Cedar Woods Properties Ltd (ASX: CWP) has already upgraded its profit guidance for the financial year, saying it now expects the bottom line to grow by 15%, up from 10% previously.
The property developer stated that it had achieved record presales of more than $763 million for the first quarter of the financial year, representing an impressive 36% increase over the same quarter last year and a 16% rise from the June quarter.
The company also said it was well positioned to acquire new projects, "supported by a strong balance sheet with low gearing and significant undrawn finance facilities available''.
Dividends to flow
Shareholders in the company will also be celebrating, with Cedar Woods stating that the increased profits will support higher dividends this financial year.
As the company said:
Sales momentum continues to build with growing volumes and sale prices recorded in the first quarter of 2026, and continuing into the second quarter. Approximately $410 million of these presales are expected to settle over the remainder of FY26, and $353 million across FY27 and FY28, providing more earnings visibility over the next two to three years.
The company said it was "very well positioned" for continued earnings growth in future years, with "a robust development pipeline, plus significant capacity to continue replenishing and building the pipeline''.
The balance sheet remains strong with modest gearing, significant undrawn debt facilities and a capital management program that supports the provision of sustained returns to shareholders and investment in future growth.
Demand for housing strong
The company also said there were several macroeconomic trends operating in its favour.
A combination of population growth, low housing supply, stable employment outlook, moderating inflation, easing interest rates and supportive government initiatives are providing significant tailwinds for the new housing sector. These are expected to sustain demand for the company's products at least for the outlook period.
The company said its pipeline was made up of 9400 lots, dwellings, and office units across 35 projects in Queensland, Western Australia, Victoria, and South Australia.
Cedar Woods said the Western Australian and Queensland markets were particularly strong, while sales conditions in Victoria continued to be subdued.
The company said governments at all levels "remain very supportive" of efforts to bring new housing supplies online, and this has resulted in faster planning approvals and better planning outcomes.
Cedar Woods shares closed at $8.04 on Tuesday, valuing the company at $666.9 million.
The shares are trading near their 12-month highs of $8.42 and have increased substantially over the past year from lows of $4.85.
