Finbar Group Logs Record $368M Sales in H1 Amid Perth Apartment Boom

Finbar Group delivers record sales momentum in H1 FY26

Finbar Group (ASX: FRI) has reported its strongest sales period on record in its H1 FY26 results, with $368 million in sales value across 409 lots during the half. This represents a 297% increase from H1 FY25, when the Perth apartment developer sold 103 lots, reinforcing market confidence in Western Australia’s residential apartment sector.

The company reported net profit after tax (NPAT) of $10.6 million, up 12.9% on the prior corresponding period. Cash and term deposits nearly doubled to $69 million, an 89% increase from FY25, providing the developer with acquisition firepower for opportunistic land banking. Net tangible assets (NTA) per share rose 2.1% to 93.4 cents.

The record sales velocity demonstrates genuine buyer demand beyond headline announcements. Financial year to-date sales reached $424 million, up 81% over the previous year, with the company averaging 2.0 sales per day, a 333% increase over the prior year.

What drives apartment demand in Perth?

For investors unfamiliar with Perth property dynamics, several structural factors are supporting Finbar Group H1 FY26 results and the broader apartment market. Western Australia is experiencing 1,000 people per week in net population growth, driven by interstate and overseas migration. The state led all Australian jurisdictions with 2.2% population growth over the previous 12 months.

Perth’s rental market remains exceptionally tight, with vacancy rates at 1.2% versus a 10-year average of 3.2%. Apartment rents averaged $682 per week in January 2026, up 6.6% year-on-year. Unit listings sit 40% below the five-year average at 1,882 properties, indicating structural undersupply.

Apartments are outperforming houses in capital growth. For the 12 months to January 2026, Perth dwelling values rose 18.5%, with apartment values increasing approximately 20% compared to 18% for houses. This reflects an affordability gap driving buyers toward mid-market apartments. Perth remains one of Australia’s top performing property markets, with dwelling values up 89% over the past five years.

Key demand drivers include:

1. Migration tailwinds: Annual net increase of 10,288 interstate and 40,406 overseas migrants
2. Rental tightness: Vacancy at 1.2% compared to 10-year average of 3.2%
3. Affordability positioning: Apartments outpacing house price growth since 2024
4. Investor resurgence: Investor finance representing 40% of WA lending volume (December 2025)

This macro backdrop aligns with Finbar’s mid-market positioning, supporting sustained pricing power across its development pipeline.

$1.8 billion pipeline positions Finbar for multi-year growth

Finbar Group’s five-year development pipeline totals $1.8 billion across 1,900+ lots, providing multi-year earnings visibility. The company currently has 667 lots under construction valued at $518 million, representing a 27% increase from FY25.

Total presale contracts reached $548 million, up 76% from the 12 months to 30 June 2025. This comprises $529 million in off-the-plan sales, $12 million in completed stock, and $7 million from Pelago Karratha. The company has projected FY26 NPAT of $18 million to $22 million, approximately 40% above FY25, subject to completion of Bel-Air in the second half.

A key near-term catalyst is the launch of Romeo Applecross on 14 March 2026, with construction anticipated to commence in 1H27. The project totals $183 million across 155 units and has achieved 13% presales during pre-launch.

Projects under construction

Four active projects are progressing toward completion. Bel-Air Apartments in Belmont is 100% sold ahead of anticipated completion in 2H26, de-risking settlement outcomes. Garden Towers in East Perth is 81% sold with $80 million in remaining value and completion expected in 1H27. Riverbank Residences in Rivervale is 99% sold with minimal remaining inventory and 2H27 completion timing.

Construction of Palmyra West Platinum Collection is commencing in March 2026. The $98 million project comprises 130 units and is currently 82% sold, with $19 million in remaining value and anticipated completion in 1H28.

Strong balance sheet supports acquisition strategy

Finbar Group’s balance sheet has strengthened considerably. Bank debt reduced 39% to $30.5 million from $50.3 million at FY25, following repayment of project loans and assets facility. The cash position of $69 million provides flexibility for opportunistic land acquisitions without needing to raise equity or stretch debt covenants.

Total assets stood at $329 million with net assets of $254.2 million. The company’s 30 consecutive years of profitability underpins lender confidence and capital access on competitive terms. Low leverage combined with strong cash reserves means the developer can act on acquisition opportunities as they arise in Perth’s tightly supplied apartment market.

Key balance sheet movements include:

• Total assets: $329m (down 9% from property sell-downs)
• Bank debt: $30.5m (down 39%)
• Cash and term deposits: $68.9m (up 89%)
• Net assets: $254.2m (up 2%)

Buyer profile shifts signal market confidence

Finbar Group H1 FY26 results reveal a diversified buyer base that mitigates settlement risk. First home buyers represented 23% of sales in calendar year 2026 to-date, up from 8% in 2021, reflecting the company’s mid-market positioning. Repeat buyers accounted for 22% of sales, demonstrating brand loyalty through the Finbar Loyalty Club.

Investor share reached 53% in Q1 2026, driven by pre-launch activity at Romeo Applecross. This compares to lower investor proportions in late 2025 when owner-occupier focused projects like Palmyra West (median price $740,000) were launching.

The diversified buyer mix of owner-occupiers, first home buyers, investors, and repeat purchasers reduces concentration risk and supports consistent settlement outcomes across the development pipeline.

Completed stock sell-down accelerating

The company has sold $85 million in completed stock during FY2026 to-date at an average of $10.6 million per month across Civic Heart, Aurora, and The Point projects. Remaining inventory across completed projects totals approximately $35 million. The accelerated sell-through on completed stock de-risks the balance sheet and provides additional cash flow for working capital and acquisitions.

FY26 outlook and near-term catalysts

Finbar Group has reiterated FY26 NPAT guidance of $18 million to $22 million, representing approximately 40% growth above FY25. Underlying NPAT for H1 FY26 was $12.0 million, removing the impact of yearly variation in property portfolio valuation. The company declared a dividend of 2 cents per share, fully franked, signalling management confidence in cash generation.

Key upcoming catalysts include:

1. Bel-Air Apartments completion (2H FY26) – 100% sold
2. Romeo Applecross launch (14 March 2026) – 13% presold during pre-launch
3. Garden Towers completion (1H FY27) – 81% sold
4. Riverbank Residences completion (2H FY27) – 99% sold

The company’s 30-year track record and 100% project completion success rate provides validation of execution capability. With 79 completed developments comprising 7,407 apartments and commercial units delivered since 1995, Finbar Group maintains its position as Western Australia’s leading apartment developer. Clear near-term earnings visibility supported by high presales and defined completion timelines underpin the FY26 outlook.

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