ANNUAL REPORT
ABN 47 009 259 081
ANNUAL REPORT
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The Rivergums, Baldivis
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
CONTENTS
CONTENTS
Cedar Woods’ Objective
About Cedar Woods
2010 Highlights
2010 Financial Results Summary
Key Shareholder Information
Report to Shareholders
Overview of Projects
Investor Summary
Corporate Directory
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Harrisdale Green, Harrisdale
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
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CEdAR wOOdS’
OBjECTivE
Cedar Woods’ primary objective is to
create value for shareholders through
growth in earnings.
Harrisdale Green, Harrisdale
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
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
Cedar Woods has been creating dynamic residential
communities for Western Australians for more than 20 years
and is one of the State’s most reputable land developers.
Established in 1987 and listed on the Australian Stock
Exchange since 1994, the company has 25 projects completed
or in progress across Western Australia and Victoria.
Cedar Woods’ commitment to quality, affordability and
sustainability is present in everything it creates.
residents can rest assured they have made a blue chip
investment in creating the perfect lifestyle.
Cedar Woods also recognizes the community’s wide ranging
aspirations for a perfect living environment. In this sense,
diversity is a key component in the company’s projects. Great
value lots that give young buyers a helping hand; stylish built
form for the discerning investor; spacious park side land for
the burgeoning family – Cedar Woods innovatively caters to a
diversity of lifestyles.
Cedar Woods is also committed to affordable housing
and continues to work on an array of initiatives to achieve
affordability. Developments that cater to all walks of life are
more equitable, dynamic and vibrant, and create a richer,
more sustainable social fabric.
Social sustainability means creating communities that have
available local infrastructure and facilities, various transport
options, nearby employment opportunities and
leisure
pursuits. Cedar Woods develops with these elements at the
fore, ensuring social connectedness for all residents.
Clean, healthy environments are also a feature of Cedar
Woods’ projects. Creating an environment that is better than
it was found is an important part of the company’s ethos.
All developments benefit from efficient use of water and urban
water renewal programs, green building principles and ongoing
commitment to environmental conservation and rehabilitation.
Regardless of the location, the landscape or the product,
quality is a universal theme for Cedar Woods. More than
14 national awards evidence a dedication to excellence
at every stage of each project. Be it development, design,
environmental preservation or community engagement,
Developing homes for people is all about creating the best
possible lifestyles and healthy, flourishing communities.
Cedar Woods recognises the importance of a holistic approach
to all of its projects and works hard to deliver an exceptional
life for all its residents.
The Rivergums, Baldivis
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
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2010 highLighTS
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The Islands at Mariners Cove, Mandurah
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
2010 HIGHLIGHTS
2010 highLighTS
net profit of $17.2m, up 86%;
earnings per share of 29.0 cents, up 79%;
significant reduction in debt;
new $110m, 3-year bank facility;
over $100m in pre sales in place for FY2011; and
28% earnings growth expected for FY2011.
2010 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 - historical cost
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
Reference should be made to the financial performance summary
on page 19 of this annual report which tables the financial
performance of the company over the last 5 financial years.
$m
$m
$m
$m
%
x
¢
¢
%
$
m
$m
$m
$
%
%
2010
108.4
17.2
205.7
39.7
36.5
6.4
2010
29.0
13.0
81.0
1.80
60.6
108.8
148.4
2.45
15.8
18.0
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
Change
1.3%
86.1%
26.4%
(17.1)%
(14.9)%
4.2
% Change
79.0
85.7
125.7
12.5
4.1
16.6
79.7
72.5
59.6
53.8
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
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REPORT TO
ShAREhOLdERS
Cambridge Waters, Canning Vale
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
REPORT TO SHAREHOLDERS
2010 ANNUAL RESULT
In 2010 Cedar Woods delivered an 86% increase in net profit
and 79% increase in earnings per share.
In 2010 your company achieved a net profit of $17.2m (2009
- $9.3m), equating to earnings per share of 29.0 cents (2009
– 16.2 cents).
The result was achieved against the backdrop of financial
and property markets recovering from the global financial
crisis. The company share price rebounded strongly from
its low at the start of the year, posting an annual increase
of 72.5% and contributing to a 1 year total annual return for
shareholders of 81%.
