Cedar Woods Properties Limited
Annual Report 2012

Plain-text annual report

Cedar Woods Properties Limited A.B.N. 47 009 259 081 ANNUAL RepoRt CoNteNts ii CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT Cedar Woods – world class property developer, producing award winning residential communities and apartment projects. 1 2 3-4 5-10 11-18 19 20 Cedar Woods’ objective About Cedar Woods 2012 Highlights Report to shareholders overview of projects performance Record Corporate Directory CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT iii CeDAR WooDs’ objeCtIve our primary objective is to create value for our shareholders through growth in earnings. 1 CeDAR WooDs pRopeRtIes LIMIteD 2012 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 consideration for environmental and community interests and and has been listed on the Australian securities exchange built to a high quality that is renowned in the marketplace. since 1994, trading under the security code ‘CWp’. Its market capitalisation is approximately $275m. through the rapid expansion of its build form development portfolio, Cedar Woods has earned a reputation of delivering the company’s principal interests are in urban land subdivision high quality apartments for both the owner-occupier and and built form development for residential, commercial and investor 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 consistently high experience in the property industry, with particular expertise returns to 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 profits and dividends for shareholders, whilst achieving excellence in product delivery, as recognised by several national awards and many state awards, including the categories “best Residential estate” and “environmental excellence” and most recently, “best High Density Development”. In the investor relations arena, the company is a past winner of 3 ARA silver awards for its Annual Report. CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 2 2012 HIgHLIgHts 3 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT In 2012 Cedar Woods’ full year profit rose 22% to $34.25 million. • Record full year profit of $34.25m, up 22% • earnings per share of 53.2 cents, up 16% • Full year dividend of 25 cents (fully franked), up 9%; full year payout ratio to remain at 50% of net profit • $140m in presales at projects completing in FY2013 & FY2014 • Net debt to equity ratio of 2% at 30 june 2012 • $110m bank facility in place until November 2014; $98.9m headroom available • Four new projects successfully launched; significant pre-sales in place • Completed major new acquisitions in Western Australia and victoria 2012 FiNANciAL REsULTs sUmmARy Year ended 30 june Revenue Net profit after tax total assets Net bank debt shareholders’ equity 2012 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 2012 $’000 170,474 34,250 238,314 3,822 184,626 2012 53.2 25.0 -5.3 2.1 8.8 2.56 72,190 256,995 3.56 18.6 28.1 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 22.8 Change (%) + 29.3% + 22.1% + 2.0% (93.1%) + 42.5% Change (%) + 16.1% + 8.7% (76.3%) (40.4%) (3.3%) + 21.9% + 16.7% + 3.9% (11%) (3.1%) + 5.3% ¢ ¢ % % x $ ’000 $’000 $ % % 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 five financial years. CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 4 RepoRt to sHAReHoLDeRs 5 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT In 2012, Cedar Woods delivered a record profit of $34.25 million. Net profit increased 22% and earnings per share increased 16%. 2012 Financial Result In 2012, Cedar Woods delivered a record profit of $34.25 million. Cash flows from operations improved significantly during the year Net profit increased 22% and earnings per share increased 16% as a number of apartments and house and land products settled, to 53 cents per share. releasing capital invested in previous years. Although market conditions continued to be challenging in 2012, the company has been selective in its acquisitions in FY2012, Cedar Woods achieved a second consecutive record profit for the boosting its land bank with the $12m purchase of land at st year. the robust result reflects the increased profitability of the Albans in Melbourne, the $22m investment in land at baldivis company’s projects particularly in Melbourne and the strength North in WA and a $6m investment in the batavia Marina and diversity of Cedar Woods’ property portfolio. Apartments project in geraldton, WA. Cedar Woods remains in a strong financial position with a $110 Despite the company’s record profit, strong balance sheet and million debt facility in place until November 2014 and $98.9m positive outlook, the company’s share price dropped over the headroom available. the company remains modestly geared with financial year from $4.00 per share at 30 june 2011 to $3.56 at 30 net bank debt to equity at 30 june 2012 at 2%. Interest cover is june 2012, reflecting the weak sentiment in global stock markets comfortable at nine times, similar to FY2011. and the Australian listed property sector in particular. However this was offset by a fully franked full year dividend of 25 cents per share, up 8.7%, providing solid returns to shareholders. REvENUE ($m) NET PROFiT ($m) 13.6% pa 20.1% pa 175 140 105 70 35 0 30.0 22.5 15.0 7.5 0 81.9 107.1 108.4 131.8 170.5 20.6 9.3 17.2 28.0 34.25 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 EARNiNGs PER sHARE (cents) 9.3% pa dividENd PER sHARE (cents) 8.6% pa 50.0 37.5 25.0 12.5 0 25.0 18.75 12.5 6.25 0 37.3 16.2 29.0 45.8 53.2 18.0 7.0 13.0 23.0 25.0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 6 RepoRt to sHAReHoLDeRs Net