Cedar Woods Properties has secured over 740 new townhouse and apartment lots across Victoria and Queensland, boosting its medium-term development pipeline while maintaining a strong sales and earnings outlook.
- Acquired Kealba townhouse site for $30.85 million
- Fairfield apartment site secured for $27.25 million
- South Maclean land adds 47 lots to pipeline
- Over 80% of FY27 revenue already presold
- On track for top-end FY26 earnings guidance
Significant Land Acquisitions Strengthen Development Pipeline
Cedar Woods Properties Limited (ASX:CWP) has bolstered its medium-term development prospects by acquiring three key sites across Victoria and Queensland totaling approximately 747 residential lots. The company paid $30.85 million plus GST for a townhouse development site in Kealba, Victoria, expected to deliver around 200 townhouse lots with settlement deferred until mid-FY28. In Queensland, Cedar Woods secured a Fairfield apartment development site for $27.25 million (GST exclusive), poised to yield over 500 apartments across multiple stages, with settlement anticipated by mid-FY27 subject to planning approvals. Additionally, the company added 47 lots adjoining its existing Flourish community in South Maclean for $5.32 million, with settlement completed in May 2026.
Opportunities in Western Australia Underway
Beyond these confirmed acquisitions, Cedar Woods is advancing two land acquisition opportunities in Western Australia. These remain subject to ongoing negotiations and due diligence, indicating potential further expansion in a market where housing undersupply is particularly acute. Managing Director Nathan Blackburne highlighted that moderated bidder activity amid current market conditions has enabled the company to pursue strategically attractive sites while preserving capital flexibility through deferred settlement terms.
Sales and Earnings Outlook Remain Robust Despite Softer Demand
While enquiry and sales activity have softened in the fourth quarter due to reduced stock availability and dampened consumer confidence amid rising interest rates, Cedar Woods reports strong underlying fundamentals. The company has completed all sales and construction for stages settling in FY26 and has presold over 80% of forecast FY27 revenue as of 31 March 2026. Presales stand at more than $788 million, with a portion settled in the latest quarter, underpinning confidence in continued profit growth. The company also maintains a strong balance sheet with low gearing and significant undrawn finance facilities, positioning it well to navigate a housing market characterised by persistent structural undersupply in key states including Western Australia, Queensland, and South Australia.
Earnings Guidance and Strategic Positioning
Cedar Woods remains on track to deliver the top end of its FY26 earnings guidance, forecasting net profit after tax growth of 30% to 35%. The company anticipates continued profit growth in FY27, weighted towards the first half. This outlook builds on prior upgrades to profit forecasts driven by strong sales and project execution, reflecting the company's disciplined acquisition strategy and operational momentum. The timing of settlements on recent acquisitions supports ongoing capital flexibility, enabling Cedar Woods to capitalise on market opportunities without overextending its balance sheet.
Bottom Line?
Cedar Woods’ latest acquisitions reinforce its growth trajectory, but the timing of settlements and evolving market conditions will be critical to watch as FY27 unfolds.
Questions in the middle?
- Will the Western Australia acquisitions reach completion amid ongoing negotiations?
- How will rising interest rates affect sales momentum beyond FY27?
- Can Cedar Woods maintain profit growth while managing deferred settlement capital commitments?