1
Annual Report 2024
ANNUAL
REPORT
2024
Cedar Woods Properties Limited
ABN 47 009 259 081
02
Cedar Woods Properties Limited
Pictured cover: Solaris Park, Solaris, Forrestdale WA
ABOUT
CEDAR
WOODS
Cedar Woods Properties
Limited (“Cedar Woods”) is a
national developer of residential
communities and commercial
properties.
Established in 1987, Cedar Woods has
grown to become one of the country’s
leading developers.
The Company has established a
reputation for delivering long-term
shareholder value underpinned by our
disciplined approach to acquisitions,
the rigour and thoughtfulness of our
designs, and the creation of dynamic
communities that meet the evolving
needs of our customers.
Cedar Woods’ diversified product
mix ranges from land subdivisions in
emerging residential communities, to
medium and high-density apartments
and townhouses in vibrant inner-city
neighbourhoods and supporting retail
and commercial developments. Cedar
Woods’ developments epitomise the
Company’s long-standing commitment
to quality.
03
Annual Report 2024
TABLE OF
CONTENTS
Letter from the Chairman........................................ 04
Letter from the Managing Director.......................... 05
Financial Performance Highlights............................ 06
Our Business...........................................................07
Financial and Operating Review...............................11
ESG Report ............................................................16
Directors’ Report ....................................................28
Financial Statements............................................... 54
Notes to the Financial Statements.......................... 60
Consolidated Entity Disclosure Statement.............. 98
Directors’ Declaration............................................. 99
Independent Auditor’s Report................................100
Shareholders’ Information......................................105
Investors’ Summary...............................................106
Shareholder Information........................................107
Five Year Financial Performance............................109
Community Grants 2024 Recipients, Bushmead WA
WE STRIVE TO CREATE
QUALITY HOMES, WORKPLACES
AND COMMUNITIES THAT
PEOPLE ARE PROUD OF.
04
Cedar Woods Properties Limited
LETTER FROM
THE CHAIRMAN
The health of the residential property market is core to the wellbeing of most Australians.
Over the last twelve months we have witnessed extraordinary conditions in the sector, with
strong demand driven by overseas migration, interstate people movements, meaningful
house price growth and a chronic undersupply of dwellings nationally.
Supported by a range of measures aimed at boosting
housing supply, the Australian Government has agreed
to a National Housing Accord and is providing $3.5 billion
in payments to state, territory and local governments to
support the delivery of 1.2 million homes over 5 years
from mid-2024. We acknowledge this is an ambitious
target; collaboration will be required from capital
providers, developers and the construction industry to
provide financing and capability, and from government
agencies to expedite zoning, planning and land release
delivery. We are encouraged by this important initiative
and look forward to playing our role within it.
Here at Cedar Woods, we recognise the importance
of our sector and the nascent opportunities at hand.
By developing a diversity of products - in accordance
with our strategy – including land lots, townhouses and
apartments, at a range of price points that have broad
customer appeal, we bring optionality to homebuyers.
Cedar Woods has the skills, capital and a portfolio of
over 10,000 lots and units to enable us to prosper while
helping to deliver a solution to this national issue.
Last year we announced a partnering initiative, and
we continue to foster the important partnerships we
have already entered into with Tokyo Gas and QIC Real
Estate as part of a broadening strategy to deliver both an
enhanced project pipeline and a capital efficient manner
to deliver projects. In addition to capital, these partners
bring skills in other areas such as sustainability and
innovation and we see further opportunity in the mutual
benefits that these relationships can deliver for the
Company and our staff.
Cedar Woods’ environmental credentials have been well
established over many years of responsible development.
As the industry moves further towards addressing
greenhouse gas (GHG) emissions and with the imminent
release of a new climate change disclosure standard, the
Board has approved a decarbonisation policy aiming to
further entrench the consideration and mitigation of GHG
emissions in our developments in the acquisition, design
and delivery phases. Further details on the company’s
progress on environmental matters can be found in our
ESG report, later in this annual report.
Financial Year 2024 has been exciting for Cedar
Woods as we continued to deliver quality homes,
workplaces and communities across the country whilst
pursuing our strategic opportunities and delivering
value to shareholders. The Board is proud to report
an improved financial performance, and an increased
full year distribution of 25 cents per share to our
shareholders, a 25% per cent increase over the last
financial year. Notably we ended the year in good
financial shape, with a much improved balance sheet
that positions us well for the future.
The Board spends considerable time each year reviewing
Company strategy and future initiatives. Looking forward,
we are optimistic about the Company’s direction and
we believe its core purpose and strategy remains as
relevant today as ever. The outlook is supported by strong
economic fundamentals, and while challenges remain,
there is much to look forward to as the Company targets
further growth.
It is a privilege to Chair the Cedar Woods Board
and, on its behalf, I would like to thank Nathan
Blackburne, the Executive team and all staff
for their contributions to the Company.
We look forward to advancing on the strength
and diversity of our portfolio in the states we
operate in to generate good returns for our
valued shareholders.
Sincerely,
William Hames
Chairman
05
Annual Report 2024
LETTER FROM THE
MANAGING DIRECTOR
I am delighted to be looking back over Financial Year 2024 and reporting on a successful
period at Cedar Woods, which has laid the foundation for further success in the next
twelve months.
Over FY2024 we have achieved record net sales of
1,201 lots/units, up 73% on the previous financial year,
and record settlements of 1,140 lots/units, up 24%.
This is a significant achievement and a clear indicator of
the quality of Cedar Woods’ products being well received
by the market.
We enter FY2025 with presales of $559m and expect
around 70% to settle within the year, with the balance to
settle in FY2026, providing us confidence in meeting our
revenue targets and FY2025 earnings forecast.
Whilst softer conditions were experienced in Victoria, price
growth in WA, QLD and SA contributed to our increased
revenue. Price growth is expected to continue due to
supply shortages, though at a more moderate rate.
Across our portfolio, significant operational achievements
were made including the acquisition of a prime Subiaco
(WA) development site that neighbours the Company’s
successful Incontro project and the launch of the second
Bloom retirement apartment product at Glenside (SA)
which is selling well.
We announced additional projects with our partner
Tokyo Gas, including the Bloom Apartments and the
newly acquired Subiaco project. We lodged our planning
application for the first project with QIC at Robina in
South East Queensland. Cedar Woods remains focused
on leveraging joint venture arrangements in FY2025
to scale up the business in a capital efficient manner,
amplify return metrics, access larger scale sites and
generate fee income for recurring earnings.
The sale and settlement of Williams Landing Shopping
Centre and our significant operating revenue has
transformed the Company’s balance sheet in the second
half of FY2024. With more than $156 million in liquidity
available at year end, Cedar Woods has significant
capacity to take advantage of acquisition opportunities
and pursue our strategic priorities.
Cedar Woods’ is well placed to provide new housing
into a chronically undersupplied market with a significant
pipeline of over 10,000 lots and shovel ready projects
ready to deliver across the states we operate in.
In advancing our ESG strategy, we continue to focus
on initiatives to make our developments more energy
efficient. At Williams Landing, a major transit-oriented
development, we successfully completed our fifth
office building. Boston Commons comprises a 81 unit
strata office development, providing local business
premises and enhancing employment opportunities in
the town centre, serviced by local rail and bus services.
At Eglinton in WA we have progressed the Community
Energy Sharing Network which will give households the
option to communally store and share renewable energy
to power their homes via rooftop solar panels and a
community battery.
The Company is currently collaborating with UDIA and
other industry stakeholders to support the development
of a carbon assessment tool to measure emissions
created from land subdivision as we move towards
improved reporting over the medium term.
We have been particularly pleased with our strong safety
record this year and also the results of our staff survey,
which noted an 85% staff satisfaction score, an increase
on the strong score of 81% last year and a continuing
testimony to our efforts to develop our staff and maintain
our high-spirited work environment.
I’d like to extend my thanks to the
Cedar Woods Board for their direction
and support, my Executive team for
their leadership and our staff for their
commitment to excellence.
Sincerely,
Nathan Blackburne
Managing Director
06
Cedar Woods Properties Limited
FINANCIAL
PERFORMANCE
HIGHLIGHTS
$40.5m
NET PROFIT AFTER TAX
49.2¢
EARNINGS PER SHARE
1201
NET SALES
Lots / homes / offices sold
1140
SETTLEMENTS
Lots / homes / offices settled
25.0¢
DIVIDENDS PER SHARE
$559m
PRESALE CONTRACTS
16.7%
GEARING
Net bank debt / total tangible assets less cash
$386.3m
TOTAL REVENUE
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Annual Report 2024
OUR
BUSINESS
OUR HISTORY
Cedar Woods was established in 1987 and listed on the
ASX (Code: CWP) in 1994. Starting out as a developer
of master planned communities in Western Australia, the
Company progressively branched out into new product
areas and geographies. The Company expanded into
Melbourne in 1997, then Brisbane in 2014 and Adelaide
in 2016 and now has a significant portfolio of quality
developments delivering residential lots, townhouses,
apartments and commercial projects.
The Company is known for taking on complex,
large scale projects, adding value through planning
design and delivery and generating strong returns
from multi-year projects. As a result, it has built a
reputation as an innovative and diversified property
group with a track record of strong financial
performance, sustained since inception.
OUR PURPOSE, VISION & VALUES
Our Purpose, Vision and Values inform every
decision we make, guide our conduct internally
and our relationships with partners, customers
and investors.
We are proud to be a leading national property
developer, and with an ongoing commitment to
our strategy and our values, we look forward to
fulfilling our vision of becoming the best Australian
property company, renowned for performance
and quality.
O
U
R
V
A
L
U
E
S
We do what we
say we’ll do.
PURPOSE
To develop vibrant
communities which
create long term value
for our stakeholders.
VISION
To be the best Australian
property company
renowned for performance
and quality.
We think about
tomorrow.
We create
community
connection.
We strive
to succeed.
We are people
developers.
08
Cedar Woods Properties Limited
OUR STRATEGY
Our strategy is to grow our
national project portfolio,
diversified by geography,
product type and price point,
so that it continues to hold
broad customer appeal and
performs well in a range of
market conditions.
Geography
Good geographic
spread of well-located
projects in our states
Product Type
Range of housing lots,
apartments, townhouses and
commercial properties
Price Point
Wide range of price points
offered in Queensland,
South Australia, Victoria
and Western Australia
VALUE CREATION MODEL
We deliver on our strategy via our value creation model.
Value Drivers
Outcomes
Property
Acquisitions
Disciplined approach
to acquisitions:
Tactical and research-based decisions
to identify projects
Rigorous assessment and
conservative assumptions
Structure contracts to minimise risks
and optimise returns
Utilising third-party capital via strategic
partnerships and joint ventures
Development
Research, design,
planning and delivery:
Sustainable designs that optimise quality,
functionality, environmental outcomes
and returns
Collaborative approach with
community and authorities
Negotiate timely value-adding
approvals
Structure contracts to minimise risks
Manage construction closely
Marketing & Sales
Integrated approach
to optimise results:
Positioning projects to maximise
demand
Pre-sell to underwrite projects
Quality brands and marketing material
Lead generation and sales conversion
Customer nurturing and referral
40
PROJECTS
NATIONWIDE
37
RESIDENTIAL
COMMUNITIES
3
COMMERCIAL
PROJECTS
09
Annual Report 2024
Bushmead Display Village, Bushmead WA
85%
STAFF SATISFACTION
SCORE
$29.7m
INCREASE IN
NET ASSETS
73%
INCREASE IN
NET SALES
Optimising performance
through disciplined capital
management, a commercial
focus, cost minimisation
and maintaining a strong
balance sheet.
HI
G
H
P
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R
F
O
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M
A
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W
T
H
STRATEGIC
PRIORITIES
We optimise business
performance through a focus
on four strategic priorities.
Pursuit of earnings growth is the
key metric to achieve our primary
objective of creating long-term
value for our shareholders.
This may be achieved organically,
by mergers and acquisitions
or through partnering.
Being operationally strong
and safe through renewed
and integrated systems
and technologies, having a
strong corporate brand with
quality projects and delivering
sustainable projects.
Creating a progressive,
high-spirited work environment
with strong staff alignment to
values and objectives, where top
talent work collaboratively and
high performance is rewarded.
10
Cedar Woods Properties Limited
PROJECT PIPELINE CHART AS AT 30 JUNE 2024
Project Name
Corridor/Location
Project Type
Lot/Units
Project
Lot/Units Remain 1
1 Jul 24
FY25
FY26
FY27
FY28
FY29
WESTERN AUSTRALIA - PERTH
Ariella, Brabham
North East
Residential Land
1,213
358
The Brook at Byford
South East
Residential Land
421
2
Rivergums, Baldivis
South
Residential Land
1,426
106
Byford on the Scarp
South East
Residential Land
258
1
Solaris, Forrestdale
South East
Residential Land
307
36
Bushmead
East
Residential Land
915
270
Millars Landing, North Baldivis
South
Residential Land
1,538
1,359
Eglinton Village
North
Residential Land and Commercial
1,270
1,223
Pinjarra
South
Residential Land
1,080
1,080
Incontro, Subiaco
Inner East
Townhouses and Apartments
151
110
The Acreage at Dalyellup
South
Residential Land
41
1
Atwater, Rockingham
South
Residential Land and Townhouses
82
28
Harrisdale Green 2
South East
Residential Land and Townhouses
404
75
Subiaco Depot 2
Inner East
Apartments
213
213
4,862
VICTORIA - MELBOURNE
88 Leveson, North Melbourne
North West of CBD
Townhouses
15
15
Mason Quarter, Wollert
North
Residential Land
851
537
Clara Place, Fraser Rise
North West
Residential Land
287
287
South Bank
South of CBD
Apartments and Commercial
183
183
Fieldstone
West
Residential Land
529
529
Williams Landing
West
Residential Land, Townhouses, Apartments
2,296
33
Williams Landing
West
Boston Commons Strata Offices
81
3
Williams Landing
West
Hudson Hub Strata Offices
79
79
Williams Landing
West
Apartments / Offices / Townhouses
685
291
Williams Landing
West
Commercial (13 hectares)
Corio 3
North of Geelong
Residential Land
400
400
Noble Park 3
South East
Apartments
103
103
2,460
QUEENSLAND - BRISBANE
Greville, Wooloowin
Inner North
Townhouses and Apartments
291
290
Ellendale, Upper Kedron
North West
Residential Land
895
302
Flourish, South Maclean
South
Residential Land
510
510
Sage, Burpengary
North
Residential Land
375
270
Robina Quarter 2, 3
Gold Coast
Townhouses and Apartments
414
414
1,786
SOUTH AUSTRALIA - ADELAIDE
Glenside
Inner South East
Townhouses and Apartments
757
411
Banksia Apartments, Glenside
Inner South East
Apartments
72
72
Bloom Apartments, Glenside
Inner South East
Apartments
59
59
Bloom 2 Apartments, Glenside
Inner South East
Apartments
60
60
Elegan Apartments, Glenside
Inner South East
Apartments
116
116
Fletcher's Slip, Port Adelaide
North West
Townhouses and Apartments
403
219
Sirocco Apartments, Fletcher's Slip
North West
Apartments
41
41
Ancora Apartments, Fletcher's Slip
North West
Apartments
35
35
Marella Apartments, Fletcher's Slip
North West
Apartments
23
23
1,036
TOTAL GROUP
10,144
1 Lots/units Remain relates to unsettled lots/units 2 Partnered Projects, CW interest: Harrisdale Green 80%, Subiaco Depot 51%, Robina Quarter 50% 3 Conditional acquisitions
Planning, Design & Rezoning
Development & Sales
Leasing, Development & Sales
First Settlements
11
Annual Report 2024
FINANCIAL AND
OPERATING REVIEW
On behalf of the Board we present the financial and operating review of Cedar Woods
to shareholders.
The following summarises the results of operations during the year and the financial position of the consolidated
entity at 30 June 2024.
2024 FINANCIAL RESULTS SUMMARY
Year ended 30 June
2024
$’000
2023
$’000
% Change
Revenue
386,348
391,303
(1.3)
Net profit after tax (NPAT)
40,494
31,635
28.0
Total assets
750,786
783,398
(4.2)
Net bank debt
120,094
195,806
(38.7)
Shareholders’ equity
460,791
431,102
6.9
Key performance indicators
Year ended 30 June
2024
2023
% Change
Basic earnings per share
¢
49.2
38.5
27.8
Diluted earnings per share
¢
48.5
38.0
27.6
Dividends per share – fully franked
¢
25.0
20.0
25.0
Return on equity
%
8.8
7.3
1.5
Return on capital
%
11.7
7.9
3.8
Total shareholder return (1 year)
%
(2.9)
36.7
(39.6)
Net bank debt to equity – 30 June
%
26.1
45.4
(19.3)
Net bank debt to total tangible assets (less cash)
%
16.7
25.3
(8.7)
Interest cover
x
3.9
3.6
8.3
Net tangible asset backing per share – historical cost
$
5.55
5.21
6.5
Shares on issue – end of year
’000
82,418
82,210
0.3
Stock market capitalisation at 30 June
$’000
389,839
413,516
(5.7)
Share price at 30 June
$
4.73
5.03
(6.0)
12
Cedar Woods Properties Limited
FINANCIAL YEAR OVERVIEW
The Company reported a net profit after tax (‘NPAT’)
of $40.5 million for the 2024 financial year, above June
guidance of between $36 million and $39 million.
Significant settlements in the final month of June
resulted in a profit slightly above the guided range.
Full year revenue at $386.3 million, was broadly in
line with the prior year (down 1%) and Gross margin
of 25% was consistent with the prior year, whilst
NPAT was 28% higher. Full year NPAT included other
income of $21.3 million largely from the sale of an
investment property.
Presales contracts at 30 June 2024 were at $559
million providing a strong starting position for the year
ahead, with approximately 70% expected to settle in
FY2025 and the balance in FY2026.
Sales conditions were favourable in the majority of
markets throughout the year with sales and enquiry
increasing in each successive quarter primarily due
to the strength of the WA and QLD projects. While SA
projects also performed well, softer sales conditions
were experienced in VIC as a result of softer
economic conditions, more cautious consumers
and State Government policies acting to discourage
housing investment.
The performance of the national housing market
is being supported by high inbound migration, high
employment and low supply of rental properties in
the established market.
The Company has been active in developments across
the portfolio, with a number of new residential projects
launched to market in FY2024, including Henley
Brook and The Acreage (WA), and Flourish (QLD).
The construction sector continues to experience labour
shortages across the nation, however the cost of many
building materials, which escalated significantly in prior
years, has stabilised in recent times.
The Company completed and settled a number of
stages across the portfolio during FY2024. Built
form stages that completed during the year include
townhouses in Glenside and Fletcher’s Slip (SA) and
Boston Commons strata offices in Williams Landing
(VIC). Significant land stages settled at Mason Quarter
in Wollert (VIC); at Sage in Burpengary (QLD) and at
Ariella in Brabham (WA).
The sale of the Williams Landing Shopping Centre
was contracted during FY2024 for $60 million, with
the settlement of the shopping centre taking place
in the second half and two lots of adjoining land to
settle in FY2025.
Cedar Woods’ diversified portfolio helps ensure it is
positioned to perform well through different property
cycles across state markets.
During the year the Company completed acquisitions
in VIC, QLD and WA, which are expected to
contribute earnings in the medium to long term.
The Company advanced the strategic partnerships
with QIC, for the joint development of around 400
townhouses and apartments at the Robina Town
Centre in South-East QLD, and Tokyo Gas for the
co-development of the Banksia Apartments in SA;
as well as announcing further projects with Tokyo
Gas for the first building at Bloom Apartments in
SA and a three-building apartment project at a
newly acquired site in Subiaco, WA. It is intended to
significantly expand each of these relationships with
further acquisitions, which will boost the medium-term
earnings capacity of the business.
MARKET CONDITIONS
The Company is experiencing favourable market
conditions in three out of four states it operates with
Victoria being the exception. Despite cost-of-living
pressures weighing on consumers’ discretionary
spending, demand for relatively affordable residential
property remains strong.
Housing completions are currently at the lowest level
since 2014 (Source: ABS), primarily driven by the fact
that many apartment projects have not commenced
construction due to lack of financial viability as a result
of high construction costs. In contrast, home building
is comparatively cheaper and therefore traditional
house and land estates, which constitute the majority
of the Company’s portfolio, are an attractive and
affordable option for purchasers. Based on the low
level of housing approvals taking place, low levels
of housing completions is likely to continue for the
next few years. Australia’s dwelling stock deficiency
is currently around 146,000 dwellings and this is
forecast to increase to 164,000 dwellings in 2027
(Source: Oxford Economics).
13
Annual Report 2024
The issues created by low housing supply have been
compounded by a combination of relatively high
population growth and a historically low number
of people per household resulting in high demand
for housing.
As a consequence of the supply demand imbalance,
significant growth in median dwelling prices across
all major capital cities is forecast over the next three
years, particularly in Perth. Whilst median dwelling
prices are not directly related to new residential
prices, the Company generally expects the market
fundamentals to result in favourable conditions for its
products over the next few years.
CAPITAL MANAGEMENT
The Company has corporate finance facilities of $330
million with maturity terms of 3 years ($264 million) and
5 years ($66 million), with tenure extended annually.
At 30 June 2024, the Company had total liquidity
available of $156.8 million (made up of cash of
$21.9 million and $134.9 million in undrawn headroom
in the Company’s long-term debt facilities) to fund
the development of the Company’s portfolio as well
as contracted land acquisitions that will generate
future growth.
In line with the Company’s policy to hedge
approximately half of interest rate risk, 63% of drawn
debt was hedged at year end with interest rate caps
and swaps ranging from 2% to 4.38%.
Net bank debt-to-equity at 30 June 2024 was 26%,
at the lower end of the Company’s target debt to
equity range of 20% to 75%. Net debt to total tangible
assets less cash was 17% at year end and corporate
facility interest cover was approximately 3.9 times,
comfortably above the finance facility covenant of
2 times. The Company is operating within all of its
finance facility covenants.
The Company generated strong cash flow from
operations of $70.6 million before payments for new
land acquisitions and sold an investment property
generating a further $52.9 million. These strong
operating and investing cashflows enabled the
company to invest $40.9 million in land acquisitions,
return $12.4 million to shareholders via fully franked
dividends and pay down debt $60.8 million.
Subsequent to year end, the Board has declared
a fully franked final dividend of 17.0 cents per share
which, together with the 8.0 cents interim dividend
paid in April, brings total financial year dividends
to 25.0 cents per share (fully franked). The total
dividends of 25.0 cents represent a payout ratio
of approximately 51%.
The dividend reinvestment and bonus share plan will
not be in operation for the upcoming FY2024 final
dividend to be paid in October 2024.
RISKS
The Audit and Risk Management Committee
assists the Board in the effective discharge of
its responsibility for risk oversight and ensures
that internal control systems are in place to
identify, assess, monitor and manage risk. A Risk
Management Framework is in place to support the
integration of risk management within the business
and to promote a culture committed to building
long-term sustainable value for stakeholders.
The general risks to the Company’s performance
include those relevant to the economy and 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,
regulators that sets borrowing standards for home
buyers, the strength of the labour market, consumer
confidence and major supplier risk.
Both civil contractors and apartment and home
builders have been impacted in recent years by
significant work volumes, commonly under fixed
price contracts, whilst dealing with material and
labour shortages that drove cost inflation. As a
result, financial viability of major suppliers became
an elevated risk for the Company.
The Company manages this risk by undertaking
financial assessments of major contractors and
favouring the appointment of reputable builders
the Company has developed a trusted working
relationship with.
The Company is exposed to the property cycles in the
metropolitan markets in which it operates, i.e. Western
Australia, Victoria, Queensland and South Australia.
14
Cedar Woods Properties Limited
Demand fluctuations 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 various
consumer segments.
While house and land prices fluctuate, underlying
demand will be driven by population growth and
changing demographics. In the past, the Company
has typically achieved its profit objectives by
managing both prices and volumes through the
property cycle.
Individual projects are exposed to a number of risks
including those related to obtaining the necessary
approvals for development, construction risks and
delays, pricing risks and competition. The Company
aims to balance its portfolio at any time in favour
of mature projects where the project risks are
generally diminished.
The risk management framework also seeks to
address a range of other risks that impact the
business, such as economic and political risks,
climate change risks, competition for staff and
project opportunities, and cyber risks.
While the Company has no material exposures
to ESG risks, the ESG report starting on page 16
provides further details on how the Company is
managing ESG risks.
CORPORATE OBJECTIVES AND
PROGRESS ON STRATEGY
Cedar Woods’ primary purpose is to create long
term value for shareholders through the development
of vibrant communities and deliver consistent growth
in net profit and earnings per share. This year, the
Company reported a full year net profit after tax of
$40.5 million and total fully franked dividends of
25.0 cents.
