Cedar Woods Preserves FY27 Profit Target as Presales Offset Sales Slump

Presales Keep Cedar Woods’ FY27 Profit Target Intact

Cedar Woods Properties Limited (ASX:CWP) is relying on a sizeable presales book to look past a sharp contraction in new sales. The property developer said it remains on track for approximately 15% growth in FY27 net profit after tax, equivalent to around $75 million, with more than 90% of forecast FY27 revenue already settled or presold at 30 September 2026.

Presales stood above $763 million at quarter end, broadly matching the prior corresponding period and representing more than a full year’s revenue. About $380 million is expected to settle in FY27, with a further $316 million scheduled for FY28 and $67 million for FY29. The position builds on the company’s record FY26 result and FY27 growth target, which included $65.6 million in FY26 NPAT and a similar 15% earnings ambition.

Settlements Run Ahead While New Sales Weaken

Cedar Woods completed 311 settlements in the first quarter, ahead of budget and tracking towards its FY27 target of between 1,100 and 1,200. Activity included land stages at Ariella, Eglinton Village and Millars Landing in Western Australia, as well as Clara Place in Victoria.

The more immediate concern sits further up the sales pipeline. Gross sales fell to 167, down 24% from the previous quarter and 57% from the prior corresponding period. The company attributed subdued buyer activity to successive Reserve Bank of Australia cash rate rises, cost-of-living pressures and taxation reforms, while also pointing to fewer stage releases and lower marketing expenditure during the quarter.

Q2 Marketing Push Faces the Sales Test

Cedar Woods said increased marketing activity and new stage releases are planned for the second quarter, with sales showing signs of improvement in Q2 to date. That early improvement is not quantified in the update, leaving the next reporting period to establish whether the weaker first-quarter result was mainly a timing issue or a more persistent demand problem.

Operationally, the quarter included the completion and settlement of Douglas Apartments in Noble Park, Victoria, which was sold in one line to a not-for-profit community housing provider. At Smith Works in Williams Landing, the first two office warehouse stages sold out, with price growth achieved between the first and second stages.

Bushmead Expansion Adds 161 Residential Lots

The company also settled its previously announced $15.55 million acquisition of land adjoining the Bushmead estate in Western Australia, adding 161 residential lots. Cedar Woods said softer market conditions were creating further acquisition opportunities, with several sites under negotiation or formal due diligence, although it did not disclose targets or transaction terms.

Its balance sheet provides room to pursue that strategy: corporate finance facilities total $330 million, with 80% carrying three-year tenure and 20% five-year tenure. The company also said it continues to build presales and construction progress for Elegan at Glenside in South Australia and Incontro at Subiaco in Western Australia, two largely sold apartment projects expected to complete and settle in the first quarter of FY28.