tangible Asset value to satisfy ongoing bank financing requirements, the company recently received independent valuations over all of the major projects in the portfolio. operates and the company’s capital management initiatives. since the last market based valuation of approximately $6 per share was disclosed on 7 october 2010, the company has paid fully franked dividends of 42 cents per share and issued 11,540,105 new ordinary shares, including shares issued under the based on these independent valuations and an internal company’s dividend reinvestment plan and the recent placement assessment of the remaining properties in the portfolio, on a and share purchase plan. market value basis the company estimates that its net tangible assets (NtA) per share is approximately $5.35. this figure does not take into account corporate tax payable upon the sale of the properties, the value of any other projects under consideration or the value of the company’s available franking credits which are currently approximately $32m. the NtA calculated from the company’s audited accounts is based on values of properties representing the lower of cost and net realisable value. the NtA on a market value basis assumes the orderly disposal of the properties and is based on current market conditions. based on the above valuation analysis, the board remains firmly of the view that the current market value of the company’s projects is substantially above the value reflected in its share price. Capital Management and the 2012 Dividend In April 2012 Cedar Woods conducted a successful equity raising, comprising an institutional placement and a share purchase plan. the board was delighted with the support for the raising, with both the placement and share purchase plan oversubscribed. A total of $30.5m was raised to fund working capital and the the excess of market value based NtA over reported NtA has company’s growth initiatives. been driven by the strong performance of a number of key projects, together with the fact that many of the company’s properties were acquired some time ago at much lower values than those now prevailing. In light of Cedar Woods’ strong financial result, and in accordance with the company’s dividend policy, your board has declared a fully franked final dividend of 14 cents per share. this brings the full year payout to a record 25 cents per share (23 cents per share the market value based NtA is influenced by a number of factors in 2011), providing an attractive yield based on the current share including changes in the economic environment, prevailing price, and representing an 8.7% increase on last year’s full year property market conditions in the sectors in which the company dividend. the final dividend will be paid on 31 october 2012. 7 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT Cedar Woods’ strong financial result for 2012 saw a 8.7% increase on the previous year’s full year dividend. During the year the company invested in an exciting new development at the batavia Coast Marina Apartments, on the waterfront in geraldton, in the state’s mid-west. these luxury apartments are already more than 50% pre-sold with construction well advanced. this project is expected to be completed in the second half of FY2013 or early FY2014. elements at south Hedland is Cedar Woods’ first project in the burgeoning pilbara region and will consist of 130 lots on 10 hectares. Working with project partners, mining companies, builders and, importantly, local residents and businesses, Cedar Woods expects to deliver lots in mid 2013 to satisfy the significant housing demand in the area. Already a significant number of lots have been pre-sold to a major resource company, with the public release due soon. piara Central, in the growing south east corridor of perth, launched in May 2012. the estate will be home to more than 150 families upon completion, with the central parkland providing a community focal point. strong sales have been achieved since the launch in May, with settlements commencing in the first half of FY2013. vicTORiA the company’s major residential projects in victoria performed well during the year, continuing to record strong pre-sales and good levels of enquiries. At Cedar Woods’ flagship Williams Landing development in Melbourne’s west, the company recorded approximately 200 settlements in the year and has pre-sold 56% of its targeted settlements for FY2013. At the end of the year the company committed to proceed with the new Masters store in the Williams Landing town Centre, which is expected to be delivered in FY2014, subject to approvals. During the year, several stages at banbury village in Footscray and Carlingford at Lalor were completed and settled and civil works were well progressed at the Realm, Camberwell project with construction of the first houses in this 78-home project now underway. Details of progress at the projects commences on page 11. CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 8 the dividend reinvestment plan (DRp) will be available for the final dividend and shares under the DRp and bonus share plan (bsp) will be offered at a 2.5% discount to the weighted average market price for the 10 days to 12 october 2012. economy and the property Market While the Australian economy has been faring well overall, conditions remain mixed across the economy. National economic growth is expected to be approximately 3.5% for 2012 and 3% for 20131, with most of the growth driven by the resources sector. Unemployment remains at low levels however, (5.2% nationally) and annual weekly wages have continued to rise. the Reserve