The overarching strategy, as illustrated on page 8,
is to grow and develop our national project portfolio,
diversified by geography, product type and price
point, so that it continues to hold broad customer
appeal and performs well in a range of market
conditions. The Company’s strategy is delivered
through the operation of our value creation model,
as illustrated on page 8.
Cedar Woods’ Corporate Plan guides management’s
activities and provides a five-year outlook for
the Company, projecting earnings and other key
performance indicators. The Corporate Plan sets out
a number of key action items under each strategic
priority focused on achieving the primary purpose
and addressing key risk factors. These key actions
are implemented as performance targets by senior
executives, sales managers and other employees.
COMPANY OUTLOOK
Cedar Woods starts FY2025 in a strong position
with $559 million in presales expected to settle over
FY2025 and FY2026. The Company is targeting 10%
growth in NPAT for FY2025 and is well placed for the
medium term with a pipeline of more than 10,000
undeveloped dwellings/ lots/offices across four states.
Half to half earnings in FY2025 is expected to be more
balanced than in FY2024, whilst still weighted to the
second half.
The Company’s outlook is subject to property market
and construction sector conditions, with workforce
and supply chain constraints affecting delivery
timeframes at some locations. The Company’s
expectation for FY2025 full year earnings takes into
account these constraints, although there remains
some residual risk that a limited number of forecast
Q4 FY2025 stage completions, and hence revenue,
may move into early FY2026.
Several new projects are expected to contribute to
earnings from FY2025, including Clara Place and
88 Leveson townhouses (VIC), Banksia and Bloom
apartments (SA), Henley Brook (WA), and Greville
and Flourish (QLD).
Nathan Blackburne
Managing Director
15
Annual Report 2024
Ellendale, Upper Kedron QLD
16
Cedar Woods Properties Limited
ESG
REPORT
1. INTRODUCTION
Our vision is to be the best Australian
property company renowned for
performance and quality. We aim to
play a positive role in society over
the long-term, through our products
and services, which are fundamental
to people’s wellbeing in homes and
businesses, and through behaving
responsibly in our markets and in
our communities.
Cedar Woods does more than
create vibrant communities.
We are proud of our reputation for
being environmentally and socially
responsible. We continually look
for ways to:
Reduce our ecological footprint
Promote affordable housing
Respect indigenous and cultural
heritage
Stimulate economic investment
and jobs
Foster cooperative stakeholder
relationships
Activate the communities we
create
Foster diversity, equal opportunity
and career development in the
workplace
Provide a safe work environment
Instil our values and promote an
ethical business culture through
strong governance
This report communicates our
progress and achievements on
environment, community outcomes
and governance, benefiting those
affected by our actions.
Value Drivers
Corporate
governance
Risk management
Financial strength
Capital
management
Project pipeline
Product design,
innovation and value
Employee
engagement
Development
and training
Diversity and Inclusion
Work health
and safety
Customer
engagement
Digital transformation
Fair and ethical
procurement
Supplier quality
Sustainable
development
Climate resilience
Carbon footprint
reduction
Community
contributions
Respecting culture
and heritage
Environment
Governance
Land
People
Customers
Supply
Chain
Communities
CEDAR WOODS’ ESG VALUE CREATION STRATEGY
Our Resources
17
Annual Report 2024
Manage risk, compliance and
ethical responsibilities
Superior long term returns for
shareholders and capital partners
Informed shareholders and investors
High quality portfolio that supports
sustainable urban development
Sustainable and ethical supply chain
Vibrant communities
Cultural awareness and
preserved heritage
Low environmental impacts
Resilient project portfolio
High performance culture
Enhanced personal and
organisational capability
Engaged, healthy and safe workforce
Satisfied customers
Competitive advantage
3.1.1 Effective leadership
3.1.2 Risk management
3.1.3 Cyber security
3.1.4 Ethics and policies
3.1.5 Shareholder value
3.1.6 Funding and capital partners
3.2.1 Acquisition strategy incorporates
ESG objectives
3.2.2 Diversity by product, pricepoint
and geography
3.2.3 Product value and innovation
3.5.1 Modern slavery policy and management
3.5.2 Contractor quality reviews
3.5.3 Payment terms monitoring
3.6.1 Community amenity
3.6.2 Protecting heritage
3.6.3 Respecting culture
3.6.4 Social responsibility
3.7.1 Governance
3.7.2 Strategy
3.7.3 Risk management
3.7.4 Metrics and targets
3.3.1 People development
3.3.2 Opportunity, diversity and inclusion
3.3.3 Work, health and safety, wellbeing, benefits
3.3.4 Employee engagement
3.4.1 Customer engagement surveys
3.4.2 Affordability, Special Disability Housing
3.4.3 Digital transformation
Value Creation Outcomes
ESG Approach
(report paragraphs shown)
18
Cedar Woods Properties Limited
2. HIGHLIGHTS
The following are our key non-financial targets and FY2024 outcomes by value driver. Further information on these
and other ESG targets and initiatives can be found later in the report.
ESG Value driver
FY2024 targets
FY2024 results
Governance
Capital management
Annual renewal of corporate finance facility
Facility renewed and extended
Progress with partnering strategy
Joint ventures entered at Subiaco (WA),
Glenside (SA) and progressed at Robina (QLD)
Cyber security
Zero significant or reportable system
breaches
No significant or reportable breaches
Property Portfolio
Project pipeline
Investment in new projects to maintain
earnings growth potential
Land acquired at Subiaco and Henley Brook
(WA)
Product design, innovation
and value
Product innovation
Adopted decarbonisaton policy to drive
energy efficiency in future buildings.
Successful implementation of Bloom
retirement concept (SA) and commenced
development of community energy sharing
network at Eglinton Village (WA)
People
Staff satisfaction
Staff satisfaction score of 80%
Staff satisfaction score of 85.2%
Gender diversity -
employees
Minimum proportion of 40% female and
30% female in senior management and
executive positions
We achieved 2 out of our 3 targets with further
details on page 23
Gender diversity - board
Minimum proportion of 30% females
Board comprises 33% female, 67% male
Work, health & safety
Zero reportable incidents resulting in
serious injury or fatality
No reportable incidents resulting in serious
injury or fatality
Customers
Customer engagement
Net average positive promoter score
Net promoter score of +12 across portfolio
Customer inclusion
Provision of affordable dwellings, and
pathways to retirement
Over 90% of residential product was priced
below the median house price for the relevant
capital cities.
Commenced construction of 59 Over-55s units
at Bloom Apartments, SA
Supply chain
Modern slavery mitigation
Zero tolerance for modern slavery in supply
chain
2023 Modern Slavery Statement noted low risk
of slavery in supply chain
Paying our suppliers
Proportion of suppliers paid on time
exceeds industry benchmark
Industry benchmark significantly exceeded
Communities
Investing in our communities
Commitment to supporting the local
community groups in the regions in which
we operate
Paid community grants to 23 local clubs and
organisations over 4 states totaling $68,885
Sponsorship of major charity partners
Ongoing corporate sponsorship of The Smith
Family
Environment
Reducing our carbon
footprint
5% reduction in annual corporate carbon
footprint (versus prior year)
40% reduction in Scope 1&2 emissions and
19% increase in Scope 3 emissions, noting
that we continue to evolve our strategy with
respect to mitigating and measuring carbon
emissions. See page 26 for further details of
the carbon footprint.
19
Annual Report 2024
Cedar Woods' Decarbonisation Policy, adopted
by the Board this year, embodies a commitment
of the Company to reduce its carbon footprint
and enhance environmental performance.
Key initiatives in the policy include enhancing
energy efficiency, exploring renewable energy
options for new and existing projects, and
committing to full electrification of dwellings
where feasible. The policy integrates circular
economy principles into procurement processes
and mandates rigorous feasibility assessments
to ensure productivity and shareholder returns
are not compromised. The policy aims to build
in-house expertise for accurate measurement,
reporting, and monitoring of carbon emissions,
aligning with regulatory requirements.
Strategically, the policy aligns with Cedar Woods'
vision of being a leading Australian property
developer known for performance and quality.
It underscores the importance of a future-focused
approach, benefiting the community by reducing
living costs and enhancing well-being. The policy
also supports the development of employees
through knowledge expansion and adaptation to
new technologies.
This financial year marked the launch of WA’s
first residential community energy sharing
network at Cedar Woods’ Eglinton Village
project in Perth. Called Eve (Eglinton Village
Energy), this initiative provides residents with
the benefit of long-term energy savings and
a reduced carbon footprint. Eve operates as
a private embedded power network, allowing
households to share and store renewable
energy from rooftop solar panels and a
community battery, without any upfront or
ongoing costs. The network has been installed
in the first two stages of Eglinton Village.
Transit Oriented Development
Transit-oriented developments (TODs) play a critical
role in improving community connectivity, boosting
public transport usage, and providing diverse housing
for residents. Cedar Woods excels in this area,
creating community-focused developments with
strong connectivity and accessibility. Our high-quality
TODs have earned industry recognition for innovative
design, urban renewal, and enhancing communities
close to transport nodes.
In FY2024 the Company delivered dwellings and lots
at many TOD projects, including:
Williams Landing Town Centre: One of Melbourne’s
most dynamic mixed-use projects, combining a
regional public transport hub, retail, residential
and commercial buildings. In FY2024, the Boston
Commons strata offices were completed providing
additional business and employment opportunities.
Eglinton Village: A 1200-lot master-planned
community located 500m from the new Eglinton
METRONET station, which saw the first settlement
of residential lots.
Glenside, SA: Located within a 15-minute
walk to the Adelaide CBD and benefiting from
high-frequency transit, with over 50 townhouses
delivered in the financial year.
Fletcher’s Slip: Part of the Port Adelaide waterfront,
adjacent to the Glanville train station. Cedar Woods
is transforming the historic shipping and industrial
harbor into a contemporary urban area, with
multiple townhouse and apartment developments.
Jackson Green: Located in Clayton South, 20km
from the Melbourne CBD and near the Clayton
train station, this successful TOD was completed
this year.
2. HIGHLIGHTS
Moving towards Decarbonisation
Boston Commons, Williams Landing VIC
20
Cedar Woods Properties Limited
We have committed to directly supporting 100 primary, secondary and tertiary students through The
Smith Family’s Learning for Life program, which is delivered across 91 communities around Australia.
The program provides school students and their families with financial support for school essentials like
uniforms and books, personal support for the child and their family and access to practical support,
through their extra out-of-school learning and mentoring programs – tailored to each child’s needs.
During the year, Cedar Woods staff across the country have been running, walking, volunteering and
fundraising for The Smith Family. The WA team attended 3 career talks at schools in WA to talk about
property industry careers, and relate their own career pathways. In June 2024 staff nationally participated
in ‘The Dream Run’ a fundraising walk and run challenge for the benefit of the students.
Environmental Enhancement
For over 30 years, Cedar Woods has been a leader
in developing sustainable communities with a focus
on environmental regeneration.
Ellendale, a 227-ha community near Brisbane,
exemplifies this commitment by preserving 91 ha
of natural corridors and dedicating 40% of the site
to green spaces. The development integrates with
the existing topography, preserving vegetation and
enhancing biodiversity while offering diverse housing
options on lots ranging from 300m² to 3000m².
Extensive rehabilitation efforts, including revegetation,
plant translocation, seed propagation, and fauna
infrastructure, ensure high ecological value.
Cedar Woods has invested over $4.03 million in
environmental rehabilitation, showcasing its ability
to balance development with environmental
stewardship and create harmonious spaces.
Our Bushmead estate in Perth has also maintained
its emphasis on environmental rehabilitation,
featuring 185 ha of bushland, expansive network of
conservation trails, and Kadina Brook. Cedar Woods
continues to prioritise preserving the natural bushland
by investing in extensive tree planting—over 500,000
new trees.
Sustainability efforts include managing weed
populations, using recycled materials in construction,
and implementing an integrated urban water
management system. These initiatives aim to
enhance local biodiversity and fauna habitat, with
the conservation area set to be gifted to the WA
Government upon completion of Cedar Woods’
management, ensuring long-term preservation
and community benefit.
Our Communities - The Smith Family
Zero serious injuries or fatalities at
company workplaces in 2024 and 2023
Tree planting, Ellendale, Upper Kedron QLD
21
Annual Report 2024
OUR ESG APPROACH
ESG approach
Response /
policies
Progress and outcomes in FY2024
3.1
Governance
Governance
Framework
The Board is committed to high standards of corporate governance, details
of which may be found in the 2024 Corporate Governance Statement1.
3.1.1 Effective
leadership
Board and
Committees,
Executive Team
The Board has two committees which oversee various ESG priorities:
The Audit and Risk Management Committee is responsible for financial
reporting, risk management (including ‘ESG risks’) and external audit;
The Remuneration and Nominations Committee is responsible for matters
relating to Board composition, human resources, remuneration (including
ESG link to incentives for executives), succession, inclusion and diversity.
The Company’s management is structured for effective leadership that is
consistent with corporate standards and promotes a strong corporate culture.
The Executive Team is the Company’s most senior management body
and is responsible for preparing and implementing the Corporate Plan and
managing operations.
3.1.2 Risk
management
Risk Management
Framework
The Audit and Risk Management Committee oversees risk management, with
a focus on more significant risks, including ESG risks. It has adopted a Risk
Management Framework which incorporates a range of tools to assist in the
identification, management, and monitoring of risks in the business.
The Board conducts regular reviews of the Risk Management Framework
structure, with the last performed in FY2024.
3.1.3 Cyber security
Cyber security
strategy, IT
security policy
Cedar Woods places the highest priority on the security and confidentiality of
our customer and company data.
In FY2024, management conducted a cyber incident response scenario to
test the company’s cyber incident response and crisis management plans,
facilitated by independent cyber security consultants. It also continued to
conduct supply chain reviews, including reviews of the cyber security of
targeted key suppliers.
3.1.4 Ethics and
Policies
Code of Conduct
and corporate
policies
The Code of Conduct is a comprehensive set of standards of conduct
expected of all employees, including Directors. The Company has zero
tolerance for corrupt practices and has a proactive approach to ethics and
accountability throughout its policies and practices. The Board has oversight
of values and culture.
A list of the Company’s published policies can be found on our website.1
3.1.5 Shareholder
value
Shareholder
returns
Returns to shareholders are detailed in the ‘Financial Performance Highlights’
on page 6 of the annual report.
Shareholder and
Investor facing
policies
In November 2023 we provided a ‘hybrid’ form of AGM in which shareholders
could participate in person or join the meeting online. At the AGM, all
resolutions were supported by shareholders.
3.1.6 Funding
Equity and debt
funding
The Company maintains a corporate finance facility provided by 3 of the
‘Big-4’ banks. During FY2024 the term was extended to 30 January 2027
for the 3-year facility ($264m) and to 30 January 2029 for the 5-year
facility ($66m).
Partnerships
Cedar Woods has established a partnering strategy for certain projects.
The initiative seeks to scale up the business in a capital efficient manner,
amplify return metrics, deliver sustainability outcomes, leverage the existing
skills base, further diversify the project portfolio, access larger scale sites
and generate fee income for recurring earnings.
In 2023 Cedar Woods established a partnership with Tokyo Gas Real Estate
Australia Pty Ltd. To date the partnership has undertaken to develop Banksia
and Bloom Apartments at Glenside, SA, both now under construction, and
an apartment development at Incontro, Subiaco, WA. A joint venture has also
been entered into with QIC Real Estate to jointly develop land owned by QIC
adjacent to Robina Town Centre in SEQ.
1 https://www.cedarwoods.com.au/Our-Company/Governance
22
Cedar Woods Properties Limited
ESG approach
Response /
policies
Progress and outcomes in FY2024
3.2 Land
Pipeline of
projects
The Company’s project portfolio is a key asset. The Company continues
to invest into its project pipeline providing capacity and visibility on future
earnings and returns to shareholders.
3.2.1 Investment in
pipeline
Acquisitions
strategy
incorporates ESG
objectives
The Company has developed a strategy to guide its acquisition program and
achieve its objective of targeting properties that meet a range of financial,
urban planning and environmental requirements, prioritising transit-oriented
development opportunities, enabling the creation of sustainable communities.
During the year the Company extended its land holding at Incontro, in Subiaco,
WA with the acquisition of adjacent land which is expected to yield a further 200
apartments, extending this successful infill project.
3.2.2 Product
diversity
Diversity by
geography,
product and price
point
The Company offers a range of housing choices diversified by geography,
product type and price point, so that it continues to perform well in a range
of market conditions. During FY2024 there were land lots, townhouses,
apartments and commercial units, ranging in price from $143,000 to
$2,096,600.
3.2.3 Product value
and innovation
Accommodative
designs and
energy efficiency
Last year the Company launched a new concept in over-55 living with
the Bloom apartments in Adelaide. Bloom is designed to incorporate
the amenities and features to support freedom and choice in retirement.
The homes remain 100% owned by residents, meaning all capital growth is
retained by the purchaser. Stage 1 of 59 apartments sold out and a second
stage of 60 apartments is now over 75% sold and under construction.
Bloom apartments is all-electric and 100% powered by green energy.
In WA, Cedar Woods completed the first two stages of Eglinton Village.
This modern coastal community will eventually be home to 1,200 families
and incorporates a leading - edge Community Energy Sharing Network,
leading to greater energy efficiency and security for residents.
3.3 People
Culture
Our strategic priority is to create a progressive, high-spirited work
environment with strong staff alignment to values and objectives, where
top talent works collaboratively, and high performance is rewarded.
3.3.1 People
development
Retention
and Career
Progression
Consistent with our corporate value ‘We are people developers’, we value our
people and their long-term success and, therefore, we seek opportunities
to keep them engaged and develop professionally. To this end, we focus on
internal career development and promotion, enabling staff to develop new
skills, broaden their exposure and build relationships across the Company.
At the end of FY2024 approximately 10% of staff received promotions,
including one into the Executive team.
3.3.2 Opportunity,
diversity and
inclusion
Equal Opportunity
Policy in place
We are committed to a positive, diverse and inclusive workplace which
encourages strong and productive relationships and provides access to equal
opportunity at work. During FY2024 updates were made to the Leave, Equal
Employment Opportunity and Anti-Discrimination and Grievance Policies.
Training was also rolled out to educate employees and managers on the
changes to the Equal Employment Opportunity and Anti-Discrimination Policy
and responding to sexual harassment.
23
Annual Report 2024
ESG approach
Response /
policies
Progress and outcomes in FY2024
3.3.2 Opportunity,
diversity and
inclusion
Diversity and
Inclusion Policy
in place
The Executive team maintains oversight of Diversity & Inclusion (D&I) initiatives
to support our efforts in achieving a more diverse workforce (which includes
gender as well as other areas such as ethnicity, religion, and sexual orientation).
Recruitment briefs, retention strategies and the Employee Value Proposition are
tailored to promote diversity and inclusion objectives.
In terms of gender diversity, the proportion of women employees currently
sits at 49%. The number of women in senior management is currently at 35%.
The number of women on the Board is two out of six, or 33%. The Company
continues to implement recruitment and development strategies to increase the
number of women in the Executive team, noting the low proportion of women in
the development industry and low rate of staff turnover in the team.
3.3.3 Work, health
and safety
wellbeing
Occupational
WHS system
Senior management is accountable for the health and safety performance
across the Company’s portfolio of projects and targets zero reportable
incidents resulting in serious injury under the relevant Occupational Health &
Safety Act in CWP premises or sites, as a result of failure of the company’s
Work, Health & Safety system. There were no such incidents in FY2024.
The Board receives regular reporting on the Company’s WHS risks and
performance and attends on-site briefings as part of WHS monitoring. Audits
are performed annually of the WHS compliance at state operations.
The Company promotes a strong health and safety culture with access
to mental health support services as part of its wellbeing program as well
as providing staff with other free health services. For further details visit
our website.2
3.3.4 Employee
satisfaction
Employee
satisfaction
surveys
We undertake surveys to gauge staff satisfaction. This measure represents
the level of enthusiasm and connection staff have with the Company. It’s a
measure of how motivated and committed people are in the business.
Staff satisfaction is currently 85% which compares favourably with national
industry benchmarks and is an improvement over the prior year result of 81%.
Only 3% of staff were dissatisfied, with 12% neutral. Feedback will be used to
improve retention, training and recognition programs.
3.4 Customers
Customer Service
function
Customers are at the centre of everything we do. Our Customer Service
function is set up to provide a high standard end-to-end experience through
the customer journey.
3.4.1 Customer
engagement
Customer surveys
Customer engagement is driven through various physical and digital
platforms and our Customer Service function provides customers with
product guidance, assistance and issues resolution. The quality of customer
experience is measured by net promoter score (NPS) surveys conducted at
relevant projects during the year.
In FY2024 the average / collective NPS score was +12 (FY2023: +5), indicating
improved customer experience across 17 projects in the survey. The surveys
indicated good customer feedback in many areas and demonstrated
differences in service levels across the states that will be reviewed in order
to improve future customer experience.
Gender diversity
Long term objective %
FY2024 Actuals %
Proportion of women
employed in the
whole organisation
Proportion of women
in senior management
positions
Proportion of
women in executive
positions
Proportion of women
on the Board
4
0
%
3
0
%
3
0
%
3
0
%
4
9
%
3
3
%
3
3
%
0
%
2 https://www.cedarwoods.com.au/Careers/Employee-Benefits
24
Cedar Woods Properties Limited
ESG approach
Response /
policies
Progress and outcomes in FY2024
3.4.2 Customer
inclusion
Affordable
dwellings,
Pathway to
Retirement
We take an inclusive approach to our customers by offering a range of
products and price points. These products include offerings that meet diverse
community needs, including affordability, disability access and transition
to retirement. In FY2024, above 90% of homes/lots delivered met our
affordability metric, being below the median house price relevant to the capital
city in which they are located, meaning they are affordable to moderate
income families. We also commenced construction on 59 Over-55’s units at
the Bloom Apartments which will settle in FY2025.
3.4.3 Digital
transformation
Digital strategy
Cedar Woods continues to advance its Digital Strategy, with a key focus on
digital marketing platforms, coupled with data enrichment services, that have
boosted the volume and quality of sales enquiries.
All the Company’s sales contracts are exchanged electronically, with system
improvements further increasing the efficiency of the sale to settlement
process.
3.5
Supply chain
Fair and ethical
procurement
The Company is committed to ethical, accountable and transparent
procurement that maintains probity and fairness. To achieve balanced
environmental, social and economic outcomes, we rely on our network of
diverse suppliers. When delivering our projects, our suppliers contribute
to decisions on innovation and cost efficiency, while maintaining quality
outcomes.
3.5.1 Modern
slavery
Modern slavery
policy and
management
Our Modern Slavery Policy and risk management system addresses our
approach to identifying modern slavery risk and steps for mitigating modern
slavery and human trafficking in our operations. Our Modern Slavery policy3
and latest Modern Slavery Statement4 are available on our website.
Our latest report indicated no incidents of slavery were evident in the
Company’s supply chain or operations.
3.5.2 Contractor
quality
Quality reviews
The Company continues to periodically undertake comprehensive contractor
reviews. Evaluation criteria include overall quality, timeliness, cost efficiency,
etc. Material suppliers are assessed for financial health and modern slavery
risk as part of the on-boarding process and prior to the issue of significant
new contracts.
3.5.3 Payment
terms
Supplier payment
monitoring
We also support the payment of our suppliers on fair payment terms. Based
on the Company’s 2024 Payment Times Reporting 96.2% of our suppliers
were paid within 30 days compared to 76.2% for the Land Development &
Subdivision Group on the PTRS public register.
3.6 Communities
Community
Connection
One of our Values, ‘Creating Community Connection’, recognises that our
projects bring people together, fostering connections that enrich the lives of
people through the places we create.
3.6.1 Community
amenity
Activation and
sponsorship
We create value for our communities through our direct provision of amenities,
infrastructure public spaces and jobs. We implement resident onboarding
initiatives and community grants for local community groups. In FY2024 we
donated $69,885 to local community groups connected to the districts in
which we operate.
3.6.2 Heritage
Protecting
heritage
Often, we inherit a legacy from older communities, in the form or land or
buildings with indigenous or cultural heritage significance. We maintain a
strong track record of respecting heritage through restoration, recognition,
project themes and branding. In FY2024 we undertook an aboriginal heritage
assessment of areas of proposed development at Bushmead which in
consultation with Whadjuk consultants identified connections to the land
based on previous aboriginal occupation. The company has taken on board
certain recommendations resulting from these surveys.
