Lendlease’s half-year profit from core operations has slipped 13 per cent to $308 million but its non-core operations swung to a $5 million profit following a $339 million loss last year.
The company overall made a $313 million profit to the six months to December 31 compared with $16 million the same time a year ago.
Its revenue was down 4.6 per cent to $7.4 billion.
The multinational property developer is selling its non-core businesses, with Acciona agreeing to buy Lendlease’s engineering division for $180 million and the sale process for its services division continuing.
Lendlease delivered a 9.8 per cent return on equity and declared a distribution of 30 cents per stapled security, unfranked.
At 1412 AEDT, Lendlease shares were up 8.0 per cent to a two-month high of $18.815.
Chief executive Steve McCann said Lendlease had a total development pipeline of $112 billion, including its $15 billion Thamesmead Waterfront project in London and its $22 billion partnership with Google in the San Francisco Bay Area.
It has begun pre-sales for the tallest of three planned towers at One Sydney Harbour in Barangaroo, a 72-storey skyscraper that will be Sydney’s tallest residential building.
Lendlease has sold 207 of the planned 317 units in the tower for a total of $1.4 billion, the company said.
“We’ve achieved very good pre-sales,” chief financial officer Tarun Gupta told analysts on a conference call.
Chief executive Steve McCann said Lendlease had been approached by other companies about possibly partnering on the Barangaroo development, an idea it was considering.
AAP
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