2013
Annual Report
Cedar Woods Properties Limited
A.B.N. 47 009 259 081
Cedar Woods – award winning property
developer, producing residential communities
in Western Australia and Victoria
CEDAR WOODS PROPERTIES LIMITED
Cedar Woods’ Objective 02
About Cedar Woods 03
2013 Highlights 04
Financial and Operating Review 06
Overview of Projects 12
Community Development & Sponsorship 18
Performance Record 20
Corporate Directory 21
2013 ANNUAL REPORT
CeDAR WOODS’
Objective
Our primary objective is to create value for
our shareholders through growth in earnings.
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 in a safe working environment;
• Have our citizenship recognised by the communities in which we operate and be
recognised as environmentally responsible; and
• Maintain the highest ethical standards.
CeDAR WOODS PROPeRTIeS LIMITeD
About Cedar Woods.
03
Cedar Woods Properties Limited is an Australian property development company. The
company was established in 1987 and has been listed on the Australian Securities
exchange since 1994, trading under the security code ‘CWP’. Its market capitalisation is
approximately $500m.
The company’s principal interests are in urban land subdivision and built form
development for residential, commercial and industrial purposes. Its portfolio of assets
is located in Western Australia and Victoria. The board and management of Cedar
Woods have extensive experience in the property industry, with particular expertise in
adding value to land holdings through the achievement of government and local authority
approvals and the planning and design process.
Cedar Woods has consistently generated profits and dividends for shareholders, whilst
achieving excellence in product delivery, as recognised by several national awards and
many state awards, including the categories “Best Residential estate” and “environmental
excellence” and most recently, “Best High Density Development”. In the investor relations
arena, the company is a past winner of 3 ARA silver awards for its Annual Report.
Cedar Woods’ projects are sensitively developed with consideration for environmental
and community interests and built to a high quality that is renowned in the marketplace.
Through the rapid expansion of its built form development portfolio, Cedar Woods has
earned a reputation of delivering high quality apartments for both the owner-occupier and
investor market.
The company has a strong focus on shareholder value and its record in delivering
quality developments to the market has produced a strong earnings stream, providing
consistently high returns to shareholders.
2013 ANNUAL REPORT 2013
highlights
04
Our primary objective is to create value for
our shareholders through growth in earnings.
• Record full year profit of $36.34m, up 6%
• earnings per share of 49.9 cents, down 6%
• Full year dividend of 26 cents (fully franked), up 4%; full year payout ratio to remain
at 50% of net profit
• $175m in pre-sales at projects completing in FY2014 & FY2015
• Net debt to equity ratio of 18% at 30 June 2013
• $110m bank facility in place until November 2015; $57.5m headroom available
at June 2013
• Commenced development in Williams Landing Town Centre
• Completed major new acquisitions in Western Australia
04
CEDAR WOODS PROPERTIES LIMITED 2013 Financial Summary.
05
2013 FinAnCiAl Results summARy
year ended 30 June
Revenue
Net profit after tax
Total assets
Net bank debt
Shareholders’ equity
2013 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
2013
$’000
172,751
36,337
301,024
37,762
207,744
2013
49.9
26.0
53.8
18.2
12.6
2.83
73,360
379,269
5.17
17.5
21.6
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
Change %
+ 1.3
+ 6.1
+ 26.3
+ 888.0
+ 12.6
Change %
- 6.2%
+ 4.0%
+ 59.1%
+ 16.1%
+ 43.2%
+ 10.5%
+ 1.6%
+ 47.6%
+ 45.2%
-1.1%
-6.5%
¢
¢
%
%
x
$
’000
$’000
$
%
%
Reference should be made to the financial performance summary on page 20 of this Annual Report which tables the financial
performance of the company over the last five financial years.
2013 ANNUAL REPORT FINANCIAL AND
Operating review
06
In 2013, Cedar Woods’ net profit increased
6% to a record $36.34 million.