3.6.3 Culture
Traditional Owners
Action Plan
Cedar Woods has established a Traditional Owners Action Plan with four
pillars, to guide staff in Acknowledgment of Country protocols, engagement
with Traditional Owners, developing a framework for recognising and
incorporating Traditional Owner history and culture at company projects and
providing for understanding, education and cultural awareness.
3 https://www.cedarwoods.com.au/Our-Company/Governance
4 https://www.cedarwoods.com.au/Our-Company/Social-Responsibility
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Annual Report 2024
ESG approach
Response /
policies
Progress and outcomes in FY2024
3.6.4 Social
responsibility
Our Broader
Community –
The Smith Family
Partnership
In 2021 the Company formed a national community partnership with The
Smith Family – Australia’s leading children’s education charity. Our ongoing
partnership aims to assist disadvantaged Australian Children get the most
out of their education and provides our staff the opportunity to be involved in
activities supporting this worthwhile cause.
3.7
Environment
and climate
change
Environmental and
climate change
policy, Climate
reorts
The Company has a track record of environmental excellence across its
projects, reflected by numerous national and state industry awards won
for its projects. The Company continues to deliver strong environmental
performance, through its ESG Strategy, as well as expanding this to address
climate considerations. Past ESG and climate reports can be found on our
Sustainability webpage.5 The Environmental management and climate change
policy is available on our website.6
3.7.1 Governance
Audit and Risk
Management
Committee
Remuneration
and Nominations
Committee
Balanced
Scorecard
ESG / Climate
Leads Committee
There are two principal Board Committees which oversee a range of ESG
priorities including climate considerations:
Audit and Risk Management Committee (see Risk Management below)
Remuneration and Nominations Committee. ESG priorities extend to
senior executive accountability and performance (key performance
indicators), tied to remuneration.
Board oversight of performance is assisted through the Balanced Scorecard,
which includes ESG Performance including climate considerations.
At management level, the national ESG/Climate Leads Committee provides
coordination of climate-related deliverables across each state. This Committee
is chaired by the company’s Chief Operating Officer and facilitated by the
Company Secretary and Director of Sustainability.
3.7.2 Strategy
The company’s
ESG strategy
identifies climate-
related risks and
opportunities;
and the impact
of climate-
related risks and
opportunities on
the company’s
business and
strategy.
The Company’s ESG Strategy outlines significant climate related risks and
opportunities which have potential to affect its business model, strategy,
cash-flow, access to finance and cost of capital.
Continuing to execute the company’s ESG Strategy, which provides the
framework to transition to lower carbon emissions (both operational and
project-based), ensures new projects are resilient to physical climate change
risks, and that we are on track in for an orderly transition to a low carbon
economy.
3.7.3 Risk
Management
Risk Management
Framework / Risk
Register
We assess climate-related risk within the company’s risk management
framework.
The Company’s Risk Management Framework aims to drive consistency in
the identification, assessment, management, mitigation and monitoring of risk
to the business.
Decision making is guided by comprehensive risk management, together with
risk mitigation strategies, where necessary.
3.7.4 Metrics and
Targets
ESG Strategy
Metrics used to assess climate-related risks and opportunities, in line with
our ESG Strategy and risk management process are disclosed in our Climate
Report.5
The results of our 2024 carbon footprint mapping are shown in the results box
on page 26.
5 https://www.cedarwoods.com.au/Our-Company/Sustainability_
6 https://www.cedarwoods.com.au/Our-Company/Governance
26
Cedar Woods Properties Limited
FY2024 net Greenhouse Gas Emissions (t-CO2-e)
Corporate operations
Scope 1
Scope 2*
Scope 3#
Total
State offices
-
32
940
972
Sales offices
-
10
367
377
-
42
1,307
1,349
* Direct emissions from the generation of purchased electricity
# Other upstream emissions outside scope 1 and 2 such as water use, waste generation, purchased goods and air travel.
Emissions calculated by independent consultants from company data. Further details are in the climate report
www.cedarwoods.com.au/Our-Company/Sustainability_
The Company is building upon its knowledge and capability to better manage, measure and report on its carbon
emissions, in a manner consistent with industry and in anticipation of future regulatory requirements. Methodologies
continue to evolve, and the Company expects some variability in year-to year results from this process.
Waterfront Park, Fletcher’s Slip, Port Adelaide SA
27
Annual Report 2024
3. KEY ACTIVITIES FOR FY2025
Our key activities over the next 12 months are:
Governance and capital management
Capital management
Maintain our corporate lines of credit with the major banks.
Execute our partnership strategy on existing and additional projects
Investigate sourcing of green finance.
Cyber security
Continue to improve our cyber security posture through continued user
education, improving preventative technical controls and compliance with industry
benchmarks.
Digital Transformation
Execute digital projects that will optimise systems integrations, providing robust
data exchange, better, more timely reporting and increased automation.
Land
Investment in pipeline
Continue to invest in our project pipeline in accordance with our acquisitions
strategy and in partnerships and joint ventures.
Product innovation
Continue to innovate in the areas of Over-55s retirement and affordable housing.
Energy efficiency objectives will continue to be pursued in our residential and
commercial projects.
People
Continue to attract, engage and retain a high-performance work force. There will
be a focus on refining our performance management framework and establishing
career pathways to support the development of our people. We will continue
to broaden employee development opportunities through increasing learning
opportunities.
Customers
Implement programs to enhance customer experience and improve resources
available to customers and builders on our websites. Aim to improve our net
promoter scores across our projects.
Supply chain
Continue to work with our key suppliers to monitor ongoing work, health
and safety compliance, financial health, cyber resilience, modern slavery risk
management, quality of product and value for money.
Communities
Maintain our sponsorship of The Smith Family and reach out to assist our local
communities with further investment in our community grants program.
Environment and climate
Carbon Reduction
Continue to implement our carbon reduction plan to reduce our carbon footprint.
In FY2025, in conjunction with UDIA and other industry stakeholders we plan to
progress the methodology to measure the carbon footprint a land subdivision and
assess its viability, as part of a broader program to prepare for mandatory climate
reporting from FY2027. Review of our carbon reduction targets.
28
Cedar Woods Properties Limited
DIRECTORS’ REPORT
Your directors present their report on the consolidated entity consisting of Cedar Woods
Properties Limited (‘the company’ or ‘Cedar Woods’) and the entities it controlled (together
‘the consolidated entity’ or ‘group’) at the end of, or during, the year ended 30 June 2024.
a.
Directors
The following persons were directors of Cedar Woods during the whole of the financial year and up to the date of
this report, except where stated:
William George Hames (Chairman)
Robert Stanley Brown (Deputy Chairman)
Valerie Anne Davies (Independent Director)
Jane Mary Muirsmith (Independent Director)
Paul Gilbert Say (Independent Director)
Nathan John Blackburne (Managing Director)
The qualifications, experience and other details of the directors in office at the date of this report appear on pages
36 to 38 of this report.
b.
Principal activities
The principal continuing activities of the consolidated entity over the course of the year ended 30 June 2024 were
that of property developer and investor and no significant change in the nature of those activities took place during
the year.
c.
Dividends
Dividends paid to members during the financial year were as follows:
2024
$’000
2023
$’000
Final fully franked ordinary dividend for the year ended 30 June 2023 of 7.0 cents
(2022 – 14.5 cents) per fully paid share, paid on 27 October 2023 (2022 – 28 October 2022)
5,769
11,921
Interim fully franked ordinary dividend for the year ended 30 June 2024 of 8.0 cents
(2023 – 13.0 cents) per fully paid share, paid on 26 April 2024 (2023 – 28 April 2023)
6,593
10,687
12,362
22,608
Since the end of the financial year the directors have recommended the payment of a final fully franked ordinary dividend
of 17.0 cents (2023 – 7.0 cents per share) to be paid on 25 October 2024 out of retained profits at 30 June 2024.
d.
Financial and operating review
Information on the operations and financial position of the group and its business strategies and prospects is set
out in the financial and operating review, commencing on page 13 of this annual financial report.
e.
Business strategies and prospects for future financial years
The consolidated entity will continue property development operations in Western Australia, Victoria, Queensland
and South Australia.
Cedar Woods is well positioned moving into FY2025 with strong pre-sales, modest debt, substantial funding
capacity and a diverse portfolio of well-located developments.
29
Annual Report 2024
f.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the year.
g.
Matters subsequent to the end of the financial year
Refer to item (c) of this Directors’ Report for details of the dividend recommended by directors since the end of the
financial year.
No other matters or circumstances have arisen since 30 June 2024 that have significantly affected or may
significantly affect:
the consolidated entity’s operations in future financial years; or
the results of those operations in future financial years; or
the consolidated entity’s state of affairs in future financial years.
h.
Likely developments and expected results of operations
Beyond the comments at items (d) and (e), further information on likely developments in the operations of the
consolidated entity and the expected results of operations have not been included in this report because the
directors believe it would be likely to result in unreasonable prejudice to the consolidated entity.
i.
Environmental regulation
To the best of the directors’ knowledge, the group complies with the requirements of environmental legislation
in respect of its developments and obtains the planning approvals required prior to clearing or development
of land under the laws of the relevant states. There have been no instances of non-compliance with significant
environmental legislation during the year and up to the date of this report.
j.
Information on directors
Mr William G Hames, B Arch (Hons) MCU (Harvard) LFRAIA, MPIA, FAPI (Econ)
Chairman of the Board of directors, non-executive director
Mr Hames was appointed on 23 March 1990 and brings substantial property experience to the Board. He is a
co-founder of Cedar Woods, an architect and town planner by profession, and received a Masters Degree in
City Planning and Urban Design from the Harvard Graduate School of Design, at Harvard University in Boston.
He worked in the US property development market before returning to Australia in 1975 and establishing Hames
Sharley Australia, an architectural and town planning consulting company.
Other current listed company directorships and former listed company directorships in the last three years:
None.
Mr Robert S Brown, MAICD, AIFS
Deputy Chairman of the Board of directors, non-executive director
Mr Brown was appointed to the Board on 18 August 1988. He is Executive Chairman of Westland Group Holdings
Pty Ltd, with responsibilities in mining and venture capital. He is a past president of the Federation of Building
Societies of WA and has participated in and chaired various Western Australian government advisory committees
related to the housing industry. Mr Brown brings to the Board his diversified experience as a director of these
companies and other listed entities.
Other current listed company directorships and former listed company directorships in the last three years:
None.
30
Cedar Woods Properties Limited
Ms Valerie A Davies, FAICD
Non-executive director
Chair of the Remuneration and Nominations Committee
Member of the Audit and Risk Management Committee
Ms Davies was appointed to the Board on 21 September 2015. She is a professional company director with
broad experience across the spectrum of public and private companies, government boards and community
organisations. Apart from Cedar Woods Properties Limited, she is also currently a non-executive director of ASX-
listed EVT Limited.
Ms Davies previous Board positions include HBF, lluka Resources, ASG Group, and Integrated Group (now
Programmed), Tourism Western Australia, Tourism Australia, Gold Corporation and the TAB (WA), as well as
Screenwest and Fremantle Hospital & Health Service. Ms Davies has substantial experience serving on risk
management and remuneration committees in listed companies.
Apart from the boardroom Ms Davies' career spans more than 30 years across a range of industries including
media, marketing and television production. A specialist provider of communications and strategic issues
management services, she has worked at the highest level with numerous tier 1 national and international business
organisations addressing the complexities of issues management, communications, coaching and mentoring.
Ms Davies is a member of Chief Executive Women (CEW), a former Telstra Business Woman of the Year (WA) and
a past Vice-President of the Australian Institute of Company Directors (WA).
Ms Davies is a non-executive, independent Director.
Other current listed company directorships and former listed company directorships in the last three years:
EVT Limited.
Mrs Jane M Muirsmith, B Com (Hons), FCA, GAICD
Non-executive director
Chair of the Audit and Risk Management Committee
Member of the Remuneration and Nominations Committee
Mrs Muirsmith was appointed to the Board on 2 October 2017. She is an accomplished digital and marketing
strategist, having held several executive positions in Sydney, Melbourne, Perth and New York.
She is Managing Director of Lenox Hill, a digital strategy and advisory firm and is a non-executive director
of Australian Finance Group Limited (AFG), the Telethon Kids Institute and Chair of Healthdirect Australia.
Mrs Muirsmith has substantial experience serving on and chairing the audit, risk and compliance committees in
the above companies.
Mrs Muirsmith is a Graduate of the Australian Institute of Company Directors and a Fellow of Chartered Accountants
in Australia and New Zealand, with an audit and accounting background together with deep expertise in digital
transformation. Mrs Muirsmith is a member of the Ambassadorial Council UWA Business School and is a former
President of the Women’s Advisory Council to the WA Government.
Mrs Muirsmith is a non-executive, independent Director.
Other current listed company directorships and former listed company directorships in the last three years:
Australian Finance Group Limited.
Mr Paul G Say, FRICS, FAPI
Non-executive director
Member of the Audit and Risk Management Committee
Member of the Remuneration and Nominations Committee
Mr Say was appointed to the Board on 3 May 2021. With over 40 years of experience in the commercial and
residential property sector, Mr Say brings strong corporate finance, capital allocation and investment management
capability to the Cedar Woods’ Board. Mr Say was previously Chief Investment Officer at Dexus Property Group
and Head of Corporate Finance with Lendlease Corporation. Mr Say currently chairs the boards of Mirvac
Wholesale Office Fund and Cameron Brae Group and sits on the board of Women’s Community Shelters.
31
Annual Report 2024
Mr Say is a qualified property valuer and has a Graduate Diploma in Finance and Investment and a Graduate
Diploma in Financial Planning. He is a Fellow of the Royal Institute of Chartered Surveyors, Fellow of the Australian
Property Institute and a Licensed Real Estate Agent (NSW, VIC and QLD).
Located in NSW, Mr Say has substantial experience serving on risk management committees and holds strong
networks across the property and finance sectors.
Mr Say is a non-executive, independent Director.
Other current listed company directorships and former listed company directorships in the last three years:
ALE Property Group and Frasers Logistics & Industrial Fund.
Mr Nathan J Blackburne, BB (Curtin), AMP (Harvard), GAICD
Managing Director, executive director
Mr Blackburne was appointed to the Board on 18 September 2017. He has worked since 1993 in various sectors of
the property industry including valuations, asset management, commercial leasing and property development.
He commenced his career with Cedar Woods in 2002 with the mandate to establish and grow the company in
Melbourne. Starting off as State Manager for Victoria, he later led the expansion of the company into Brisbane and
Adelaide to become State Manager for Victoria, Queensland and South Australia.
In 2016, Mr Blackburne was appointed as Chief Operating Officer for the company and in September 2017 was
appointed to the position of Managing Director.
Mr Blackburne has a Bachelor of Business degree majoring in Valuations and Land Economics and is a Graduate of
the Australian Institute of Company Directors. He is also a Graduate of Harvard Business School in Boston having
completed their Advanced Management Program.
Other current listed company directorships and former listed company directorships in the last three years:
None.
Company Secretary
The Company Secretary is Mr Paul S Freedman, BSc, CA, GAICD. Mr Freedman was appointed to the position
on 24 June 1998. He is a member of the Institute of Chartered Accountants in Australia and New Zealand and
is a member of the Australian Institute of Company Directors. He brings to the company a background of thirty
years in financial management in the property industry, preceded by employment in senior roles with major
accountancy firms.
k.
Shares under option
(i)
Unissued ordinary shares
Unissued ordinary shares of Cedar Woods under option at the date of this report are as follows:
Date options granted
Number under option
Exercise price
Expiry date
1 November 2023
31,765
zero
30 June 2026
The options were issued to the Managing Director under the deferred short term incentive plan. No option
holder has any right under the options to participate in any other share issue of the Company or any other entity.
No options were granted to the directors or any KMP of the company since the end of the financial year.
(ii) Shares issued on the exercise of options
The following ordinary shares of Cedar Woods were issued to the Managing Director during the year ended 30 June
2024 on the exercise of options granted under the deferred short term incentive plan. No further shares have been
issued since that date. No amounts are unpaid on any of the shares.
Date options granted
Issue Price of Shares
Number of shares issued
2 November 2022
$3.83
26,409
32
Cedar Woods Properties Limited
l.
Directors’ interests in shares
Directors’ relevant interests in shares of Cedar Woods at the date of this report, as defined by sections 608 and 609
of the Corporations Act 2001, are as follows:
Director
Interest in ordinary shares
William G Hames
10,893,253
Robert S Brown
7,618,633
Valerie A Davies
26,000
Jane M Muirsmith
21,914
Paul G Say
34,832
Nathan J Blackburne
271,314
Nathan J Blackburne also has an interest in zero-price options under the deferred short term incentive plan and
performance rights under the executive long term incentive plan, details of which are set out in the remuneration
report within this report.
m. Committees of the Board
As at the date of this report Cedar Woods had the following committees of the Board:
Audit and Risk Management Committee
Remuneration and Nominations Committee
J M Muirsmith (Chair)
V A Davies (Chair)
P G Say
P G Say
V A Davies
J M Muirsmith
n.
Meetings of directors
The following table sets out the numbers of meetings of the company’s directors (including meetings of committees
of directors) held during the year ended 30 June 2024, and the numbers of meetings attended by each director:
Board meetings
Meetings of Committees
Audit and Risk Management
Remuneration and Nominations
Number of meetings held:
9
6
5
W G Hames
9
1*
1*
R S Brown
9
4*
3*
V A Davies
9
6
5
J M Muirsmith
8
6
5
P G Say
9
6
5
N J Blackburne
9
6*
4*
*Not a member of this committee
33
Annual Report 2024
DIRECTORS’ REPORT: LETTER TO SHAREHOLDERS FROM THE CHAIR OF THE
REMUNERATION & NOMINATIONS COMMITTEE (THE COMMITTEE)
Dear Shareholders,
The remuneration landscape in FY2024 has been influenced by a national awareness of the increase in cost of living
since the pandemic, budgetary restraint in an environment of higher interest rates and continued competition for
talent across industry. These factors are reflected in the decisions of the Remuneration & Nominations Committee
during the year with regard to executive remuneration, with reward changes largely confined to inflationary increases
in line with CPI, after extensive remuneration benchmarking in FY2022.
In seeking to align shareholders’ expectations regarding incentives, pay and performance, we continue to engage
with shareholders and proxy advisers to ensure best practice with all our stakeholders. Please find below the main
remuneration outcomes for the year and further details are provided in the Remuneration Report.
Review of
the executive
remuneration
framework
In FY2024, with input from an independent consultant, the Committee reviewed executive remuneration,
ensuring that remuneration levels and structures are competitive in an environment where the
competition for talent and churn continues to be very high across the property sector, while having
regard to the need to contain costs.
Fixed
remuneration
For FY2024 the Managing Director’s (MD’s) fixed remuneration was increased by a moderate 4.0% over
the previous year, with similar increases for the other executives, the Committee taking the view that this
was appropriate given the circumstances prevailing as noted above.
Short-term
incentives
(“STIs”)
The FY2024 STI opportunity for the Managing Director, which is based on a percentage of fixed
remuneration, was therefore also increased proportionately, with moderate increases for the other
executives. The Company balanced scorecard that determines STI awards, underwent minimal changes
in FY2024. Scorecard sections are grouped into financial and non-financial categories, within the
relevant strategic priority areas. Part of the Managing Director’s STI is deferred into equity as detailed
later in this report.
Long-term
incentives
(“LTIs”)
The LTI plan continues to operate for the executives and has two vesting conditions: a) a three year
service condition and b) two performance conditions measured over a three year period: 50% of the
LTI grant will be tested against a relative total shareholder return (“TSR”) hurdle (measured against the
S&P / ASX Small Industrials Index) and 50% against earnings per share (“EPS”) growth targets, set in
the context of the corporate strategy. Changes to vesting conditions in FY2024 are set out in section
q (iii) below.
The relative TSR performance condition is chosen, as it offers a means of measuring changes
in shareholder value, by comparing the Company’s return to shareholders against the returns of
companies of a similar size and investment profile. The EPS performance condition is chosen, as it
is a primary determinant of shareholder value, in a listed company context.
Non-Executive
Director (“NED”)
fees
The potential maximum aggregate NED remuneration for FY2024 was $900,000, as approved by
shareholders at the FY2023 AGM. Chair and NED fees were increased for CPI in FY2024 with no change
to committee chair or members fees. Total NED fees paid for FY2024 were $700,000.
It was pleasing to note that shareholders voted overwhelmingly in favour of the FY2023 Remuneration Report at the
2023 Annual General Meeting, with 97.8% of votes cast in favour.
I look forward to answering any questions you may have at our 2024 Annual General Meeting on 6 November.
Yours faithfully,
Valerie A Davies
Chair - Remuneration and Nominations Committee
34
Cedar Woods Properties Limited
DIRECTORS’ REPORT: REMUNERATION REPORT
The directors present Cedar Woods’ FY2024 Remuneration Report which sets out remuneration information for the
directors and other key management personnel (“KMP”) for the year ended 30 June 2024.
The information provided in this remuneration report has been audited as required by section 308(3C) of the
Corporations Act 2001.
o.
Introduction
The Remuneration Report details the remuneration arrangements for KMP who are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the company, directly
or indirectly.
The table below outlines the KMP of the company during the financial year ended 30 June 2024. Unless otherwise
indicated, the individuals were KMP for the entire financial year. For the purposes of this report, the term “executive”
includes the managing director and senior executives of the company.
KMP
Position
Term as
KMP
Non-Executive Directors (“NEDs”)
W G Hames
Non-Executive Chair
Full year
R S Brown
Non-Executive Deputy Chair
Full year
V A Davies
Independent Non-Executive Director
Full year
J M Muirsmith
Independent Non-Executive Director
Full year
P G Say
Independent Non-Executive Director
Full year
Executive Director
N J Blackburne
Managing Director (“MD”)
Full year
Senior Executives
P J Archer
Chief Operating Officer (“COO”)
Full year
L M Hanrahan
Chief Financial Officer (“CFO”)
Full year
Changes since last year
There have been no changes to the roles included as KMP since last year.
Changes since the end of the reporting period
There were no changes to KMP after the reporting date and before the date the annual report was authorised for issue.
35
Annual Report 2024
p.
Remuneration governance
Role of the Remuneration and Nominations Committee
The Remuneration and Nominations Committee (The Committee) is a committee of the Board. In relation to
remuneration matters, it is responsible for making recommendations to the Board on:
the over-arching executive remuneration framework;
remuneration levels of the Managing Director and other executives;
operation of incentive plans and key performance hurdles for the executive team; and
NED fees.
The Committee’s objective is to ensure remuneration policies and structures are fair and competitive and aligned
with the long-term interests of the company. The Committee periodically obtains independent remuneration
information to ensure executive remuneration packages and NED fees are appropriate and in line with the market.
The Corporate Governance Statement provides further information on the role of the Committee and may be found
on the company’s website under the Our Company/Governance link.
Use of remuneration advisors
In 2024, the remuneration committee consulted remuneration advisors to provide general information on the
property sector remuneration landscape and executive remuneration and remuneration design. No remuneration
recommendations were made.
Clawback of remuneration
Vested and unvested STI’s and LTI’s are subject to potential clawback based on the Board’s judgment:
STI (cash)
at the end of the financial year when assessing performance against scorecard objectives to determine the
STI payments, when determining if there are any matters impacting the initial performance assessment.
STI (deferred)
at any time prior to, or at, the final vesting date of the award and will take account of factors such as any
material misstatements of financial results or instances of non-compliance with Cedar Woods’ policies.
LTI
at any time prior to, or at, the final vesting date of the award and will take account of factors such as any
material misstatements of financial results or instances of non-compliance with Cedar Woods’ policies.
The clawback policy also provides that the Board can recover an STI or LTI award previously paid to an employee.
Remuneration Report approval at 2023 Annual General Meeting (“AGM”)
At the 2023 AGM, 97.8% of eligible votes cast were in favour of the FY2023 Remuneration Report.
36
Cedar Woods Properties Limited
q.
Executive remuneration policy and framework
The information contained within this section outlines the details pertaining to the executive remuneration policy and
framework for FY2024.
(i)
Principles and strategy
Company purpose
To create long-term value for shareholders through the development of vibrant communities
Remuneration strategy linkages to company purpose
The Board ensures its approach to executive reward satisfies
the following key criteria for good reward governance practices:
Competitiveness and reasonableness
Acceptability to shareholders
Alignment of executive remuneration to company
performance
Transparency of the link between performance and reward
To attract, motivate and retain high performing individuals
The remuneration offering rewards capability and
experience
Reflects competitive reward for contribution to growth
in shareholder wealth
The framework is aligned to shareholders’ interests by
having:
STIs (cash and deferred) linked to current year
performance and subject to clawback
LTIs linked to both long term external (relative total
shareholder return (“TSR”)) and internal (earnings
per share (“EPS”) growth) performance. LTIs are also
subject to clawback.
