Cedar Woods Properties Limited Annual Report 2011

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Cedar Woods Properties Limited
A.B.N. 47 009 259 081

2011
ANNUAL
REPORT

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CONTENTS

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

Cedar Woods’ Objective

About Cedar Woods

2011 Highlights

Report to Shareholders

Overview of Projects

Performance Record

Corporate Directory

3-4

5-10

11-18

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

CEDAR
WOODS’
OBJECTIVE

Our primary objective is to create value for our
shareholders through growth in earnings.

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

Cedar Woods’ projects
are sensitively developed
with consideration for
environmental and
community interests.

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 Properties Limited is an Australian property

Cedar Woods’ projects are sensitively developed with

development company. The company was established in 1987 and

consideration for environmental and community interests and

has been listed on the Australian Securities Exchange since 1994,

built to a high quality that is renowned in the marketplace.

trading under the security code ‘CWP’. Its market capitalisation is

approximately $250m.

Through the rapid expansion of its build form development

portfolio, Cedar Woods has earned a reputation of delivering high

The company’s principal interests are in urban land subdivision

quality apartments for both the owner-occupier and investor

and built form development for residential, commercial and

market.

industrial purposes. Its portfolio of assets is located in Western

Australia and Victoria.

The board and management of Cedar Woods have extensive

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

experience in the property industry, with particular expertise

shareholders.

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 proﬁ ts 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”. In the investor relations arena, the

company is a past winner of three ARA Silver awards for its

annual report.

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

2011
HIGHLIGHTS

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

In 2011 Cedar Woods
delivered a record net
proﬁ t and a 58% increase
in earnings per share.

• Record full year proﬁ t of $28m, up 63%

• Earnings per share of 45.8 cents, up 58%

• Full year dividend of 23 cents (fully franked), up 77%; full year payout ratio

to remain at 50% of net proﬁ t

• $130m in presales at projects completing in FY2012

• Forecasting approximately $34m NPAT for FY2012, up 21%

• Signed major leasing deal with Woolworths at Williams Landing

• Victorian State Government award contract for Williams Landing station and overpass

• Completed major new acquisitions in WA and Victoria

2011 FINANCIAL RESULTS SUMMARY

Year ended 30 June

Revenue

Net proﬁ t after tax

Total assets

Net bank debt

Shareholders’ equity

2011 KEY PERFORMANCE INDICATORS

Year ended 30 June

Basic earnings per share

Dividends per share – fully franked

Total shareholder return (1 year)

Net bank debt to equity – 30 June

Interest cover

Net asset backing per share – historical cost

Shares on issue – end of year

Stock market capitalisation at 30 June

Share price at 30 June

Return on equity

Return on capital

2011
$’000

131,839

28,060

233,595

55,100

129,549

2011

45.8

23.0

71.0

42.5

9.1

2.10

61,818

247,272

4.00

21.7

22.5

2010
$’000

108,415

17,241

205,657

39,716

108,790

2010

29.0

13.0

81.0

36.5

6.4

1.80

60,565

148,383

2.45

15.8

18.0

Change

+ 21.6%

+ 62.7%

+ 13.6%

+ 38.7%

+ 19.1%

Change

+ 57.9%

+ 76.9%

(10.0)%

+ 6.0%

+ 2.7

+ 16.7%

+ 2.0%

+ 66.6%

+ 63.3%

+ 5.9%

+ 4.5%

’000

$’000

Reference should be made to the ﬁ nancial performance summary on page 19 of this annual report which tables the ﬁ nancial performance

of the company over the last 5 ﬁ nancial years.

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

REPORT TO
SHAREHOLDERS

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

In 2011, Cedar Woods
delivered a record proﬁ t
of $28 million. Net proﬁ t
increased 63% and earnings
per share increased 58%.

Interest cover has risen to 9.1 times, up from 6.4 times in 2010.

Cedar Woods continues to enjoy strong cash ﬂ ows from

operations.

The company has made various acquisitions throughout the
year to boost its land bank with the purchase of the Bushmead,

Piara Waters, and Baldivis properties in WA and the Camberwell

property in Victoria.