2013 Financial Result
Capital Management and the 2013 Dividend
in 2013, Cedar Woods’ net profit increased 6% to a record
In light of Cedar Woods’ strong financial result, and in
$36.34 million, and a total shareholder return of 54% was
accordance with the company’s policy of paying approximately
achieved.
Against the back drop of a weakening economy but improving
residential property sector, Cedar Woods achieved another
record profit for the year. The robust result reflects the increased
profitability of the company’s projects in Perth and Melbourne and
50% of the full year profit in dividends, your board has declared
a fully franked final dividend of 15 cents per share. This brings
the full year payout to 26 cents per share, 4% up on FY2012,
providing an attractive yield based on the current share price.
The final dividend will be paid on 30 October 2013.
the strength and diversity of Cedar Woods’ property portfolio.
The dividend reinvestment plan (DRP) will be available for the
Cedar Woods remains in a strong financial position with a $110
million debt facility in place until November 2015 and $57.5m in
available headroom. The company remains modestly geared with
net bank debt to equity at 30 June 2013 at 18.2%. Interest cover
is comfortable at 12.6 times, improving on FY2012 (8.8 times).
Strong operating cash flows derived from settlements were
substantially reinvested into the property portfolio as we laid the
foundations for future development at the Williams Landing Town
Centre and commenced a number of new projects.
The company has also been selective in its acquisitions in
FY2013, boosting its WA land bank with the $6.5m purchase of
land at Byford in Perth’s Se corridor, and the $22.3m investment
in land at Brabham, in Perth’s growing Ne corridor. Shortly after
the end of FY2013 the company also acquired the undeveloped
balance landholding of 35.3ha in the ‘Byford on the Scarp’
residential estate for $9.3m further boosting our presence in the
corridor.
With the property sector generally returning to favour in the eyes
of investors, the company’s share price increased over the
financial year from $3.56 per share at 30 June 2012 to $5.17
at 30 June 2013. Including fully franked full year dividends of 26
cents per share, the total return to shareholders over the year
was 54%.
final dividend and shares under the DRP and Bonus Share Plan
(BSP) will be offered at a 2.5% discount to the weighted average
market price for the 10 days to 11 October 2013.
economy and the Property Market
The Australian economy as a whole weakened during the year as
the decline in investment activity associated with the resources
sector dampened growth, with real GDP forecast to grow by
2.5% in FY2014 before recovering to 3.0% in FY2015 based
on Treasury estimates in the Pre-election economic and Fiscal
Outlook.
The economic fundamentals remain supportive for the residential
property sector, with inbound migration contributing to a national
population growth rate of 1.8% in CY2012, with the largest
growth by percentage in WA (3.5%) and the largest by number
in Victoria (100,000) – Source ABS. The unemployment rate,
though increasing, remains below 6% and the housing vacancy
rate remains under 3% in all capital cities (SQM Research). The
growth in wages has outstripped the growth in house prices
nationally over the last year (ABS) and the Reserve Bank of
Australia has continued to reduce interest rates during 2013, with
most of the reductions passed on by banks to homebuyers. As
a consequence, these factors have improved affordability for
home buyers.
CEDAR WOODS PROPERTIES LIMITED 5 year results summary.
07
ReVeNue ($m)
NeT PROFIT ($m)
175
140
105
70
35
0
40
30
20
10
0
107.1
108.4
131.8
170.5
172.8
9.3
17.2
28.0
34.3
36.3
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
eARNINGS PeR SHARe (cents)
DIVIDeND PeR SHARe (cents)
50.0
37.5
25.0
12.5
0
25
20
15
10
5
0
16.2
29.0
45.8
53.2
49.9
7.0
13.0
23.0
25.0
26.0
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
2013 ANNUAL REPORT FINANCIAL AND
Operating review
08
Cedar Woods’ strong financial result enabled a
fully franked final dividend of 15 cents per share.
