Here’s why Lend Lease Group shares have jumped 5% this morning

Credit: U.S. Army Corps of Engineers

The share price of global property and infrastructure company Lend Lease Group (ASX: LLC) has leapt 5% in early trade on Wednesday morning after the group delivered a solid interim profit report.

Here are the key details investors need to know:

  • Revenue increased 24.5% to $7.3 billion
  • Profit after tax grew 12% to $353.8 million
  • Earnings per share also increased 12% to 60.9 cents
  • An unfranked distribution of 30 cents per share was declared and is payable on March 15
  • Record pre-sold revenue was up 49% to $5.4 billion across residential apartments and communities
  • The group has an estimated end value development pipeline of $46.6 billion, up 15%
  • Construction backlog revenue is up 19% to $18.6 billion
  • Funds under management have risen 26% to $22 billion
  • Return on equity was 13.4%

Positive outlook

Like its peers Mirvac Group (ASX: MGR) and Stockland Corporation Ltd (ASX: SGP), Lend Lease is obviously benefitting from a buoyant domestic housing and apartment market.

The group has provided guidance for continued momentum in the property markets in both Australia and the UK with the group on a “strong growth trajectory and earnings visibility with embedded earnings in our existing pipeline”.

Analyst forecast data shows expectations for full year earnings per share of 11.5 cents which looks achievable based on the interim results and the company’s guidance statement (Source: Thomson Consensus Estimates). With the stock 5% higher this morning at $12.90, this implies a price-to-earnings ratio of 11 times.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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