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Image: Canva, Finbar.
  • More than doubled HY21 profit
  • Able to and continues to develop despite challenges in construction
  • First two months of 2022 recorded over $33 million in sales

Developer Finbar (ASX: FRI) has posted a $9.6 million profit in its half year report. The figure is more than double the previous corresponding period, where the company made $4.023 million.

Finbar has put the increase in profit down to the rising value of its Pelago investment asset in Karratha, the asset value increased $4.96 million after tax to $62.2 million.

The asset remains fully leased with rental rates also increasing 9% since the previous corresponding period.

31 Dec 2021 31 Dec 2020 Change %
Revenue from ordinary activities 63,728 40,964 55.57%
Profit from ordinary activities after tax attributable to members 9,419 4,000 135.48%
Net Profit for the period attributable to members 9,558 4,023 137.58%
Final 2021 Dividend per share, fully franked 2.0 cents 1.0 cent 100.00%
Declared Interim 2022 Dividend per share, fully franked 2.0 cents 2.0 cents 0.00%
Earnings per share (cents per share) 3.46 1.48 134.11%

Operating profit was $4.6 million, with contributions from the sell down of the remaining completed stock at Sabina in Applecross, and Riverena in Rivervale, supplemented by the completion and the settlement of 66 units in the 128 unit Dianella Apartments development during the reporting period.

Finbar MD Darren Pateman was pleased with the result given the challenges surrounding construction and supply chain disruptions. Mr Pateman added “I do however see this improving after 3 March as the State [Western Australia] moves to relax these [border] policies.”

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Finbar’s Civic Heart project. Image: Finbar.

The company seems to be in a strong position for the remainder of the year, Finbar said it is in a position to develop product and deliver it into the market at a time when some competitors are struggling to commence projects with constraints on supplies and a reduced pool of viable construction contractors.

“The mere fact that we can commence construction on projects with fewer pre-sales than our competitors means that we also have stock that can be progressively repriced during construction, which helps insulate our margins in an inflationary market for both the value of apartments and building costs,” Mr Pateman said.

“It is a major competitive advantage for us in the current market, being well funded and able to launch and commence projects with our cashflows and with the support of our long-standing joint venture investment partners and bankers.”

Sales in the first two months of 2022 had been strong, with 57 sales worth $33.5 million being achieved across all projects, Mr Pateman said.

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Finbar’s AT238 project. Image: Finbar.
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