Although the share price rose strongly, your board remains
confident that the underlying market value of the company’s
assets is significantly higher than that reflected in the current
share price.
Gearing (net bank debt to equity) at 30 June 2010 was
36.5%, within the lower half of the preferred range of 20 -
75% and down from 51% in 2009, as the company enjoyed
strong positive operating cash flows, in particular from its
Melbourne projects. Interest cover was 6.4, up from 2.2 in
2009 and above the minimum target of 5. Interest cover is
anticipated to continue above the company’s minimum target
next year as earnings improve and interest rates remain at
historically low levels.
2010
2009
2008
2007
2006
13.0
17,241
16.2
7.0
9,263
20,557
18.0
81,841
17.0
18,553
15.0
16,208
57,189
20.2
29.0
108,415
107,076
37.3
33.9
90,008
30.3
80,520
Dividend per share (cents)
Net profit after tax ($’000)
Earnings per share (cents)
Revenue from ordinary activites ($’000)
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
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REPORT TO
ShAREhOLdERS
Williams Landing
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
REPORT TO SHAREHOLDERS
CAPiTAL mANAgEmENT ANd
ThE 2010 dividENd
In accordance with the dividend policy, your board has
declared a fully franked final dividend of 8 cents per share
(2009 – 7 cents). The final dividend will be paid on 29 October
2010. This brings the full year payout to 13 cents per share,
providing an attractive yield based on the current share price,
and 85.7% higher then last year.
The dividend reinvestment plan (DRP) will be available for the
final dividend.
ThE ECONOmy ANd ThE
PROPERTy mARKET
The national economy has rebounded significantly over
the last 12 months, with economic growth expected to be
around 3% for 2010, as Australia continues its recovery
from the global economic downturn. Consumer and hence
homebuyer confidence lifted during the first six months of
FY2010 as fears of a prolonged downturn subsided and
fiscal stimulus packages supported consumer spending.
Confidence moderated however as The Reserve Bank lifted
interest rates in the second half and the impact of the fiscal
stimulus subsided. The outlook for interest rates is expected
to be flatter over the next year, as the Reserve Bank appears
to have done ‘most of the job’ in returning interest rates to
normal levels.
Western Australia’s economy has continued to outperform
the nation as a whole in the last 12 months, driven by the
activity in the commodities sector. The Western Australian
residential market bottomed during 2009 and prices have
been increasing moderately over 2010 in most areas. Given
the strong inbound migration into the state, the flat outlook
for home starts indicates that there may well be a pronounced
housing shortage in WA within a few years.
In Victoria, demand for residential property rose strongly over
the last year, supported by robust population growth, with the
state experiencing house price growth above 20% per annum.
Demand has recently started to moderate and we anticipate
the market’s growth will ease over FY2011.
PROjECTS
As market conditions improved in WA, the company’s major
residential projects responded in delivering increased sales
volumes and moderate price growth. Two of the company’s
projects, being The Kestrels in Tapping and Cambridge
Waters in Canning Vale saw the last stages of these successful
projects completed and sold, with the last lots remaining to
be settled in early FY2011.
During the year the company commenced development at
two new projects. Development commenced at the Harrisdale
Green project in the second half and the first lots in this
project are expected to be delivered in FY2011. The company
also launched ‘The Jetty’ a new apartment project at Palm
Beach, following our previous success with similar projects
on the Rockingham foreshore. The Jetty is 65% pre-sold with
development under way and completion expected in FY2012.
In Melbourne, after successfully developing the initial stages
of Williams Landing and Carlingford in 2009, further stages
were developed and sold in FY2010. Lots in future stages
have been keenly sought and the Melbourne projects have
substantial presales in place for the stages scheduled to be
delivered in FY2011. The recent announcements by the state
government of the funding of the Williams Landing railway
station and freeway overpass will provide a catalyst to the
future development of the Williams Landing Town Centre.
The company’s Footscray development, ‘Banbury Village’, was
launched late in FY2009. The first eight stages have now been
successfully released, comprising 92 homes, now 100% sold.