2013 Financial Result
As business investment diminishes, dwelling investment is
At The Rivergums, Baldivis activity levels also increased as the
expected to improve nationally in FY2014, with a 5% increase
estate witnessed the completion of the Baldivis Secondary
forecast by Treasury. The increase in dwelling investment
College and the company released lots in adjoining stages.
is already apparent in WA where loan approvals, building
Similarly high levels of activity were recorded at emerald Park in
approvals and home starts have been increasing over the last
Wellard with all available lots selling out during the year.
year, with home start activity expected to remain at current
levels through FY2014 (Housing Industry Forecasting Group).
The strong inbound migration and a shortage of supply provide
the underlying fundamentals to support growing demand for
residential property in the future.
In Victoria, after a 2 year decline in activity in the residential
property market, home loan and building approvals are now
trending upwards and house prices have increased after two
years of decline (ABS). Demand remains strong for well located
property close to transport infrastructure and other amenities.
Operational Review of Developments
WesteRn AustRAliA
At the end of last year the company invested in an exciting new
development the Batavia Marina Apartments, on the waterfront in
Geraldton in the state’s mid-west. These luxury apartments are
already more than 65% pre-sold with construction now complete
and settlements under way.
elements at South Hedland is the first Cedar Woods project in
the burgeoning Pilbara region and will consist of over 130 lots on
11 hectares. Working with project partners, mining companies,
builders and, importantly, local residents and businesses, Cedar
Woods has commenced development and expects to deliver the
first lots towards the end of 2013, to satisfy the strong housing
demand in the area. A significant number of lots have been
pre-sold to a resource company, local builders and community
groups with the public release also having been substantially
In FY2013, our company derived income from two new projects,
allocated by way of an expression of interest campaign.
at the Piara Central residential subdivision in Piara, and the
Batavia Coast Marina Apartments in Geraldton, bringing the total
revenue producing projects in Cedar Woods’ portfolio to 16
across Western Australia and Victoria.
Activity levels improved significantly at the company’s current
Western Australian land estates, with price levels moderately
increasing in the second half.
Piara Central, in the growing south east corridor of Perth, saw
the completion of the first two stages of development and the
settlement of more than 100 residential lots. The estate will be
home to more than 150 families upon completion, with central
parkland providing a community focal point. The third and final
stage of this development is expected to be launched in FY2014
with settlements in FY2015.
Just after the end of the second half, Cedar Woods was
selected as the preferred developer to work with LandCorp in
establishing the Western edge project in South Hedland. under
the terms of the development agreement Cedar Woods will
secure planning approvals for the first phase of development of
approximately 600 lots, subject to feasibility and market demand.
ultimately the Western edge project is expected to deliver over
2,200 lots into the Hedland community.
CEDAR WOODS PROPERTIES LIMITED 09
ViCtoRiA
The company’s major residential projects in Victoria performed
well during the year, continuing to record strong pre-sales and
good levels of enquiry. At Cedar Woods’ flagship Williams Landing
development in Melbourne’s west, the estate received a major
boost upon the completion of the Williams Landing railway station
and freeway interchange works undertaken by State Government.
During the year the company commenced construction of the
new Masters Home Improvement store in the town centre, which
is expected to be completed and open for business in late 2013.
These developments, together with the opening of a new builder
display village, have boosted demand for the company’s residential
lots and interest in the Williams Landing Town Centre.
During the year, stages at Banbury Village in Footscray and
Carlingford at Lalor were completed and settled and the first six
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 are implemented
as performance targets by 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 specific risks affecting individual projects and more
general risks affecting our business sector.
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
homes were completed at the Realm, Camberwell project with the
remainder of the project now pre-sold for delivery in FY2014 and
returns.
FY2015.
Details of progress at the projects commences on page 12.
Corporate Objectives, Strategy & Risks
• diversification of the property portfolio
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
Cedar Woods’ Corporate Plan guides management’s activities
offerings include small affordable housing lots at its
and provides a five year outlook for the company, projecting
residential estates through to high-end luxury apartments at
earnings and other key performance indicators.
boutique waterfront developments.
