Finbar’s Underlying Profit Climbs 16% as Revenue Hits $284M in FY25

A Steady Hand in Western Australia's Property Market

Finbar Group Limited, a stalwart in Western Australia's apartment development scene for over 30 years, has once again demonstrated its resilience and strategic acumen in its FY2025 results. Despite a 12% dip in statutory net profit after tax (NPAT) to $14.38 million, the company’s underlying NPAT rose 16% to $16.17 million, reflecting strong operational performance when excluding property valuation movements.

The company’s revenue surged by 46% to $284.47 million, buoyed by the completion of two major projects in October 2024, Aurora and The Point, delivering a combined 288 residential units and commercial tenancies. This growth underscores Finbar’s ability to execute large-scale developments efficiently, maintaining its reputation as Western Australia’s leading apartment developer.

Strategic Focus and Financial Strength

Finbar’s strategic divestment of non-core businesses, including Finbar to Rent and Finbar Sales, for $2.55 million, signals a sharpened focus on its core apartment development operations. This move, coupled with a significant $360 million reduction in net debt to $56.7 million, strengthens the company’s balance sheet and financial flexibility.

The company declared a fully franked final dividend of 2 cents per share, reflecting confidence in its cash flow and ongoing profitability. With cash reserves of $36.4 million at June 30, 2025, Finbar is well-positioned to fund its ambitious development pipeline.

Robust Development Pipeline and Market Tailwinds

Looking ahead, Finbar boasts a five-year development pipeline valued at over $1 billion, encompassing more than 1,300 residential and commercial units. Currently, 524 residential units are under construction, with another 428 units development-approved. Key projects such as Garden Towers and Bel-Air Apartments are nearing completion, with strong sales records; Garden Towers is over 70% sold and Bel-Air fully sold out.

Upcoming launches include Riverbank Residences and Palmyra West, with pre-sales for Riverbank already exceeding expectations at 28% sold ahead of its August 30 market debut. Construction for this project is slated to begin late 2025, signaling continued momentum.

Finbar benefits from favorable market conditions, Perth’s chronic housing undersupply, strong migration inflows, and supportive government policies including stamp duty concessions and first home buyer programs. These factors, combined with constrained competitor activity due to construction capacity limits, provide a fertile environment for Finbar’s growth.

Sales Momentum and Changing Buyer Dynamics

Sales activity remains robust, with total settlements valued at $352 million in FY25 and off-the-plan sales reaching $93 million. Notably, sales velocity has accelerated sharply in 2025, averaging 1.9 units per day in the last quarter; more than double the previous year’s pace. Investor participation is rising, reflecting a shift in buyer profile that aligns well with Finbar’s product offerings.

The company’s loyalty program also contributed significantly, accounting for 19% of sales in CY25, highlighting the value of established customer relationships in driving repeat business.

Sustaining Excellence and Innovation

Finbar’s long-standing commitment to quality and innovation is recognized through multiple industry awards, including the 2025 UDIA (WA) Award for Excellence and Property Council of Australia accolades. This track record, combined with a stable and experienced team, underpins the company’s ability to consistently deliver projects that meet market demand and community expectations.

As Finbar celebrates three decades of success, its strategic positioning and operational discipline suggest it is well-placed to navigate the evolving property landscape and capitalize on growth opportunities in Western Australia’s urban residential market.