Cedar Woods Posts $48.1M Net Profit, Dividends Up 16%, Presales Top $660M

Strong Financial Performance Exceeds Expectations

Cedar Woods Properties Limited (ASX – CWP) has delivered a standout financial performance for the 2025 fiscal year, posting a net profit after tax of $48.1 million. This represents an 18.9% increase over the prior year and comfortably surpasses the company’s own 15% growth guidance. Earnings per share rose in tandem, reaching 58.4 cents, up 19% from 49.2 cents the previous year.

The company’s strong results reflect a 21% revenue growth, underpinned by solid sales momentum and a diversified portfolio spanning multiple states. Cedar Woods’ balance sheet remains robust, with net bank debt reduced significantly in the second half to $125.6 million and gearing ratios at the lower end of target ranges, supported by $144.2 million in available liquidity.

Robust Presales and Strategic Expansion

Forward presales contracts reached over $660 million, an 18% increase on the prior year, with around 60% expected to settle in FY26. This strong pipeline is supported by a national portfolio of more than 9,400 dwellings, lots, and offices, positioning Cedar Woods well for sustained growth. The company’s strategic acquisitions across Victoria, Queensland, South Australia, and Western Australia during FY25 are expected to contribute to earnings from FY28 onwards.

Notably, Cedar Woods has deepened its partnerships with Queensland Investment Corporation and Tokyo Gas Real Estate, announcing a fourth project with the latter. This collaboration aims to invest $600 million in global real estate by 2030, focusing on Australian developments such as a 200-apartment complex adjacent to the Incontro Subiaco project in Western Australia. These partnerships enable capital-efficient growth, access to larger sites, and recurring fee income streams.

Market Conditions and Outlook

The company benefits from ongoing national housing supply shortages, easing interest rates, and government incentives, all of which support demand. Population growth and stable economic conditions further underpin the positive outlook. Construction costs have stabilized, and while workforce capacity constraints remain a factor, Cedar Woods anticipates a more balanced earnings contribution across FY26 compared to FY25.

Looking ahead, Cedar Woods targets a 10% increase in net profit after tax for FY26. Several new projects, including the Bloom 2 retirement apartments in South Australia and affordable housing developments in Victoria, are expected to begin contributing to earnings. The company’s focus on affordable housing and innovative projects like the solar-powered microgrid at Eglinton Village highlight its commitment to sustainable and community-focused development.

Dividend Growth Reflects Confidence

Reflecting its strong cash flow and confidence in future earnings, Cedar Woods declared a fully franked final dividend of 19 cents per share, up from 17 cents the previous year. Combined with the interim dividend, total dividends for FY25 amount to 29 cents per share, a 16% increase, representing a yield of approximately 4% and a payout ratio around 50%. Dividend reinvestment and bonus share plans remain available to shareholders.