The first stages of these homes have already been delivered
in the first quarter of FY2011 with subsequent stages to be
delivered during the year. The next exciting phase is a stage
of heritage apartments which are to be built incorporating
existing, heritage listed art-deco buildings. Plans to develop
the company’s newly acquired land at Camberwell were
advanced in the year and the first launch of lots from this
new estate are expected in FY2012.
Details of progress at the projects commence on page 11.
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 earnings growth has been much higher
than target this year, 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.
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
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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
in property
development and the company continues to ensure
design, delivery and marketing maximise the return the
company receives.
is
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 the last year the company has supplemented its land
bank with key acquisitions in Western Australia and
Victoria. These additions will contribute to earnings
growth over the medium term.
The focus remains on medium to long 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 realised its first revenues in
FY2010. The company has also established important
co-developments with state government entities which
will contribute to earnings over the medium term.
Retaining ownership of income producing assets
The company has started to build up 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
The company’s management team has been expanded
to provide a platform for future growth in the Perth and
Melbourne offices.
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 various promotional activities.
The Landings at Mariners Cove, Mandurah
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CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
CEDAR WOODS’ OBJECTIVE
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’s
website and the corporate governance statement in the 2010
financial report.
OUTLOOK
With growth in the economy picking up, strong inbound
migration and an increasing shortage of housing stock, the
longer term prospects remain positive for the residential
property sector.
In FY2011, Cedar Woods will continue to develop and sell
product at its residential estates located in Perth’s major
growth corridors and will also achieve revenues from the
new project at Harrisdale Green. The Mandurah market is
expected to recover slowly during FY2011.
In Melbourne, the housing market remains amongst the
strongest of the capital cities. The company has already
pre-sold most of the lots budgeted to sell in FY2011 and is
now focusing on construction and the advancement of sales
into FY2012. The public response to newly released stages of
Williams Landing, Carlingford and Banbury Village has been
very strong. The first settlements from Banbury Village were
achieved in August 2010.
Work continues in planning the future town centre component
of the Williams Landing project. This will comprise over 50
hectares of retail, bulky goods, commercial and high density
residential development. The construction of the Williams
Landing commuter rail station is due to commence in 2010.
The Williams Landing Town Centre provides an exciting
medium term development opportunity for the company and
the value of this project has increased substantially in the last
two years.
Engagement with investors and the broking community
will be enhanced during FY2011 to promote the company’s
prospects. The company has a very strong portfolio, with
current asset values substantially above both book value and
that reflected in the current share price.
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
The Kestrels, Tapping
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
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OvERviEw Of PROjECTS
wESTERN AUSTRALiA – LANd dEvELOPmENT
Project Description
Cambridge Waters, Canning Vale – Purchased in 2005, 15ha, remaining project life of 1 year. In an inner southern suburb
only 20 minutes from the Perth CBD, this medium density residential project provides 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.
Carine – Project agreement finalised, 8ha, project life of 4 years. The planned redevelopment of the former TAFE site in Perth’s
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
proponents. 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.
Recent achievements and status
Most lots in this estate have now been sold with the last handful of lots expected to
be fully sold in the first half of FY2011.
The project agreement with LandCorp has been finalised. The demolition of existing
improvements was completed in early 2010, with planning continuing, and expected
to be completed by late 2010.
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 that will 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 Perth – Mandurah rail line, will bring enormous accessibility benefits to future residents.
Construction of the first stage was completed in the first half of FY2010 and settlements
have commenced. Stage One incorporates a display village and significant areas of
parkland. The second stage is now under construction and significant pre-sales have
been achieved.
Forrestdale – Purchased in 2005, 15ha, project life of 2 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.
Harrisdale Green – Project agreement finalised 2010, 30ha, project life of 5 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 the 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.
Hazelmere – Purchased by Cedar Woods via a public tender process, settlement in July 2010, 273 ha, project life of 12
years. The former Bushmead Rifle Range site was sold by the Department of Defence on behalf of the Commonwealth of
Australia. The land is located 16 kilometres north east of the Perth CBD within the suburb of Hazelmere and adjacent to Cedar
Woods’ Helena Valley Private Estate. Given its proximity to the Perth CBD, Perth airport, Midland regional centre and strong
connectivity via regional road networks, the site is in a prime location for future redevelopment. The site is a long term project
for the company and expected to yield between 600 and 900 residential lots, depending on lot sizes and planning outcomes.
