Finbar Group has reinstated regular dividends with a fully franked 2 cent final payout for FY25, supported by a robust $36 million cash reserve and a strong development pipeline exceeding $1 billion in value.
- 2 cent fully franked final dividend declared for FY25
- Strong cash position of $36 million at year-end
- Development pipeline valued over $1 billion across five years
- Sale of non-core subsidiaries to focus on apartment development
- WA market sales average $11.8 million monthly in FY25
Dividend Resumption Signals Confidence
Finbar Group Limited (ASX, FRI), a leading apartment developer in Western Australia, has announced the resumption of its regular dividend payments, declaring a fully franked final dividend of 2 cents per share for the fiscal year 2025. This move marks a return to shareholder distributions after a pause, reflecting the company's renewed confidence in its financial position and future prospects.
The dividend will be payable on 6 August 2025, with the ex-dividend date set for 22 July. While the Board has committed to resuming regular interim and final dividends, it retains discretion over future payments based on financial performance and market conditions.
Robust Balance Sheet and Strategic Focus
Finbar closed FY25 with a strong cash balance of $36 million, underpinning its ability to fund ongoing developments and return capital to shareholders. The company has streamlined its operations by divesting non-core subsidiaries, Finbar to Rent and Finbar Sales, for a combined $2.55 million, signaling a sharpened focus on its core apartment development business.
CEO Ronald Chan highlighted the importance of maintaining a strong balance sheet to support the company’s ambitious development pipeline and shareholder returns. He also emphasized Finbar’s strategic advantage through its longstanding partnership with builder Hanssen, which provides cost certainty and delivery capacity amid industry-wide construction constraints.
A Billion-Dollar Pipeline Fuels Growth Outlook
Finbar’s five-year development pipeline now exceeds $1 billion in estimated end value. This includes $390 million in projects currently under construction, $363 million in projects with development approvals pending release, and $261 million in pre-development stage plans. Key projects such as Garden Towers and Bel-Air are progressing well, with presales valued at approximately $275 million and construction on track for settlements in 2026.
The company also plans to launch new projects Riverbank in Rivervale and Palmyra Stage Two in the first half of FY26, with a combined potential end value of $202 million. These developments are expected to sustain revenue growth and reinforce Finbar’s market position in Western Australia’s strong residential property sector.
Market Strength and Sales Momentum
Throughout FY25, Finbar achieved an average of $11.8 million in monthly sales of completed stock, reflecting robust demand in the Perth market. The successful progressive sell-down of inventory at Civic Heart, Aurora, and The Point further supports the company’s positive sales momentum.
Looking ahead, Finbar intends to focus more on wholly owned projects rather than joint ventures to maximize shareholder value as it advances and refreshes its development pipeline.
Awaiting Full Financials
Investors will be watching closely for the release of Finbar’s audited FY25 financial report, scheduled for the week beginning 18 August 2025, which will provide a comprehensive view of the company’s financial health and operational performance.
Bottom Line?
Finbar’s dividend resumption and billion-dollar pipeline set the stage for renewed growth, but market conditions and execution will be key to sustaining momentum.
Questions in the middle?
- How will Finbar balance dividend payments with funding its ambitious development pipeline?
- What impact will the sale of non-core subsidiaries have on operational efficiency and profitability?
- Can Finbar maintain its competitive edge amid ongoing construction capacity constraints in WA?