Cedar Woods’ primary objective is to create value for
• Focus on the project pipeline
shareholders through earnings growth as it aims to deliver strong
year on year growth in net profit and earnings per share and
put the company in the top half of all listed industrial companies
based on financial performance. This year, the company
reported full year net profit growth of 6% and dividend growth
of 4%. earnings per share experienced negative growth of -6%,
impacted by the issue of shares associated with last year’s equity
raising, although the company has achieved 20% annualised
earnings growth over the last 3 years.
In the last year the company bolstered its land bank by
completing key acquisitions in Western Australia. During
the second half of the financial year the company made
two strategic acquisitions, buying land parcels in Byford
in Perth’s burgeoning south-west growth corridor and at
Brabham in the growing north-east corridor where the
company was not previously represented. More recently
the company acquired a second land holding in Byford,
boosting its land bank to 670 lots in that vicinity.
2013 ANNUAL REPORT FINANCIAL AND
Operating review
10
entering FY2014, Cedar Woods has $175 million of pre-sales in place
and new projects commencing which will assist in driving earnings.
2013 Financial Result
• using joint ventures, syndicates and co-development
The company is also exposed to the property cycles in the
arrangements to leverage the company’s skill base
markets in which it operates, i.e. Western Australia (Regional
Cedar Woods utilises joint ventures, syndicates and co-
development arrangements to diversify the company’s
revenue streams and efficiently manage its capital. This
year, the company has continued the development of lots at
the Harrisdale Green project, an important co-development
with the Department of Housing and has progressed
development by its syndicate company, Cedar Woods
Wellard Limited, which generates ongoing revenue by way
of management and selling fees. In addition, Cedar Woods
was recently selected by LandCorp as the successful
proponent to develop the landmark Western edge project in
South Hedland.
and Metropolitan) and Victoria (Metropolitan). The fluctuations
in demand in these markets represent a risk to achieving the
company’s financial objectives. The company aims to mitigate
this risk by operating in diverse geographical markets and offering
a wide range of products and price points to consumers.
Sustainability Reporting
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
• Retaining ownership of income producing assets
People
The company will build a limited number of commercial
Our management team continues to expand to support the
and retail property assets at Williams Landing and at other
growth in the business.
estates, where the development of those buildings is
consistent with estate master plan objectives. The long
term ownership of those assets will be balanced against the
company’s capital management objectives and acquisition
opportunities. Developments may be sold once they
have achieved the amenity objectives and their valuations
have matured, with disposals likely to become a regular
component of the company’s revenue stream.
The general risks to company performance include those relevant
to the property market including government policy in relation
to immigration and support for the housing industry generally,
the environmental policy framework, monetary policy set by the
Reserve Bank of Australia, the strength of the labour market and
consumer confidence.
Cedar Woods’ remains committed to an inclusive workplace
that embraces and promotes diversity and during the year the
company embellished its workplace policies to further those
objectives. The diversity policy sets out a framework for the
company’s diversity-related initiatives, strategies and programs
and commentary is provided in the Corporate Governance
Statement 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
2013, Cedar Woods participated in promotional activities with the
Foundation to help attract graduates to the development industry.
CEDAR WOODS PROPERTIES LIMITED 11
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. The
charters were updated during the year and were published on the
company’s website.
Further details of Cedar Woods’ corporate governance framework
are available on the company’s website and in the Corporate
Governance Statement in the 2013 Financial Report.
Outlook
While the Australian economy has weakened as the construction
phase of the resources boom winds down, the underlying
fundamentals of the property market remain solid, particularly
In 2013, we have continued to actively engage with the
investment and broking community to raise Cedar Woods’ profile
and build awareness of the strength of the company’s portfolio.
We are pleased with the support of our existing shareholders and
welcome the new institutional investors onto our register.
We look forward to further building on the strength and diversity
of our portfolio of projects and our land bank in the year ahead.