The company’s share price rose over the ﬁ nancial year, increasing

63% to $4.00 per share.

The Board remains conﬁ dent that the market value-based Net

Tangible Assets (NTA) per share is substantially above the current

share price and historical book value per share.

2011 Annual Result
The company achieved a net proﬁ t of $28 million ($17.2 million

in 2010), equating to earnings per share of 46 cents (29 cents in

2010).

Despite challenging market conditions in 2011 Cedar Woods

achieved a record proﬁ t for the year. The robust result reﬂ ects

the increased proﬁ tability of the company’s projects particularly

in Melbourne and the strength and diversity of Cedar Woods’

property portfolio.

Cedar Woods remains in a strong ﬁ nancial position with a

$110 million debt facility in place until August 2013.

The company remains modestly geared with net bank debt to

equity at 30 June 2011 at 43%, well within the target range of

20% - 75%.

REVENUE ($m)

NPAT ($m)

10% pa

11% pa

140

105

30.0

22.5

15.0

7.5

90.0

81.9

107.1

108.4

131.8

18.6

20.6

9.3

17.2

28.0

2007

2008

2009

2010

2011

2007

2008

2009

2010

2011

EPS (cents)

DIVIDEND PER SHARE (cents)

8% pa

50.0

37.5

25.0

12.5

25.0

18.75

12.5

6.25

33.9

37.3

16.2

29.0

45.8

17.0

18.0

7.0

13.0

23.0

2007

2008

2009

2010

2011

2007

2008

2009

2010

2011

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

REPORT TO
SHAREHOLDERS

Capital Management and the 2011 Dividend
In light of Cedar Woods’ strong ﬁ nancial result, and in accordance

Projects
In FY2011, your company received income from two new projects,

with the company’s dividend policy, your board has declared a

Harrisdale Green and Banbury Village, bringing the total projects

fully franked ﬁ nal dividend of 12 cents per share. This brings the

under development in Cedar Woods’ portfolio to eleven across

full year payout to a record 23 cents per share (13 cents per share

Western Australia and Victoria.

in 2010), providing an attractive yield based on the current share
price, and representing a 77% increase on last year’s full year

dividend. The ﬁ nal dividend will be paid on 31 October 2011.

At the company’s current Western Australian land estates,

lots sold steadily and price levels were maintained. In the last

quarter, the company acquired two adjacent parcels of land,

The Dividend Reinvestment Plan (DRP) will be available for the

totalling 68 hectares, in Baldivis in Perth’s southern growth

ﬁ nal dividend and shares under the DRP and Bonus Share Plan

corridor. The site is strategically located close to the Kwinana

(BSP) will be offered at a 2.5% discount to the weighted average

Freeway and has the potential to deliver an 800 lot, master-

market price for the 10 days to 21 October 2011.

planned residential estate. Development is anticipated to

Economy and the Property Market
While the Australian economy has rebounded since the lows of

2008-09, overall, the economy remains mixed – with parts of

the economy sluggish and others expanding rapidly. National
economic growth is expected to be approximately 3.25%1 for 2011,
weaker than initially anticipated, but still robust on a historic
basis. Unemployment remains at historically low levels (5.1%2
nationally) and forward-looking indicators continue to point to

moderate employment growth while annual weekly wages have

commence in approximately ﬁ ve years.

As part of the company’s regional growth strategy, Cedar Woods

announced it was successful in its bid as the preferred proponent

to acquire 11.5 hectares of land from the WA State Government in

South Hedland approximately 1,600km north of Perth. The project,

which will include a mix of residential, affordable, key worker,

social and indigenous housing, is expected to yield approximately

170 lots, depending on the lot sizes and planning outcomes.

The company’s major residential projects in Victoria performed

well, experiencing strong pre-sales and signiﬁ cant levels

of enquiries. At Cedar Woods’ ﬂ agship Williams Landing

continued to rise, making property more affordable. The Reserve

development in Melbourne’s west, the company recorded more

Bank of Australia has kept interest rates unchanged at 4.75%

since late 2010 providing stability for ﬁ rst home buyers.

