Lendlease is looking at a 10% to 15% rise in 2016-17 profit, according to a brief profit update slipped out in the middle of a short statement about a new investment vehicle.
The company said that as a result of a number of transactions associated with the new vehicle, Lendlease expects to deliver a "profit after tax of between $680 million and $710 million for FY16.”
The company earned a net profit of $618 million in 2014-15 (which was down close to 309% from the $822 million earned in 2013-14).
At the bottom of the profit range for 2015-16, earnings will be up 10%, while at the top end, the rise will be around 15%.
There was no detail as to how these transactions impacted the profit and what profits were before the deals.
Lendlease’s statement yesterday read:
"Lendlease today announced it has signed documentation for the establishment of a managed investment vehicle, Lendlease Public Infrastructure Investment Company (LLPIIC).
"The managed investment vehicle will invest in three equity positions in social infrastructure public private partnerships (PPP) assets; Sunshine Coast University Hospital, New Bendigo Hospital and Darling Harbour Live. All three projects are currently in delivery and are expected to commence their operational phases over the next 12 months. An Australian based institutional investor will hold a 90 per cent investment in LLPIIC and Lendlease will hold a 10 per cent co-investment.
"The sale of the PPP equity positions is in line with Lendlease’s strategy and as foreshadowed previously to the market. Following this transaction, Lendlease expects to deliver a profit after tax of between $680 million and $710 million for FY16.
"Lendlease Group CEO and Managing Director, Steve McCann, said the transaction illustrates the strong track record Lendlease had built in social infrastructure in recent years.”
The shares closed at $13.19 yesterday.
