make ready for new residential development. RECENT AChIEVEMENTS AND STATUS All apartments in the development have been sold. The company has leased the majority of the retail space on the ground floor and holds these properties for long term investment. Nautilus won the 2008 Urban Development Institute of Australia (WA) ‘Best High Density Development’ award. Construction of the Stage 1 ocean front apartments and commercial tenancy was completed in 2008 and the remaining apartments are currently being marketed. The company is now exploring development options for Stage 2. 21 of the townhouses at The Fairways have been sold with the remaining homes expected to be sold during the next 12 months. 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 Keen interest has already been shown for this prestigious apartment development, which is expected to be launched late in 2009. RECENT AChIEVEMENTS AND STATUS With zoning and masterplan approvals in place and the first two residential stages completed, the company is moving forward with construction of 4 more stages. The company is also starting the detailed planning of the town centre component of the project. The first stages have been released and all 38 homes have been pre-sold. Civil construction has commenced and the first homes are expected to be delivered in FY2010. Carlingford, Lalor – 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 CBD and is within easy reach of shopping, schools and the train network. The first two stages have now been completed and sold. Substantial pre-sales have been achieved in the two subsequent stages as interest remains strong from buyers in the local area. 12 INVEsTOR sUMMARY 1309 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2009 INVESTOR SUMMARY 5 YEAR FINANcIAL PERFORMANcE sUMMARY ALL fIgURES IN $'000 ExCEPT WhERE STATED fINANCIAL YEAR Financial performance 2009 2008 2007 2006 2005 Revenue from ordinary activities 107,076 81,941 90,008 80,520 75,130 Earnings before interest and tax 16,567 31,245 31,304 25,864 19,191 Finance costs 3,047 2,230 4,515 2,750 1,549 Operating profit before tax 13,520 29,015 26,789 23,114 17,642 Income tax expense Net profit after tax Realised reserve 4,257 8,458 8,236 6,906 5,242 9,263 20,557 18,553 16,208 12,400 83 179 271 404 447 Net profit after tax plus realised reserve 9,346 20,736 18,824 16,612 12,847 Financial position Total assets Total liabilities Shareholders' equity 162,720 185,019 155,561 196,365 130,470 69,442 101,073 83,918 127,917 75,513 93,278 83,946 71,643 68,448 54,957 Number of shares on issue – end of year ('000) 58,163 55,138 54,824 54,536 53,253 Key performance measures Earnings per share (cents) Dividend per share fully franked (cents) EBIT margin (%) Interest cover (times) Return on equity (%) Investment in inventory during year Net tangible assets backing per share ($) Net bank debt Net bank debt to equity (%) Share price – end of year ($) Stock market capitalisation at 30 June Number of employees at 30 June 16.2 7.0 15.5% 2.2 9.9% 45,312 1.60 47,913 51.4% 1.42 82,592 30 37.3 18.0 38.1% 4.2 24.5% 46,002 1.52 80,633 96.1% 2.75 33.9 17.0 34.8% 5.8 25.9% 73,799 1.31 63,735 89.0% 5.22 30.3 15.0 32.1% 7.9 23.7% 52,952 1.11 28,974 42.3% 4.48 23.3 12.0 25.5% 6.0 22.6% 48,866 1.03 37,463 68.2% 2.31 151,630 286,181 244,321 123,014 33 26 27 25 Financial performance, financial position and all key performance measures shown in the above table for 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 2006 to 2009 is based on Australian equivalents to International Financial Reporting Standards (AIFRS). Returns to shareholders over 1, 3 and 5 years Earnings growth % Share price growth % Dividend growth % Total shareholder return % 1YR (57) (48) (44) (45) 3YR (19) (320) (13) (29) 5YR (4) (4) 0 1 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. 14 CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2009 CORPORATE DIRECTORY cORPORATE DIREcTORY DIRECTORS William George Hames ShARE REgISTRY Computershare Investor Services Pty Ltd BArch (Hons) MCU (Harvard) LFRAIA, MPIA, FAPI (Econ) Level 2, Reserve Bank Building 45 St George’s Terrace PERTH WA 6000 AUDITOR PricewaterhouseCoopers QV1 250 St George’s Terrace PERTH WA 6000 SECURITIES ExChANgE LISTINg Cedar Woods Properties Limited shares are listed on the Australian Securities Exchange Limited ASx CODE CWP ANNUAL gENERAL MEETINg Venue: Kings Park Function Centre Time: 10.00am Date: 6 November 2009 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 Managing Director Timothy Robert Brown BA, LLB, M.Fin, Post Grad Dip (Phil) (Alternate for R S Brown) 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 Postal address : P.O. Box 788 WEST PERTH WA 6872 Phone: (08) 9480 1500 Fax: (08) 9480 1599 Email: email@cedarwoods.com.au Website: www.cedarwoods.com.au 15 cORPORATE DIREcTORY The Rivergums, Baldivis cEDAR WOODs PROPERTIEs LIMITED 3 3 6 2 1 3 A D E C
Continue reading text version or see original annual report in PDF format above