Lend Lease says it is closely monitoring property indicators "for a change in the cycle" but the property and development company says it remains confident in its business outlook.
At its annual general meeting today, Lend Lease chief executive Steve McCann said residential activity in its key Australian and UK markets "remain strong" but that the company was sensitive to any changes in markets.
"We are closely watching lead indicators for a change in the cycle, including a slowing rate of presales for new launches should that emerge," he said, adding the company has 25 major apartment buildings and five commercial buildings in delivery.
"We have also undertaken extensive work to mitigate risks and exposures in our portfolio."
Mr McCann said while the company was confident in its business outlook and the strength of its operations, it would seek to diversify more over the coming years.
"Over the longer-term we will look to further expand in international markets to provide a stronger growth outlook and to further improve our diversity of earnings," he said.
Meanwhile, he said, construction markets remained competitive while weakness in engineering revenue in Australia had been offset by strong building revenues.
The company said it currently boasted about $5.2 billion of pre-sold residential revenue across communities and apartments, up 109 per cent on the previous year. The company also said in August the measure was at $5.2bn.
The existing pipeline of opportunities provided earnings visibility over the coming years and would deliver significant revenue and cash between fiscal 2016 and fiscal 2018, Mr McCann said.
Lend Lease in August 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.
Lend Lease shares retreated 1.79 per cent to $12.05 against a benchmark index fall of 1.5 per cent.