Cedar Woods Properties Ltd Highlights FY26 Profit Lift and FY27 Growth Target

In its FY26 full year results presentation, Cedar Woods Properties (ASX: CWP) reported a 36% lift in net profit after tax to $65.6m, alongside total revenue of $502.4m, up 8% on the prior corresponding period.

The property developer delivered earnings per share of 77.9¢, up 33%, and lifted dividends per share by 34% to 39.0¢. Management pointed to presale contracts of $830m at 30 June 2026 as underpinning future settlements, and set a target of 15% NPAT growth for FY27.

The result combines earnings growth, income through fully franked dividends, and exposure to a structural housing undersupply that management expects to support demand over the medium term.

FY26 results in detail

Revenue rose 8% on improved pricing and a different product mix, while gross margin expanded to 30% from 28% in FY25. Lower finance costs of $9.1m, down from $15.3m, reflected reduced average debt, gains on interest rate hedges, and higher capitalisation of interest.

Operating profit climbed to $103.4m from $84.7m. Across the year, the company recorded 1,068 settlements and 1,326 net sales, while adding 1,184 lots to the pipeline through acquisitions contracted during FY26.

The Cedar Woods H1 FY26 results, reported in February 2026, flagged the earnings trajectory early, with a 163% surge in first-half profit to $39.6 million prompting a full-year guidance upgrade that the FY26 full year result has now confirmed.

Balance sheet strength

The presentation outlined a conservatively geared capital position at 30 June 2026:

• Net assets of $544m, with net tangible assets per share of $6.35

• Net bank debt of $157.7m and gearing (net debt to equity) of 29%

• Interest cover improved to 8.1x, from 6.3x in FY25

• A $330m corporate facility with $112.6m of headroom

The company maintains a strong balance sheet with conservative gearing. Management also noted that its broad customer base enables performance across cycles.

What Cedar Woods does, and why the housing shortage matters

Cedar Woods operates a property development model built around acquiring land, developing master-planned communities, apartments and townhouses, pre-selling stock, and then settling to recognise revenue. Presales are contracts signed with buyers ahead of settlement, providing forward visibility on earnings.

The $830m in presale contracts held at 30 June 2026 underpins settlements across FY27 to FY29, including more than $290m in presales already in place for FY28 and FY29.

Management framed the demand backdrop around a structural housing undersupply. New housing supply sits near a 10-year low, with the company citing an expected shortfall of 400,000 dwellings against government targets. Listing volumes were noted as 9% below the previous five-year average, conditions that management expects to underpin pricing and sales volumes over the medium term.

A diversified portfolio across four states

The presentation detailed a portfolio of 36 projects and a pipeline of more than 9,600 lots and units, diversified by geography, product type and price point.

Portfolio composition by location:

• Western Australia 33%, Victoria 28%, Queensland 22%, South Australia 17%

Product mix:

• Land 61%, townhouse/semi-detached 30%, apartment 8%, commercial 1%

Buyer profile (presales at June 2026):

• First home buyers 37%, upgraders 30%, investors 23%, downsizers 10%

State highlights included Western Australia (3,240 lots, with Incontro Apartments 93% presold), Victoria (2,672 lots, following a strong Corio sales launch), Queensland (2,133 lots, with Vera apartments settling in H1 FY27), and South Australia (1,606 lots, with Fletcher’s Slip and Glenside progressing). Diversification is intended to support performance across market cycles, while first-home-buyer exposure aligns with government incentives.

Partnerships scaling the business

Management highlighted two major partnering arrangements. Cedar Woods is partnering with QIC on the development of land adjacent to the Robina Town Centre in Queensland, comprising more than 400 dwellings, with both parties exploring opportunities to expand the relationship.

The company is also partnering with Tokyo Gas Real Estate (TGRE) across four joint ventures, three of which have been successfully completed. TGRE has stated it plans to deploy $600m into property globally, particularly in Australia.

The partnering strategy is designed to scale the business in a capital-efficient manner, generating recurring fee income and improving return metrics.

Acquisitions replenishing the pipeline

In early FY26, the company embarked on an accelerated acquisitions strategy, securing six sites, with further sites under due diligence. In July 2026, Cedar Woods contracted and settled a further Western Australian acquisition for $15.55m, expanding its Bushmead estate by an additional 161 residential lots.

Aveley, Springvale and Fairfield (QLD) are held under conditional contracts.

Market conditions and the FY27 outlook

Management outlined a balanced view of trading conditions. The property market is currently moving through a slowdown that is expected to persist for much of FY27, with buyer caution linked to three interest rate hikes in 2026, taxation changes and geopolitical factors including the Middle East conflict.

Demand nonetheless remained evident. The company received a record 30,137 enquiries during FY26, up 25%, and recorded record gross sales of 1,521 lots, homes and offices, up 5%.

Looking ahead, management pointed to supportive fundamentals. Interest rates are forecast to fall in 2027, the national unemployment rate sat at 4.4% at June 2026, population growth remained at 1.5% at December 2025, and net overseas migration of 245,000 is forecast for FY27.

Anticipating the slowdown, Cedar Woods brought forward sales releases to build presales, and reported that over 90% of the presales targeted for FY27 have been contracted.

FY27 guidance and forward earnings

The outlook rested on four pillars:

1. An FY27 NPAT growth target of 15%

2. Presales of $830m underpinning settlements across FY27 to FY29

3. A strong balance sheet with ample liquidity from undrawn facilities and cash

4. A growing pipeline of more than 9,600 lots supporting future earnings

Management noted that this outlook is subject to market conditions.

Cedar Woods highlighted that the structural undersupply of housing across Australia will continue to support the new housing sector, with interest rates forecast to fall in 2027 expected to improve affordability, sentiment and sales volumes. The company noted that demand is expected to build in the interim as completions remain low and the population grows.

Why investors are watching Cedar Woods

The presentation framed the value proposition around a combination of growth and income metrics based on the share price at 24 August 2026:

• A price-to-earnings (PE) ratio of 8.1x

• A fully franked dividend yield of 6.2%

• A long and consistent track record of profits and dividends

• A structural housing shortage positioned as a multi-year demand driver

Taken together, the FY26 result and FY27 guidance present a growth-plus-income proposition supported by presale visibility and a diversified national pipeline, with earnings delivery remaining subject to prevailing market conditions.

Don’t Miss the Next Real Estate Winner on the ASX

Get FREE breaking ASX property and real estate news delivered to your inbox within minutes of release, complete with in-depth analysis already done for you. Join 20,000+ subscribers staying ahead of the market before prices move. Click the “Free Alerts” button at Big News Blast and get the next market-moving announcement the moment it drops.