peet logo feature
Source: The Property Tribune
  • Half yearly earnings up 101% to $10.1M, national portfolio growth up 50%
  • More than 2,000 contracts on hand, a 15% increase since 30 June 2020
  • Almost doubled EBITDA from previous corresponding period, now $20.9M from $12.7M

“Cheers gov’,” says CEO of Peet Brendan Gore as half-yearly figures show the strength of the company following improved markets and what Mr Gore said in an ASX statement was “accommodative government stimulus in response to COVID-19,”.

The “largest ‘pure play’ residential developer in Australia” achieved an operating profit and statutory profit after tax of $10.1M for the latest half-yearly results.

It represents a 101% increase compared to the previous corresponding period and follows a cautious, level headed strategy from the company.

When COVID began to cast a shadow, “Peet proactively implemented a range of capital management initiatives to shore up liquidity and protect the balance sheet, including the deferral of the commencement of new projects and minimised development capital expenditure.”

The company saw big potential in the medium density sector, Mr Gore said “1H21 saw a recommencement of significant investment in the creation of medium density product in Victoria and Queensland. This is continuing in 2H21, with substantial settlements and the recycling of capital from medium density projects expected in FY22,”.

EBITDA derived for 1H21 was $20.9M, up from $12.7M in the previous corresponding period, with increased margins too, now 21%, up from 14%.

Just like many other property companies over the recent days, they’ve been hitting sixes across the board, increasing earnings per share by 100% to 2.1 cents, increases in contracts on hand by 15%, and increased value by 14%.

The current gearing is 30%, Peet stating in a release to the ASX the number is the ceiling for their desired gearing range, between 20%-30%.

For the half-yearly reporting period, the company also had interest-bearing debt of $280.9M, including Peet Bonds, down from $282.1M on 30 June 2020.

The company opened at $1.20 this morning.

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