Q1 FY27 highlights: Cedar Woods on track for approximately 15% NPAT growth
In its Q1 FY27 operational update, Cedar Woods Properties Limited (ASX: CWP) reported that it remains on track to deliver FY27 guidance of approximately 15% growth in net profit after tax (NPAT). The company cited NPAT guidance of approximately $75 million.
The FY27 growth target builds on the FY26 results, where NPAT rose 36% to $65.6 million and gross margin expanded to 30%, with the board setting the roughly 15% growth objective off that higher earnings base.
The quarter to 30 September 2026 featured the following highlights:
- On track to deliver FY27 NPAT growth guidance of approximately 15%
- Presales of more than $763 million at 30 September 2026 (pcp: $763 million), providing visibility of future earnings
- 311 settlements completed during the quarter, ahead of budget and tracking well towards the FY27 target
- Low gearing and significant undrawn finance facilities available
For investors, the key figure is forecast revenue: over 90% of forecast FY27 revenue was settled or presold at 30 September 2026.
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Financial results and presales visibility
Presales cover more than a full year of revenue
Cedar Woods stated that presales of more than $763 million represent more than a full year’s revenue. The company said this provides strong earnings visibility, even though sales conditions were softer during the quarter.
The company set out when these presales are expected to settle:
| Financial year | Expected presales settling |
|---|---|
| FY27 | Approximately $380 million |
| FY28 | $316 million |
| FY29 | $67 million |
Record dividend and balance sheet
The fully franked FY26 final dividend of 25 cents per share, payable on 30 October 2026, is the largest dividend in Cedar Woods’ history. Forecast record FY27 earnings are expected to support further substantial dividend distributions.
The company retains $330 million of corporate finance facilities, comprising 80% three-year tenure and 20% five-year tenure. Cedar Woods said this provides secure long-term funding and capacity to pursue new acquisition opportunities.
Portfolio performance and softer sales
Settlements ahead of budget
Cedar Woods achieved 311 settlements during the quarter, ahead of budget and tracking well towards its FY27 target of 1,100 to 1,200 settlements. Settlements included:
- Land stages at Ariella, Eglinton Village and Millars Landing in Western Australia
- Clara Place in Victoria
The Douglas Apartments project in Noble Park, Victoria, was completed and settled during the quarter, with the development sold in one line to a not-for-profit community housing provider. Cedar Woods continues to work on additional affordable and social housing opportunities in Victoria.
At Smith Works in Williams Landing, Victoria, the first two stages of an office warehouse development were released and sold out. Price growth was achieved between Stage 1 and Stage 2.
Sales conditions softer, recovery signs emerging
The company recorded 167 gross sales in the quarter, down 24% on the prior quarter and down 57% on pcp. Buyer activity was subdued across the portfolio, reflecting successive RBA cash rate rises, broader cost-of-living pressures and taxation reforms.
Sales were also lower due to fewer stages being released and lower marketing spend. Increased marketing activity and new stage releases are planned for Q2 to support sales over the remainder of FY27, and sales have since shown signs of improvement in Q2 to date.
Why presales matter for a land developer
A presale is a contracted sale made before a project stage is finished and handed over to the buyer. Revenue is generally recognised at settlement, when ownership transfers, so presales indicate earnings still to come.
That matters when new sales slow. With 167 gross sales in the quarter, the presales position of more than $763 million is the source of the earnings visibility the company describes.
Acquisitions and outlook
Bushmead expansion and acquisition pipeline
As previously announced, Cedar Woods settled the $15.55 million acquisition of land adjoining its Bushmead estate in Western Australia during the quarter. The land enables an additional 161 residential lots at the project.
Softer market conditions are presenting further acquisition opportunities, with a number of sites currently under negotiation or in formal due diligence.
What happens next for Cedar Woods
Several dated and forward-looking items feature in the update:
- The fully franked FY26 final dividend of 25 cents per share is payable on 30 October 2026.
- Increased marketing activity and new stage releases are planned for Q2 FY27.
- Elegan at Glenside in South Australia and Incontro at Subiaco in Western Australia, two significant apartment projects which are largely sold, are expected to complete and settle in Q1 FY28.
- For FY27, the company targets 1,100 to 1,200 settlements and remains on track for approximately 15% NPAT growth.
Cedar Woods said the structural undersupply of housing continues to support the medium-term outlook. With a development pipeline of approximately 9,600 lots, homes and offices across four states, the company said it remains well positioned to deliver continued strong returns.
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