Component
Vehicle
Purpose
Link to performance
Total remuneration
Fixed
remuneration
Comprises base salary,
superannuation and
non-monetary benefits
To provide competitive fixed
remuneration, set with reference to
role, market and skills and experience
of individuals
Group and individual
performance are considered
during the annual remuneration
review process
No guaranteed fixed
remuneration increases are
included in executives’ contracts
Fixed remuneration may be
phased to market benchmark
for new appointments,
conditional on performance
STIs
Paid in cash, net of tax
Rewards executives for their
contribution to achievement of
company outcomes
Linked to the Corporate Plan
and achievement of personal
objectives established at the
start of the year
Equity based STI grants
awarded in Zero-price
options
Rewards executives for their contribution
to the creation of shareholder value over
the medium term
Vesting of Zero-price options
is dependent on a further one
year of service after the initial
performance period
LTIs
Equity based LTI
grants awarded in
Performance Rights
Rewards executives for their
contribution to the creation of
shareholder value over the longer term
Vesting of grants is dependent
on TSR performance relative
to S&P / ASX Small Industrials
Index and annual compound
growth rate in EPS, both over a
three-year period
Performance related outcomes are determined each year following the audit of the annual results. Outcomes may
be adjusted up or down in line with over and under achievement against the target performance levels, at the
discretion of the Board (based on a recommendation from the Committee).
37
Annual Report 2024
(ii) Approach to setting remuneration
The Company aims to reward executives with a level and mix of remuneration appropriate to their position,
responsibilities and performance within the company and aligned with market practice.
The approach is generally to position total remuneration competitively, between the median and upper quartile
of its direct industry peers, both listed and unlisted, and other Australian listed companies of a similar size and
complexity.
Remuneration levels and structures are reviewed annually through a process that considers market data, insights
into remuneration trends, employment market conditions, the performance of the company and the individual, and
the broader economic environment.
The “at risk” components (STIs and LTIs) ensure a proportion of remuneration varies with performance of both the
individual and the company.
The Committee will continue to review the level of fixed and ‘at risk’ pay in FY2025 with the objective of ensuring
that executive remuneration continues to meet the expectations of shareholders and candidates in a market that
remains highly competitive for talent.
The graphs below illustrate the remuneration mix based on maximum opportunities for FY2024.
33%
23%
19%
10%
20%
27%
27%
37%
50%
54%
Managing
Director
COO
CFO
Legend
Fixed Pay
Cash STI
Deferred STI
LTI
STI in the above graphs are based on 100% of the maximum opportunity. LTI’s may be awarded up to the target
opportunity.
38
Cedar Woods Properties Limited
(iii) Details of incentive plans
Short-term incentives (STI)
Key features of the current STI plan are set out below.
Managing Director
How is the STI
delivered?
In FY2024 65% (FY2023 – 65%) of the STI was deliverable in cash and 35% (FY2023 – 35%) of the STI
is deferred by way of a grant of zero-price options under the Deferred Short Term Incentive (DSTI) Plan.
The Committee sets the proportion of STI deliverable by way of DSTI annually having regard to the equity
ownership of the MD, the equity that has previously vested and the equity opportunities under existing DSTI
and LTI plans.
What STI’s are
available and
what are the
performance
conditions?
The STI awarded is based on the Committee’s assessment of the Company’s overall performance using the
Balanced Scorecard system referred to in section r) Executive remuneration outcomes for FY2024 below.
Subject to Board discretion, in order for any STI to be payable, the following hurdle (trigger) must be
achieved:
Safety trigger: No reportable incident resulting in serious injury under the relevant Occupational Health &
Safety Act in CWP premises or sites as a result of failure of the company’s Work, Health & Safety system.
A performance rating of up to 150% of the STI opportunity is available to reward personal performance when
it exceeds expectations, at the Board’s discretion.
How is
performance
assessed?
Annually, after consideration of performance against set balanced scorecard objectives, the Chairman of the
Board and Chair of the Committee recommends to the Board the amount of STI to be paid to the MD.
What happens
in the event
of change of
control
If a Change of Control Event occurs prior to the vesting of an award, unless the Board determines otherwise,
a pro-rata number of the MD’s unvested awards will vest immediately based on the proportion of the period
that has passed at the time of the relevant change of control event, and the extent to which any applicable
performance conditions have been satisfied (or are estimated to have been satisfied) at that time, unless
the change of control event occurs after the end of the performance period (the first year), in which case full
vesting of unvested awards will occur, to the extent to which any applicable performance conditions have
been satisfied (or are estimated to have been satisfied) at that time.
Other executives
How is the STI
delivered?
Cash
What STI’s are
available and
what are the
performance
conditions?
Each executive has a target STI opportunity depending on the accountabilities of the role and impact on
company performance.
The STI plan provides as follows:
a. Up to 50% of the STI based on personal performance, with the actual percentage awarded based on the
executive’s overall rating measured against personal objectives as determined in the annual performance
review.
Meeting expectations generally provides for a performance rating between 80% and 100%. Performance
ratings of up to 150% of the personal component are available to encourage and reward personal performance
when it exceeds expectations.
b. Up to 50% of the STI is awarded based on the Committee’s assessment of the company’s overall
performance using the Balanced Scorecard system referred to in section r) Executive remuneration
outcomes for FY2024 below.
In order for any STI to be payable under the company component, the same hurdle (safety trigger) that applies
for the MD (see above) must be achieved.
How is
performance
assessed?
On an annual basis, for senior executives, the Committee will seek recommendations from the MD before
making its determination. Performance is assessed against targets set at the start of the financial year.
What happens
if an Executive
leaves Cedar
Woods?
Executives who resign prior to the end of the financial year generally forego their STI entitlement. The Board
has discretion in this regard.
39
Annual Report 2024
Long-term incentives (LTI)
Key features of the LTI plan are as follows:
Why have a LTI plan?
The LTI plan builds a sense of business ownership and alignment which benefits all shareholder
interests. It encourages a greater focus on sustainable long-term growth and seeks to attract
and retain key executives.
Who participates?
The Company’s policy is for the MD and other Executives to participate in the LTI. NEDs are not
eligible to participate in the LTI plan.
What LTI’s are available?
Each participant has a maximum LTI opportunity depending on the accountabilities of the role
and impact on company performance.
How is the LTI delivered?
Awards under the LTI plan are made in the form of performance rights, which provide, when
vested, one share for each performance right at nil cost. At the discretion of the Board the LTI
awards may be satisfied in cash rather than shares.
How are the number of
rights determined for each
LTI grant?
The number of performance rights allocated for each participant is calculated by reference to
the target LTI opportunity outlined in the prior section. For the LTI, the target opportunity is the
maximum opportunity.
Allocations are made based on a face value approach using the Volume Weighted Average
Price of Cedar Woods’ shares over the first five trading days of the financial year. This fixes
the maximum number of shares and the actual number will vest in accordance with the
performance conditions set out below.
When does the LTI vest?
The Board will determine the outcomes at the end of the three-year performance period, with
vesting, if any, occurring once results are released and within a trading window. Once vested,
participants may trade shares, subject to the company’s Securities Trading Policy.
What happens if an
Executive leaves Cedar
Woods?
If cessation of employment occurs during the performance period, the following treatment will
apply in respect of unvested rights:
If the participant ceases employment with Cedar Woods due to resignation or termination
for cause, unvested rights will normally be forfeited.
If the participant ceases employment in other circumstances (for example, due to
illness, total or permanent disablement, retirement, redundancy or other circumstances
determined by the Board), unvested rights will stay ‘on foot’ and may vest at the end of the
original performance period to the extent performance conditions are met. The Board may
determine that the number of rights available to vest will be reduced pro-rata for time at the
date employment ceases.
The Board will retain discretion to allow for accelerated vesting (pro-rated for performance and/
or time) in special circumstances (as opposed to allowing unvested rights to remain ‘on foot’ on
cessation of employment).
What happens in the event
of change of control
Unless the Board determines otherwise, a pro-rata number of the participant’s unvested rights
will vest based on the proportion of the performance period that has passed at the time of the
change of control. Vesting will also be subject to the achievement of pro-rata performance
conditions at the time of the change of control.
Do participants receive
dividends on LTI grants?
No dividends are paid on unvested LTI awards.
Can a participant deal with
or trade their performance
rights before vesting?
No.
40
Cedar Woods Properties Limited
How is performance
assessed and rewarded
against these hurdles?
The awards are subject to two equally weighted performance conditions which operate
independently, so that awards can be made under either or both categories.
Relative TSR hurdle (50%): The relative TSR hurdle provides a comparison of external
performance. The ASX Small Industrials Index is comprised of the companies included in
the S&P/ASX 300 (excluding companies in the S&P/ASX 100) who have a Global Industry
Classification Standard (GICS) classification other than Energy or Metals & Mining. TSR (Total
Shareholder Return) measures changes to share price and dividends paid to show the total
return and is widely used in the investment community as an appropriate hurdle as it aligns
the experience of shareholders and executives.
This index was chosen, rather than a peer group, as there are a limited number of companies
with similar operations and in recent years the number of these has reduced through
takeovers and changes to business models and operations.
Participants will only derive value from this component of the LTI if the company’s TSR
performance is equal to or greater than the Index. Maximum vesting of the TSR hurdle
recognises significant out-performance of the company over 3 years.
The vesting schedule for the FY2024 plan was as follows:
Relative TSR performance outcome
Percentage of TSR-tested rights vesting
< Index
Nil
At the Index
50%
> Index and up to 5% above the Index
Pro-rata between 50% and 100%
> = 5% above the Index
100%
The vesting schedule for the FY2023 plan was as follows:
Relative TSR performance outcome
Percentage of TSR-tested rights vesting
< Index
Nil
At the Index
50%
> Index and up to 5% above the Index
Pro-rata between 50% and 100%
> = 5% above the Index
100%
EPS compound annual growth rate hurdle (50%): EPS is a method of calculating the
performance of an organisation, capturing information regarding an organisation’s earnings in
proportion to the total number of shares issued by the organisation. The EPS calculation is:
EPS = Statutory net profit after tax
Weighted number of shares on issue
Where:
Statutory net profit after tax:
as reported by a company at the most recent
financial-year end preceding the calculation date.
Weighted number of shares on issue:
weighted number of shares on issue for the
financial year.
The relevant inputs when setting the EPS target range are generally:
The earnings and EPS targets contained in the company’s Corporate Plan, particularly
with reference to the most recent internal five-year forecasts;
The level of stretch associated with those Corporate Plan targets;
Any earnings guidance that has been provided to the market;
Shareholder and analyst (individual and consensus) expectations.
The rate of growth in the Australian economy and the performance of the property sector.
The vesting schedule for this component of the LTI in the FY2024 Plan was as follows:
EPS compound annual growth rate
Percentage of EPS-tested rights vesting
<3%
Nil
3%
50%
Between 3% - 5%
Pro-rata between 50% and 100%
> = 5%
100%
41
Annual Report 2024
The vesting schedule for this component of the LTI in the FY2023 Plan was as follows:
EPS compound annual growth rate
Percentage of EPS-tested rights vesting
<5%
Nil
5%
50%
Between 5% - 15%
Pro-rata between 50% and 100%
> = 15%
100%
At commencement of each three-year plan, the Committee will consider the appropriate EPS target range and
the level of payout if targets are met. This includes setting a maximum payout under the LTI plan and minimum
levels of performance to trigger payment of LTI. The EPS target range, once set, remains in place for the three-year
performance period.
The EPS target range was modified for the FY2024 plan in view of the challenging outlook for the residential
property sector in an environment of higher interest rates, continued escalation in construction costs and ongoing
supply chain disruptions, having regard to projections in the corporate plan endorsed by the Board.
r.
Executive remuneration outcomes for FY2024 (including link to performance)
Performance against STI balanced scorecard objectives
The table below provides a summary of the FY2024 balanced scorecard objectives and weightings for each
component. This performance measurement framework provides a close alignment to the company’s objective
of providing long term value to shareholders and links to our value creation model as described on page 8.
Strategic Priority & Measure
Total
Metric
Financial Strength
Annual performance and balance sheet strength
50%
Net Profit After Tax (NPAT)
Number of settlements
Revenue
Return on Equity
Return on Capital
Borrowing ratios and facility terms
Cost reductions
Earnings Growth
Measures of future financial health of the Company
20%
Value of presales
New projects and joint ventures acquired or entered into
Operational Excellence
Measures of customer and investor satisfaction, risk
management, compliance and sustainability
20%
Customer net promoter scores
Investor perceptions
ESG Performance (link to sustainability & climate change)
Compliance with the work, health and safety system
High Performance Culture
Manage leadership pool and strive for strong staff
engagement and team improvements
10%
Employee engagement
Retention of executives and senior management
Gender and diversity
The Remuneration Committee determines the STI to be paid based on an assessment of the extent to which the
key metrics are met, and in arriving at the amount of STI to be paid to each executive, also considers an array of
factors including the economic environment, stakeholder experience, quality of the results and how the company
has been set up for longer term success. The following table outlines the proportion of maximum STI earned and
forfeited by executives in relation to FY2024 and the maximum STI that was available.
42
Cedar Woods Properties Limited
Proportion of STI earned and forfeited in FY2024
MD
COO
CFO
Total earned $
434,720
194,750
139,500
Total earned of target %
95%
95%
90%
Total forfeited of target %
5%
5%
10%
Total forfeited of target $
22,880
10,250
15,500
Target STI opportunity $
457,600
205,000
155,000
Total earned of maximum %
63%
76%
72%
Total forfeited of maximum %
37%
24%
28%
Total forfeited of maximum $
251,680
61,500
54,250
Maximum STI opportunity $
686,400
256,250
193,750
For the Managing Director, 65% of the STI earned is payable in cash ($282,568) and 35% of the STI earned
($152,152) was deferred into zero price options under the DSTI plan. For the other executives the STI is payable
in cash.
Terms and conditions of the share-based payment arrangements - DSTI
The terms and conditions of each grant of zero price options under the Deferred STI affecting remuneration in the
current or a future reporting period are as follows:
Incentive
Plan
Grant
date
Number
of options
Performance
period
Service
period
Vesting
date
Performance
hurdle
Value per
option at
grant date
%
Vested
FY2024 –
MD
TBA
TBA
1/7/23 to
30/6/24
1/7/23 to
30/6/25
31/8/2025
Balanced
scorecard
score
$TBA
N/A
FY2023 –
MD
1/11/2023
31,765
1/7/22 to
30/6/23
1/7/22 to
30/6/24
31/8/2024
Balanced
scorecard
score
$4.31
N/A
FY2022 –
MD
2/11/2022
26,409
1/7/21 to
30/6/22
1/7/21 to
30/6/23
31/8/2023
Balanced
scorecard
score
$3.99
100
The FY2024 grant of options to the Managing Director under the DSTI is subject to shareholder approval at the
2024 AGM.
During the year 26,409 ordinary shares of Cedar Woods Properties Limited were issued to the Managing Director
on the exercise of zero price options which were granted under the Deferred STI on 2 November 2022. No further
shares have been issued since that date.
43
Annual Report 2024
Performance against LTI objectives
The following table shows the maximum LTI opportunities that were granted to KMP during FY2024.
LTI awards in FY2024
MD
COO
CFO
Value granted (max LTI opportunity) $
748,800
212,100
140,000
The LTI awards earned will vest on 31 August 2026 subject to the vesting conditions.
Terms and conditions of the share-based payment arrangements - LTI
The terms and conditions of each grant of rights under the LTI affecting remuneration in the current or a future
reporting period are as follows:
Incentive
Plan
Grant
date
Performance
period
Vesting
date
Value at
start of
performance
period
Performance
hurdle
Value per
share right at
grant date
Performance
achieved
%
Vested
FY2021 -
Executives
27/08/2020
1/7/20 to
30/6/23
31/08/2023
$5.40
EPS Growth
Relative TSR
$4.59
$2.37
Partial
Partial
60.2%
FY2021 -
MD
4/11/2020
1/7/20 to
30/6/23
31/08/2023
$5.40
EPS Growth
Relative TSR
$5.07
$2.92
Partial
Partial
60.2%
FY2022 -
Executives
27/08/2021
1/7/21 to
30/6/24
31/08/2024
$6.70
EPS Growth
Relative TSR
$5.83
$3.18
Not achieved
0%
FY2022 -
MD
3/11/2021
1/7/21 to
30/6/24
31/08/2024
$6.70
EPS Growth
Relative TSR
$5.20
$2.36
Not achieved
0%
FY2023 -
Executives
26/08/2022
1/7/22 to
30/6/25
31/08/2025
$3.83
EPS Growth
Relative TSR
$3.87
$2.61
to be
determined
n/a
FY2023 -
MD
2/11/2022
1/7/22 to
30/6/25
31/08/2025
$3.83
EPS Growth
Relative TSR
$3.58
$2.35
to be
determined
n/a
FY2024 -
Executives
30/08/2023
1/7/23 to
30/6/26
31/08/2026
$5.06
EPS Growth
Relative TSR
$4.50
$2.65
to be
determined
n/a
FY2024 -
MD
1/11/2023
1/7/23 to
30/6/26
31/08/2026
$5.06
EPS Growth
Relative TSR
$3.88
$2.20
to be
determined
n/a
The number of share rights granted to key management personnel under the LTI scheme during FY2024 is shown
in the table below. The number of rights granted has been determined by dividing the FY2024 LTI grant opportunity
by the market value of shares at the beginning of the performance period, which is the volume weighted average
price of the company’s shares over the first five trading days in FY2024 ($5.06). The market value of the shares is
not discounted.
The fair value of the rights has been determined using the amount of the grant date fair value.
44
Cedar Woods Properties Limited
Reconciliation of LTI share rights held by KMP
The following table shows how many share rights were granted, vested and forfeited during the year for KMP.
Name & grant
dates
Balance
at start
of year
Number
Granted
during
year
Number
Vested
Number
Vested
%
Forfeited
Number
Forfeited
%
Balance at
end of year
(unvested)
Number
Max. value
yet to
vest *
Executive director
N J Blackburne
1 Nov 2023**
-
147,984
-
-
-
-
147,984
$449,871
2 Nov 2022**
187,989
-
-
-
-
-
187,989
$403,453
3 Nov 2021**
102,895
-
-
-
-
-
102,895
$121,416
4 Nov 2020**
127,666
-
77,020
60
50,646
40
-
-
Senior executives
P Archer
30 Aug 2023
-
41,916
-
-
-
-
41,916
$149,850
26 Aug 2022
55,378
-
-
-
-
-
55,378
$130,405
27 Aug 2021
31,656
-
-
-
-
-
31,656
$50,333
27 Aug 2020
39,277
-
23,695
60
15,582
40
-
-
L M Hanrahan
30 Aug 2023
-
27,667
-
-
-
-
27,667
$98,810
26 Aug 2022
-
33,942
-
-
-
-
33,942
$79,927
27 Aug 2021
17,910
-
-
-
-
-
17,910
$28,477
27 Aug 2020
22,222
-
13,406
60
8,816
40
-
-
* The LTI awards granted in FY2024 vest on 31 August 2026 subject to the vesting conditions. The maximum value of the
deferred shares yet to vest has been determined based on the grant date fair value of the rights, adjusted to the anticipated
vesting outcomes.
** Approval for the issue of share rights to NJ Blackburne was obtained from shareholders under Australian Securities Exchange
Listing Rule 10.14.
45
Annual Report 2024
Performance of shareholder return metrics
In FY2024, the Company delivered a profit of $40.5 million, an increase of 28 per cent over the prior year.
The returns to shareholders of Cedar Woods over the last 1, 3 and 5 years are detailed in the table below:
Returns to shareholders over 1, 3 and 5 years
(%, annualised)
1 year
3 years
5 years
EPS growth
27.8
6.5
(4.2)
Share price growth
(6.0)
(11.0)
(3.7)
Dividend growth (financial year)
25.0
(1.9)
(4.5)
Dividend growth (paid dividend) *
(45.5)
(8.4)
(16.1)
CWP TSR (change in share price and dividends)
(2.9)
(6.5)
1.0
S&P Small Industrials Index (XSIAI) TSR
12.4
(2.2)
2.9
* In FY2024 the total dividends paid (which included the FY2023 final dividend paid in October 2023 and the FY2024 interim
dividend paid in April 2024) was impacted by the weighting of the total FY2023 dividends to the interim dividend (resulting in a
lower FY2023 final dividend). Dividend growth for FY2024 on a financial year basis was 25%.
The total shareholder return in FY2024 was -2.9 per cent which underperformed the S&P Small Industrials Index
total return of 12.4% over the same period. The returns over 3 and 5 years also underperformed the S&P Small
Industrials Index.
Management is focused on delivering consistent earnings per share and dividend growth. The company’s share
price is subject to market factors that are beyond the Company’s control. The measures of the company’s financial
performance over the last five years as required by the Corporations Act 2001 are shown in the table below.
However, these are not necessarily consistent with the measures used in determining the variable amounts of
remuneration awarded to KMP, the basis for which is outlined above. As a consequence, there may not always be
a direct correlation between the statutory key performance measures and the variable remuneration awarded.
2024
2023
2022
2021
2020
Profit for the year ($’000)
40,494
31,634
37,388
32,834
20,387
Basic earnings per share (cents)
49.2
38.5
45.7
40.7
25.4
Dividends per share (cents)
25.0
20.0
27.5
26.5
19.0
Increase (decrease) in share price (%)
(6.3)
36.7
(45.2)
28.1
(8.1)
Executive remuneration for the years ended 30 June 2024 and 30 June 2023
When determining the remuneration mix for executives, the Remuneration and Nominations committee used
the target STI and LTI opportunities contained in the tables on pages 49 and 50, which differ from the amounts
calculated in the table below. In the below table, the actual cash bonuses are shown, and the share based payment
is calculated in accordance with AASB 2 Share Based Payments.
46
Cedar Woods Properties Limited
Remuneration expenses for executive KMP
Details of the remuneration of each executive KMP of Cedar Woods, in accordance with accounting standards, is set out below.
Name
Financial
year
Short-term
benefits
Post
employment
Long term
benefits
Performance
related
Cash salary
and fees
$
Cash
bonus
$
Non-monetary
benefits
$
Super-
annuation
$
Share based
payment #
$
Long Service
Leave
$
Total
$
%
Executive Director
N J Blackburne
2024
799,310
282,568
11,974
27,500
512,134
25,151
1,658,637
48%
2023
766,740
225,940
11,975
27,500
306,030
24,715
1,362,900
39%
Other KMP
P Archer
2024
440,601
194,750
5,164
27,399
128,347
12,608
808,869
40%
2023
424,708
157,000
5,681
25,292
56,825
12,485
681,991
31%
L M Hanrahan
2024
362,601
139,500
7,244
27,399
80,299
9,876
626,919
35%
2023
347,684
117,750
7,318
27,316
33,285
11,430
544,783
28%
Total
2024
1,602,512
616,818
24,382
82,298
720,780
47,635
3,094,425
2023
1,539,132
500,690
24,974
80,108
396,140
48,630
2,589,674
# Equity-settled share-based payments relate to the component of the fair value of awards from the 2021, 2022, 2023 and 2024 LTI plans and 2023 and 2024 DSTI plans attributable to the year
measured in accordance with AASB 2 Share Based Payments.
Cash salary and fees include annual leave accrual.
47
Annual Report 2024
Remuneration received by executive KMP
The remuneration illustrated in the table below has been provided as additional non-statutory information to assist in understanding the total value of remuneration (take home
remuneration) received by executive KMP in the current and prior financial years. The value of equity in this section is calculated in a different way to the statutory disclosure in the
previous table.
Name
Financial
year
*Short-term
benefits
Post
employment
Long term
benefits
Performance
related
Cash salary
and fees
$
Cash
bonus
$
Non-monetary
benefits
$
Super-
annuation
$
Share based
payment vested #
$
Long Service
Leave
$
Total
$
%
Executive Director
N J Blackburne
2024
799,310
282,568
11,974
27,500
525,286
25,151
1,671,789
48%
2023
766,740
225,940
11,975
27,500
146,428
24,715
1,203,298
31%
Other KMP
P Archer
2024
440,601
194,750
5,164
27,399
124,636
12,608
805,158
40%
2023
424,708
157,000
5,681
25,292
-
12,485
625,166
25%
L M Hanrahan
2024
362,601
139,500
7,244
27,399
70,516
9,876
617,136
34%
2023
347,684
117,750
7,318
27,316
-
11,430
511,498
23%
Total
2024
1,602,512
616,818
24,382
82,298
720,438
47,635
3,094,083
2023
1,539,132
500,690
24,974
80,108
146,428
48,630
2,339,962
*The short-term benefits represent the cash bonuses that are awarded to each KMP in relation to FY2024 and which are paid in the following financial year.
