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Lend Lease profit, revenue dips

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Lend Lease profit and revenues dropped over the last 12 months despite the booming property market but the company said pre-sold residential revenues were up strongly.

The company posted a net profit after tax of $618.6 million for the year ending June 30, a 25 per cent slide on last year's $823m result.

Last year's earnings were bolstered by the $485m contribution from the sale of the Bluewater Shopping Centre in the UK.

Revenue for the group fell 4.7 per cent to $13.28 billion, but the figure beat analyst expectations, which averaged $12.7bn.

Lend Lease said booming residential property markets in Australia and the UK supported earnings, with global settlements increasing 24 per cent on the prior year to new highs. 

Profit from Australian operations increased 40 per cent over the year, while Asian based profit before tax slid 77 per cent. Profit from Lend Lease's European arm was down 75 per cent over the year, while the firm saw a 14 per cent lift in profit in the Americas.

"In the last year our pre sold residential revenue has more than doubled to $5.2bn," chief executive Steve McCann said, with the sales to deliver earnings beyond the 2018 financial year.

"Our development pipeline has continued to expand, with a number of new international projects secured during the year in Asia and our first major development projects in the Americas," Mr McCann said. "The pipeline has reached a record level of almost $45bn."

The end value of that development pipe line has increased 19 per cent year on year.

Lend lease said it is expecting more than 1,000 apartment settlements over the coming year

Lend Lease will pay a final dividend of 27c per share on September 18, bringing the total distribution to 54c over the year, up on the prior year's 41c payout.

Lend Lease shares fell 4.12 per cent to $13.72 against a benchmark index fall of 4 per cent.

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Property and development company sees revenue fall 4.7%, but supported by residential boom.

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