We would like to thank our fellow directors and staff for their
dedication and hard work in 2013. Thanks also go to our
shareholders for their ongoing support of Cedar Woods in 2013
and in the year ahead.
in Western Australia and Victoria where the company’s portfolio
William Hames – Chairman
is located. With strong levels of inbound migration, low levels
of unemployment, historically low interest rates and improved
affordability, the medium-to-long term prospects of Australia’s
residential property sector remain positive. The Western
Australian economy is forecast to grow at 3.25% in FY2014 with
unemployment, although rising, well below the national average.
Victoria’s economy is expected to grow at a steady 2.25% in
FY2014, with population growth of 1.7% anticipated (State
Treasury forecasts).
Cedar Woods enters FY2014 with low debt, a strong balance
sheet and a diverse portfolio in major growth regions in Western
Australia and Victoria. The company has $175 million of pre-
sales in place and new projects commencing which will assist
in driving earnings, positioning the company to achieve profit
growth in FY2014, assuming current market conditions continue.
With ample funding and approvals in place, your board remains
positive about the company’s outlook.
Paul Sadleir – Managing Director
2013 ANNUAL REPORT western australia Land Development
OVeRVIeW OF prOjects
12
Bushmead
The former Bushmead Rifle
Carine Rise, Carine
The planned redevelopment of
Range site was sold by the
the former TAFe site in Perth’s
emerald Park,
Wellard
Cedar Woods Wellard Limited,
Mangles Bay,
Rockingham
In April 2010, LandCorp
Department of Defence on
middle northern suburb of
behalf of the Commonwealth
Carine was the company’s first
of Australia. The land is located
project to be conducted in
16 kilometres north east of the
cooperation with the Western
Perth CBD and adjacent to
Australian state government
Cedar Woods’ Helena Valley
agency, LandCorp. Cedar
Private estate completed in
Woods and the St Ives Group
2008. Given its proximity to
were selected through a highly
the Perth CBD, Perth airport,
competitive tender process as
Midland regional centre and
the preferred project partners.
strong connectivity via regional
The redevelopment will include
road networks, the site is in
residential aged care, a
a prime location for future
retirement village, mixed use
redevelopment. The site is
development and residential
a long term project for the
lots, townhouses and
company and expected to
apartments. The St Ives Group
yield between 600 and 900
is one of the state’s leading
residential lots, depending
providers of aged care and
on lot sizes and planning
retirement housing. Civil
outcomes. A rezoning
construction commenced in
amendment was lodged in
July 2013 with sales to
2013.
commence in early 2014.
an investment syndicate
appointed Cedar Woods to
managed by the company,
develop the Mangles Bay
owns this exciting residential
Marina-Based Tourist Precinct.
estate to ultimately comprise
The project area is nearly 80ha
over 620 home sites, a school
of beachfront land which will
site and sports ground. Its
provide the local and visiting
location in Perth’s southern
community with a quality
suburbs, some 33km from
and innovative development
the CBD, adjacent to the
providing marine, tourist,
Kwinana Freeway and close to
recreational, commercial and
the Perth - Mandurah rail line,
residential components, while
bring convenient accessibility
respecting and repairing the
benefits to residents.
coastal environment. The
project is currently undergoing
environmental and planning
approvals with construction
commencement planned for
2015.
CEDAR WOODS PROPERTIES LIMITED 13
North Baldivis
Cedar Woods’ second
major project alongside The
Rivergums in the high growth
south west corridor. Located
just off the Kwinana Freeway
and Mundijong Road which
will afford the project transport
links. 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
2016 will soon see the land
Piara Central,
Piara Waters
The company’s landholding in
Piara Waters has the potential
to yield over 300 residential
lots. 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 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
rezoned as urban. The project
employment centres.
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).