# LTI vested is based on the market value of securities at the date of vesting. In FY2024, shares vested under the FY2021-FY2023 LTI plan and FY2022-FY2023 DSTI plan.
48
Cedar Woods Properties Limited
s.
Executive contracts
Remuneration and other terms of employment for executives are formalised in employment agreements.
Details of executive service contract for the Managing Director and other executives
The Managing Director, Mr N J Blackburne is employed under an ongoing contract.
Mr Blackburne’s total remuneration package for FY2024 was as follows:
Fixed remuneration of $832,000 per annum
Target STI opportunity of $457,600, Maximum STI opportunity of $686,400 (65% in cash, 35% in DSTI)
Target and Maximum LTI opportunity $748,800
The target STI and LTI opportunity represent 22% and 37% respectively of the total target remuneration. The maximum
STI opportunity represents 30% of the maximum remuneration.
If the Managing Director resigns following a takeover or substantial change of control of the Company due to a
material variation or diminution in his position duties, reporting structure or status, he will be entitled to be paid the
maximum amount permitted under section 200G of the Corporations Act 2001.
The agreements for the executives are reviewed annually by the Committee for each KMP and details are as follows:
Contract term
Notice required to
terminate contract
Termination benefit*
Executive director
N J Blackburne
No fixed term
6 months
Either party may terminate
with 6 months’ notice
Other senior executives
No fixed term
Up to 3 months
Up to 3 months base salary
* For treatment of STI and LTI awards upon cessation of employment please refer to q) iii. Details of incentive plans.
t.
NED fee arrangements
Determination of fees and maximum aggregate NED fee pool
On appointment to the Board, all NEDs enter into a service agreement with the Company in the form of a letter of
appointment. The letter details the terms, including fees, relevant to the office of the NED. Fees and payments to
NEDs reflect the demands which are made on, and the responsibilities of the NEDs.
NEDs receive an additional fee for chairing committees (no additional fees are paid for committee membership or for
memberships of directors on subsidiary Boards). NEDs do not receive performance-based remuneration.
Remuneration of NEDs is determined by the Board, after receiving recommendations from the Committee, within
the maximum aggregate amount approved by the shareholders from time to time (currently set at $900,000 as
approved at the 1 November 2023 annual general meeting). The total of NED fees paid in FY2024 was $700,000.
Fee policy
Annual fees for NEDs were last reviewed from FY2024 (effective date: 1 July 2023). The annual fees (inclusive of
superannuation) for FY2024 and FY2023 are set out in the table below:
2024
$
2023
$
Chair
185,000
179,000
Deputy Chair
145,000
141,000
Other NEDs
100,000
97,000
Committee Chair
15,000
15,000
Committee member
10,000
10,000
49
Annual Report 2024
NED remuneration for the years ended 30 June 2024 and 30 June 2023
The table below outlines fees paid to NEDs for FY2024 and FY2023 in accordance with statutory rules and
applicable accounting standards.
Short-term benefits
Post-employment
Name
Financial
year
Board and
committee fees
$
Superannuation
$
Total
$
W G Hames
2024
166,667
18,333
185,000
2023
161,991
17,009
179,000
R S Brown
2024
130,631
14,369
145,000
2023
127,602
13,398
141,000
V A Davies
2024
112,613
12,387
125,000
2023
110,407
11,593
122,000
J M Muirsmith
2024
112,613
12,387
125,000
2023
110,407
11,593
122,000
P G Say
2024
108,108
11,892
120,000
2023
105,882
11,118
117,000
Total
2024
630,631
69,369
700,000
2023
616,289
64,711
681,000
u.
Additional statutory disclosures
Equity instrument disclosures relating to KMP
The numbers of ordinary shares in the Company held during the financial year by each director and other KMP of
Cedar Woods, including their personally-related parties, are set out below.
2024
Number of
shares at the
start of the year
Received on
vesting of rights
(DSTI/LTI)
Other changes
during the year
Number of
shares at the
end of the year
NEDs
W G Hames *
11,011,724
-
31,273
11,042,997
R S Brown
7,621,633
-
-
7,621,633
V A Davies
26,000
-
-
26,000
J M Muirsmith
21,914
-
-
21,914
P G Say
34,832
-
-
34,832
Executive director
N J Blackburne
167,885
103,429
-
271,314
Senior executives
P Archer
46,740
23,695
-
70,435
L M Hanrahan
18,438
13,406
-
31,844
* Includes 2,014,439 (2022 – 2,014,439) shares over which W G Hames has voting rights and a first right of refusal to purchase.
The interests shown above comply with AASB124 Related Party Disclosures and differ to those shown at item l)
of the directors’ report which comply with the requirements of sections 608 and 609 of the Corporations Act 2001.
The table above includes the shares held by related parties of the KMP.
50
Cedar Woods Properties Limited
Other transactions with key management personnel
Aggregate amounts of other transactions with key management personnel of Cedar Woods or their related entities:
2024
$
2023
$
Amounts recognised as expense
Architectural fees
62,000
27,500
Settlement fees
103,559
274,828
165,559
302,328
Amounts recognised as inventory
Architectural fees
306,190
615,807
Agency fees
5,078
-
311,268
615,807
Total amounts recognised in year
476,827
918,135
Aggregate amounts of assets at balance date relating to the above types of other
transactions with directors of Cedar Woods or their related entities:
Inventory
311,268
615,807
311,268
615,807
Where entities related to directors are able to fulfil the requisite criteria to provide the services at competitive rates,
they may be engaged by the company to perform the services, subject to the Board considering the services under
the Conflict of Interest policy, available on the Company website. Should entities connected with the directors be
engaged, the directors declare their interests in those dealings and take no part in decisions relating to them.
The consolidated entity uses a number of firms for architectural, urban design and planning services and settlement
services. Accordingly, the company has a high level of knowledge regarding commercial rates for these services. In
addition, tenders and market reviews are regularly conducted to ensure that services are provided on competitive
terms and conditions.
During the year planning, architectural and consulting services were provided by Hames Sharley Architects of which
Mr W G Hames is a principal. The transactions were performed on normal commercial terms and conditions and
fees paid were consistent with market rates. The value of services provided was lower than in the previous year as a
result of reduced architectural and design work performed on the Williams Landing Town Centre in Melbourne, the
Glenside project in Adelaide and the Eglinton project in WA. The Glenside project was introduced to the company
by Hames Sharley.
Property settlement charges were paid to Westland Settlement Services Pty Ltd (Westland), a company associated
with the family of Mr R S Brown until 30 November 2023. The charges were based on normal commercial terms
and conditions. The value of transactions decreased from the previous year as a result of R S Brown ceasing
to have a financial interest in Westland from 1 December 2023. Settlement fees include out of pocket expenses
incurred by Westland that are paid to Landgate and PEXA.
There are no aggregate amounts payable to directors of Cedar Woods at balance date. An amount of $16,687 was
payable to related entity Hames Sharley (SA) Pty Ltd at balance date. There are no other amounts payable to related
entities at balance date relating to the above types of other transactions.
51
Annual Report 2024
v.
Independent audit of remuneration report
The remuneration report has been audited by PricewaterhouseCoopers (PwC). See page 100 of this annual
financial report for PwC’s report on the remuneration report.
w. Retirement, election and continuation in office of directors
The constitution requires that no director (other than a managing director) may retain office (without re-election) for
more than three years or past the third annual general meeting following the director’s appointment.
PG Say and WG Hames retire at the forthcoming Annual General Meeting, and being eligible, offer themselves for
re-election.
52
Cedar Woods Properties Limited
x.
Insurance of officers
During the financial year, Cedar Woods paid a premium in respect of directors’ and officers’ liabilities that
indemnifies certain officers of the Company and its controlled entities. The officers of the company covered by
the insurance policy include the directors and the Company Secretary. The liabilities insured include costs and
expenses that may be incurred in defending civil or criminal proceedings that may be brought against the officers in
their capacity as officers of the Company and its controlled entities. The directors have not included more specific
details of the nature of the liabilities covered or the amount of the premium paid in respect of the policy, as such
disclosure is prohibited under the terms of the contract.
y.
Non-audit services
The group may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor’s expertise and experience with the Company and/or group are important.
Details of the amounts paid or payable to the auditor for audit and non-audit services provided during the year are
set out in note 34 in the other information section of this report.
The Board of directors has considered the position and, in accordance with the advice received from the Audit and
Risk Management Committee, is satisfied that the provision of the non-audit services is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the
provision of non-audit services by the auditor did not compromise the auditor independence requirements of the
Corporations Act 2001 for the following reasons:
All non-audit services have been reviewed by the Audit and Risk Management Committee to ensure they do not
impact the impartiality and objectivity of the auditor.
None of the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.
z.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001
forms part of this directors’ report and is set out on page 53.
aa. Rounding of amounts
The Company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of
amounts in the directors’ report. Amounts in the directors’ report have been rounded off in accordance with the
instrument to the nearest thousand dollars, or in certain cases, to the nearest dollar.
The directors’ report including the remuneration report is signed in accordance with a resolution of the directors
of Cedar Woods.
N J Blackburne
Managing Director
20 August 2024
53
Annual Report 2024
AUDITOR’S INDEPENDENCE DECLARATION
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Auditor’s Independence Declaration
As lead auditor for the audit of Cedar Woods Properties Limited for the year ended 30 June 2024, I
declare that to the best of my knowledge and belief, there have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Cedar Woods Properties Limited and the entities it controlled during
the period.
Ian Campbell
Perth
Partner
PricewaterhouseCoopers
20 August 2024
54
Cedar Woods Properties Limited
FINANCIAL
STATEMENTS
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
55
Consolidated Balance Sheet
56
Consolidated Statement of Changes in Equity
58
Consolidated Cash Flow Statement
59
Notes to the Financial Statements
60
These financial statements are consolidated financial statements for the group
consisting of Cedar Woods Properties Limited and its subsidiaries. A list of major
subsidiaries is included in note 26.
The financial statements are presented in the Australian currency.
Cedar Woods Properties Limited is a company limited by shares, incorporated
and domiciled in Australia.
Its registered office and principal place of business is:
Level 4
50 Colin Street
WEST PERTH WA 6005.
The financial statements were authorised for issue by the directors on
20 August 2024. The directors have the power to amend and reissue
the financial statements.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
55
Annual Report 2024
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the Year Ended 30 June 2024
Note
2024
$’000
2023
$’000
Continuing operations
Revenue
1(i)
386,348
391,303
Cost of sale of land and buildings
(289,204)
(292,571)
Cost of providing development services
(1,430)
(1,488)
Gross profit
95,714
97,244
Project operating costs
(20,820)
(20,844)
Administration expenses
(27,395)
(26,817)
Other expenses
(596)
(955)
Other income
2(a)
21,305
1,159
Operating profit
68,208
49,787
Finance costs
2(b)
(11,087)
(4,401)
Share of net loss of associates and joint ventures accounted for using the
equity method
27
(25)
-
Profit before income tax
57,096
45,386
Income tax expense
3
(16,602)
(13,751)
Profit for the year
19
40,494
31,635
Total comprehensive income for the year
40,494
31,635
Total comprehensive income attributable to members of
Cedar Woods Properties Limited
40,494
31,635
Earnings per share for profit attributable to the ordinary equity
holders of the company:
Basic earnings per share
4
49.2 cents
38.5 cents
Diluted earnings per share
4
48.5 cents
38.0 cents
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
56
Cedar Woods Properties Limited
CONSOLIDATED BALANCE SHEET
As at 30 June 2024
Note
2024
$’000
2023
$’000
ASSETS
Current assets
Cash and cash equivalents
5
21,945
6,802
Trade and other receivables
6
5,275
6,841
Contract assets
1(ii)
1,475
3,323
Inventories
7
265,902
195,018
Deferred development costs
8
5,596
3,892
Other financial assets
9
806
17
300,999
215,893
Assets classified as held for sale
12
-
32,953
Total current assets
300,999
248,846
Non-current assets
Receivables
6
5,061
3,582
Contract assets
1(ii)
274
455
Inventories
7
424,194
519,481
Deferred development costs
8
724
-
Other financial assets
9
170
1,836
Property, plant and equipment
10
7,618
7,405
Right-of-use assets
2,145
1,793
Investments accounted for using the equity method
11
2,407
-
Total non-current assets
442,593
534,552
Total assets
743,592
783,398
LIABILITIES
Current liabilities
Trade and other payables
13
35,343
33,690
Other financial liabilities
9
54,461
68,040
Current tax liabilities
10,259
2,481
Contract liabilities
1(ii)
8,657
7,551
Lease liabilities
616
617
Provisions
15
20,893
23,013
Total current liabilities
130,229
135,392
Non-current liabilities
Borrowings
14
142,039
202,608
Other financial liabilities
9
62
5,491
Lease liabilities
1,910
1,574
Provisions
15
6,883
1,748
Deferred tax liabilities
16
1,678
5,483
Total non-current liabilities
152,572
216,904
Total liabilities
282,801
352,296
Net assets
460,791
431,102
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
57
Annual Report 2024
CONSOLIDATED BALANCE SHEET (CONTINUED)
As at 30 June 2024
Note
2024
$’000
2023
$’000
EQUITY
Contributed equity
17
138,625
137,795
Reserves
18
2,354
1,742
Retained profits
19
319,812
291,565
Total equity
460,791
431,102
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
58
Cedar Woods Properties Limited
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2024
Note
Contributed
equity
$’000
Reserves
$’000
Retained
profits
$’000
Total
$’000
Balance at 1 July 2022
137,333
1,815
282,075
421,223
Profit for the year
-
-
31,635
31,635
Total comprehensive income for the year
-
-
31,635
31,635
Transactions with owners in their capacity
as owners:
Transfers from reserves to retained profits
19
-
(463)
463
-
Dividends provided for or paid
25
-
-
(22,608)
(22,608)
Employee share scheme
17, 18
462
390
-
852
462
(73)
(22,145)
(21,756)
Balance at 30 June 2023
137,795
1,742
291,565
431,102
Balance at 1 July 2023
137,795
1,742
291,565
431,102
Profit for the year
-
-
40,494
40,494
Total comprehensive income for the year
-
-
40,494
40,494
Transactions with owners in their capacity
as owners:
Transfers from reserves to retained profits
19
-
(116)
116
-
Dividends provided for or paid
25
-
-
(12,363)
(12,363)
Employee share scheme
17, 18
830
728
-
1,558
830
612
(12,247)
(10,805)
Balance at 30 June 2024
138,625
2,354
319,812
460,791
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
59
Annual Report 2024
CONSOLIDATED CASH FLOW STATEMENT
For the Year Ended 30 June 2024
Note
2024
$’000
2023
$’000
Cash flows from operating activities
Receipts from customers (incl. GST)
423,664
430,197
Other income
18
198
Payments to suppliers and employees (incl. GST)
(86,332)
(86,642)
Payments for land
(39,353)
(81,898)
Payments for development
(237,197)
(211,631)
Interest received
842
396
Borrowing costs paid
(18,047)
(13,553)
Income taxes paid
(12,384)
(13,365)
Net cash inflow from operating activities
21(i)
31,211
23,702
Cash flows from investing activities
Proceeds from sale of investment properties
52,856
-
Proceeds from sale of property, plant and equipment
18
-
Loans to associates and joint ventures
(1,550)
-
Payment for interest in associates and joint ventures
(1)
-
Payments for investment properties
-
(547)
Payments for property, plant and equipment
(1,724)
(1,774)
Net cash inflow (outflow) from operating activities
49,599
(2,321)
Cash flows from financing activities
Proceeds from borrowings
-
818
Repayment of borrowings
(60,767)
-
Principal elements of lease payments
(787)
(896)
Proceeds from project partners
8,250
5,150
Dividends paid
25
(12,363)
(22,608)
Net cash (outflow) from financing activities
(65,667)
(17,536)
Net increase in cash and cash equivalents
15,143
3,845
Cash and cash equivalents at the beginning of the year
6,802
2,957
Cash and cash equivalents at the end of the year
5
21,945
6,802
The above consolidated cash flow statement should be read in conjunction with the accompanying notes.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
60
Cedar Woods Properties Limited
NOTES TO THE
FINANCIAL STATEMENTS
These are the consolidated financial statements of Cedar Woods Properties Limited and its subsidiaries.
A list of major subsidiaries is included in note 26. The notes are set out in the following main sections:
Key Numbers
61
Profit or Loss Information
61
1. Revenue
61
2. Other income and expense items
62
3. Income tax
63
4. Earnings per share
63
Balance Sheet Information
64
5. Cash and cash equivalents
64
6. Trade and other receivables
64
7. Inventories
65
8. Deferred development costs
65
9. Other financial assets and other financial
liabilities
66
10. Property, plant and equipment
67
11. Investments accounted for using the equity
method
67
12. Assets classified as available for sale
67
13. Trade and other payables
68
14. Borrowings
68
15. Provisions
69
16. Deferred tax
70
17. Equity
72
18. Reserves
73
19. Retained profits
73
20. Categories of financial assets and financial
liabilities
74
Cash Flow Information
75
21. Cash flow information
75
Financial Risks
77
22. Significant estimates and judgements
77
23. Financial Risk Management
78
24. Capital management objectives and
gearing
82
25. Dividends
83
Group Structure
84
26. Subsidiaries
84
27. Interests in joint arrangements
85
28. Parent entity financial information
86
29. Deed of cross guarantee
87
Unrecognised Items
88
30. Contingent Liabilities
88
31. Commitments
88
32. Events occurring after the reporting period 88
Further Information
89
33. Related Party Transactions
89
34. Remuneration of Auditors
90
35. Employee Share Scheme
90
36. Summary of Accounting Policies
90
37. Segment Information
96
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
61
Annual Report 2024
Key Numbers
PROFIT OR LOSS INFORMATION
1.
Revenue
(i)
Disaggregation of revenue from contracts with customers
2024
$’000
2023
$’000
Timing of revenue recognition
At a point in time
Sale of land and buildings
379,237
382,559
Development services
2,053
2,367
Over time
Rent from properties
5,058
6,377
(ii) Assets and liabilities related to contracts with customers
2024
$’000
2023
$’000
Contract assets
Commissions relating to property sales
1,142
1,338
Development services fees
607
2,440
Total contract assets
1,749
3,778
Costs to fulfil a contract that were included in the contract asset
balance at the beginning of the period
Commissions relating to property sales
853
2,349
Sales commissions incurred to fulfill a property sale contract are classified as contract assets in the balance sheet
when incurred and are expensed when associated revenue is recognised.
2024
$’000
2023
$’000
Current contract liabilities
Customer rebates
8,602
7,455
Other
55
96
Total contract liabilities
8,657
7,551
Revenue recognised that was included in the contract liability
balance at the beginning of the period
Customer rebates
2,919
3,038
(iii) Transaction price allocated to remaining performance obligations
The transaction price allocated to partially unsatisfied performance obligations at 30 June 2024 is set out below:
2024
$’000
2023
$’000
Within one year
408,689
299,787
More than one year
165,769
163,849
Total
574,458
463,636
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
62
Cedar Woods Properties Limited
2.
Other income and expense items
Profit before income tax expense includes the following specific other income and expenses:
Note
2024
$’000
2023
$’000
(a) Other income
Net gain on disposal of investment property
19,903
-
Interest Income
1,134
601
Other items
268
558
21,305
1,159
(b) Finance costs
Interest and finance charges
17,732
14,454
Interest – leases
142
99
Interest – other financial liabilities
3,611
3,047
Unrealised financial instrument losses
881
606
Less: amount capitalised
(i)
(11,279)
(13,805)
Finance costs expensed
11,087
4,401
(i)
Capitalised borrowing costs
Where qualifying assets have been financed by the entity’s corporate facility, the capitalisation rate used to
determine the amount of borrowing costs to be capitalised is the weighted average interest rate applicable to the
entity’s corporate facility during the year, in this case 5.39% (2023 – 4.39%) per annum. Where qualifying assets are
financed by specific facilities, the applicable borrowing costs of those facilities are capitalised.
Note
2024
$’000
2023
$’000
Other specific expenses
Net loss on disposal of property, plant and equipment
127
618
Loss allowance of trade receivables
6
266
(210)
Employee benefits expense
16,208
15,064
Superannuation
1,599
1,386
Depreciation of property, plant and equipment
10
1,382
1,294
Depreciation of investment properties
-
571
Depreciation of right-of-use assets
(ii)
771
786
Other
Write-down of assets
235
933
(ii) Depreciation
Depreciation of right-of-use assets and low value assets are presented within Administration expenses and Project
operating costs on the Consolidated Statement of Profit or Loss and Other Comprehensive Income.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
63
Annual Report 2024
3.
Income tax
This note provides an analysis of the group’s income tax expense and how the tax expense is affected by
non-assessable and non-deductible items.
(i)
Income tax expense
Note
2024
$’000
2023
$’000
Current tax
20,195
10,669
Deferred tax
(3,560)
3,226
Adjustments for current tax of prior periods
(33)
(144)
Income tax expense attributable to profit
16,602
13,751
Deferred income tax expense included in income tax expense comprises:
Increase in deferred tax assets
16
(2,033)
(1,892)
(Decrease) increase in deferred tax liabilities
16
(1,527)
5,118
(3,560)
3,226
(ii) Numerical reconciliation of income tax expense to prima facie tax payable
2024
$’000
2023
$’000
Profit before income tax
57,096
45,386
Tax at the Australian tax rate of 30% (2023 – 30%)
17,129
13,616
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
- Employee share scheme
-
256
- Share of net loss of equity accounted investments
7
-
- Sundry items
21
23
Subtotal
17,157
13,895
- Previously unrecognised deferred tax assets now recouped on share based expenses
(522)
-
- Adjustments for current tax of prior periods
(33)
(144)
Income tax expense
16,602
13,751
4.
Earnings per share
2024
2023
Basic earnings per share (cents)
49.2
38.5
Diluted earnings per share (cents)
48.5
38.0
Net profit attributable to the ordinary owners of the company ($’000)
40,494
31,635
Weighted average number of ordinary shares used as the denominator in the calculation of
earnings per share
82,382,220
82,197,343
Weighted average number of ordinary shares used as the denominator in the calculation of
diluted earnings per share
83,501,830
83,189,028
The calculation of diluted earnings per share includes performance rights that may vest under the company’s LTI
and DSTI plans.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
64
Cedar Woods Properties Limited
BALANCE SHEET INFORMATION
5.
Cash and cash equivalents
2024
$’000
2023
$’000
Cash at bank and in hand
21,945
6,802
21,945
6,802
The above figure reconciles to the amount of cash shown in the statement of cash flows at the end of the year.
Cash at bank includes cash held in day to day bank transaction accounts and deposit accounts earning interest
from 4.3% to 4.55% (2023 – 1.0% to 4.3%) per annum depending on the balances.
The Group’s exposure to interest rate risk is discussed in note 23 Financial Risk Management. The maximum
exposure to credit risk at the reporting date is the carrying amount of each class of cash and cash equivalents
mentioned above.
6.
Trade and other receivables
Notes
2024
$’000
2023
$’000
Current
Trade receivables
(ii)
3,854
4,488
Less: Loss allowance
(i), (ii)
(292)
(26)
Other receivables
(ii)
351
344
Prepayments
1,362
2,035
5,275
6,841
Non-Current
Other receivables
(iii)
5,060
3,581
Loans – employee share scheme (discontinued)
35
1
1
5,061
3,582
(i)
Credit risk
To measure the lifetime expected credit loss for rental debtors, a provision is raised against each debtor based
upon the payment profile over the last 12 months, adjusted for current and forward-looking information supporting
the expected settlement of the receivable.
(ii) Classification as trade and other receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of
business. Loans and other receivables are non-derivative financial assets with fixed or determinable payments and
are not quoted in an active market. If collection of the amounts is expected in one year or less, they are classified as
current assets. If not, they are presented as non-current assets. Trade receivables are generally due for settlement
within 30 days. The group’s accounting policies for trade and other receivables are outlined in note 36(h).
(iii) Other non-current receivables
Other non-current receivables comprise refundable deposits paid on conditional contracts.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
65
Annual Report 2024
7.
Inventories
Notes
2024
$’000
2023
$’000
Total Inventory
Current inventory
(i), (ii)
265,902
195,018
Non-current inventory
(i), (ii)
424,194
519,481
Aggregate carrying amount
690,096
714,499
2024
$’000
2023
$’000
Current
Property held for resale
- at cost
78,189
58,757
- capitalised development costs
187,601
133,101
- at net realisable value
112
3,160
265,902
195,018
Non-Current
Property held for resale
- at cost
323,328
394,459
- capitalised development costs
100,866
122,293
- at net realisable value
-
2,729
424,194
519,481
(i)
Current and non-current assets pledged as security
Refer to note 14 for information on current assets pledged as security by the parent entity or its controlled entities.