The Western Australian economy has continued to outperform

the national economy over the past ﬁ nancial year, with

economic growth for 2011 expected to be 4.0%, and forecast
to grow to 4.75%3 in 2012. Despite a strong economy, property
prices softened in the second half of the year. Strong in-bound

migration supported by the resources boom, coupled with low

than 200 settlements in the year and pre-sold all 51 sites in the

new builders’ display village. The company also signed a major
20 year leasing agreement with national retailer Woolworths for

three stores which will underpin the development of the project’s

town centre.

In August 2011 the Victorian State Government announced

that the contract to build the railway station and Palmers Road

overpass had been awarded. The work will start soon and is

unemployment, provides the underlying fundamentals to support

expected to be completed in 2012, providing a major boost for the

growing demand for residential property in the future.

town centre development.

Following a period of strong growth in the residential property

market in Victoria, demand has moderated with property

prices remaining steady in the second half of the year. Forecast

population growth, low unemployment and a shortage of

During the year, several stages at Banbury Village in Footscray

and Carlingford at Lalor were completed and settled and early

planning approval has been granted for the Realm at Camberwell

project with the tender for construction of 78 premium dwellings

dwellings provides the platform for increased demand in the

completed.

medium term.

1 Reserve Bank of Australia – August Minutes
2 Seasonally adjusted ﬁ gure July 2011
3 Based on WA Treasury ﬁ gures

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

Details of progress at the projects commences on page 11.

Cedar Woods acquired
signiﬁ cant new projects
in Western Australia
and Victoria.

Corporate Objectives and Strategy
Cedar Woods’ Corporate Plan guides management’s activities and

provides a ﬁ ve year outlook for the company, projecting earnings

growth and other key performance indicators.

Cedar Woods’ primary objective is to create value for

shareholders through earnings growth and it has consistently

delivered 10% per annum growth in earnings per share. This puts

the company in the top half of all listed industrial companies

based on ﬁ nancial performance. This year, earnings growth has

been much higher than the company’s target of 10% per annum.

However, the board considers that this remains an appropriate

The company’s strategies, as set out in the Corporate Plan are:

• Ongoing development of existing projects

Cedar Woods’ core competency is in property development and

the company continues to achieve industry-leading design,

delivery and marketing of projects to maximise returns.

• Diversiﬁ cation of the property portfolio

The company utilises options and 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.

target and is committed to achieving the company’s primary

• Identiﬁ cation and acquisition of new projects

objective.

The Corporate Plan sets out a number of key action items and

strategies focused on achieving delivery of earnings growth and

addressing key risk factors. These key actions form performance

targets for senior executives, sales managers and other

employees.

In addition, twice each year our Audit and Risk Management

Committee assesses risk factors that may affect the company

including speciﬁ c risks affecting individual projects and more

general risks affecting our business sector.

In the last year the company bolstered its land bank by

completing key acquisitions in Western Australia and Victoria.

Towards the end of the ﬁ nancial year the company made two

strategic acquisitions in Baldivis in Perth’s south western

growth corridor. This land will consolidate Cedar Woods’

position in the area and maintain our presence after The

Rivergums and Emerald Park developments are completed,

contributing to earnings growth over the medium term.

The focus of future acquisitions remains on medium to long

term prospects that provide the potential to add greater

value through rezoning and approvals rather than projects

purchased for immediate development and the company

continues to assess many opportunities.

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

REPORT TO
SHAREHOLDERS

• Using joint ventures, syndicates and co-development

arrangements to leverage the company’s skill base

Cedar Woods utilises joint ventures, syndicates and co-

development arrangements to diversify the company’s

revenue streams and efﬁ ciently manage its capital. This

year, the company has conditionally agreed to a joint venture

with local investors in Geraldton for a luxury apartment

development. The company completed the sale of units

in its joint venture at the Mandurah Country Club and has

progressed its syndicate company, Cedar Woods Wellard

Sustainability Reporting
Our environmental and community development report and an

overview of research and innovation is available as a separate

web-based Sustainability Report. The Report is available on our

website, www.cedarwoods.com.au

People
Our management team continues to grow to support the growth

Limited, which generates ongoing revenue. The company

in the business.

has also established important co-developments with state

government entities which will contribute to earnings over

the medium term. The ﬁ rst of these at Harrisdale Green

enabled the company to earn management fees from this

project in the second half.

