Finbar Locks in $113M From 99.5% Sold Bel-Air as Settlements Start End-June

Finbar completes $114 million Bel-Air project as settlements set to begin

Finbar Group has announced the completion of its wholly-owned Bel-Air Apartments development in Belmont, with individual strata titles now issued and settlements anticipated to commence end-June 2026. The 10-storey residential tower achieved strong market acceptance, with 193 of 194 apartments sold, representing $113.4 million in sales value from a total project value of $114 million.

The project comprises 194 residential units and 2 commercial tenancies, delivering a 99.5% sellout rate before settlement. Both ground floor commercial tenancies have also been sold. As a wholly-owned development, Bel-Air delivers 100% of profits to Finbar.

Settlements are expected to commence at end-June 2026, with the timing of these transactions determining which financial year captures the revenue. The company has indicated settlements will potentially occur across both FY26 and FY27, introducing a timing variable that will influence reported results for each period.

What does project completion and title issuance mean for property developers?

When a property developer announces “titles issued,” this represents a critical legal milestone that directly impacts revenue recognition timing. Strata title issuance means each individual apartment now has separate legal title, allowing purchasers to complete their settlements and take ownership.

For developers, there is a crucial distinction between “sold” and “settled.” When an apartment is sold, a contract is exchanged and a deposit typically paid, but the developer does not recognise the full sale revenue at this point. Revenue recognition occurs at settlement, when the purchaser pays the balance and receives legal title.

This timing matters significantly for shareholders. A project that is 99.5% sold demonstrates market validation and de-risks future revenue, but the profit only appears in financial statements when settlements complete. The end-June timing of Bel-Air settlements means revenue could flow through to either FY26 (ending 30 June 2026) or FY27, depending on the exact settlement schedule.

Wholly-owned projects like Bel-Air deliver higher returns to shareholders than joint venture structures. In a joint venture, development profits are shared between Finbar and its capital partner. With wholly-owned projects, 100% of the margin flows to Finbar shareholders, making settlement timing on these developments particularly material to reported earnings.

FY26 profit guidance reaffirmed at $18-22 million

Finbar has reaffirmed its FY26 net profit after tax guidance of $18 million to $22 million, originally provided at the Half Year results on 26 February 2026. The company noted that settlements are likely to occur across both FY26 and FY27, with the split between these periods influencing which financial year captures the bulk of Bel-Air’s profit contribution.

Finbar’s record H1 FY26 sales results, reported in February 2026, provided the context for the $18-22 million profit guidance, with $548 million in total presale contracts across the portfolio underpinning management’s confidence in near-term settlement outcomes.

Management has committed to updating the market if the recognition of settlements materially differs from expectations in the split between FY26 and FY27. This transparency is important given the wholly-owned nature of the project and the $113.4 million in contracted sales value awaiting settlement.

The end-June settlement commencement timing creates a natural division point. Settlements completing before 30 June 2026 will contribute to FY26 results, whilst those settling after that date will flow through to FY27 reporting. With 193 apartments to settle, the pace of settlement processing will determine the financial year allocation.

Ronald Chan, Chief Executive Officer

“The completion of Bel-Air is a clear example of our objective to deliver mid-level apartment stock that responds to genuine market demand. By focusing on affordability, quality and well-connected locations, we are providing new homes that are accessible to more people without compromising on design, amenity or liveability.

Belmont is well aligned with that strategy, offering proximity to transport, employment, Perth Airport, the CBD and the Swan River. This project demonstrates how considered apartment development can make a meaningful contribution to housing supply while supporting positive long-term community outcomes.

I would like to thank our builder, Hanssen, for its efforts in what remains a challenging construction environment, together with our consultants and the Finbar team for their commitment in bringing this development to life.

Finally, Finbar would not be able to deliver projects such as Bel-Air without the support of our purchasers, who recognise the value of what the Company delivers, whether as a new home or as an investment.”

Bel-Air project details and market positioning

The Bel-Air development at 239 Great Eastern Highway, Belmont comprises a 10-storey tower delivering 194 apartments and 2 commercial tenancies. Resident amenities include a pool, gymnasium, sauna, residents lounge and games room, targeting the mid-market apartment segment.

Belmont’s location strategy aligns with Finbar’s focus on affordable, well-connected sites. The suburb offers proximity to Perth CBD, Perth Airport, the Swan River and established transport links, positioning the development within key employment and amenity corridors.

The 99.5% sellout rate before settlement demonstrates market acceptance of Finbar’s site selection and product positioning. Affordable mid-market apartments in growth corridors align with Western Australia’s housing demand drivers, particularly as supply constraints persist across Perth’s established suburbs.

Finbar’s development track record

Finbar brings over 30 years of experience in Western Australian apartment development, with Bel-Air representing the continuation of an established delivery capability. The company’s track record includes:

• 79 developments completed
• Over 7,400 apartments delivered
• $4.5 billion in total development value

This execution history provides context for the Bel-Air completion, demonstrating the company’s ability to navigate projects from acquisition through to settlement. Chief Executive Officer Ronald Chan acknowledged builder Hanssen for its efforts in what remains a challenging construction environment, noting the ongoing complexity of delivering large-scale residential projects.

The wholly-owned structure of Bel-Air differentiates it from joint venture projects in Finbar’s pipeline. Whilst joint ventures allow capital sharing and risk spreading, wholly-owned developments deliver higher margin contributions to the company’s profit when settlements complete.

What to watch for investors

The key near-term catalyst for Finbar shareholders is the commencement of Bel-Air settlements at end-June 2026. The timing of these settlements relative to 30 June 2026 will determine how the $113.4 million in contracted sales value splits between FY26 and FY27 financial results.

Investors should monitor the following variables:

1. Settlement commencement timing (end-June 2026 target)
2. FY26 vs FY27 revenue split updates from management
3. Confirmation of profit recognition timing as the 30 June financial year-end approaches

The company has committed to updating the market if settlement timing materially shifts profit recognition between financial years. Given the wholly-owned nature of the project and the $114 million total project value, the pace of settlements will be a material determinant of reported FY26 earnings.

With 193 apartments to settle and a reaffirmed profit guidance range of $18 million to $22 million, the Bel-Air project represents a significant margin-positive contributor. The settlement timing around 30 June creates the key variable determining how much of this profit flows through to FY26 versus FY27 results.

For investors exploring how Finbar is positioning its wholly-owned pipeline beyond FY27, our deep-dive into the West Leederville twin tower project covers the DA lodgement, planning framework, and the FY2029/FY2030 earnings contribution timeline for the $230 million two-tower development.

Want to Track Finbar’s Settlement Timeline and FY26 Earnings Impact?

With $113.4 million in contracted Bel-Air sales awaiting settlement from end-June 2026, the timing split between FY26 and FY27 will materially influence reported profit within the reaffirmed $18-22 million guidance range. This wholly-owned project delivers 100% of margin to shareholders, making settlement pace a key catalyst.

To monitor management updates on settlement commencement, revenue recognition timing, and how the FY26/FY27 split evolves as the 30 June financial year-end approaches, visit the Finbar investor centre. You’ll find announcement tracking, project pipeline analysis, and earnings timeline context for navigating this near-term settlement catalyst.