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 for
subdivision in the future.
A project agreement with the WA State Government (Department of Housing) has
been finalised and construction of the first stage commenced in 2010. Sales release
of the first stage was held in September 2010. A display village in this first stage will
also be constructed to demonstrate the housing options and sustainability features
of the project.
Cedar Woods was announced as successful in its bid for purchase in May 2010.
Settlement occured in July 2010. The company will now progress planning on the
site and rezoning applications.
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CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
OVERVIEW OF PROJECTS
wESTERN AUSTRALiA – LANd dEvELOPmENT
Project Description
Cambridge Waters, Canning Vale – Purchased in 2005, 15ha, remaining project life of 1 year. In an inner southern suburb
only 20 minutes from the Perth CBD, this medium density residential project provides 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.
Carine – Project agreement finalised, 8ha, project life of 4 years. The planned redevelopment of the former TAFE site in Perth’s
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
proponents. 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.
Recent achievements and status
Most lots in this estate have now been sold with the last handful of lots expected to
be fully sold in the first half of FY2011.
The project agreement with LandCorp has been finalised. The demolition of existing
improvements was completed in early 2010, with planning continuing, and expected
to be completed by late 2010.
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 that will 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 Perth – Mandurah rail line, will bring enormous accessibility benefits to future residents.
Construction of the first stage was completed in the first half of FY2010 and settlements
have commenced. Stage One incorporates a display village and significant areas of
parkland. The second stage is now under construction and significant pre-sales have
been achieved.
Forrestdale – Purchased in 2005, 15ha, project life of 2 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.
Harrisdale Green – Project agreement finalised 2010, 30ha, project life of 5 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 the 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.
Hazelmere – Purchased by Cedar Woods via a public tender process, settlement in July 2010, 273 ha, project life of 12
years. The former Bushmead Rifle Range site was sold by the Department of Defence on behalf of the Commonwealth of
Australia. The land is located 16 kilometres north east of the Perth CBD within the suburb of Hazelmere and adjacent to Cedar
Woods’ Helena Valley Private Estate. Given its proximity to the Perth CBD, Perth airport, Midland regional centre and strong
connectivity via regional road networks, the site is in a prime location for future redevelopment. The site is a long term project
for the company and expected to yield between 600 and 900 residential lots, depending on lot sizes and planning outcomes.
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 for
subdivision in the future.
A project agreement with the WA State Government (Department of Housing) has
been finalised and construction of the first stage commenced in 2010. Sales release
of the first stage was held in September 2010. A display village in this first stage will
also be constructed to demonstrate the housing options and sustainability features
of the project.
Cedar Woods was announced as successful in its bid for purchase in May 2010.
Settlement occured in July 2010. The company will now progress planning on the
site and rezoning applications.
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
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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.
Mangles Bay, Rockingham – Project agreement being finalised, 75ha, project life of 8 years. This Marina-Based Tourism
Precinct is a joint venture with Landcorp, working with the Rockingham Kwinana Development Office and the City of
Rockingham. Cedar Woods was announced as the successful proponent in April 2010 after a competitive EOI process. The
company will manage all rezoning / environmental approvals and the construction phase. The development will complement
the existing Rockingham waterfront to make it a sought-after coastal destination with improved public waterfront, marina,
better family beaches, affordable family accommodation, retail and commercial areas, education centre and housing.
Mariners Cove, Mandurah – Purchased in 1993, 196ha, remaining project life of 6 years. A unique waterfront development
close to the Mandurah town centre, comprising a mix of waterfront 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.
The Rivergums, Baldivis – Purchased in 2001, 139ha, remaining project life of 8 years. Located in Perth’s southern suburbs
and only minutes from the Perth – Mandurah rail line and the Rockingham beaches, The Rivergums residential estate will
ultimately provide around 1,200 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 has continued to be very popular with buyers. The final stage is almost
complete, bringing to a close the company’s development, with the last lots due to
settle in late 2010.
Planning and environmental investigations have commenced to obtain project
approval in 2012. Works would commence in 2013 subject to obtaining the necessary
environmental and planning approvals.
