Investors were far more accommodating to the solid result from Lend Lease (LLC) yesterday, compared with the reception given to the BlueScope (BSL) rebound.
Lend Lease, the global developer and funds manager, has boosted interim dividend after lifting after tax profit for the December half year to $315.6 million.
That was up 25% from the $251.6 million of the previous corresponding half year.
The shares were up 0.9% to $17,00, in tune with the performance of the wider market yesterday.
Revenue in the period fell 9.4% to $5.898 billion.
The company will pay an unfranked interim dividend of 27c on March 18, up from the 22c paid in the first half of 2013-14.
That was despite a predicted fall in full year result (including one-off items).
LLC 1Y – Market likes Lend Lease results
CEO Steve McCann said the outlook for company remained strong and he was comfortable with analysts’ earnings forecasts for a full-year net profit of between $604 million and $628 million, compared to $822.9 million in 2013-14
2013-14’s results were boosted by the sale of Lend Lease’s share in the Bluewater Shopping Centre in England for a one-off $1.2 billion.
Overall though, Mr McCann said the outlook for Lend Lease remained strong.
“We have adhered to our strategic objectives and focused on disciplined execution of our portfolio of projects,” he said.
“Over the medium term we will look towards measured growth in international markets to deliver greater geographic diversity of earnings.
"Our $40.4 billion global development pipeline, including a significant number of urban regeneration projects, continues to drive growth and earnings visibility for the Group.
"The Australian and UK residential markets have remained strong. We increased our residential pre sold revenue by $2.2 billion, to $3.6 billion, and settlements rose 11 per cent from the prior corresponding period,” said Mr McCann.
The higher dividend represents a payout ratio of 50% of after tax profit for the half year. Lend Lease said its Distribution Reinvestment Plan will apply to the interim dividend.