In accordance with recommendations of the ASX Corporate

Governance Council, this year the company introduced a diversity

policy to reﬂ ect Cedar Woods’ commitment to an inclusive

workplace that embraces and promotes diversity. The Policy sets

out a framework for the company’s new and existing diversity-

• Retaining ownership of income producing assets

related initiatives, strategies and programs.

The company has a portfolio of income producing assets

The company has continued to actively support a range of

that provide a recurring income stream. This portfolio will be

industry groups including the Property Education Foundation of

expanded with commercial and retail property assets that the

WA which focuses on improving property professionals’ skills. In

company will develop at Williams Landing and at other estates

2011, Cedar Woods participated in promotional activities with the

where sites are designated for commercial or retail use.

Foundation to help attract graduates to the development industry.

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

Cedar Woods enters
2012 in a strong ﬁ nancial
position with a diverse
portfolio in major growth
regions.

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.

Further details of the Cedar Woods’ corporate governance

framework are available on the company’s website and in the

Corporate Governance Statement in the 2011 Financial Report.

Takeover Approach
In March, Cedar Woods announced it had received a conditional

and indicative approach under which a third party proposed the

acquisition of 100% of issued ordinary shares in the company.

New projects to be launched in FY2012 will add to the earnings

growth from the existing portfolio. With ample funding and

approvals in place, your board remains positive about the

company’s outlook and it is well positioned to achieve earnings

per share growth in excess of our target of 10% per annum

going forward.

In 2011, we have actively engaged with the investment and

broking community to raise Cedar Woods’ proﬁ le and build

awareness of the strength of the company’s portfolio.

The board remains conﬁ dent that the market value-based Net

Tangible Assets (NTA) per share is substantially above the current

share price and historical book value per share.

We look forward to further building on the strength and diversity

of our portfolio of projects and our land bank in the year ahead.

The takeover proposal was made on a conﬁ dential basis and was

We would like to thank our fellow directors, the management

subject to a number of conditions, including due diligence and

team and staff for their dedication and hard work in FY2011. We

a majority board recommendation. The board actively sought to

also thank our shareholders for their ongoing support of Cedar

negotiate modiﬁ cations to the terms of these conditions in the

Woods in FY2011 and in the year ahead.

best interests of shareholders, but ultimately a number remained

incapable of being satisﬁ ed and consequently the approach was

withdrawn. The board continues to work to maximise returns to

shareholders.

Outlook
Despite softer business and consumer conﬁ dence in 2011, the

underlying fundamentals of the economy and the property market

remain solid, particularly in Western Australia and Victoria where

the company’s portfolio is located. With strong levels of inbound

migration and low levels of unemployment, the medium-to-long

term prospects of Australia’s residential property sector are

positive. The Western Australian economy is forecast to grow at

4.5% with unemployment at 4.5%, below the national average of

5.1%. Victoria’s economy is expected to grow steadily in 2012 at a
forecast 3% with population growth of 1.5%.4

Cedar Woods enters 2012 in a strong ﬁ nancial position with a

diverse portfolio in major growth regions in Western Australia and

Victoria. The company has $130 million of pre-sales in place due

for settlement in 2012, underpinning the $34m net proﬁ t forecast.

4 Based on 2011-12 Victorian Budget Figures

William Hames

CHAIRMAN

Paul Sadleir

MANAGING DIRECTOR

September 2011

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

OVERVIEW OF
PROJECTS

Bushmead
Purchased in July 2010, 273 ha, project
life of 12 years. The former Bushmead
Riﬂ e 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.

RECENT ACHIEVEMENTS AND STATUS

The company is now progressing the
planning on the site and rezoning
applications.

