Finbar’s Revenue Jumps 46% as Underlying Profit Rises 16% in FY25
Finbar Group Limited reported a robust FY25 with a 16% rise in underlying profit and a strong $1 billion development pipeline, signalling confidence in Western Australia's property market.
- Underlying NPAT up 16% to $16.17 million
- Revenue surged 46% to $284.47 million
- Net debt reduced by $360 million to $56.7 million
- Declared fully franked final dividend of 2 cents per share
- Five-year development pipeline valued over $1 billion
Robust Financial Performance Amid Market Strength
Western Australia's leading apartment developer, Finbar Group Limited, has delivered a solid financial result for the year ended 30 June 2025. While statutory net profit after tax (NPAT) declined 12% to $14.38 million, the company’s underlying NPAT, which excludes property valuation fluctuations and one-off disposals, rose a healthy 16% to $16.17 million. This growth was driven by strong sales settlements totalling $352 million across 351 lots, including key projects such as The Point, Aurora, and Civic Heart.
Revenue surged 46% to $284.47 million, reflecting the buoyant demand for mid-tier apartment developments in Perth. Finbar’s average monthly off-the-plan sales reached $7.8 million, underscoring sustained buyer interest in a market characterised by chronic housing undersupply and improving interest rates.
Balance Sheet Strength and Dividend Resumption
Finbar’s balance sheet remains robust, with cash on hand of $36.4 million at year-end and a significant net debt reduction of $360 million to $56.7 million. This financial discipline provides the company with flexibility to pursue growth opportunities and deliver on its development pipeline.
The Board has declared a fully franked final dividend of 2 cents per share, resuming regular dividend payments after a period of suspension. While future dividends will depend on ongoing performance and market conditions, this move signals confidence in the company’s cash flow and capital management strategy.
A Billion-Dollar Pipeline and Strategic Focus
Looking ahead, Finbar boasts a five-year development pipeline valued at over $1 billion in estimated end value. This includes $390 million in projects currently under construction, $363 million in developments with planning approvals pending, and a further $261 million in future plans. The company is shifting its focus towards wholly owned projects rather than joint ventures, aiming to capture greater value for shareholders.
Finbar’s CEO Ronald Chan highlighted the company’s unique advantage through longstanding partnerships with key construction suppliers like Hanssen, enabling efficient project delivery. The recent sale of non-core subsidiaries Finbar to Rent and Finbar Sales for $2.55 million further reflects a strategic focus on core development activities.
Positive Market Outlook for FY26
Demand in Western Australia’s apartment market remains strong, particularly for affordable, mid-tier products. Finbar’s recent marketing success with the Bel-Air project; sold out prior to construction completion for the first time in over a decade; along with strong interest in Riverbank Residences, underscores this trend.
For FY26, Finbar anticipates continued sales momentum with $114 million in sales achieved year-to-date, including $50 million settled into Perth’s undersupplied market and $9 million from Karratha’s Pelago units. The company expects material profit recognition from these settlements in the coming years, with further guidance to be provided as settlement timings become clearer.
Bottom Line?
Finbar’s strong FY25 foundation and billion-dollar pipeline set the stage for growth, but investors will watch closely for settlement timing and dividend sustainability.
Questions in the middle?
- When will Finbar provide detailed guidance on profit recognition from upcoming settlements?
- How will the shift towards wholly owned projects impact Finbar’s risk profile and returns?
- What are the potential effects of fluctuating interest rates on Finbar’s sales momentum and margins?