Marketing continues on the remaining lots in Stage 5CA, with a view to releasing the
next stage of lots during FY2011.
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 attractive public open space.
South Hedland – Contracted in 2010, 11ha, project life of 3 years. Located within the growing north-west region, Cedar
Woods, together with Foundation Housing, BGC Modular, IBN Corporation and Gumala Aboriginal Corporation, is providing a
balanced mix of residential, affordable, key worker, social and indigenous housing options to the region.
Cedar Woods was announced as the successful partner in July 2010. Planning
investigations have commenced, with a view to obtaining necessary approvals in 2011.
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CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
OVERVIEW OF PROJECTS
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.
Mangles Bay, Rockingham – Project agreement being finalised, 75ha, project life of 8 years. This Marina-Based Tourism
Precinct is a joint venture with Landcorp, working with the Rockingham Kwinana Development Office and the City of
Rockingham. Cedar Woods was announced as the successful proponent in April 2010 after a competitive EOI process. The
company will manage all rezoning / environmental approvals and the construction phase. The development will complement
the existing Rockingham waterfront to make it a sought-after coastal destination with improved public waterfront, marina,
better family beaches, affordable family accommodation, retail and commercial areas, education centre and housing.
Mariners Cove, Mandurah – Purchased in 1993, 196ha, remaining project life of 6 years. A unique waterfront development
close to the Mandurah town centre, comprising a mix of waterfront 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.
The Rivergums, Baldivis – Purchased in 2001, 139ha, remaining project life of 8 years. Located in Perth’s southern suburbs
and only minutes from the Perth – Mandurah rail line and the Rockingham beaches, The Rivergums residential estate will
ultimately provide around 1,200 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 has continued to be very popular with buyers. The final stage is almost
complete, bringing to a close the company’s development, with the last lots due to
settle in late 2010.
Planning and environmental investigations have commenced to obtain project
approval in 2012. Works would commence in 2013 subject to obtaining the necessary
environmental and planning approvals.
Marketing continues on the remaining lots in Stage 5CA, with a view to releasing the
next stage of lots during FY2011.
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 attractive public open space.
South Hedland – Contracted in 2010, 11ha, project life of 3 years. Located within the growing north-west region, Cedar
Woods, together with Foundation Housing, BGC Modular, IBN Corporation and Gumala Aboriginal Corporation, is providing a
Cedar Woods was announced as the successful partner in July 2010. Planning
investigations have commenced, with a view to obtaining necessary approvals in 2011.
balanced mix of residential, affordable, key worker, social and indigenous housing options to the region.
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
14
wESTERN AUSTRALiA – BUiLT fORm
Project Description
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.
Recent achievements and status
23 of the townhouses at The Fairways have been sold with the remaining homes
expected to be sold in the first half of FY2011.
The Jetty, Palm Beach Rockingham – Purchased in 2006, 0.2ha, remaining project life of 2 years. The company has commenced
this 4 storey beachfront development opposite the landmark Palm Beach jetty in Rockingham. The Jetty comprises 15 luxury
two and three bedroom, two bathroom apartments, all with spectacular ocean views and high quality fit-out. A ground floor
beachfront café is also planned.
Keen interest has already been shown for this prestigious apartment development,
which launched in late 2009. All pre-sales targets were achieved with construction
commenced in January 2010 and due for completion in July 2011.
The Landings – Purchased in 1993, 0.82ha, remaining project life of 1 year. The Landings are located within the award-winning
Mariners Cove development and are a series of luxury waterfront townhouses being developed within the waterfront zone.
Stage1, comprising eight townhouses, was completed in April 2009, with a further six townhouses in Stage 2, completed in
December 2009. The Landings was named a finalist for Medium Density Development in the 2010 UDIA Awards for Excellence.
Sutton Heritage Site, Mandurah – Purchased in 1990, 2.24ha. 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.
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 popular ‘Dome’ cafe. The balance of the site will comprise a Stage 2 development for
which planning is underway.
The seven homes remaining are expected to be sold during FY2011.
Structure Plan approval is currently being negotiated through a public consultation
and assessment process.
Construction of the Stage 1 ocean front apartments and commercial tenancy was
completed in 2008 and the last remaining apartments are currently being marketed.