Carine
Development agreement signed 2010,
8ha, project life of 3 years. The planned
redevelopment of a former TAFE site
in Perth’s middle northern suburb of
Carine is the company’s ﬁ rst 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.

RECENT ACHIEVEMENTS AND STATUS

The demolition of existing improvements,
rezoning and masterplanning has
commenced and these processes are
expected to be completed in FY2012.

Emerald Park, Wellard
Syndicate established in 2006, 47ha,
remaining project life of 5 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 Perth
- Mandurah rail line, brings convenient
accessibility beneﬁ ts to residents.

RECENT ACHIEVEMENTS AND STATUS

The ﬁ rst two stages have now been
completed and the estate is now
entering a mature phase. The initial
stages incorporate a display village and
signiﬁ cant areas of parkland, providing a
springboard for future stage releases.

Western Australia
Land Development

Harrisdale Green
Development agreement signed 2010,
30ha, project life of 5-7 years. Following
on from Carine, Cedar Woods was
awarded its second joint venture land
development with the Western Australian
State Government, in this case to be
conducted with the Department of
Housing. The Harrisdale Green project
is located within Perth’s south-eastern
urban corridor and will comprise 540
homes and 40 mixed use units. Won as a
result of a tender, it was the company’s
focus on affordability and sustainability
that set it apart from its competitors.

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 520 dwellings.

RECENT ACHIEVEMENTS AND STATUS

The ﬁ rst stage was released and developed
in FY2011 with all but a few lots now
sold. The second stage is now under
construction.

The Kestrels has continued to be very
popular with buyers. The ﬁ nal lots have
now been released, bringing to a close
the company’s development.

Mangles Bay
Development Agreement, 80ha,
project life of 15 years. In April 2010,
LandCorp appointed Cedar Woods as its
development partner for the Mangles
Bay Marina Based Tourist Precinct. The
project area is nearly 80ha of beachfront
land which is expected to include a 400-
500 pen marina, waterfront commercial
and up to 800 dwellings across a range
of types from apartments to traditional
residential lots. Environmental and
planning approvals are being sought to
allow the project to proceed.

RECENT ACHIEVEMENTS AND STATUS

The company is progressing the
environmental approvals on the site and
rezoning applications.

OVERVIEW OF
PROJECTS

North Baldivis
Purchased in 2011, 68 ha, project life
10 years. The land abuts the Kwinana
Freeway and Mundijong Road which
affords excellent exposure. Whilst the
land is currently zoned Rural under
the local planning scheme and Urban
Deferred under the Metropolitan Region
Scheme, the planned connection to
waste and water services by the Water
Corporation in 2015 will see the land
rezoned as Urban. The project will yield
some 800 lots and is a neat strategic
ﬁ t with the expected completion of
Cedar Woods’ estates at Baldivis (The
Rivergums) and Wellard (Emerald Park).

RECENT ACHIEVEMENTS AND STATUS

The company is now progressing the
planning on the site and rezoning
applications.

Piara Waters
Purchased in 2005 and 2010, 30ha, project
life of 5 years. The company’s landholding
in Piara Waters has the potential to yield
280 residential lots, including 3 unit
sites. Located in Perth’s south-eastern
corridor, the company’s two sites on
Nicholson Rd, form 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, beneﬁ ts from
good access to surrounding employment
centres.

RECENT ACHIEVEMENTS AND STATUS

Development of the ﬁ rst site is expected
to commence in FY2012 with the ﬁ rst lots
available for settlement in FY2013.

Mariners Cove, Mandurah
Purchased in 1993, 196ha, remaining
project life of 7 years. A unique waterfront
development close to the Mandurah town
centre, comprising a mix of canal lots,
The Landings waterfront townhouses,
parkland lots and estuary view lots,
Mariners Cove boasts a spectacular 93
hectare wildlife reserve complete with
raised board walks, 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.

RECENT ACHIEVEMENTS AND STATUS

Marketing continues on the remaining
canal lots in stage 5CA and the last few
remaining waterfront townhouses at
The Landings.