bank of Australia has reduced interest rates during 2012, with most of the reductions passed on by banks to homebuyers. As a consequence, falling property prices, higher wages and lower interest rates have improved affordability for home buyers. the Western Australian economy has continued to outperform the national economy over the past financial year, with economic growth for 2012 expected to be 6% and forecast to grow by 4.75% in 20132. Low consumer confidence, impacted by events in overseas markets, remains the obstacle to improved sentiment in the WA property market. strong in-bound migration supported by the resource based economy, coupled with low unemployment, provides the underlying fundamentals to support growing demand for residential property in the future. Following a period of strong growth in the residential property market in victoria, demand has moderated over the past 18 months with property prices declining slightly during the last financial year. Forecast population growth, low unemployment and increased affordability provides the platform for increased demand in the medium term. projects In FY2012, there were 14 projects under development in Cedar Woods’ portfolio across Western Australia and victoria. WEsTERN AUsTRALiA Lot sales remained steady at the company’s current Western Australian land estates, with price levels broadly maintained. 1 Reserve bank of Australia - August 2012 economic outlook 2 WA treasury forecasts RepoRt to sHAReHoLDeRs Corporate objectives and strategy Cedar Woods’ Corporate plan guides management’s activities and provides a five year outlook for the company, projecting earnings and other key performance indicators. Cedar Woods’ primary objective is to create value for shareholders through earnings growth and it has consistently continues to assess new opportunities with the objective of supporting 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. delivered strong year on year growth in net profit and earnings • Using joint ventures, syndicates and co-development per share. this puts the company in the top half of all listed arrangements to leverage the company’s skill base industrial companies based on financial performance. this year, the company reported full year earnings per share growth of 16%. Cedar Woods utilises joint ventures, syndicates and co- development arrangements to diversify the company’s the Corporate plan sets out a number of key action items and revenue streams and efficiently manage its capital. this year, strategies focused on achieving delivery of earnings growth and the company has continued the development of lots at the addressing key risk factors. these key actions are implemented Harrisdale green project, an important co-development with as performance targets by senior executives, sales managers and the Department of Housing and has progressed its syndicate other employees. In addition, twice each year our Audit and Risk Management company, Cedar Woods Wellard Limited, which generates ongoing revenue by way of management and selling fees. Committee assesses risk factors that may affect the company • Retaining ownership of income producing assets including specific risks affecting individual projects and more general risks affecting our business sector. the company will build a limited number of commercial and retail property assets at Williams Landing and at the company’s strategies, as set out in the Corporate plan are: other estates, where the development of those buildings is • 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. consistent with estate master plan objectives. Retail assets developed in apartment projects are likely to be sold as part of those developments. • diversification of the property portfolio sustainability Reporting the company has a strategically located and diverse residential portfolio in urban and regional growth areas in victoria and WA, offering a wide spectrum of dwelling product and price points to consumers. the company’s offerings include small affordable housing lots at its residential estates through to million-dollar plus luxury apartments at boutique waterfront developments. • Focus on the project pipeline our environmental and community development report and 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 In the last year the company bolstered its land bank by completing key acquisitions in Western Australia and victoria. our management team continues to grow to support the growth in the business. During the second half of the financial year the company In accordance with recommendations of the AsX Corporate made two strategic acquisitions, in st Albans in Melbourne’s governance Council, this year the company reports on the north-west growth corridor and an investment in the batavia implementation of its new diversity policy, introduced in 2011. Coast Marina Apartments in geraldton. the company the policy reflects Cedar Woods’ commitment to an inclusive 9 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT Cedar Woods enters FY2013 with low debt, a strong balance sheet and a diverse portfolio of projects in major growth regions in Western Australia and victoria. workplace that embraces and promotes diversity. the policy Australia and victoria. Demand remains strong across Cedar sets out a framework for the company’s new and existing Woods’ portfolio of strategically located projects in victoria and diversity-related initiatives, strategies and programs and Western Australia’s urban growth corridors. the company has commentary is provided in the Corporate governance statement secured approximately $140 million in pre-sales at projects, in the Financial Report. the company has continued to actively support a range of industry groups including the property education Foundation of WA which focuses on improving property professionals’ skills. In the majority of which will settle during the 2013 financial year. Assuming the current level of sales activity continues, the company anticipates delivering a net profit after tax at least in line with last year’s record profit. 