Harrisdale Green,
Harrisdale
The Harrisdale Green project
Mariners Cove,
Mandurah
A unique waterfront
is located within Perth’s south-
development close to the
eastern urban corridor and will
Mandurah town centre,
comprise up to 500 homes
comprising a mix of canal lots,
and mixed use business
parkland lots and estuary view
opportunities. Won as a result
lots, Mariners Cove boasts
of a competitive process, it
a spectacular 98ha wildlife
was the company’s focus on
reserve complete with raised
affordability and sustainability
board walks, two bird hides
that set it apart from its
and an interpretive centre. The
competitors. The project is
reserve protects the Creery
a co-development with The
Wetlands, an internationally
Department of Housing.
recognised waterbird habitat
that is home to migratory birds
from around the world. Mariners
Cove won the State and
National urban Development
Institute of Australia
environmental excellence
Awards in 2002 and 2003,
respectively. It has also won
the State and National uDIA
awards for Best Residential
Development (250 or more lots)
in 2004 and 2005 respectively.
The last ‘Island’ has now been
constructed and adds product
diversity to Cedar Woods’
project portfolio.
2013 ANNUAL REPORT western australia Land & Built Form Development
OVeRVIeW OF prOjects
14
The Rivergums,
Baldivis
Located in Perth’s southern
elements, South
Hedland
Located within the growing
Western edge,
South Hedland
The Western edge
suburbs and only minutes
Pilbara region, Cedar Woods
development is another project
from the Perth - Mandurah
was announced by the
in conjunction with LandCorp.
rail line and the Rockingham
Department of Regional
226ha in area, the land has
beaches, The Rivergums
Development and Lands as the
been identified as having the
residential estate continues to
successful proponent in July
potential to deliver over 2,260
see strong demand as the key
2010, and has collaborated
lots, a local commercial centre
location in the southern corridor.
with Foundation Housing,
and other land uses. Cedar
The estate will ultimately
IBN Corporation and Gumala
Woods is now planning to
provide over 1,300 dwellings
Aboriginal Corporation to
deliver the first 600 lots to help
plus primary and secondary
provide a balanced mix of
meet the continued demand
schools. The estate boasts a
residential, affordable, key
for quality and affordable family
network of lakes, wetlands,
worker, social and indigenous
housing in South Hedland.
and beautifully landscaped
housing options to the region.
parks. environmental initiatives
Construction commenced in
included restoration of a
2013 and the estate has met
degraded wetland, conservation
with strong demand.
Brabham
This 40.5ha site was acquired
in April 2013 and is located
just 22kms northeast of the
Perth CBD. Brabham is a
great geographical fit for Cedar
Woods’ WA portfolio, being
close to the attractions of
both Whiteman Park and the
Swan Valley and within close
proximity to both the ellenbrook
(4kms) and Midland (10kms)
Town Centres. This estate is
expected to deliver over 340
lots to this high growth north-
eastern corridor of Perth.
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) ‘Green Smart’
developments, promoting
efficient energy and water use.
CEDAR WOODS PROPERTIES LIMITED 15
The Jetty,
Rockingham
This completed 4 storey
beachfront development is
located opposite the landmark
Palm Beach Z Force Jetty
in Rockingham. The Jetty
comprises 15 luxury three
bedroom, two bathroom,
apartments, all with spectacular
ocean views and the very best
quality fit-out. It is now sold out.
Waterline
Apartments,
Mandurah
The Waterline Apartments
Batavia Marina
Apartments,
Geraldton
The construction of this
occupy a prime beachfront
four and five storey luxury
location, directly opposite
beachfront development, is
Doddi’s Beach in Halls Head,
now complete. The project
Mandurah. Stage 1 of this
comprises 50 luxury two and
beachside development
three bedroom, two bathroom
comprised the construction
apartments, mostly with
and sale of 15 two and three
spectacular marina and ocean
bedroom luxury ocean view
views and a high quality fit-out.
apartments and 3 luxury
The ground floor includes 4
penthouses. Retail space on
retail/commercial tenancies,
the ground floor incorporates a
including a cafe.
popular ‘Dome’ cafe. Stage 1
is now sold out.
