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.
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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
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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
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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
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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.
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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
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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.
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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.
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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.
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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.
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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