The company is now progressing development options for Stage 2.
15
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
OVERVIEW OF PROJECTS
wESTERN AUSTRALiA – BUiLT fORm
Project Description
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.
Recent achievements and status
23 of the townhouses at The Fairways have been sold with the remaining homes
expected to be sold in the first half of FY2011.
The Jetty, Palm Beach Rockingham – Purchased in 2006, 0.2ha, remaining project life of 2 years. The company has commenced
this 4 storey beachfront development opposite the landmark Palm Beach jetty in Rockingham. The Jetty comprises 15 luxury
two and three bedroom, two bathroom apartments, all with spectacular ocean views and high quality fit-out. A ground floor
Keen interest has already been shown for this prestigious apartment development,
which launched in late 2009. All pre-sales targets were achieved with construction
commenced in January 2010 and due for completion in July 2011.
beachfront café is also planned.
The Landings – Purchased in 1993, 0.82ha, remaining project life of 1 year. The Landings are located within the award-winning
The seven homes remaining are expected to be sold during FY2011.
Mariners Cove development and are a series of luxury waterfront townhouses being developed within the waterfront zone.
Stage1, comprising eight townhouses, was completed in April 2009, with a further six townhouses in Stage 2, completed in
December 2009. The Landings was named a finalist for Medium Density Development in the 2010 UDIA Awards for Excellence.
Sutton Heritage Site, Mandurah – Purchased in 1990, 2.24ha. 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.
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 popular ‘Dome’ cafe. The balance of the site will comprise a Stage 2 development for
which planning is underway.
Structure Plan approval is currently being negotiated through a public consultation
and assessment process.
Construction of the Stage 1 ocean front apartments and commercial tenancy was
completed in 2008 and the last remaining apartments are currently being marketed.
The company is now progressing development options for Stage 2.
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
16
viCTORiA – LANd dEvELOPmENT ANd BUiLT fORm
Project Description
Banbury Village, Footscray – Purchased in 2006, 9ha, remaining project life of 5 years. Banbury Village is a significant urban
renewal project with impressive green credentials. Located just 6.5kms from Melbourne’s CBD, residents enjoy the finest of
contemporary urban living. When complete, Banbury Village will provide over 350 immaculately designed houses, townhouses
and apartments all conveniently located within walking distance of the iconic Beaurepaire Reserve. This landmark development
will preserve the art deco façade of Sir Frank Beaurepaire’s original 1930s Olympic Tyre & Rubber Co, breathing new life into
this historic precinct.
Recent achievements and status
Ninety two homes in five releases have been sold at Banbury Village since launching
the project in early 2009. Stage 1 of the estate has now settled and residents have
moved in. Seven further stages are under construction with Stage 2, 3 and 5 due to
settle soon. Beaurepaire Reserve, which will be a focal point for the project, is on
track to be complete in October 2010 and will be landscaped to a high standard.
Camberwell – Purchased in 2009, 2.55ha, project life of 2 years. Cedar Woods will soon offer a prestigious new residential
development in one of Melbourne’s premier and established suburbs, Camberwell. The residential development will offer 78
architecturally designed houses and townhouses providing a unique opportunity for high quality modern living in an established
and regarded suburb. Life here will be surrounded by leafy tree lined streets, a short walk to parks, gardens, transport and
close to established public and private schools.
Concept design work for the project has been completed and the planning has been
progressed. The project includes 78 homes with a mix of houses and townhouses.
Planning approval is expected this financial year and when achieved, marketing of
the development will commence. Site works will commence in mid 2011 subject to
obtaining the necessary approvals.
Carlingford Estate, Lalor – Purchased in 2006, 56ha, remaining project life of 4 years. Carlingford estate is the first major
residential development of its kind in Lalor for over a decade. Located just 17kms north of Melbourne’s CBD, residents enjoy
easy access to established amenities and services including a commuter rail station, bus interchange, schools, shopping
precincts and regional parks. Meticulously master planned, Carlingford will provide approximately 600 homes upon completion
with over 9 hectares of carefully designed landscaped parklands and conservation areas.