The Brook at Byford
Centrally located adjacent to
the town centre in Byford, a
variety of block sizes will soon
be available. Approximately 33
kilometres south east of Perth,
the site is very well located at
the base of the Darling Scarp,
alongside Beenyup Brook. The
Shire enjoys a strong population
growth and is considered one
of Perth’s fastest growing urban
growth corridors.
Byford on the Scarp
Located close to our new “The
Brook” at Byford site,” Byford
On The Scarp” is an existing
residential estate acquired in
2013. Sales commenced at
Byford on the Scarp in the mid
2000’s with the estate quickly
establishing its market position
as the premium location in
Byford, due to its generous
block sizes and elevated
location on the Darling Scarp.
The land acquired has existing
subdivision approval for 76 lots
out of a total lot potential of
some 320 lots.
2013 ANNUAL REPORT victoria Land & Built Form Development
OVeRVIeW OF prOjects
16
Banbury Village, Footscray
Purchased in 2006, 9ha, remaining
Carlingford, Lalor
Purchased in 2006 and comprising
Realm, Camberwell
Purchased in 2010, 2.55ha, remaining
project life of 3 years. Banbury Village
55ha. An infill project in Melbourne’s
project life of 1.5 years. An infill project in
is a substantial urban renewal project
northern suburb of Lalor, Carlingford is
one of Melbourne’s prestigious eastern
comprising more than 420 houses,
the first residential estate launched in
suburbs that will accommodate 78
townhouses and apartments. The project
the area in over a decade. ultimately
premium homes. A mix of product has
is a premium housing development for
comprising over 600 housing lots, its
been designed for the site including
the inner west suburb of Footscray, some
location boasts excellent transport links
terraces, duplexes and detached homes.
6km from the Melbourne CBD. The
to the Melbourne CBD and is within easy
design outcome for completed stages
reach of shopping, schools and the train
has set a new benchmark for integrated
network.
housing developments.
CEDAR WOODS PROPERTIES LIMITED St Albans
A 6.8ha infill site purchased in 2012
Williams Landing
Purchased in 1997 and comprising
and located close to the St Albans train
275ha. A premium master planned
station, which is soon expected to be
community development is being
upgraded by the State Government.
delivered on the former RAAF Williams
The site will accommodate around 200
airfield, comprising 4 neighbourhoods
dwellings with a mix of terraces, duplexes
with over 2,500 dwellings and a
and detached homes.
major town centre. Significant State
Government infrastructure has now been
constructed on the site including a new
freeway interchange and rail station.
17
Williams Landing
Town Centre
The Williams Landing Town Centre will
be a dynamic commercial and retail
hub in Melbourne’s Western Region
and is located adjacent to a new train
station and freeway interchange. upon
completion, Williams Landing will include
all features of a 21st century town centre
offering civic, office, retail and residential
spaces, plus cafes and various forms of
entertainment.
The Town Centre will provide:
- A major centre for business, shopping
and entertainment
- A prestigious gateway between
the City of Wyndham and the inner
suburbs of Melbourne
- A safe, convenient and fully integrated
transport network for pedestrians,
cyclists, motorists and public transport
users
- Contemporary public spaces for
leisure and recreation
- Town living with apartments and
townhouses
2013 ANNUAL REPORT
COMMuNITY DeVeLOPMeNT
and spOnsOrship
18
Since 2009, Cedar Woods’ Neighbourhood Grants Program
has awarded over $100,000 to community groups.
Cedar Woods’ key objectives in Community Development
Neighbourhood Grants
Strategy are to:
• Focus on creating community wellbeing
• nurture community building in new developments,
and strengthen community building in existing
developments
At the heart of the Cedar Woods’ community development
strategy is our Neighbourhood grants program.
Since launching the Neighbourhood Grants Program in 2009,
Cedar Woods has helped many grass roots community
organizations in and around our developments awarding over
• maximise social and environmental connectedness
$100,000 in grants to date.
