Why Is Winton Land Betting on South Island Growth Amid FY25 Revenue Drop?
Winton Land Limited reported a 10.5% revenue decline to NZD 155.4 million for FY25, with net profit after tax down 34.4%, as subdued Auckland markets and economic headwinds persist. The company is focusing on South Island developments and Fast-track approvals to navigate the downturn.
- FY25 revenue declined 10.5% to NZD 155.4 million
- Net profit after tax dropped 34.4% to NZD 10.3 million
- 266 units settled, down from 345 in FY24
- Focus on South Island projects including Northbrook and Ayrburn
- Sunfield and Ayrburn Screen Hub accepted into Fast-track Approvals process
Subdued Market Conditions Weigh on FY25 Results
Winton Land Limited (NZX – WIN, ASX – WTN) today released its annual results for the financial year ended 30 June 2025, revealing a challenging operating environment marked by a 10.5% decline in revenue to NZD 155.4 million and a 34.4% drop in net profit after tax to NZD 10.3 million. The company attributed these declines primarily to subdued property markets across New Zealand, particularly in Auckland, and broader economic headwinds including low growth, rising unemployment, and global uncertainty.
Despite these pressures, Winton’s longstanding pre-sale strategy continued to underpin its performance, with 266 units settled during the year, down from 345 in FY24. The average revenue per unit increased modestly by 4% to NZD 489,000, reflecting a higher value product mix despite fewer settlements.
Strategic Focus on South Island and Fast-track Projects
In response to the challenging Auckland market, Winton has strategically pivoted its focus towards its southern projects, including Northlake Wānaka, Northbrook Wānaka, Northbrook Arrowtown, and Ayrburn. The completion of Stage One at Northbrook Wānaka in May 2025 marked a significant milestone, with residents moving in and the commencement of deferred management and village service fee revenues.
Winton’s Ayrburn hospitality precinct also made notable progress, opening new venues such as Billy’s restaurant and The Bakehouse, attracting over a million visitors and positioning itself as Queenstown’s premier attraction. The Ayrburn Screen Hub, a proposed film studio complex adjacent to the hospitality precinct, was accepted into the government’s Fast-track Approvals Act 2024 process, alongside the Sunfield development in Auckland. Approval decisions are expected by the end of the calendar year, with immediate development planned upon consent.
Financial Position and Dividend Policy
Winton closed FY25 with a robust cash position of NZD 20.3 million and borrowings of NZD 100.4 million secured against specific development properties, with no recourse debt at the group level. Inventories decreased due to unit settlements, while investment properties increased by NZD 81 million, reflecting progress on key projects.
The Board maintained its prudent stance by continuing the dividend pause initiated in FY24, citing the need for financial discipline amid softer market conditions. CEO and Chair Chris Meehan emphasised the company’s cautious but confident outlook, highlighting the importance of conserving resources until economic and market conditions improve, particularly after the anticipated peak in unemployment.
ESG Progress and Governance
Winton advanced its environmental, social, and governance (ESG) commitments, completing its second year of climate-related disclosures and improving greenhouse gas emissions data quality. The company supported local communities through sponsorships, native planting initiatives, and heritage building restorations at Ayrburn.
Governance disclosures reaffirmed a stable Board composition with a mix of executive and independent directors, ongoing compliance with NZX and ASX listing rules, and a commitment to strong ethical standards and risk management.
Bottom Line?
As Winton navigates a subdued property market, its disciplined focus on South Island projects and Fast-track approvals will be critical to its recovery trajectory.
Questions in the middle?
- Will Fast-track approvals for Sunfield and Ayrburn Screen Hub materialise on schedule and unlock new revenue streams?
- How will ongoing economic headwinds and Auckland market softness affect Winton’s unit settlements and pricing in FY26?
- What is the timeline for resuming dividends, and how might capital allocation shift amid cautious market conditions?