South Hedland
Contracted in 2011, 11ha, project life of 3
years. Located within the booming Pilbara
region, Cedar Woods was announced as
the successful partner in July 2010, and
has partnered with Foundation Housing,
IBN Corporation and Gumala Aboriginal
Corporation to provide a balanced mix of
residential, affordable, key worker, social
and indigenous housing options to the
region.

RECENT ACHIEVEMENTS AND STATUS

Development planning has commenced
with approvals expected to be provided by
the Town of Port Hedland in 2012.

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 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 ﬁ rst
Housing Industry Association (WA)
‘GreenSmart’ developments, promoting
efﬁ cient energy and water use.

RECENT ACHIEVEMENTS AND STATUS

With most of the lots in previous stages
now sold, the company is developing the
prime land that surrounds the central
lake and the land to the north of the
estate which will offer views across
signiﬁ cant public open space. The ﬁ rst
stage of this premium land is now under
construction and the ﬁ rst lots will be
titled midway through FY2012. The State
has commenced construction on the
Baldivis Senior High School, located to
the east of the lakefront lots, due to take
enrolments for the 2013 school year.

Western Australia
Land Development

OVERVIEW OF
PROJECTS

Essence, Harrisdale
Located within the Harrisdale Green project within Perth’s south-

The Jetty, Palm Beach Rockingham
Purchased in 2006, 0.2ha, project completed. The company

eastern urban corridor, Essence comprises 28 homes in total; 14

has recently completed this 4 storey beachfront development,

three bedroom, two storey townhouses, 8 three bedroom, single

opposite the refurbished landmark Palm Beach jetty in

level villas, and 6 two bedroom apartments.

Rockingham. The Jetty comprises 15 luxury three bedroom, two

Situated adjacent to the central parkland of Harrisdale Green, the

development is designed by Zuideveld Marchant Hur Architects.

bathroom apartments, all with spectacular ocean views and the
very best quality ﬁ t-out. A ground ﬂ oor beachfront café is also

planned.

RECENT ACHIEVEMENTS AND STATUS

Sales and marketing recently commenced with the project launch

in August 2011.

RECENT ACHIEVEMENTS AND STATUS

All but one of the apartments have been sold.

Western Australia
Built Form

Sutton Heritage Site, Mandurah
Purchased in 1990, 2.24ha, remaining project life of 4 years. Part

Waterline Apartments, Mandurah
Purchased in 2005, 0.45ha, remaining project life of 3 years.

of the company’s award winning Port Mandurah canal estate,

The Waterline Apartments occupy a prime beachfront location,

the historic Sutton farm site is the last remaining development

directly opposite Doddi’s Beach in Halls Head, Mandurah. Stage

site. The heritage farm buildings have been restored with the

1 of this beachside development comprises 15 two and three

cooperation of the Heritage Council of Western Australia and will
be retained as part of the redevelopment in a parkland setting,

bedroom luxury ocean view apartments and 3 luxury penthouses.
Retail space on the ground ﬂ oor now incorporates a popular

together with a heritage listed norfolk pine tree, which is a local

‘Dome’ cafe. The balance of the site will comprise a medium

landmark.

density development for which planning is underway.

RECENT ACHIEVEMENTS AND STATUS

Planning and design is well advanced and the necessary

Construction of the Stage 1 ocean front apartments and

approvals are expected in 2012.

commercial tenancy was completed in 2008 and the remaining

few apartments are currently being marketed. The company is

now reﬁ ning development options for Stage 2.

OVERVIEW OF
PROJECTS

Banbury Village, Footscray
Purchased in 2006, 9ha, remaining project life of 4 years. Banbury

Carlingford, Lalor
Purchased in 2006, 56ha, remaining project life of 4 years. An inﬁ ll

Village is a substantial urban renewal project comprising over

project in Melbourne’s northern suburb of Lalor, Carlingford is

430 new home sites, townhouses and apartments. The project

the ﬁ rst residential estate launched in the area in over a decade.

is a premium housing development for the inner west suburb of

Ultimately comprising 600 housing lots, its location boasts

Footscray, some 6km from the Melbourne CBD. Banbury Village
not only looks to the future with energy efﬁ cient homes but

excellent transport links to Melbourne’s CBD and is within easy
reach of shopping, schools and the train network.

also embraces the past through the adaptive re-use of heritage

buildings on site.