Since the launch in 2008 Carlingford has achieved over 330 sales. The major entry
park has been completed and many homes now occupied at the estate. Construction
of respective stages continues and we are continuing to progressively release and
sell land.
Williams Landing, Vic – Purchased in 1998, 275ha (220ha developable), remaining project life of 14 years. The $1.5 billion
Williams Landing development is one of Melbourne’s premier master planned communities setting a new benchmark in
design excellence and livability. Located just 19kms from Melbourne’s CBD, Williams Landing will accommodate 2500 homes,
a major town centre, railway station, regional bus interchange and offer direct freeway access. The town centre will be a mixed
use development accommodating retail, bulky goods, entertainment, business and living opportunities. Upon completion over
7000 residents will call Williams Landing home.
Williams Landing stages 1 - 9 have now been sold. The estate has achieved over 630
sales as of August 2010. The Kingwell Neighbourhood will be launched with Stage 1
scheduled for an October 2010 release. The Development Plan has been lodged for
the Town Centre component with process to secure Anchor Tenants for Stage 1 well
underway. The State Government has committed to funding for the Williams Landing
Train Station and Palmers Road Freeway Overpass.
17
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
OVERVIEW OF PROJECTS
viCTORiA – LANd dEvELOPmENT ANd BUiLT fORm
Project Description
Recent achievements and status
Banbury Village, Footscray – Purchased in 2006, 9ha, remaining project life of 5 years. Banbury Village is a significant urban
renewal project with impressive green credentials. Located just 6.5kms from Melbourne’s CBD, residents enjoy the finest of
contemporary urban living. When complete, Banbury Village will provide over 350 immaculately designed houses, townhouses
and apartments all conveniently located within walking distance of the iconic Beaurepaire Reserve. This landmark development
will preserve the art deco façade of Sir Frank Beaurepaire’s original 1930s Olympic Tyre & Rubber Co, breathing new life into
Ninety two homes in five releases have been sold at Banbury Village since launching
the project in early 2009. Stage 1 of the estate has now settled and residents have
moved in. Seven further stages are under construction with Stage 2, 3 and 5 due to
settle soon. Beaurepaire Reserve, which will be a focal point for the project, is on
track to be complete in October 2010 and will be landscaped to a high standard.
this historic precinct.
Camberwell – Purchased in 2009, 2.55ha, project life of 2 years. Cedar Woods will soon offer a prestigious new residential
development in one of Melbourne’s premier and established suburbs, Camberwell. The residential development will offer 78
architecturally designed houses and townhouses providing a unique opportunity for high quality modern living in an established
and regarded suburb. Life here will be surrounded by leafy tree lined streets, a short walk to parks, gardens, transport and
close to established public and private schools.
Concept design work for the project has been completed and the planning has been
progressed. The project includes 78 homes with a mix of houses and townhouses.
Planning approval is expected this financial year and when achieved, marketing of
the development will commence. Site works will commence in mid 2011 subject to
obtaining the necessary approvals.
Carlingford Estate, Lalor – Purchased in 2006, 56ha, remaining project life of 4 years. Carlingford estate is the first major
residential development of its kind in Lalor for over a decade. Located just 17kms north of Melbourne’s CBD, residents enjoy
easy access to established amenities and services including a commuter rail station, bus interchange, schools, shopping
precincts and regional parks. Meticulously master planned, Carlingford will provide approximately 600 homes upon completion
with over 9 hectares of carefully designed landscaped parklands and conservation areas.
Since the launch in 2008 Carlingford has achieved over 330 sales. The major entry
park has been completed and many homes now occupied at the estate. Construction
of respective stages continues and we are continuing to progressively release and
sell land.
Williams Landing, Vic – Purchased in 1998, 275ha (220ha developable), remaining project life of 14 years. The $1.5 billion
Williams Landing development is one of Melbourne’s premier master planned communities setting a new benchmark in
design excellence and livability. Located just 19kms from Melbourne’s CBD, Williams Landing will accommodate 2500 homes,
a major town centre, railway station, regional bus interchange and offer direct freeway access. The town centre will be a mixed
use development accommodating retail, bulky goods, entertainment, business and living opportunities. Upon completion over
7000 residents will call Williams Landing home.
