ANNUAL REPORT
09
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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
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