RECENT ACHIEVEMENTS AND STATUS

The ﬁ rst six stages have now been completed and sold.

Substantial pre-sales have been achieved in the two subsequent

The ﬁ rst six stages have been constructed and all homes have

stages as interest remains strong from buyers in the local area.

been sold. Work is now underway on the exciting ‘Heritage

Apartments’ which comprise fully renovated existing heritage

listed buildings, most of which are pre-sold.

Victoria
Land Development
Built Form

Realm, Camberwell
Purchased in 2010, 2.55ha, remaining project life of 3 years.

Williams Landing
Purchased in 1997, 275 ha (220ha developable), remaining

An inﬁ ll project in one of Melbourne’s prestigious eastern suburbs

project life of 13 years. A premium masterplanned community

that will accommodate 78 premium homes, the site is rezoned

development is being delivered on the former RAAF Williams

and now has a development approval. A mix of product has been

Laverton airﬁ eld, comprising four neighbourhoods with 2,500

designed for the site including terraces and detached, large
family homes.

dwellings and a future major town centre. Signiﬁ cant State
Government infrastructure delivery for the site including a new

RECENT ACHIEVEMENTS AND STATUS

The ﬁ rst sales release is currently under way and construction is

expected to commence in 2012, subject to satisfactory presales

being achieved.

freeway interchange and rail station is underway and is due for

completion late 2012. The new town centre will integrate directly

with these transit facilities to create a showcase transit-oriented

development.

RECENT ACHIEVEMENTS AND STATUS

With zoning and masterplan approvals in place and the ﬁ rst eight

residential stages completed, the company is moving forward with

construction of further stages. The company is also progressing

with the detailed planning of the town centre component of the

project, having signed lease agreements with the Woolworths

group for a trio of stores at Williams Landing.

2011

2010

2009

2008

2007

PERFORMANCE
RECORD

All ﬁ gures in $’000 except where stated

FINANCIAL YEAR

FINANCIAL PERFORMANCE

Revenue from ordinary activities

Earnings before interest and tax

Finance costs

Operating proﬁ t before tax

Income tax expense

Net proﬁ t after tax

Realised reserve

131,839

41,455

1,215

40,240

12,180

28,060

108,415

26,771

2,036

24,735

7,494

17,241

Net proﬁ t after tax plus realised reserve

28,083

17,267

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 (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

233,595

104,046

129,549

61,818

45.8

23.0

31.4%

9.1

21.7%

102,348

2.10

55,100

42.5%

4.00

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

247,272

148,383

107,076

16,567

3,047

13,520

4,257

9,263

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

82,592

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

151,630

286,181

RETURNS TO SHAREHOLDERS OVER 1, 3 & 5 YEARS

1 Year

3 Year

5 Year

Earnings growth %

Share price growth %

Dividend growth % (paid dividend)

Total shareholder return %

SHAREHOLDER DISCOUNT SCHEME

(2)

The company operates a shareholder discount scheme which entitles shareholders to a 5% discount off the listed purchase price of any
residential lot at a number of 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 or apartments.

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.

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

CORPORATE
DIRECTORY

A.B.N. 47 009 259 081

DIRECTORS

William George Hames, BArch (Hons) MCU (Harvard) LFRAIA, MPIA, FAPI (Econ) – Chairman

Robert Stanley Brown, MAICD, AIFS – Deputy Chairman

Ronald Packer, BCom (UWA), AAPI, FAICD, Solicitor Supreme Court of England & Wales

Paul Stephen Sadleir, BE, MBA, AAPI, FAICD, FRICS – 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

Ground Floor, 50 Colin Street, 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

SHARE REGISTRY

Computershare Investor Services Pty Ltd

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, Fraser Avenue, WEST PERTH WA 6005

Time : 11.00am

Date : Friday, 4 November 2011

CEDAR WOODS PROPERTIES LIMITED 2011 ANNUAL REPORT

cedarwoods.com.au