Williams Landing stages 1 - 9 have now been sold. The estate has achieved over 630
sales as of August 2010. The Kingwell Neighbourhood will be launched with Stage 1
scheduled for an October 2010 release. The Development Plan has been lodged for
the Town Centre component with process to secure Anchor Tenants for Stage 1 well
underway. The State Government has committed to funding for the Williams Landing
Train Station and Palmers Road Freeway Overpass.
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
18
iNvESTOR SUmmARy
All figures in $’000 unless shown otherwise.
FINANCIAL YEAR
Financial Performance
2010
2009
2008
2007
2006
Revenue from ordinary activities
108,415
107,076
Earnings before interest and tax
Finance costs
Operating profit before tax
Income tax expense
Net profit after tax
Realised reserve
Net profit after tax plus realised reserve
Financial Position
Total assets
Total liabilities
Shareholders’ equity
Number of shares on issue -
end of year (‘000)
Key Performance Measures
Earnings per share (cents)
Dividend per share (fully franked)
EBIT Margin
Interest cover (times)
Return on Equity
Investment in inventory during year
Net tangible assets backing per share (cents)
Net bank debt
Net bank debt to equity
Share price - end of year ($)
26,771
2,036
24,735
7,494
17,241
26
17,267
205,657
96,867
108,790
60,565
29.0
13.0
24.7%
6.4
15.8%
56,338
1.80
39,716
36.5%
2.45
16,961
3,441
13,520
4,257
9,263
83
9,346
162,720
69,442
93,278
58,163
16.2
7.0
15.5%
2.2
9.9%
45,312
1.60
47,913
51.4%
1.42
81,941
31,245
2,230
29,015
8,458
20,557
179
20,736
185,019
101,073
83,946
55,138
37.3
18.0
38.1%
4.2
24.5%
46,002
1.52
80,633
96.1%
2.75
90,008
31,304
4,515
26,789
8,236
18,553
271
18,824
155,561
83,918
71,643
54,824
33.9
17.0
34.8%
5.8
25.9%
73,799
1.31
63,735
89.0%
5.22
80,520
25,864
2,750
23,114
6,906
16,208
404
16,612
196,365
127,917
68,448
54,536
30.3
15.0
32.1%
7.9
23.7%
52,952
1.11
28,974
42.3%
4.48
Stock Market capitalisation at 30 June
148,383
82,592
151,630
286,181
244,321
Equity
Net Bank Debt
Capital
EBIT
Return on Capital
108,790
39,716
148,506
26,771
18.0%
93,278
47,913
83,946
80,633
71,643
63,735
141,191
164,579
135,378
16,567
11.7%
31,245
19.0%
31,304
23.1%
68,448
28,974
97,422
25,864
26.5%
19
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
CORPORATE DIRECTORY
CORPORATE diRECTORy
Directors
William George Hames, BArch (Hons) MCU (Harvard) LFRAIA,
MPIA, FAPI (Econ) – Chairman
Robert Stanley Brown, MAICD, AIFS – Deputy Chairman
Share registry
Computershare Investor Services Pty Ltd
Level 2, Reserve Bank Building
45 St Georges Terrace
PERTH WA 6000
Ronald Packer, BCom (UWA), AAPI, FAICD, Solicitor Supreme
Court of England & Wales
Auditor
Paul Stephen Sadleir, BE, MBA, AAPI, FAICD, FRICS –
Managing Director
PricewaterhouseCoopers
QV1
Timothy Robert Brown, BA, LLB, M.Fin, Post Grad Dip (Phil)
(Alternate for R S Brown)
250 St Georges Terrace
PERTH WA 6000
Company Secretary
Paul Samuel Freedman, BSc, CA, GAICD
Securities exchange listing
Cedar Woods Properties Limited shares are listed on the
Australian Securities Exchange Limited
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
ASX code
CWP
Phone: (08) 9480 1500 Fax: (08) 9480 1599
Annual general meeting
Email: email@cedarwoods.com.au
Website: www.cedarwoods.com.au
Venue: Kings Park Function Centre
Time: 10.00am
Date: 5 November 2010
CEDAR WOODS PROPERTIES LIMITED ANNUAL REPORT 2010
20
cedarwoods.com.au