The Cedar Woods Properties Limited (ASX: CWP) share price was up and down today but did manage to close out the day's trade 1.4% up. This came following an announcement from the company around lunch time regarding an earnings and acquisition update.
What did Cedar Woods announce?
Cedar Woods announced it expects FY20 net profit after tax (NPAT) to be in the $20 to $21 million range. The estimate reflects pandemic-related delay of significant settlements targeted to occur in June 2020.
Additionally, at the end of last month, Cedar Woods had an estimated $360 million in presales compared to $330 million at the same time last year.
The Federal Government's HomeBuilder package and the Western Australian state government incentives have resulted in an uplift in presales for Cedar Woods.
Pleasingly, the group ended FY20 with a gearing percentage of 38% which is in the lower end of its target range of 20-75%. As a result, it's well positioned to pursue growth opportunities.
Also, Cedar Woods has secured conditional agreement to acquire 28.55 hectares of land in Burpengary, Queensland. This is located in a high growth area of Moreton Bay. However, this is subject to planning and board approval. An application has been lodged with the council.
Audited FY20 results are scheduled to be released on 27 August 2020.
Other recent announcements
On 16 June 2020, Cedar Woods announced an extension to its $30 million finance facility for the Williams Landing Shopping Centre in Victoria that opened in December 2014. The centre comprises a Woolworths Group Ltd (ASX: WOW) supermarket, 21 specialty stores and 1,800 square metres of office space. In addition, the centre was expanded in 2017 with a childcare facility and additional retail space.
The announcement of the $30 million finance facility is in addition the company's $205 million corporate facility with a blend of 3 and 5 year terms.
In a March market update this year, the company was unable to to confirm earnings guidance due to the effects of the coronavirus pandemic. However, the group maintained the strength of its balance sheet, low gearing and finance facilities.
About the Cedar Woods share price
Established in Perth in 1987, Cedar Woods has grown to become a leading Australian property company. It develops residential communities and commercial developments.
The group's product mix includes land subdivisions in residential communities, medium and high-density apartments, townhouses in inner-city neighbourhoods and commercial developments.
The company's share price is currently trading at $5.06 which represents an increase of 1.4% for the day. Over the past year, the Cedar Woods share price has fallen 20.32% on the back of falling demand due to the pandemic.