2012, Cedar Woods participated in promotional activities with the In FY2012, we have continued to actively engage with the Foundation to help attract graduates to the development industry. investment and broking community to raise Cedar Woods’ profile board Matters and build awareness of the strength of the company’s portfolio. We were particularly pleased with the support for our institutional placement and share purchase plan which introduced new shareholders onto our register and enabled us to raise $30.5m, the board is conscious of its duty to ensure the company meets further strengthening our balance sheet and providing funding for its performance objectives. During the year the board and its the company’s new projects and other growth initiatives. committees reviewed their respective charters and performance to ensure they were properly discharging their responsibilities. As previously referred, based on recent valuation analysis the board remains confident that the market value-based Net Further details of Cedar Woods’ corporate governance framework tangible Assets (NtA) per share is substantially above the current are available on the company’s website and in the Corporate share price and book value per share as at 30 june 2012. governance statement in the 2012 Financial Report. We look forward to further building on the strength and diversity A comprehensive review of all charters and policies has of our portfolio of projects and our land bank in the year ahead. commenced and an update of these is expected to be released on the company’s website during FY2013. outlook Although business and consumer confidence continues to be subdued, 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, low levels of unemployment, historically low interest rates and improving affordability, the medium-to-long term prospects of Australia’s residential property sector remain positive. the Western Australian economy is forecast to grow at 4.75% with unemployment well below the national average. victoria’s economy is expected to grow steadily in 2012 (forecast 1.75%) and population growth of 1.6%3 is forecast. on behalf of the board, we would like to thank our dedicated team at Cedar Woods for the results achieved in 2012, together with our consultants, contractors and state government joint venture agencies. thanks also go to our shareholders for their ongoing support of Cedar Woods. William Hames cHAiRmAN Paul sadleir mANAGiNG diREcTOR Cedar Woods enters FY2013 with low debt, a strong balance sheet and a diverse portfolio in major growth regions in Western september 2012 3 vic treasury mid year review CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 10 Western Australia Land development oveRvIeW oF pRojeCts bushmead purchased in july 2010, 273 ha, project life of 11 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. 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 first project to be conducted in cooperation with the Western Australian state government (LandCorp). Cedar Woods and the st Ives group were selected through a highly competitive tender process as the preferred project partners. the redevelopment will include residential aged care, a retirement village, mixed use development and residential townhouses and apartments. the st Ives group is one of the state’s leading providers of aged care and retirement housing. REcENT AcHiEvEmENTs ANd sTATUs the local structure plan was approved in 2012 and detailed planning and subdivision approvals have commenced to deliver the project. 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 620 home sites, 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, bring convenient accessibility benefits to residents. REcENT AcHiEvEmENTs ANd sTATUs the first four stages have now been completed and the estate is now entering a mature phase. the initial stages incorporate a display village and significant areas of established parkland. 11 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT With the success of stage 2 at Harrisdale green in 2012, stage 3 is now under construction. the Kestrels, tapping purchased in 2003, 50ha, the project is now complete. 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 Kestrels has continued to be very popular with buyers. the final lots have now been sold, 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 to develop the Mangles bay Marina based tourist precinct. the project area is nearly 80ha of beachfront land which will include a 400-500 pen marina, waterfront commercial and up to 800 dwellings across a range of types from apartments to traditional residential lots. the project is currently undergoing environmental and planning approvals with construction commencement planned for 2014. REcENT AcHiEvEmENTs ANd sTATUs the company is progressing the environmental approvals on the site and rezoning applications. Harrisdale green Development agreement signed 2010, 30ha, project life of 4-6 years. Following on from Carine, Cedar Woods was awarded its second land development to be conducted with the Western Australian state government, in this case with the Department of Housing. the Harrisdale green project is