The Avanti Group is advising clients on opportunities in Lend Lease Group, as the Australian property developer sees a 10% surge in profits.
The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to Australia’s largest property developer the Lend Lease Group who announced a dramatic change in its fortune in reports to the ASX. The company reports show that Lend Lease has seen a 10 percent rise in operating profit for the year despite some analysts predicting a period of hardship in the Australian property market. The company themselves had been seen to be confirming this assessment when they announced restructuring efforts in June.
With Lend Lease’s announcement that net income had risen to AUD 551.6million up from the previous twelve months figures of AUD 501.4million and accompanied by significant reductions in operating costs forecast, no one is left questioning the company’s financial health. The company’s fortunes were boosted by the successful redevelopment of its central city property Barangaroo.
“Sometimes analysts just over think a situation. Yes, the market contracted slightly and Lend Lease did what any smart company would do and cut costs. But with all of the substantial profits from their Barangaroo financial district developments literally months away from being realized the company was not in a position to down tools and walk away, with decisive management restructuring and a sound strategy the company is in a strong position,” said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.
The property developer finds itself in an enviable position at this time with nearly $37 billion of infrastructure projects on its books for the coming years and already rising profit to cost margins. The company has announced that dividends on its shares will also rise in accordance with its profits, up to 42c Australian over 38c per share last year. Lend Lease shares continue to trend steadily up over the course of the year to date.
“In regards to Lend Lease, our clients benefited greatly from the bad advice being given by others on the company’s health. By talking down Lend Lease’s value our clients picked up shares at reduced prices, have profited as the market’s well-justified confidence returned, and has driven price rises over the period to date. We’re continuing to monitor the situation as it progresses to ensure the best outcomes for our client’s portfolios,” concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.
The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.