Cedar Woods recognizes that the success of this program is
largely reliant on the strength of the partnerships we develop with
both local and state government, the not-for-profit sector and the
local/regional services and amenities present in each community.
Cedar Woods strives to be facilitative and collaborative in our
approach to community development and sponsorship in order
to achieve these goals.
This is a significant contribution that has been shared amongst
over 70 various community groups who provide services directly
to our communities and the surrounding area.
Grant recipients are chosen because:
• They each have diverse interests enabling us to help a wide
section of the community
• They offer valuable services that Cedar Woods wants to
help grow, to provide residents and the wider community a
chance to get involved, get active and socialize.
Currently active in WA at Harrisdale Green, emerald Park and
The Rivergums and Williams Landing (VIC), the Neighbourhood
Grants program will be introduced to Piara Central (WA) in
FY14 as the first residents move in and the community starts to
develop.
CEDAR WOODS PROPERTIES LIMITED 19
Sponsorship
Cedar Woods’ sponsorship activity in FY13 saw us continue our
long term involvement in a variety of community, industry and
corporate sponsorships.
In addition, we also gave our support to a number of new and
worthy causes such as the Murdoch university ‘’Discover Your
Potential Scholarship’’ and the Perth International Arts festival.
Other FY13 Sponsorships included the Warren Jones Youth
Regatta, Perth International Arts Festival – Quartetthous and
Cockburn Sound Regatta.
In financial year 2014 we will continue to support a range of
worthwhile causes.
2013 ANNUAL REPORT PeRFORMANCe
recOrd
20
5 year financial performance summary.
All figures in $’000 except where stated
FINANCIAL YeAR
FinAnCiAl PeRFoRmAnCe
Revenue from operations
earnings before interest and tax
Finance costs
Operating profit before tax
Income tax expense
Net profit after tax
FinAnCiAl Position
Total assets
Total liabilities
Shareholders' equity
2013
2012
2011
2010
2009
172,751
170,474
131,839
108,415
107,076
53,022
53,092
42,106
26,771
16,961
1,580
51,442
15,105
36,337
3,819
49,273
15,023
34,250
1,866
40,240
12,180
28,060
2,036
3,441
24,735
13,520
7,494
17,241
4,257
9,263
301,024
238,314
233,595
205,657
162,720
93,280
53,688
104,046
96,867
207,744
184,626
129,549
108,790
69,442
93,278
58,163
16.2
7.0
15.8%
2.2
9.9%
Number of shares on issue - end of year ('000)
73,360
72,190
61,818
60,565
Key PeRFoRmAnCe meAsuRes
earnings per share (cents)
Dividend per share fully franked (cents)
eBIT margin
Interest cover (times)
Return on equity
49.9
26.0
30.7%
12.6
17.5%
53.2
25.0
31.1%
8.8
18.6%
45.8
23.0
31.9%
9.1
21.7%
29.0
13.0
24.7%
6.4
15.8%
Investment in inventory during year
145,474
97,401
102,348
56,338
45,312
Net tangible assets backing per share ($)
Net bank debt
Net bank debt to equity
Share price - end of year ($)
2.83
37,762
18.2%
5.17
2.56
3,822
2.1%
3.56
2.10
1.80
1.60
55,100
39,716
47,913
42.5%
4.00
36.5%
2.45
51.4%
1.42
Stock market capitalisation at 30 June
379,269
256,995
247,272
148,383
82,592
Number of employees at 30 June
54
48
41
35
30
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 %
-6.2
45.2
4.0
53.8
19.8
28.3
26.0
35.6
6.0
13.5
7.6
19.7
CEDAR WOODS PROPERTIES LIMITED
CORPORATe
directOry
Cedar Woods Properties Limited.
21
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 – 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
125 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
Time: 11.00am
Date: Friday, 1 November 2013
2013 ANNUAL REPORT cedarwoods.com.au