located within perth’s south-eastern urban corridor and will comprise 640 homes and up to 40 businesses. Won as a result of a tender, it was the company’s focus on affordability and sustainability that set it apart from its competitors. REcENT AcHiEvEmENTs ANd sTATUs the second stage was released and developed in FY2012 with all but a few lots now sold. the third stage is now under construction. CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 12 Western Australia Land development oveRvIeW oF pRojeCts 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 canal lots, the Landings waterfront townhouses, parkland lots and estuary view lots, Mariners Cove boasts a spectacular 93 hectares 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. It has also won the state and National UDIA awards for best Residential Development (250 or more lots). REcENT AcHiEvEmENTs ANd sTATUs Marketing continues on the remaining canal lots in stage 6CA and the last few remaining the Landings waterfront townhouses. North baldivis purchased in 2011, 68 ha, project life 9 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 2015/16 will see the land rezoned as Urban in a relatively straightforward process that has already been initiated by the surrounding landowners. the project will yield some 800 lots and is a neat strategic fit 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 4 years. the company’s landholding in piara has the potential to yield 300 residential lots, including 3 unit sites. Located in perth’s south-eastern corridor, the company’s two sites on Nicholson Road form part of a larger new urban precinct which includes new retail and 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. REcENT AcHiEvEmENTs ANd sTATUs Development of the first site commenced in FY2012 with the first lots available for settlement in FY2013. Known as piara Central, the first release in May 2012 has been well received by the market. 13 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT Cedar Woods was the successful proponent for the new south Hedland residential development opportunity. south Hedland Contracted in 2011, 11ha, project life of 2-3 years. Located within the growing north-west region, Cedar Woods was announced as the successful proponent by the Department of Regional Development & Lands in july 2010, and has collaborated with Foundation Housing, IbN Corporation and gumala Aboriginal Corporation in planning a balanced mix of residential, affordable, key worker, social and indigenous housing options to the region. REcENT AcHiEvEmENTs ANd sTATUs planning approvals were secured in FY2012 and construction is planned for FY2013. 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 1,300 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. REcENT AcHiEvEmENTs ANd sTATUs With most of the lots in previous stages now sold, the company has released prime land that surrounds the central lake and the land to the north of the estate which will offer views across significant public open space. Construction is well advanced on the baldivis secondary College, located to the east of the lakefront lots, due to take enrolments for the 2013 school year. CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 14 Western Australia Built Form oveRvIeW oF pRojeCts ecovision Homes, the Kestrels, Wanneroo Commenced in 2009, project is now complete. A joint venture the jetty, palm beach, Rockingham purchased in 2006, 0.2ha, project completed. the company between the company and the City of Wanneroo, the ecovision has completed this 4 storey beachfront development, opposite demonstration homes showcase the best innovations in the recently refurbished landmark palm beach Z Force jetty in affordable and sustainable living including practical ideas to Rockingham. the jetty comprises 15 luxury three bedroom, save energy, use water efficiently and minimise impacts on the two bathroom apartments, all with spectacular ocean views and environment. the 8-star energy rated homes feature a state the very best quality fit-out. A ground floor beachfront café is of the art energy monitoring system, photovoltaic solar cells, also planned. energy efficient lighting, appliances and ceiling fans throughout, insulated roof and walls, cross ventilation and integrated north REcENT AcHiEvEmENTs ANd sTATUs facing indoor and outdoor living areas with blinds, shade sail and solar pergola for maximum comfort and temperature control. the project is now complete. REcENT AcHiEvEmENTs ANd sTATUs the project is now complete and was recently awarded the National townhouse / villa Development of the Year at the 2012 HIA greensmart Awards. 15 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT Construction of batavia Marina Apartments is well advanced with 50% of the project pre-sold. Waterline Apartments, Mandurah purchased in 2005, 0.45ha, the project is now complete. 