Global builder and property developer, Lendlease (LLC) delivered a 12% rise net profit to $353.8 million, for the December half, and a higher dividend for shareholders.
The group declared an interim distribution of 30 cents per stapled security, up from 27 cents paid previously.
Revenue rose 24.5% to $7.34 billion from $5.898 billion in the first half of 2014-15. Chief executive Steve McCann said the group had delivered a strong result with significant momentum, increasing cash generation and a positive growth outlook.
Pre-sales in the closely watched residential business jumped 49%, to $5.4 billion.
Importantly, given concerns about whether the buyers will actually complete the purchase, Lend Lease says the sales are settling. Settlements were up 45% in the half year.
Lend Lease said its international business saw profit after tax slide 41% to $77.3 million. "Significant momentum has driven the first half of FY16, with increasing cash generation and a positive growth outlook," Mr McCann said.
“During the half we had strong sales momentum at residential projects at Victoria Harbour in Melbourne and Elephant & Castle in London and we secured planning approvals for a new urban regeneration project in Chicago."
"Major milestones across our development business included the sale of a 25 per cent investment in Lendlease One International Towers Sydney Trust to a new investor, forward sale of the first two commercial buildings at The International Quarter in London and forward sale of a commercial building at Darling Square in Sydney.
Mr McCann said the Australian engineering business has secured a number of key contracts during the half including the Gateway Upgrade North and Kingsford Smith Drive in Brisbane.
“The business is well placed to secure a growing pipeline of infrastructure works,” he said.
Mr McCann said the group had an increased development pipeline, up 15% to $46.6 billion, a growing construction book with the backlog revenue up 19% to $18.6 billion and more funds under management, up 26% to $22 billion. "We remain on a strong growth trajectory, with greater visibility to earnings and cash over the coming years," he said.
Lend Lease securities jumped more than 4% to $12.84.