(ii) Accounting for inventory
Refer to note 36(i) for the group’s accounting policies for the recognition and classification of inventory.
8.
Deferred development costs
2024
$’000
2023
$’000
Current
Deferred development costs
5,596
3,892
5,596
3,892
Non-current
Deferred development costs
724
-
724
-
Development costs incurred by the group for the development of land not held as inventory by the group are
recorded as deferred development costs in the consolidated balance sheet.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
66
Cedar Woods Properties Limited
9.
Other financial assets and other financial liabilities
Other financial assets
Notes
2024
$’000
2023
$’000
Current
Interest rate hedge contracts
(i)
806
17
806
17
Non-current
Interest rate hedge contracts
(i)
170
1,836
170
1,836
Other financial liabilities
Notes
2024
$’000
2023
$’000
Current
Due to vendors of properties under contracts of sale
37,815
68,040
Due to associates and joint ventures
880
-
Due to project partners
(ii)
15,766
-
54,461
68,040
Non-current
Due to project partners
(ii)
-
5,435
Interest rate hedge contracts
4
-
Other payables
58
56
62
5,491
(i)
Instruments used by the group
The group is party to derivative financial instruments in the normal course of business in order to manage exposure
to fluctuations in interest rates in accordance with the group’s financial risk management policies.
Derivatives are only used for economic hedging purposes and not as speculative investments. The group’s
accounting policy for its cash flow hedges is set out in note 36(q). They are presented as current assets or liabilities
to the extent they are expected to be settled within 12 months after the end of the reporting period.
Interest rate hedge contracts
The group’s policy is to protect part of the loans from exposure to fluctuations in interest rates. Accordingly, the
consolidated entity has entered into interest rate hedge contracts under which part of the consolidated entity’s
projected borrowings are protected for the period from July 2024 to January 2027. The group uses a combination
of interest rate caps and swaps to hedge interest rates.
The interest rate caps effectively cap interest rates applicable to bank bills issued with duration of 3 months (BBSY
Bid) at certain levels between 2.00% - 3.00% (2023 – 1.00% to 3.00%). The swaps effectively fix interest rates
applicable to bank bills issued with duration of 3 months (BBSY Bid) at between 3.95% and 4.38% (2023 – no
swaps in place).
Interest rate hedge contracts in place at year end cover approximately 63% (2023 – 47%) of the variable loans
outstanding at balance date, with terms expiring in 2025, 2026 and 2027. The group is not applying hedge
accounting to these derivatives. The gain or loss from re-measuring the derivative financial instruments at fair value
is recognised in profit or loss.
(ii) Amounts due to project partners
Amounts due to project partners are variable based on project returns. To measure amounts due to project partners
project cashflows are considered adopting assumptions on sale prices, construction costs and delivery period.
These are discounted at the effective interest rate implied by the contract terms and initial cash flow estimates.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
67
Annual Report 2024
10. Property, plant and equipment
2024
$’000
2023
$’000
Plant and Equipment at Cost
At start of the year
13,123
13,417
Additions
1,990
2,218
Disposals
(1,365)
(2,512)
At end of the year
13,748
13,123
Accumulated depreciation on Plant and Equipment
At start of the year
5,718
5,925
Disposals
(970)
(1,501)
Charge for the year
1,382
1,294
At end of the year
6,130
5,718
Net book value
7,618
7,405
(i)
Non-current assets pledged as security
Refer to note 14 for information on non-current assets pledged as security by the parent entity or its controlled entities.
11.
Investments accounted for using equity method
Note
2024
$’000
2023
$’000
Unlisted securities
Shares in joint ventures
(i)
2,407
-
2,407
-
(i)
Tarkine Property Pty Ltd
The group owns a 51% interest in Tarkine Property Pty Ltd, a property development company incorporated in
Australia. Refer to note 27 for further details.
12. Assets classified as held for sale
Note
2024
$’000
2023
$’000
Investment properties
(i), (ii)
-
32,238
Capitalised lease incentives
(i), (ii)
-
715
Closing balance at the end of the year
-
32,953
(i)
Disposal of assets classified as held for sale
The Williams Landing Shopping Centre investment property was sold and settled in March 2024.
(ii) Non-current assets pledged as security
Refer to note 14 for information on non-current assets pledged as security by the parent entity or its controlled entities.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
68
Cedar Woods Properties Limited
13. Trade and other payables
2024
$’000
2023
$’000
Trade payables
9,728
6,700
Accruals
25,276
26,729
Other payables
339
261
35,343
33,690
Trade payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade
and other payables are assumed to be the same as their fair values due to their short-term nature.
14. Borrowings
2024
$’000
2023
$’000
Non-Current
Bank loans – secured (Corporate facilities)
142,800
174,000
Bank loan – secured (Williams Landing Shopping Centre facility)
-
29,193
Facility fees capitalised (amortised over the period of facility)
(1,100)
(834)
Amortisation of facility fees
339
249
142,039
202,608
The fair value of non-current borrowings equals their carrying amount.
(i)
Security for borrowings
All of the consolidated entity’s assets are pledged as security for the group’s finance facilities.
Bank loans totaling $142,800,000 provided by three major banks (2023 - $174,000,000) are secured by first
registered mortgages over some of the consolidated entity’s land holdings, and first registered charges, guarantees
and indemnities provided by Cedar Woods and applicable subsidiary entities. Cedar Woods has provided first
registered charges over its assets and undertakings in relation to the corporate loan facility.
(ii) Financing arrangements
The group had access to the following lines of credit at balance date:
2024
$’000
2023
$’000
Corporate facilities
Total facilities (loan and guarantees)
330,000
330,000
Used at balance date (loan and guarantees)
(195,124)
(223,436)
Unused at balance date
134,876
106,564
Williams Landing Shopping Centre facility
Total facility
-
30,000
Used at balance date
-
(29,193)
Unused at balance date
-
807
Total Facilities
330,000
360,000
Used at balance date
(195,124)
(252,629)
Unused at balance date
134,876
107,371
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
69
Annual Report 2024
The consolidated entity has total corporate finance facilities of $330,000,000 (2023 - $330,000,000), provided
by three major banks. The consolidated entity extended its corporate facility in November 2023 following its
annual review. The facility tenure remains comprised of three and five year debt as follows:
$264,000,000 (approximately 80%) of the facility expiring January 2027; and
$66,000,000 (approximately 20%) of the facility expiring January 2029.
The conditions of the facilities impose certain covenants including interest cover, loan-to-valuation ratio and
leverage ratio (net debt to EBITDA). The interest on the corporate loan facilities is variable and at 30 June 2024 was
an average rate of 6.01% (2023 – 5.76%) per annum. The corporate facilities include bank guarantee facilities of
$60,000,000 (2023 - $60,000,000) subject to similar terms and conditions, which were drawn to a total amount of
$52,324,000 at 30 June 2024 (2023 - $49,436,000).
The $30,000,000 (2023 - $30,000,000) Williams Landing Shopping Centre facility was paid down and extinguished
in March 2024 upon sale of the asset.
Details of the group’s exposure to risk arising from current and non-current borrowings are set out in note 23
Financial risk management.
15. Provisions
2024
$’000
2023
$’000
Current
Employee entitlements
1,586
1,561
Development cost provisions
19,307
21,452
20,893
23,013
Non-Current
Employee entitlements
277
214
Development cost provisions
6,606
1,534
6,883
1,748
(i)
Movement in provision for development costs
2024
$’000
2023
$’000
Carrying amount at start of the year
22,986
16,554
Additional provisions
17,267
13,431
Payments made / amounts utilised
(14,340)
(6,999)
Carrying amount at the end of the year
25,913
22,986
(ii) Nature of provision
This provision relates to development costs yet to be incurred for lots/units that have settled and revenue
recognised at balance date and provisions for development obligations under agreements with various state
and local authorities and land purchase contracts. The provision is determined using detailed cost estimates for
the underlying expenditure, typically supported by engineering estimates and consistent with the assumptions
underpinning bank guarantees (where relevant) as described in note 30. The provision is presented as current
when work is expected to commence within the next 12 months.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
70
Cedar Woods Properties Limited
16. Deferred tax
(i)
Assets
Notes
2024
$’000
2023
$’000
The balance comprises temporary differences attributable to:
Inventory
1,344
948
Capital losses
-
1,889
Contract liabilities for customer rebates
2,581
2,236
Provision for development costs
7,774
6,896
Employee benefits provisions and accruals
1,145
1,039
Employee share plans
839
1
Other financial assets
729
-
Other
1,390
515
Total deferred tax assets
15,802
13,524
Set-off of deferred tax assets pursuant to set-off provisions
(15,802)
(13,524)
Net deferred tax assets
-
-
Deferred tax assets at the start of the year
13,524
11,631
(Decrease) increase in deferred tax assets credited to income tax expense
3
2,033
1,892
Increase in deferred tax assets credited to equity
245
1
Deferred tax assets at the end of the year
15,802
13,524
Deferred tax assets expected to be recovered within 12 months
8,994
8,556
Deferred tax assets expected to be recovered after more than 12 months
6,808
4,968
15,802
13,524
Movements
Inventory
$’000
Provision
for
customer
rebates
$’000
Capital
losses
$’000
Provision
for
employee
benefits
$’000
Provision
for
development
costs
$’000
Employee
Share
Plans
$’000
Other
Financial
Assets
$’000
Other
$’000
Total
$’000
At 1 July 2022
1,307
2,205
1,745
862
4,966
-
-
546
11,631
(Charged) credited
- to profit or loss
(359)
31
144
177
1,930
-
-
(31)
1,892
- directly to equity
-
-
-
-
-
1
-
-
1
At 30 June 2023
948
2,236
1,889
1,039
6,896
1
-
515
13,524
(Charged) credited
- to profit or loss
396
345
(1,889)
106
878
593
729
875
2,033
- directly to equity
-
-
-
-
-
245
-
-
245
At 30 June 2024
1,344
2,581
-
1,145
7,774
839
729
1,390 15,802
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
71
Annual Report 2024
(ii) Liabilities
Notes
2024
$’000
2023
$’000
The balance comprises temporary differences attributable to:
Inventory
13,191
13,672
Deferred development costs
1,679
1,167
Property, plant and equipment
836
1,125
Contract assets
363
999
Derivative financial instruments
292
556
Investments accounted for using the equity method
729
-
Other
390
1,488
Total deferred tax liabilities
17,480
19,007
Set off of deferred tax assets pursuant to set-off provisions
(15,802)
(13,524)
Net deferred tax liabilities
1,678
5,483
Deferred tax liabilities at the start of the year
19,007
13,889
Increase in deferred tax liabilities (credited) debited to income tax expense
3
(1,527)
5,118
Deferred tax liabilities at the end of the year
17,480
19,007
Deferred tax liabilities expected to be settled within 12 months
11,634
8,059
Deferred tax liabilities expected to be settled after more than 12 months
5,846
10,948
17,480
19,007
Movements
Inventory
$’000
Deferred
development
costs
$’000
Property
plant &
equipment
$’000
Contract
assets
$’000
Derivative
financial
instruments
$’000
Investments
accounted
for using
the equity
method
$’000
Other
$’000
Total
$’000
At 1 July 2022
9,211
1,192
621
977
738
-
1,150
13,889
Charged (credited)
- to profit or loss
4,461
(25)
504
22
(182)
-
338
5,118
At 30 June 2023
13,672
1,167
1,125
999
556
-
1,488
19,007
Charged (credited)
- to profit or loss
(481)
512
(289)
(636)
(264)
729
(1,098)
(1,527)
At 30 June 2024
13,191
1,679
836
363
292
729
390
17,480
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
72
Cedar Woods Properties Limited
17.
Equity
2024
Shares
2023
Shares
2024
$’000
2023
$’000
Movement in ordinary share capital
Start of the year
82,209,937
82,127,852
137,795
137,333
Shares issued under employee share scheme:
Ordinary shares issued on 27 September 2023
26,409
-
105
-
Ordinary shares issued on 30 August 2023
182,072
-
730
-
Ordinary shares issued on 26 August 2022
-
82,085
-
465
Transaction costs arising on share issues
-
-
(5)
(3)
208,481
82,085
830
462
End of the year
82,418,418
82,209,937
138,625
137,795
Holders of ordinary shares are entitled to participate in dividends and the proceeds on any winding up of the company
in proportion to the number of shares held. On a show of hands every holder of ordinary shares present at a shareholder
meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
Holders of performance rights or zero-price options under executive or employee share plans are not entitled to
participate in dividends or any winding up of the company, nor are they entitled to vote at shareholder meetings.
(i)
Dividend reinvestment plan
The company has established a dividend reinvestment plan under which holders of ordinary shares may elect to
have all or part of their dividend satisfied by the issue of new ordinary shares rather than being paid in cash. Shares
may be issued under the plan at a discount to the market price, at the discretion of the Directors.
(ii) Bonus share plan
The company has established a bonus share plan under which holders of ordinary shares may elect not to receive
dividends but to receive instead additional fully paid shares issued as ‘Bonus Shares’ to the equivalent value of
the dividend foregone. The entitlement for shares issued under the plan is calculated based on the same pricing
mechanism as the dividend reinvestment plan, including any discount.
For the 2024 financial year, the dividend reinvestment plan and bonus share plan were not in operation for the 2023
final dividend and 2024 interim dividend.
(iii) Employee share scheme
Details of the company’s employee share scheme can be found in note 35 and in the remuneration report on pages
39 to 43 of this financial report.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
73
Annual Report 2024
18. Reserves
The following table shows the composition and movement in reserves during the year. A description of the nature
and purpose of reserves is provided below the table.
Notes
2024
$’000
2023
$’000
Composition
Employee share plan reserve
(i)
2,354
1,742
Balance at the end of the year
2,354
1,742
Movements
(i) Employee share plan reserve
Balance at the beginning of the year
1,742
1,815
Share-based payments expense
1,320
855
Deferred tax
243
-
Transfer to equity
17
(835)
(465)
Transfer to retained profits
19
(116)
(463)
Balance at the end of the year
2,354
1,742
The share-based payments reserve is used to recognise the grant date fair value of the rights issued to employees
adjusted for those rights not expected to vest. Refer to note 35.
19. Retained profits
Notes
2024
$’000
2023
$’000
Retained profits at the start of the year
291,565
282,075
Net profit attributable to members of Cedar Woods
40,494
31,635
Transfers from reserves
18
116
463
Dividends provided for or paid
25
(12,363)
(22,608)
Retained profits at the end of the year
319,812
291,565
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
74
Cedar Woods Properties Limited
20. Categories of financial assets and financial liabilities
Notes 5, 6, 9, 13 and 14 provide information about the group’s financial instruments, including:
(i) Specific information about each type of financial instrument
(ii) Accounting policies
(iii) Information about determining the fair value of the instruments, including judgements and estimation
uncertainty involved.
The group holds the following financial instruments:
Financial Assets
Notes
Derivatives
used for
hedging
$’000
Financial
assets at
amortised cost
$’000
Total
$’000
2024
Cash and cash equivalents
5
-
21,945
21,945
Trade and other receivables*
6
-
8,974
8,974
Derivative financial instruments
9
976
-
976
Total
976
30,919
31,895
2023
Cash and cash equivalents
5
-
6,802
6,802
Trade and other receivables*
6
-
8,388
8,388
Derivative financial instruments
9
1,853
-
1,853
Total
1,853
15,190
17,043
* Excluding prepayments and contract assets.
Financial Liabilities
Notes
Derivatives
used for
hedging
$’000
Financial
liabilities at
amortised cost
$’000
Total
$’000
2024
Trade and other payables
13
-
35,343
35,343
Borrowings
14
-
142,039
142,039
Other financial liabilities
9
4
54,519
54,523
Lease liabilities
-
2,526
2,526
Total
4
234,427
234,431
2023
Trade and other payables
13
-
33,690
33,690
Borrowings
14
-
202,608
202,608
Other financial liabilities
9
-
73,531
73,531
Lease liabilities
-
2,191
2,191
Total
-
312,020
312,020
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
75
Annual Report 2024
CASH FLOW INFORMATION
21. Cash flow information
(i)
Reconciliation of profit after income tax to net cash inflows from operating activities
2024
$’000
2023
$’000
Profit after income tax
40,494
31,635
Depreciation and amortisation
2,153
2,651
Amortisation of lease incentives and legal fees
-
256
Write down of inventory
235
933
Write down or loss on sale of non-current assets
109
901
Gain on disposal of investment property
(19,903)
-
Fair value loss on financial assets and liabilities
881
606
Non-cash share-based payments expense
1,320
855
Share of loss of associates and joint ventures
25
-
Changes in operating assets and liabilities
Increase in provisions for employee benefits
88
201
Increase in provisions
2,927
6,432
Increase in contract liabilities
1,106
115
Decrease in inventories
24,168
8,668
(Increase) decrease in other deferred development costs
(2,428)
80
(Increase) in deferred tax assets
(2,033)
(5,032)
Increase (decrease) in current income tax payable
7,778
(2,839)
(Decrease) increase in deferred tax liability
(1,527)
8,256
Decrease in capitalised borrowing costs
197
145
Decrease in trade receivables
87
6,652
Decrease in contract assets
2,029
324
Increase in trade creditors
1,653
6,792
(Decrease) in other financial liabilities
(28,148)
(43,929)
Net cash inflows from operating activities
31,211
23,702
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
76
Cedar Woods Properties Limited
(ii) Net debt reconciliation
This section sets out an analysis of net debt and the movements in debt for each of the periods presented.
2024
$’000
2023
$’000
Cash and cash equivalents
21,945
6,802
Borrowings – repayable after one year
(142,039)
(202,608)
Net debt
(120,094)
(195,806)
Cash and cash equivalents
21,945
6,802
Gross debt – variable interest rates
(142,039)
(202,608)
Net debt
(120,094)
(195,806)
(iii) Changes in liabilities arising from financing activities
Liabilities from financing activities
Due to
project
partners
$’000
Lease
liabilities
$’000
Borrowings
due within
1 year
$’000
Borrowings
due after
1 year
$’000
Derivatives
used to
hedge
borrowings
$’000
Total
$’000
Balance as at 30 June 2022
-
1,168
29,159
172,486
(2,459)
200,354
Cash flows
5,150
(896)
-
818
-
5,072
Other non-cash movements
284
1,919
(29,159)
29,304
606
2,954
Balance as at 30 June 2023
5,434
2,191
-
202,608
(1,853)
208,380
Cash flows
8,250
(787)
-
(60,767)
-
(53,304)
Other non-cash movements
2,082
1,122
-
198
881
4,282
Balance as at 30 June 2024
15,766
2,526
-
142,039
(972)
159,358
Balances due to project partners are presented within Other Financial Liabilities in the Consolidated Balance Sheet.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
77
Annual Report 2024
Financial Risks
SIGNIFICANT ESTIMATES AND JUDGEMENTS
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the group’s accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity and of items
which are more likely to be materially adjusted due to estimates and judgements turning out to be inaccurate.
Detailed information about each of these estimates and judgements is presented below.
22. Significant estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the entity. The judgements that have
a significant risk of causing a material adjustment to the carrying amounts or presentation of assets and liabilities
within the next financial year are discussed below.
a) Inventory - classification
Judgement is exercised with respect to estimating the classification of inventory between current and non-current
assets. Inventory is classified as current only when sales are expected to result in realisation of cash within the next
twelve months, based on executed sales contracts at year end and management’s settlement forecasts.
b) Inventory - valuation
The recoverable amount of inventory is estimated based on an assessment of net realisable value including future
development costs. This requires judgement as to the future cash flows likely to be generated from the properties
included in inventory, including in some cases, judgement regarding the likelihood and timing of obtaining planning,
environmental and development approvals. Other items of estimation within project cash flow models utilised for
assessing the recoverable amount of inventory can include future sales rate, sales prices, further development
costs required to complete the inventory for settlement and in some cases escalation of revenues and costs and
total project yield.
Management makes informed estimates drawing on historical and recent experience, expert advice from
consultants, third party valuations and economic and property market forecasts. In the current period, estimates
have considered the impact of interest rates, inflation and housing supply, in particular on customer demand and
its effect on future sales rates and prices as well as cost of materials.
If approvals are not received when anticipated or forecasts of project yield, sale prices or future costs are
significantly inaccurate, the recoverable amount of inventory may be significantly impaired. Refer also to note 36 (i).
There were no critical judgements other than those involving estimates referred to above, that management made
in applying the group’s accounting policies.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
78
Cedar Woods Properties Limited
FINANCIAL RISK MANAGEMENT
This note explains the group’s exposure to financial risks and how these risks could affect the group’s
future financial performance. Current year profit and loss information has been included where relevant to
add further context.
23. Financial Risk Management
The group’s activities expose it to a variety of financial risks:
Risk
Exposure arising from
Measurement
Management
Market risk –
interest rate risk
Long term borrowings at variable
rates
Cash flow forecasting
Sensitivity analysis
Interest rate swaps
Credit risk
Cash and cash equivalents,
trade and other receivables and
derivative financial instruments
Ageing analysis
Credit ratings
Management of deposits
Ongoing checks by
management
Contractual arrangements
Liquidity risk
Borrowings and other liabilities
Forecast and actual cash flows
Flexibility in funding arrangements
Financial risk management is considered part of the overall risk management program overseen by the Audit and
Risk Management Committee. Further detail on the types of risks to which the group is exposed and the way the
group manages these risks is set out below.
The group holds the following financial instruments:
2024
$’000
2023
$’000
Financial assets
Cash and cash equivalents
21,945
6,802
Trade and other receivables 1
8,974
8,388
Derivative financial instruments 2
976
1,853
31,895
17,043
Financial liabilities
Trade and other payables
35,343
33,690
Other financial liabilities 2
54,519
73,531
Borrowings
142,039
202,608
Lease liabilities
2,526
2,191
Derivative financial instruments 2
4
-
234,431
312,020
1 Excluding prepayments and contract assets.
2 Derivative financial instruments are disclosed as other financial assets and liabilities in the consolidated balance sheet.
a) Market risk
i.
Price risk
The consolidated entity has no foreign exchange exposure, price risk on equity securities or commodity purchase
contracts.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
79
Annual Report 2024
ii.
Cash flow and fair value interest rate risk
As the consolidated entity does not have a significant portfolio of interest-bearing assets, the income and operating cash
inflows are not materially exposed to changes in market interest rates.
Interest rate risk arises from exposures to long term borrowings, where those borrowings are issued at variable interest
rates. Borrowings issued at variable interest rates expose the group to cash flow interest rate risk.
The consolidated entity reviews the potential impact of variable interest rate changes and considers various interest
rate management products in the context of prevailing monetary policy of the Reserve Bank and economic conditions.
Accordingly, the consolidated entity has entered into interest rate swap and cap contracts under which a part of the
consolidated entity’s projected borrowings are protected for the period from July 2024 to January 2027.
There is an indirect exposure to interest rate changes caused by the impact of these changes upon the property market.
The group addresses this risk by virtue of managing its pricing, product offer and development programs.
iii.
Instruments used by the group
Interest rate swaps effectively fix interest rates applicable to bank bills issued with a duration of 3 months (BBSY
Bid) at rates between at certain levels between 3.95% - 4.38% (2023 – no swaps in place). Interest rate caps
effectively cap interest rates applicable to bank bills issued with duration of 3 months (BBSY Bid) at certain levels
between 2.00% - 3.00% (2023 – 1.00% - 3.00%).
The consolidated entity’s policy is to limit a significant proportion of its borrowings to a maximum fixed rate using
interest rate swaps or caps to achieve this when necessary. Hedge contracts in place at year end cover 63% (2023
- 47%) of the variable loan outstanding at balance date of $142,800,000 (2023 - $203,193,000), with terms expiring
in 2025 and 2027.
The consolidated entity’s exposure to interest rate risk and the effective weighted average interest rate for
receivables and borrowings is set out below.
2024
2023
Interest
bearing
- variable
$’000
Non-interest
bearing
$’000
Total
$’000
Interest
bearing
- variable
$’000
Non-interest
bearing
$’000
Total
$’000
Receivables
Trade and other receivables*
-
8,974
8,974
-
8,387
8,387
Employee share loans
-
1
1
-
1
1
-
8,975
8,975
-
8,388
8,388
* Excluding prepayments.
2024
2023
Interest
bearing
- fixed
$’000
Interest
bearing
- variable
$’000
Total
$’000
Interest
bearing
- fixed
$’000
Interest
bearing
- variable
$’000
Total
$’000
Interest bearing liabilities
Bank loans
-
142,039
142,039
-
203,193
203,193
Other financial liabilities
56,107
-
56,107
75,666
-
75,666
56,107
142,039
198,146
75,666
203,193
278,859
The weighted average interest rate at year end is 6.01% (2023: 5.76%).