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. REcENT AcHiEvEmENTs ANd sTATUs stage 1 of the project is now complete. the company is now exploring development options for stage 2. batavia Marina Apartments, geraldton A collaboration with local investors established in 2012, 0.2ha, project life of 2 years. the construction of this 4 and 5 storey luxury beachfront development, is well advanced and due for completion in 2013. the project comprises 50 luxury three bedroom, two bathroom apartments, mostly with spectacular marina and ocean views and a high quality fit-out. the ground floor includes 4 retail/commercial tenancies. REcENT AcHiEvEmENTs ANd sTATUs Construction is well advanced for completion in 2013 and over 50% of the project has been presold. CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 16 Victoria Land development & Built Form oveRvIeW oF pRojeCts banbury village, Footscray purchased in 2006, 9ha, remaining Carlingford, Lalor purchased in 2006, 56ha, remaining Realm, Camberwell purchased in 2010, 2.55ha, remaining project life of 4 years. banbury village project life of 4 years. An infill project in project life of 2 years. An infill project in is a substantial urban renewal project Melbourne’s northern suburb of Lalor, one of Melbourne’s prestigious eastern comprising more than 420 houses, Carlingford is the first residential estate suburbs that will accommodate 78 townhouses and apartments. the project launched in the area in over a decade. premium homes. A mix of product has is a premium housing development for Ultimately comprising 600 housing lots, been designed for the site including the inner west suburb of Footscray, its location boasts excellent transport terraces, duplexes and detached homes. some 6km from the Melbourne CbD. the links to Melbourne CbD and is within design outcome for completed stages easy reach of shopping, schools and the REcENT AcHiEvEmENTs ANd sTATUs has set a new benchmark for integrated housing developments. train network. REcENT AcHiEvEmENTs ANd sTATUs 37 homes have been sold and construction of the first stage of homes is underway. the civil works were REcENT AcHiEvEmENTs ANd sTATUs ten stages have been completed and completed in mid 2012. the first 12 stages have been constructed sold. planning approvals are being and all homes have been pre-sold sought for the next stages and including both stages of the heritage discussions are underway with apartments. Work is underway on several government regarding rezoning of a presold stages and an active release portion of the site. Interest remains program is in place. strong from buyers in the local area. 17 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT the recent acquisition of the st Albans site will see an exciting development of 200 dwellings. st Albans purchased in 2012, 6.8ha, project life of Williams Landing purchased in 1997, 275 ha (220ha developable), 3 years. An infill site located close to the remaining project life of 12 years. A premium st Albans train station, which will soon masterplanned community development is be upgraded by the state government. being delivered on the former RAAF Williams the site will accommodate around 200 airfield, comprising 4 neighbourhoods with dwellings with a mix of terraces, duplexes over 2,500 dwellings and a future major and detached homes. town centre. significant state government infrastructure is being constructed on the site REcENT AcHiEvEmENTs ANd sTATUs including a new freeway interchange and rail the process to achieve rezoning has commenced. the first revenues from this project are expected in four year’s time. station and which will be complete in early 2013. 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 first 13 residential stages completed, the company is moving forward with construction of further stages. the company is also progressing with the detailed planning of future neighbourhoods and the town centre component. planning approvals for the first stage of the town centre, the Masters store, are well advanced and construction is anticipated to start towards the end of 2012. CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 18 peRFoRMANCe ReCoRD 5 year financial performance summary All figures in $’000 except where stated FINANCIAL YeAR FiNANciAL PERFORmANcE Revenue from ordinary activities earnings before interest and tax Finance costs operating profit before tax Income tax expense Net profit after tax FiNANciAL POsiTiON total assets total liabilities shareholders’ equity 2012 2011 2010 2009 2008 170,474 131,839 108,415 107,076 53,092 3,819 49,273 15,023 34,250 42,106 1,866 40,240 12,180 28,060 26,771 2,036 24,735 7,494 17,241 16,961 3,441 13,520 4,257 9,263 81,941 31,245 2,230 29,015 8,458 20,557 238,314 233,595 205,657 162,720 53,688 104,046 96,867 69,442 185,019 101,073 184,626 129,549 108,790 93,278 83,946 Number of shares on issue - end of year (‘000) 72,190 61,818 60,565 58,163 55,138 KEy PERFORmANcE mEAsUREs earnings per share (cents) Dividend per share fully franked (cents) ebIt margin (%) Interest cover (times) Return on equity (%) 53.2 25.0 45.8 23.0 29.0 13.0 16.2 7.0 37.3 18.0 31.1% 31.9% 24.7% 15.8% 38.1% 8.8 9.1 6.4 2.2 4.2 18.6% 21.7% 15.8% 9.9% 24.5% Investment in inventory during year 97,401 102,348 56,338 45,312 46,002 Net tangible assets backing per share - historical cost ($) 2.56 2.10 1.80 1.60 1.52 Net bank debt Net bank debt to equity (%) share price - end of year ($) 3,822 2.1% 55,100 39,716 47,913 80,633 42.5% 36.5% 51.4% 96.1% 3.56 4.00 2.45 1.42 2.75 stock market capitalisation at 30 june 256,995 247,272 148,383 82,592 151,630 Number of employees at 30 june 48 41 35 30 33 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 % 16 -11 9 -5 49 36 53 43 9 -7 8 -2 19 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), FAICD, solicitor supreme Court of england & Wales paul stephen sadleir, be, MbA, AApI, FAICD, FRICs – Managing Director timothy Robert brown, bA, LLb, M.Fin, post grad Dip (phil) (Alternate for R s brown) cOmPANy sEcRETARy paul samuel Freedman, bsc, CA, gAICD REGisTEREd OFFicE ANd PRiNciPAL PLAcE OF bUsiNEss Level 1, 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 terrace, West perth time : 11.00am Date : Friday, 2 November 2012 CeDAR WooDs pRopeRtIes LIMIteD 2012 ANNUAL REPORT 20 cedarwoods.com.au 

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