Winton Land Doubles Profit on Residential Settlements and Commercial Growth

Profit Surge Fueled by Residential and Hospitality Expansion

Winton Land Limited (NZX:WIN, ASX:WTN) has delivered a striking turnaround in FY26, with net profit after tax soaring 120% to $22.7 million on revenue growth of 21.5% to $188.8 million. The company attributes this jump to a surge in residential settlements and the first full year of trading across its Ayrburn hospitality venues, alongside the February 2026 opening of Bravo, an overwater restaurant at Cracker Bay.

Residential settlements climbed to 430 units, up from 266 the previous year, underpinning development revenue of $147.8 million. Notably, Lakeside at Te Kauwhata concluded a land supply agreement with Kāinga Ora, settling all 317 lots in Stages 4 and 5A, while Northlake in Wānaka saw 102 units settled across multiple stages. Winton has also lodged a private plan change request to Queenstown Lakes District Council to add approximately 65 lots in Northlake’s Stage 19, aiming to extend one of its most established communities.

Retirement and Commercial Ventures Gain Traction

Winton’s retirement village arm marked a milestone with Northbrook Wānaka completing its first year of operation. The Wellness Spa opened in February 2026, and construction is underway on Stage 2, which includes a Welcome Building and 35 care suites for rest home and dementia care, both slated to open in 2027. Meanwhile, Goodfellows, a lifestyle village for over-60s at Lakeside, launched with 18 lots released and a full sales campaign planned for October 2026.

On the commercial front, hospitality revenue nearly doubled to $35.8 million, reflecting the maturation of the Ayrburn precinct and the addition of Bravo at Cracker Bay. The commercial floors above Bravo have attracted quality tenants, enhancing the precinct’s appeal. Ayrburn venues Billy’s and The Woolshed earned Michelin Selected status, cementing their reputations in New Zealand’s dining scene.

Major Projects Advance Amid Regulatory Challenges

Winton’s transformative Sunfield development in South Auckland received a positive decision under the Fast-track Approvals Act 2024 in March 2026, though Auckland Council lodged a High Court appeal in April, with hearings scheduled for September 2026. The Ayrburn Screen Hub also secured approval under the same Act with no appeals lodged, setting the stage for a film studio and accommodation complex that will bolster the hospitality precinct and regional economy.

Balance Sheet Strengthened Despite Economic Uncertainty

Winton closed the year with $38.8 million in cash and borrowings reduced to $44.2 million from $99.4 million, following repayments of the Lakeside and Northlake facilities. The remaining Sunfield and Cracker Bay debt facilities have no recourse to the group level, reflecting a conservative capital structure. Inventories declined by $53.4 million due to settlements, partially offset by ongoing development expenditure.

Gross profit margin improved markedly to 45.4% from 38.3%, driven by higher-margin settlements at Lakeside. EBITDA more than doubled to $45.6 million, while administrative expenses fell by $2.8 million, helped by lower legal costs. The company continues to pause dividends, citing the need for financial discipline amid softer market conditions, though the Board is actively considering when to resume payments.

Leadership Transition and Governance

In a significant leadership change, CEO and Chair Chris Meehan resigned on 5 July 2026 but remains a director and consultant on major projects. Julian Cook, Executive Director of Retirement, has taken on an expanded interim role while the Board conducts a search for a permanent CEO, aiming to announce progress before the upcoming Annual Shareholders’ Meeting. Steven Joyce was appointed Chair of the Board shortly after Meehan’s departure.

Winton’s governance framework remains robust, with a diverse Board and active committees overseeing audit, remuneration, and risk management. The company maintains high ethical standards and is committed to sustainability, though it falls below the new proposed climate-related disclosure threshold due to asset size.

Outlook Tempered by Economic Headwinds

While the New Zealand property market remains subdued; especially in Auckland; and economic uncertainty persists due to global and local factors, Winton is cautiously optimistic. The company plans to focus on converting its substantial landbank of approximately 5,400 units into settlements, advancing key projects like Sunfield and Ayrburn Screen Hub, and optimising its commercial and retirement offerings. The Board will soon review investment projects and update shareholders accordingly.

With a strong cash position and reduced debt, Winton appears well placed to navigate ongoing challenges, though the outcome of the Sunfield High Court appeal and the appointment of a new CEO will be critical near-term catalysts. The dividend pause underscores a prudent approach given the mixed market signals.