An analysis by maturity is provided in 23(c)i. below.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
80
Cedar Woods Properties Limited
iv.
Summarised interest rate sensitivity analysis
The potential impact of a change in bank interest rates of + / -1% is not significant to the group’s net profit and
equity. The potential impact on financial assets is not significant. Refer to comments above for further information
on the impact of changes in interest rates upon the group.
b) Credit risk
The consolidated entity has minimal exposure to credit risk from customers as title to lots or units in the
consolidated entity’s developments does not generally pass to customers until funds are received.
Policies and procedures are in place to mitigate credit risk including management of deposits and review of the
financial capacity of customers. Ongoing checks are performed by management to ensure that settlement terms
detailed in individual contracts are adhered to. For land under option the consolidated entity typically secures its
rights by way of encumbrances on the underlying land titles. The maximum exposure to credit risk at the reporting
date is the carrying amount of the financial assets as summarised above.
Derivative counterparties and cash deposits are placed with high credit quality financial institutions, such as major
trading banks.
Credit risk may arise in relation to bank guarantees given to certain parties. These guarantees are supported by
contractual arrangements that bind the counterparty, providing security against inappropriate presentation of the
bank guarantees.
c)
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and available credit facilities to manage the
consolidated entity’s financial commitments. The group manages liquidity risk by continuously monitoring forecast and
actual cash flows and matching the maturity profiles of financial assets and liabilities. During the year forecasts involved
scenario modelling including downside cases, conditional and potential acquisition scenarios and possible impacts
from external events. Due to the dynamic nature of the underlying businesses, the group aims at maintaining flexibility
in funding by keeping committed credit lines available.
At 30 June 2024 the group had undrawn committed facilities of $134,876,000 (2023 - $107,371,000) and cash of
$21,945,000 (2023 - $6,802,000) to cover short term funding requirements. Refer to note 14(ii) for details.
The Company maintained compliance with its facility covenants throughout FY2024.
i.
Maturities of financial liabilities
The tables below analyse the group’s financial liabilities into relevant maturity groupings based on the remaining
period at the reporting date to the contractual maturity date. The amounts disclosed in the table for non-interest
bearing liabilities are the contractual undiscounted cash flows. For variable interest rate liabilities, the cash flows
have been estimated using interest rates applicable at the reporting date.
Group – at 30 June 2024
Less than 1
year
$’000
Between 1
and 2 years
$’000
Between 2
and 5 years
$’000
Over 5
years
$’000
Total
contractual
cash flows
$’000
Carrying
amount
$’000
Non-derivatives
Non-interest bearing
36,224
43
15
-
36,282
36,282
Fixed rate
56,080
714
1,390
-
58,184
56,106
Variable rate
-
-
182,191
-
182,191
142,039
Derivatives
-
-
4
-
4
4
Total
92,304
757
183,600
-
276,661
234,431
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
81
Annual Report 2024
Group – at 30 June 2023
Less than 1
year
$’000
Between 1
and 2 years
$’000
Between 2
and 5 years
$’000
Over 5
years
$’000
Total
contractual
cash flows
$’000
Carrying
amount
$’000
Non-derivatives
Non-interest bearing
33,690
44
12
-
33,746
33,746
Fixed rate
71,926
7,108
1,173
133
80,340
75,666
Variable rate
-
30,822
220,020
-
250,842
202,608
Derivatives
-
-
-
-
-
-
Total
105,616
37,974
221,205
133
364,928
312,020
d) Fair value measurement
This note provides information on the judgements and estimates made by the group in determining the fair values of
the financial instruments.
i.
Fair value hierarchy
To provide an indication on the reliability of the inputs used in determining fair value, the group classifies its financial
instruments into three levels prescribed under the accounting standards. An explanation of each level follows
underneath the table.
The following table presents the group’s financial assets and liabilities measured and recognised at fair value at
30 June 2024 and 30 June 2023:
As at 30 June 2024
Notes
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Assets
Derivatives used for hedging
9
-
976
-
976
Total assets
-
976
-
976
Liabilities
Derivatives used for hedging
9
-
4
-
4
Total liabilities
-
4
-
4
As at 30 June 2023
Notes
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Assets
Derivatives used for hedging
9
-
1,853
-
1,853
Total assets
-
1,853
-
1,853
ii.
Valuation techniques used to determine fair values
Level 1 – The fair value of financial instruments traded in active markets (such as publicly traded derivatives) is
based on quoted (unadjusted) market prices at the end of the reporting period. The quoted market price used
for the financial assets held by the group is the current bid price. These instruments are included in level 1.
Level 2 – The fair value of financial instruments that are not traded in an active market (such as derivatives
provided by trading banks) is determined using market valuations provided by those banks at reporting date.
These instruments are included in level 2.
Level 3 – If one or more of the significant inputs is not based on observable market data, the instruments is included
in level 3.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
82
Cedar Woods Properties Limited
CAPITAL MANAGEMENT
24. Capital management objectives and gearing
The consolidated entity’s objectives when managing capital are to safeguard its ability to continue as a going
concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the group will consider a range of alternatives which may include:
raising or reducing borrowings
adjusting the dividend policy
issue of new securities
return of capital to shareholders
sale of assets.
Gearing is a measure used to monitor the levels of debt used in the business to fund operations. The primary gearing
ratio is calculated as interest bearing bank debt net of cash and cash equivalents divided by shareholders’ equity.
Gearing is managed by reference to a guideline which sets the desirable upper and lower limits for the gearing ratio.
The group’s gearing is then addressed by utilising capital management initiatives as discussed above.
The gearing ratios were as follows:
Notes
2024
$’000
2023
$’000
Total interest-bearing bank debt
14
142,039
202,608
Less: cash and cash equivalents
5
(21,945)
(6,802)
Net bank debt
120,094
195,806
Shareholders’ equity
460,791
431,102
Gearing ratio
26.1%
45.4%
The group’s guideline is to target gearing within the range of 20-75% The group operated comfortably within
the target range during the financial year.
For ease of comparison to ASX listed peer companies operating in the property sector, the group also measures
gearing on a net bank debt to total tangible assets less cash basis. On this basis gearing at year end is 16.7%
(2023: 25.3%).
a) Loan covenants
Under the terms of the major borrowing facilities, the group has complied with covenants throughout the
reporting period. Debt covenants are disclosed in note 14 and include requirements in relation to a maximum
loan-to-valuation ratio, a maximum leverage ratio (net debt to EBITDA) and minimum interest cover ratio.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
83
Annual Report 2024
25. Dividends
a) Ordinary shares
2024
$’000
2023
$’000
Fully franked based on tax paid at 30%
Final dividend for the year ended 30 June 2023 of 7.0 cents (2022 – 14.5 cents) per fully
paid share
- Paid in cash
5,769
11,921
Interim dividend for the year ended 30 June 2024 of 8.0 cents (2023 – 13.0 cents) per
fully paid share
- Paid in cash
6,593
10,687
Total
12,363
22,608
b) Dividends not recognised at the year end
In addition to the above dividends, since year end the directors have recommended the payment of a final
dividend of 17.0 cents per fully paid ordinary share (2023 – 7.0 cents), fully franked based on the tax paid at 30%.
The aggregate amount of the proposed dividend expected to be paid on 25 October 2024 out of retained profits
at 30 June 2025, but not recognised as a liability at year end is below:
2024
$’000
2023
$’000
Dividends not recognised at year end
14,011
5,755
c)
Franked Dividends
The franked portions of the final dividend proposed at 30 June 2024 will be franked from existing franking credits or
from franking credits arising from the payment of income tax in the next financial year.
2024
$’000
2023
$’000
Franking credits available for the subsequent financial year
on a tax-paid basis of 30% (2023 – 30%)
129,266
117,135
The above amounts represent the franking accounts at the end of the financial year, adjusted for:
(i) Franking credits that will arise from the payment of the current tax liability;
(ii) Franking debits that will arise from the payment of dividends recognised as a liability at the reporting date;
(iii) Franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
The impact on the franking account of the dividend recommended by the directors since year end, but not recognised
as a liability at year end, will be a reduction in the franking account of $6,005,000 (2023 - $2,466,000).
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
84
Cedar Woods Properties Limited
Group Structure
This section provides information which will help users understand how the group structure
affects the financial position and performance of the group as a whole.
26. Subsidiaries
The group’s operating subsidiaries at 30 June 2024 are set out below. Unless otherwise stated, they have share capital
consisting solely of ordinary shares or units that are held directly by the group and the proportion of ownership interest
held equals the voting rights held by the group. The subsidiaries are incorporated or established in Australia. The principal
activities of the Cedar Woods Properties Employee Share Trust is acquiring and transferring shares to employees and
executives in connection with the employee share plans of the group. The principal activities of all other subsidiary entities
are property development and/or investment in Australia.
The consolidated financial statements incorporate the assets, liabilities and results in accordance with the accounting
policy described in note 36(b).
Equity Holding
Name of Entity
2024
2023
Cedar Woods Properties
Limited Employee Share Trust
n/a
n/a
Cedar Woods Properties
Finance Pty Ltd
100%
100%
Cedar Woods Properties
Harrisdale Pty Ltd
100%
100%
Cedar Woods Properties
Investments Pty Ltd
100%
100%
Cedar Woods Properties
Management Pty Ltd
100%
100%
Cedar Woods Property Sales
Pty Ltd
100%
100%
Baret Developments Pty Ltd
100%
100%
Cranford Pty Ltd
100%
100%
Daleford Property Pty Ltd
100%
100%
Dunland Property Pty Ltd
100%
100%
Esplanade (Mandurah) Pty Ltd
100%
100%
Eucalypt Property Pty Ltd
100%
100%
Flametree Property Pty Ltd
100%
100%
Galaway Holdings Pty Ltd
100%
100%
Gaythorne Pty Ltd
100%
100%
Geographe Property Pty Ltd
100%
100%
Huntsman Property Pty Ltd
100%
100%
Equity Holding
Name of Entity
2024
2023
Jarrah Property Pty Ltd
100%
100%
Kayea Property Pty Ltd
100%
100%
Lonnegal Property Pty Ltd
100%
100%
Manta Property Pty Ltd
100%
-
Osprey Property Pty Ltd
100%
100%
Silhouette Property Pty Ltd
100%
100%
Terra Property Pty Ltd
100%
100%
Upside Property Pty Ltd
100%
100%
Vintage Property Pty Ltd
100%
100%
Williams Landing Home
Improvement Pty Ltd
100%
100%
Williams Landing Home
Improvement Trust
100%
100%
Williams Landing Shopping
Centre Pty Ltd
100%
100%
Williams Landing Shopping
Centre Trust
100%
100%
Williams Landing Town Centre
Pty Ltd
100%
100%
Wollemi Property Pty Ltd
100%
-
Woodbrooke Property Pty Ltd
100%
100%
Yonder Property Pty Ltd
100%
100%
Zamia Property Pty Ltd
100%
100%
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
85
Annual Report 2024
27. Interests in joint arrangements
Set our below are the joint arrangements of the group as at 30 June 2024. The principal place of business and
country of incorporation (or origin) was Australia for all entities.
Name of Entity
% of ownership interest
Carrying amount
2024
2023
Nature of
relationship
Measurement
method
2024
2023
Tarkine Property Pty Ltd
51%
-
Joint venture
Equity method
2,407
-
The group owns a 51% interest in Tarkine Property Pty Ltd, a property development company incorporated in
Australia. Tarkine Property has contracted to acquire land for development of apartments in Subiaco, WA. The
directors have determined that they do not control Tarkine Property Pty Ltd as no single owner can direct the
activities of the entity without the co-operation of the other shareholder.
a)
Commitments and contingent liabilities in respect of associates and joint ventures
2024
$’000
2023
$’000
Commitments – joint ventures
Commitment to provide funding for joint venture’s capital commitments, if called
12,305
-
Tarkine Property Pty Ltd has commitment for expenditure at 30 June 2024 of $Nil (2023: Nil). As at 30 June 2024,
there are no contingent liabilities (2023: Nil) in respect of joint ventures.
b) Summarised financial information for joint ventures
The following table provides summarised financial information for those joint ventures that are material to the group.
The information disclosed reflects the amounts presented in the financial statements of the relevant joint ventures
and not Cedar Woods’ share of those amounts.
Tarkine Property Pty Ltd - Summarised balance sheet
2024
$’000
2023
$’000
Current assets
Cash and cash equivalents
9,248
-
Other current assets
8,084
-
Total current assets
17,332
-
Non-current assets
16,394
-
Current liabilities
Financial liabilities
14,743
-
Other current liabilities
159
-
Total current liabilities
14,902
-
Non-current liabilities
Borrowings
14,105
Total non-current liabilities
14,105
-
Net assets
4,719
-
Group’s share in %
51%
-
Group’s share in $
2,407
-
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
86
Cedar Woods Properties Limited
c)
Movements in carrying amounts – Tarkine Property Pty Ltd
2024
$’000
2023
$’000
Opening net assets
-
-
Capital contributions
4,768
-
Loss for the period
(49)
-
Closing net assets
4,719
-
Loss before income tax
(70)
-
Income tax benefit
21
-
Loss after income tax
(49)
-
Group’s share of loss for the year
(25)
-
28. Parent Entity Financial Information
The financial information for the parent entity, Cedar Woods, has been prepared on the same basis as the
consolidated financial statements, except as detailed in notes (a) and (b) below.
The individual financial statements for the parent entity show the following aggregate amounts:
2024
$’000
2023
$’000
Balance sheet
Current assets
69,622
48,695
Total assets
545,052
492,969
Current liabilities
(109,820)
(42,236)
Total liabilities
(255,252)
(217,366)
Net assets
289,800
275,603
Shareholders’ equity
Issued capital
138,625
137,795
Reserves
2,354
1,742
Retained profits
148,821
136,066
289,800
275,603
Profit for the year
25,003
20,825
Total comprehensive income
25,003
20,825
a) Investments in subsidiaries
Investments in subsidiaries are accounted for at cost in the financial statements of Cedar Woods. Such investments
include both investments in shares issued by the subsidiary and other parent entity interests that in substance form
part of the parent entity’s investment in the subsidiary.
These include investments in the form of interest free loans which have no fixed repayment terms and which have
been provided to subsidiaries as an additional source of long term capital.
b) Tax consolidation legislation
Cedar Woods and its wholly owned Australian controlled entities have implemented the tax consolidation legislation.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
87
Annual Report 2024
The head entity, Cedar Woods, and the controlled entities in the tax-consolidated group account for their own current
and deferred tax amounts. These tax amounts are measured as if each entity in the tax-consolidated group continues
to be a standalone taxpayer in its own right. In addition to its own current and deferred tax amounts, Cedar Woods
also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and
unused tax credits assumed from controlled entities in the tax-consolidated group.
The entities in the tax consolidated group have also entered into a tax funding agreement under which the subsidiaries
fully compensate the parent for any current tax payable assumed and are compensated by the parent for any current
tax receivable and deferred tax assets relating to unused tax losses that are transferred to the parent under the
tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the
subsidiaries’ financial statements.
The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice from
the head entity when it is issued. The head entity may require payment of interim funding amounts to assist with its
obligations to pay tax instalments.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current
amounts receivable from or payable to other entities in the group.
29. Deed of Cross Guarantee
Cedar Woods Properties Limited and all subsidiaries listed at note 26 are parties to a deed of cross guarantee
under which each company guarantees the debts of the others. By entering the deed, the wholly-owned entities
have been relieved from the requirement to prepare a financial report and directors’ report under ASIC Corporations
(Wholly-owned Companies) Instrument 2016/785.
The companies referred to above as parties to the deed of cross guarantee represent a ‘closed group’ for the
purposes of the instrument, and as there are no other parties to the deed of cross guarantee that are controlled by
Cedar Woods Properties Limited, they also represent the ‘extended closed group’.
a) Consolidated statement of profit or loss and comprehensive income for the year ended
30 June
The consolidated statement of profit or loss and comprehensive income for the year ended 30 June 2024 of the
closed group is the same as the consolidated group.
b) Consolidated balance sheet as at 30 June
The consolidated balance sheet of the closed group at 30 June 2024 is the same as the consolidated group.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
88
Cedar Woods Properties Limited
Unrecognised Items
This section of the notes provides information about items that are not recognised in the
financial statements as they do not satisfy the recognition criteria.
30. Contingent liabilities
Bank guarantees
At 30 June 2024 bank guarantees totalling $52,324,000 (2023 - $49,436,000) had been provided to various
state and local authorities supporting development and maintenance commitments. Some of these development
commitments are recognised in inventory in the financial statements where the costs have been expended or
provided for in part.
31. Commitments
Capital commitments
At 30 June 2024 the consolidated entity had commitments under civil works, building construction and landscaping
construction for development of its projects in the ordinary course of business. The total amount contracted for work
yet to be completed for civil works was $33,728,000 (2023 - $36,763,000), for building construction was $115,965,000
(2023 - $133,510,000) and for landscaping construction was $3,235,000 (2023 - $2,803,000). This work will be
substantially completed in the next 12 months.
32. Events occurring after the reporting period
Refer to note 25(b) for details of the final dividend recommended by the directors, to be paid on 25 October 2024.
No other matters or circumstances have arisen since 30 June 2024 that have significantly affected or may
significantly affect:
the consolidated entity’s operations in future financial years; or
the results of those operations in future financial years; or
the consolidated entity’s state of affairs in future financial years.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
89
Annual Report 2024
Further Information
This section contains information that is not immediately related to individual line items in the
financial statements, such as related party transactions, share based payments and a list of
material accounting policies applied by the entity.
33. Related Party Transactions
a) Key management personnel compensation
Additional disclosures relating to key management personnel are set out in the Directors’ Report.
Consolidated
2024
$
2023
$
Short-term employee benefits
2,874,343
2,681,086
Post-employment benefits
151,667
144,818
Long-term employee benefits
768,415
444,770
3,794,425
3,270,674
b) Group
The group consists of Cedar Woods Properties Limited and its controlled entities. A list of these entities and the
ownership interests held by the parent entity are set out in note 26.
c)
Parent entity
The parent entity within the group is Cedar Woods Properties Limited.
d) Transactions with other related parties
During the year, planning, architectural and consulting services were provided by Hames Sharley Architects of
which Director, Mr W G Hames is a principal and Property settlement charges were paid to Westland Settlement
Services Pty Ltd, a company associated with the family of Director, Mr R S Brown until 30 November 2023. For
detailed disclosures please see the remuneration report on page 50.
e)
Loans to related parties
Loan to Tarkine Property Pty Ltd
2024
$
2023
$
Beginning of the year
-
-
Loans advanced
7,194
-
End of year
7,194
-
Tarkine Property Pty Ltd is a joint venture between the group and Tokyo Gas Real Estate Australia Pty Ltd.
Refer note 27 for details.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
90
Cedar Woods Properties Limited
34. Remuneration of Auditors
During the year the following fees were paid or payable to the auditor of the parent entity:
PricewaterhouseCoopers – Australian firm and Related network firms
2024
$
2023
$
Assurance services
- Audit and review of the financial statements
342,608
309,817
- Agreed upon procedures
-
3,305
Total fees for assurance services
342,608
313,122
Non-audit services
- Taxation compliance, legal and advisory services
52,603
52,020
- Legal services
4,590
-
Total fees for non-audit services
57,193
52,020
Total assurance and non-audit services
399,801
365,142
35. Employee Share Scheme
The current Long Term Incentive (LTI) plans effective from 1 July 2021 for FY2022, from 1 July 2022 for FY2023 and
from 1 July 2023 for FY2024 will continue in FY2025.
The current LTI plan for the Managing Director and executives has two vesting conditions a) a 3 year service
condition and b) two performance conditions measured over a 3 year period: 50 per cent of the LTI grant will be
tested against a relative total shareholder return (“TSR”) hurdle (measured against the S&P / ASX Small Industrials
Index) and 50 per cent against earnings per share (“EPS”) growth compared with the Corporate plan targets.
Full details of the operation of the current LTI plan are set out in the remuneration report on pages 39 to 44 of this
annual report.
The Managing Director receives 65% of the STI in cash, with 35% deferred by way of a grant of zero-price options
under the Deferred Short-Term Incentive (DSTI) Plan (FY2023 – 65% cash STI and 35% DSTI). The STI including the
DSTI is awarded based on the Remuneration and Nominations Committee’s assessment of the company’s overall
performance using the Balanced Scorecard. Full details of the operation of the current DSTI plan are set out in the
remuneration report on page 38 of this annual report.
In the current reporting period, the group has established an employee share trust which is administered by CPU
Share Plans Pty Ltd. Shares issued by the trust are acquired from the company via a new issue of shares prior to
the issue to employees.
36. Summary of Accounting Policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated. Where
necessary, comparative information is reclassified and restated for consistency with current period disclosures.
The financial statements are for the consolidated entity consisting of Cedar Woods and its subsidiaries.
a) Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act
2001. Cedar Woods is a for-profit entity for the purpose of preparing the financial statements.
i.
Compliance with International Financial Reporting Standards (IFRS).
The financial statements of the Cedar Woods group also comply with IFRS as issued by the International
Accounting Standards Board (IASB).
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
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Annual Report 2024
ii.
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation
of available-for-sale financial assets and derivative financial instruments.
iii.
New and amended standards adopted by the group
The group has applied the following standards and amendments for the first time for the annual reporting period
commencing 1 July 2023:
AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities
arising from a Single Transaction [AASB 12]; and
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition
of Accounting Estimates [AASB 7, AASB 101, AASB 108, AASB 134 & AASB Practice Statement 2].
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not
expected to significantly affect the current or future periods.
iv.
New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June
2024 reporting periods and have not been early adopted by the group.
These standards are not expected to have a material impact on the consolidated entity in the current or future
reporting periods and on foreseeable future transactions.
v.
Functional and presentation currency
The consolidated financial statements are presented in Australian dollars, which is the functional and presentation
currency of Cedar Woods.
b) Principles of consolidation
i.
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all entities controlled by Cedar
Woods (parent) as at 30 June 2024 and the results of all subsidiaries for the year then ended. Cedar Woods and its
subsidiaries together are referred to in these financial statements as the consolidated entity or the group.
Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity
where the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the group. They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the group.
All inter-company balances and transactions between companies within the consolidated entity are eliminated
upon consolidation.
ii.
Joint arrangements
Joint arrangements – Under AASB 11 Joint Arrangements, investments in joint arrangements are classified as
either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each
investor, rather than the legal structure of the joint arrangement.
Joint operations - The consolidated entity recognises its direct right to assets, liabilities, revenues and expenses of
joint operations, which have been incorporated in the financial statements under the appropriate headings.
Joint ventures - Interest in joint ventures are accounted for using the equity method (see below), after initially being
recognised at cost in the consolidated balance sheet.
iii.
Equity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to
recognise the group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the group’s
share of movements in other comprehensive income.
The carrying amount of equity-accounted investments is tested for impairment.
Financial Statements
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Group Structure
Unrecognised Items
Further Information
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Cedar Woods Properties Limited
c)
Segment reporting
Management has determined the operating segment based on the reports reviewed by the Managing Director
that are used to make strategic decisions. The Managing Director has been identified as the chief operating
decision maker.
d) Business combinations
The acquisition method of accounting is used to account for all business combinations. Acquisition related costs
are expensed as incurred.
e)
Revenue and other income
i.
Sale of land and buildings
Revenue arising from the sale of land and buildings is recognised when control over the property has been transferred
to the customer. In most of the group’s contracts this is the point in time at which legal title passes to the customer.
The revenue is measured at the transaction price agreed under the contract, with revenue relating to customer
rebates recognised separately where applicable.
ii.
Sale of land and buildings – customer rebates
Certain contracts for the sale of land and buildings include an obligation of the group to provide goods, services, or
payments to the customer, subject to certain performance conditions. These contracts provide a right to customers
that forms a separate performance obligation.
The transaction price is allocated to the performance obligations on a relative stand-alone selling price basis.
Management estimates the stand-alone selling prices at the point in time that legal title passes to the customer
based on the contract value, and observable market prices of similar services.
The likelihood of redemption of each customer rebate is estimated at the time of transfer of legal title. If the performance
conditions of the customer are not met within the terms of the contract, the obligation expires, and the group recognises
the revenue attributable to the performance obligation without delivery of the goods, services or payment
iii.
Development services
Revenue from development services is recognised at a point in time where the group has satisfied contractual
performance obligations and control over the output has passed to the customer. In most instances this coincides
with the transfer of legal title of the developed land or building.
f)
Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income
based on the income tax rate in Australia adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses, if any.
The current income tax charge is calculated on the basis of the tax laws enacted or substantially enacted at the end
of the reporting period.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income
tax is determined using the tax rates expected to apply when the assets are recovered or liabilities are settled,
based on those tax rates which are enacted or substantively enacted.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority.
Cedar Woods and certain wholly owned Australian controlled entities have implemented the tax consolidation
legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of
these entities are set off in the consolidated financial statements.
Current and deferred tax is recognised in profit and loss, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive
income or directly in equity respectively.
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Annual Report 2024
g) Cash and cash equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, and deposits at
call which are readily convertible to cash on hand and are subject to an insignificant risk of changes in value. Bank
overdrafts are shown within borrowings in current liabilities on the balance sheet.
h)
Trade and other receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course
of business. Other receivables are non-derivative financial assets with fixed or determinable payments and are
not quoted in an active market. If collection of the amounts is expected in one year or less they are classified as
current assets. If not, they are presented as non-current assets. Trade receivables are generally due for settlement
within 30 days and therefore are all classified as current.
For trade receivables, the group applies the simplified approach permitted by AASB9, which requires expected lifetime
credit losses to be recognised from initial recognition of the receivables. To measure the lifetime expected credit loss
for rental debtors, a provision is raised against each debtor based upon the payment profile over the last 12 months,
adjusted for current and forward-looking information supporting the expected settlement of the receivable.
i)
Inventories
Property purchased for development and sale is valued at the lower of cost and net realisable value. Cost includes
acquisition and subsequent development costs, and applicable borrowing costs incurred during development.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale. All property held for development and sale is
regarded as inventory and is classified as such in the balance sheet. Property is classified as current inventory only
when sales are expected to result in realisation of cash within the next twelve months, based on management’s
sales forecasts. Borrowing costs incurred prior to active development and after development is completed, are
expensed as incurred.
The acquisition of land is recognised when an unconditional purchase contract exists.
When property is sold, the cost of the land and attributable development costs, including borrowing costs, is
expensed through cost of sales.
j)
Deferred development costs
Development costs incurred by the group for the development of land not held as an asset by the group are
recorded as deferred development costs in the balance sheet. They are included in current assets, except for
those which are not expected to be reimbursed within 12 months of the reporting period, which are classified as
non-current assets. In instances when the deferred development costs are reimbursed by the land owner, they are
expensed in the profit or loss.
k)
Assets classified as held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use and a sale is considered highly probable. They are measured at the
lower of carrying amount and fair value, less costs to sell.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Non-current assets
classified as held for sale are presented separately from the other assets in the balance sheet.
l)
Property, plant and equipment
Property, plant and equipment is substantially made up of furniture, fittings and equipment and is stated at historical
cost less depreciation. Depreciation is calculated on a straight line or diminishing value basis to write off the net cost
of each item of property, plant and equipment over its expected useful life to the consolidated entity. The expected
useful lives of items of property, plant and equipment and the depreciation methods used are:
Plant and equipment – 3 to 15 years (straight line and diminishing value methods)
The assets’ residual values and useful lives are reviewed for impairment and adjusted if appropriate, at each
reporting date.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
the profit or loss.
Financial Statements
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Financial Risks
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Unrecognised Items
Further Information
Declaration
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Cedar Woods Properties Limited
m) Investments and other financial assets
i.
Classification
The group classifies its financial assets in the following categories:
those to be measured at fair value through profit or loss; and
those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will be recorded in profit or loss.
ii.
Measurement
At initial recognition, the group measures a financial asset at its fair value plus, in the case of a financial asset not
at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the
financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
iii.
Impairment
The group assesses on a forward-looking basis the expected credit losses associated with its financial assets
carried at amortised cost. The impairment methodology applied depends on whether there has been a significant
increase in credit risk.
n)
Impairment of assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount of an asset is the higher of its fair value less costs of
disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest level
for which there are separately identifiable cash generating units, which is generally the project level. Assets that
suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
o)
Trade and other payables
Trade payables represent liabilities for goods and services provided to the consolidated entity prior to the end
of the financial year and which are unpaid. These amounts are unsecured and are usually paid within 30 days
of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12
months after the reporting period. They are recognised initially at their fair value and subsequently measured at
amortised cost using the effective interest method.
p) Borrowings and borrowing costs
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest method.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent
that it is probable that some or all of the facility will be drawn down. In this case the fee is deferred until the
commencement of the facility when draw down occurs.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. Borrowings are classified as current liabilities unless the group has an unconditional right to
defer settlement of the liability for at least 12 months after the end of the reporting period.
Borrowing costs are recognised as expenses in the period in which they are incurred, except where they are included
in the costs of qualifying assets during the period when the asset is being prepared for its intended use or sale.
q) Derivatives
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. Changes to fair value are taken to profit or loss and are
included in other income or expenses.
r)
Other financial liabilities
Other financial liabilities at fair value through profit or loss are financial liabilities due to vendors of properties
under contracts of sale and other payables. Liabilities in this category are classified as current liabilities if they are
expected to be settled within 12 months, otherwise they are classified as non-current.
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Annual Report 2024
s)
Development cost provisions
Provision is made for development costs yet to be incurred for lots/units that have settled and revenue recognised
at balance date and provisions for development obligations under agreements with various state and local
authorities and land purchase contracts. Development cost provisions are classified as current liabilities if they are
expected to be settled within 12 months, otherwise classified as non-current.
t)
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown
in equity as a deduction, net of tax, from the proceeds.
u)
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the financial year but not distributed at balance date.
v)
Share based payments
Share based compensation benefits are provided to employees via the Deferred STI and LTI plans. Information
relating to these schemes is set out in the remuneration report on pages 38 to 44.
The value of Performance Rights granted under the Deferred STI and LTI plans is recognised as an employee
benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by
reference to the fair value of the Performance Rights granted:
Including any market performance conditions (e.g. the entity’s share price); and
Excluding the impact of any service and non-market performance vesting conditions (e.g. profitability and
remaining an employee of the group over a specified time period)
The total expense is recognised over the vesting period, which is the period over which all of the specified vesting
conditions are to be satisfied. At the end of each reporting period, the group revises its estimates of the number of
Performance Rights that are expected to vest based on the non-market vesting and service conditions. The impact
of the revision to original estimates is recognised, if any, in profit or loss with a corresponding adjustment to equity.
w) Earnings per share
i.
Basic earnings per share
Basic earnings per share is determined by dividing the profit attributable to owners of Cedar Woods by the
weighted average number of ordinary shares outstanding during the financial year, adjusted for any bonus elements
in ordinary shares issued during the year.
ii.
Diluted earnings per share
Diluted earnings per share adjusts the earnings used in the determination of basic earnings per share to take account
of any effect on borrowing costs associated with the issue of dilutive potential ordinary shares. The weighted average
number of ordinary shares is adjusted to reflect the conversion of all dilutive potential ordinary shares.
x)
Rounding of amounts
The company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of
amounts in the financial statements.
Amounts in the financial statements have been rounded off in accordance with the instrument to the nearest
thousand dollars, or in certain cases, to the nearest dollar.
y)
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is
not recoverable from the taxation authority. In this case it is recognised as part of the cost of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the
balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to, taxation authorities, are presented as operating cash flows.
Financial Statements
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Cedar Woods Properties Limited
37. Segment Information
The Board has determined the operating segment based on the reports reviewed by the Managing Director that are
used to make strategic decisions.
The Board has considered the business from both a product and a geographic perspective and has determined
that the group operates a single business in a single geographic area and hence has one reportable segment.
The group engages in property development and investment which takes place in Australia. The group has no
separate business units or divisions.
The internal reporting provided to the Managing Director includes key performance information at a whole of group
level. The Managing Director uses the internal information to make strategic decisions, based primarily upon the
expected future outcome of those decisions on the group as a whole. Material decisions to allocate resources are
generally made at a whole of group level.
The group mainly sells products to the public and is not generally reliant upon any single customer for 10% or more
of the group’s revenue.
All of the group’s assets are held within Australia.
The Managing Director assesses the performance of the operating segment based on the net profit after tax,
earnings per share and net tangible assets per share.
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CONSOLIDATED
ENTITY DISCLOSURE
STATEMENT, DIRECTORS’
DECLARATION
AND INDEPENDENT
AUDITOR’S REPORT
Consolidated Entity Disclosure Statement (CEDS)
98
Directors' Declaration
99
Independent Auditor’s Report
100
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Unrecognised Items
Further Information
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& Audit Report
98
Cedar Woods Properties Limited
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Name of Entity
Type of
Entity
Trustee,
partner or
participant
in JV
% of
share
capital
Place of
Business /
Country of
incorporation
Tax
Residency
Cedar Woods Properties Employee Share Trust
Trust
-
n/a
Australia
Australian
Cedar Woods Properties Finance Pty Ltd
Body Corporate
-
100%
Australia
Australian
Cedar Woods Properties Harrisdale Pty Ltd
Body Corporate
-
100%
Australia
Australian
Cedar Woods Properties Investments Pty Ltd
Body Corporate
-
100%
Australia
Australian
Cedar Woods Properties Limited
Body Corporate
-
100%
Australia
Australian
Cedar Woods Properties Management Pty Ltd
Body Corporate
-
100%
Australia
Australian
Cedar Woods Property Sales Pty Ltd
Body Corporate
-
100%
Australia
Australian
Baret Developments Pty Ltd
Body Corporate
-
100%
Australia
Australian
Cranford Pty Ltd
Body Corporate
-
100%
Australia
Australian
Daleford Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Dunland Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Esplanade (Mandurah) Pty Ltd
Body Corporate
-
100%
Australia
Australian
Eucalypt Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Flametree Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Galaway Holdings Pty Ltd
Body Corporate
-
100%
Australia
Australian
Gaythorne Pty Ltd
Body Corporate
-
100%
Australia
Australian
Geographe Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Huntsman Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Jarrah Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Kayea Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Lonnegal Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Manta Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Osprey Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Silhouette Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Terra Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Upside Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Vintage Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Williams Landing Home Improvement Pty Ltd
Body Corporate
Trustee
100%
Australia
Australian
Williams Landing Home Improvement Trust
Trust
-
n/a
Australia
Australian
Williams Landing Shopping Centre Pty Ltd
Body Corporate
Trustee
100%
Australia
Australian
Williams Landing Shopping Centre Trust
Trust
-
n/a
Australia
Australian
Williams Landing Town Centre Pty Ltd
Body Corporate
-
100%
Australia
Australian
Wollemi Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Woodbrooke Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Yonder Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
Zamia Property Pty Ltd
Body Corporate
-
100%
Australia
Australian
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Annual Report 2024
DIRECTORS’ DECLARATION
In the directors’ opinion:
a) the financial statements and notes set out on pages 54 to 96 are in accordance with the Corporations Act 2001,
including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
(ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of its
performance for the financial year ended on that date; and
b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become
due and payable,
c) at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed
group identified in Note 26 will be able to meet any obligations or liabilities to which they are, or may become,
subject by virtue of the deed of cross guarantee described in Note 29; and
d) the information disclosed in the consolidated entity disclosure statement is true and correct.
Note 36(a) confirms that the financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board.
The directors have been given the declarations by the Managing Director and Chief Financial Officer required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Nathan Blackburne
Managing Director
Perth, Western Australia
20 August 2024
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Unrecognised Items
Further Information
Declaration
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100 Cedar Woods Properties Limited
INDEPENDENT AUDITOR’S REPORT
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report
To the members of Cedar Woods Properties Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Cedar Woods Properties Limited (the Company) and its
controlled entities (together the Group) is in accordance with the Corporations Act 2001, including:
(a)
giving a true and fair view of the Group's financial position as at 30 June 2024 and of its
financial performance for the year then ended
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The financial report comprises:
•
the consolidated balance sheet as at 30 June 2024
•
the consolidated statement of changes in equity for the year then ended
•
the consolidated cash flow statement for the year then ended
•
the consolidated statement of profit or loss and other comprehensive income for the year then
ended
•
the notes to the consolidated financial statements, including material accounting policy
information and other explanatory information
•
the consolidated entity disclosure statement as at 30 June 2024
•
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
Financial Statements
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Unrecognised Items
Further Information
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Annual Report 2024
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Audit scope
Key audit matters
•
Our audit focused on where the Group made
subjective judgements; for example, significant
accounting estimates involving assumptions and
inherently uncertain future events.
•
The accounting processes are structured around a
Group finance function at its head office in Perth.
Our audit procedures were predominately
performed at the Group head office.
•
Amongst other relevant topics, we communicated
the following key audit matter to the Audit and Risk
Committee:
−
Valuation of inventory
•
This is further described in the Key audit matters
section of our report.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context.
Key audit matter
How our audit addressed the key audit matter
Valuation of inventory
(Refer to note 7, 22(b))
As of 30 June 2024, the Group recognised total
inventory of property held for sale of $690m, split
between current inventory of $266m and non-current
inventory of $424m.
Inventory is stated at the lower of cost and net
realisable value for each development project, as
assessed at each reporting date.
The cost of the inventory is calculated as the sum of
land acquisition costs, development costs and
borrowing costs capitalised for eligible projects.
We performed the following procedures, amongst
others:
• Developed an understanding of how the Group
identified the relevant methods, assumptions or
sources of data, and the need for changes in them,
that are appropriate for developing the inventory net
realisable value in the context of the Australian
Accounting Standards
• We obtained an understanding and evaluated the
design of relevant controls in relation to inventory
valuation
• We traced a sample of additions to the cost of
projects (e.g. land acquisition, development costs
and capitalised borrowing costs) to supporting
documentation and assessed whether they were
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
102 Cedar Woods Properties Limited
Key audit matter
How our audit addressed the key audit matter
The Group’s estimate of net realisable value is
calculated based on the estimated selling price of the
inventory, less the estimated costs of completion and
selling costs. Each of these factors is impacted by
assumptions about future market and economic
conditions which inherently are subject to the risk of
change. These assumptions include future sales
prices, future sales rates, forecast development costs
for completion, and escalation rates of sales and costs
and total project yield.
This was a key audit matter given the relative size of
the inventory balance in the Consolidated Balance
Sheet and the inherent subjectivity and significant
judgements involved in the key assumptions and
estimates used to calculate net realisable value.
capitalised appropriately
We applied a risk-based assessment to determine the
development projects where there was a greater risk
that the carrying value of the inventory may be in
excess of net realisable value.
Our risk-based selection criteria incorporated our
knowledge of the lifecycle of each project from current
and prior years and our understanding of current
economic conditions relevant to individual project
locations as informed by publicly available property
market reports as well as our discussions with
management.
For the selected projects, we performed a combination
of one or more of the following audit procedures:
• Obtained the net realisable value assessment and
cash flow analysis and held discussions with the
relevant development manager to understand the
basis for key assumptions used in the assessment.
• Assessed the appropriateness of key assumptions,
including:
o
comparing forecast sales value for each project
to actual sales values known from the current
period and comparable projects,
o
comparing forecast costs of the project to the
relevant construction contracts (if applicable) or
the construction contract proposal,
o
comparing management’s forecast sales prices
and cost escalation factors to internal and
external data
• Assessed whether the carrying value was the lower
of cost and net realisable value
We also evaluated the reasonableness of the
disclosures against the requirements of Australian
Accounting Standards.
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 30 June 2024, but does not include the
financial report and our auditor’s report thereon.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
103
Annual Report 2024
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon through our opinion on the financial report. We
have issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report in accordance
with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair
view, and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2024.
In our opinion, the remuneration report of Cedar Woods Properties Limited for the year ended 30 June
2024 complies with section 300A of the Corporations Act 2001.
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
104 Cedar Woods Properties Limited
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Ian Campbell
Perth
Partner
20 August 2024
Financial Statements
Key Numbers
Financial Risks
Group Structure
Unrecognised Items
Further Information
Declaration
& Audit Report
105
Annual Report 2024
SHAREHOLDERS’
INFORMATION
This section provides information for shareholders on distributions and
other shareholder benefits, the composition of the share register and past
financial performance.
Investors’ Summary
106
Shareholder Information
107
Five Year Financial Performance
109
106 Cedar Woods Properties Limited
INVESTORS’ SUMMARY
Dividend and dividend policy
The final dividend for the 2024 financial year is 17.0 cents per share, fully franked. The dividend will be paid on 25
October 2024. The Company’s dividend policy is to distribute approximately 50% of the full year net profit after tax.
The total FY2024 dividends represent a payout ratio of 51%. This acknowledges both the result in FY2024 and the
current outlook for FY2025.
Shareholder discount scheme
The group operates a shareholder discount scheme which entitles shareholders to a 5% discount off the listed price
of any residential lot, or 2.5% off the listed price of houses, apartments or strata commercial units at the group’s
developments. A summary of the main terms and conditions follows:
For residential lots, shareholders must hold a minimum number of 1,000 shares for at least 6 months before
purchasing a lot to qualify for the discount;
For off the plan purchases of ‘built-form’ lots (such as townhouses, apartments or commercial units), shareholders
must hold a minimum number of 1,000 shares at the time of purchasing a lot and hold the shares through to
settlement of the lot to qualify for the discount;
The number of shareholder discounts available will be limited in any sales release to two discounts, although the
Company may extend this for a particular release; and
The shareholder discount scheme does not apply to lots or dwellings at joint venture projects.
The above is a summary of the main conditions and shareholders should apply to the company or visit the website
for the full terms and conditions.
Electronic payment of dividends
The group uses exclusively electronic funds transfer for the payment of dividends. Accordingly, shareholders
must nominate a bank, building society or credit union account for the payment of dividends by direct credit.
Payments are electronically credited on the dividend payment date and confirmed by mailed advice.
New shareholders receiving dividends for the first time should contact the company’s share registrar,
Computershare Investor Services Pty Ltd, by visiting www.computershare.com.au.
Dividend re-investment plan and Bonus share plan
The dividend re-investment plan and bonus share plan are operated from time to time as part of measures to
manage the group’s capital. Shareholders can change their participation status in the plans by completing an
election form in accordance with the rules of each plan. The dividend re-investment plan and bonus share plan
will not be in operation for the final dividend for the 2024 financial year.
Shareholders’ timetable
Dividend announcement
21 August 2024
Share register closes for dividend (Record date)
26 September 2024
Final dividend payment date
25 October 2024
First quarter update
October 2024
Annual General Meeting
6 November 2024
Half-year result announcement
February 2025
Interim dividend payment date
April 2025
Third quarter update
May 2025
Full year result and dividend announcement
August 2025
107
Annual Report 2024
SHAREHOLDER INFORMATION
The shareholder information set out below was applicable at 16 August 2024.
a) Distribution of ordinary shares
Number
of holders
Number
of shares
1 – 1,000
1,480
601,641
1,001 – 5,000
1,323
3,541,583
5,001 – 10,000
464
3,495,252
10,001 – 100,000
565
14,085,833
100,001 and over
51
60,694,109
3,883
82,418,418
There were 331 holders of less than a marketable parcel of shares.
b) Twenty largest shareholders of ordinary shares as disclosed in the share register
Name
Number
of shares
Percentage
of shares
J P Morgan Nominees Australia Pty Limited
18,289,354
22.19
HSBC Custody Nominees (Australia) Limited
6,475,204
7.86
Citicorp Nominees Pty Limited
5,881,220
7.14
Hamsha Nominees Pty Ltd
5,040,216
6.11
Westland Group Holdings Pty Ltd
4,233,029
5.14
Beach Corporation Pty Ltd
3,382,604
4.10
Joia Holdings Pty Ltd
2,337,031
2.84
Helen Kaye Poynton
1,677,095
2.03
Netwealth Investments Limited
1,432,618
1.74
Mr Paul Stephen Sadleir
1,083,283
1.31
Precision Opportunities Fund Ltd
953,548
1.16
Leblon Holdings Pty Ltd
644,390
0.78
Dr Alan Gerraty & Mrs Patricia Gerraty
600,000
0.73
Mr John Henry Tucker & Mrs Kay Joylene Tucker
485,000
0.59
BNP Paribas Nominees Pty Ltd
482,536
0.58
Gold Plaza Pty Ltd
417,482
0.51
HSBC Custody Nominees (Australia) Limited - A/C 2
397,529
0.48
Gorn Super Pty Ltd
397,379
0.48
UBS Nominees Pty Ltd
366,116
0.44
Mrs Helen K Poynton + Mr David P Poynton
343,079
0.42
54,918,713
66.63
108 Cedar Woods Properties Limited
c)
Substantial shareholders of ordinary shares
As disclosed in substantial shareholder notices lodged with the ASX at 16 August 2024.
Name
Number
of shares
Percentage
of shares1
William George Hames and related entities
9,314,668
12.90
Robert Stanley Brown and related entities
7,818,633
9.75
AustralianSuper Pty Ltd
9,291,217
11.41
1 Percentage of issued capital held as at the date notice provided.
d) Voting rights
The voting rights attaching to each class of equity securities are set out below:
Ordinary shares
On a show of hands every member present in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Performance rights
No voting rights.
Options
No voting rights.
e)
Unquoted equity securities
Issued under employee incentive schemes:
Number
on issue
Number
of holders
Performance rights issued under the FY2022 long term incentive plan
240,510
26
Performance rights issued under the FY2023 long term incentive plan
480,164
31
Performance rights issued under the FY2024 long term incentive plan
410,696
36
Zero price options issued under the FY2023 deferred short term incentive plan
31,765
1
109
Annual Report 2024
FIVE YEAR FINANCIAL PERFORMANCE
All figures in $’000 except where stated
Financial Year
2024
2023
2022
2021
2020
Financial Performance
Revenue from operations
386,348
391,303
333,036
299,751
260,660
Earnings before interest and tax
68,183
49,787
54,060
50,552
31,729
Finance costs
11,087
4,401
444
3,049
2,245
Operating profit before tax
57,096
45,386
53,616
47,503
29,484
Income tax expense
16,602
13,751
16,228
14,669
9,097
Net profit after tax
40,494
31,635
37,388
32,834
20,387
Financial Position
Total assets
743,592
783,398
796,387
651,800
644,055
Total liabilities
282,801
352,296
375,164
251,439
267,254
Shareholders’ equity
460,791
431,102
421,223
400,361
376,801
Number of shares on issue – end of year (‘000)
82,418
82,210
82,128
81,345
80,448
Basic earnings per share (cents)
49.2
38.5
45.7
40.7
25.4
Key Performance Measures
Dividend per share, fully franked (cents)
25.0
20.0
27.5
26.5
19.0
EBIT Margin
17.6%
12.7%
16.2%
16.9%
12.2%
Interest cover (times)
3.9
3.7
9.1
12.1
5.9
Return on equity
8.8%
7.3%
9.1%
8.2%
5.4%
Investment in inventory during year
276,550
293,529
329,296
198,972
208,952
Net tangible assets backing per share ($)
5.55
5.21
5.11
4.92
4.68
Net bank debt
120,094
195,806
198,688
113,328
142,671
Net bank debt to equity
26.1%
45.4%
47.2%
28.3%
37.9%
Share price – end of year ($)
4.73
5.03
3.68
6.71
5.24
Stock market capitalisation at 30 June
389,839
413,516
302,230
545,824
421,547
Number of employees at 30 June
99
93
99
93
91
Returns to shareholders over 1, 3, & 5 years
1 Year
3 Year
5 Year
Earnings per share growth %
27.8
6.5
(4.2)
Share price growth % (annualised)
(6.0)
(11.0)
(3.7)
Dividend growth % (paid dividend)
(45.5)
(8.4)
(16.1)
Total shareholder return % (annualised)
(2.9)
(6.5)
1.0
112 Cedar Woods Properties Limited
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
Valerie Anne Davies
FAICD
Jane Mary Muirsmith
BCom (Hons), FCA, GAICD
Paul Say
FRICS, FAPI
Nathan John Blackburne
BB, AMP, GAICD – Managing Director
COMPANY SECRETARY
Paul Samuel Freedman
BSc, CA, GAICD
REGISTERED OFFICE AND
PRINCIPAL PLACE OF BUSINESS
Level 4, 50 Colin Street
WEST PERTH WA 6005
Postal Address
P.O. Box 788 West Perth WA 6872
Phone
(08) 9480 1500
Email
email@cedarwoods.com.au
Website
www.cedarwoods.com.au
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 17, 221 St Georges Terrace
PERTH WA 6000
AUDITOR
PricewaterhouseCoopers
125 St Georges Terrace
PERTH WA 6000
SECURITIES EXCHANGE LISTING
Cedar Woods Properties Limited shares are listed
on the Australian Securities Exchange (ASX)
ASX Code
CWP
ANNUAL GENERAL MEETING
Date
Wednesday 6 November 2024
Time
10:00am AWST