Babcock Land keeps building

BABCOCK & Brown Residential Land Partners has bolstered its profit for the first half of the year ended December 31 2007.

The group announced a net profit after tax of $2.9 million, up 262% over the previous corresponding period result of $0.8 million.

Revenue from the sale of land increased 470% during the period to $17.1 million.

BLP’s managing director Michael Balkin said this result reflects the solid platform set by the initial portfolio and the success of the group’s acquisition strategy.

“Our strategy of partnering with experienced private developers with a track record in their chosen markets will continue to differentiate BLP from other residential land vehicles.

“The Seabreeze project at Pottsville, in northern NSW, was a strong contributor to revenue during the period. Haywards Bay in Wollongong NSW also performed well, despite the difficult NSW market and the Renaissance Rise project in Melbourne benefited from a rising Victorian market,” he added.

Preferred equity investments delivered interest income of $4.5 million for the six months to 31 December 2007, over 50% higher than in the prior corresponding period, due to a full six months from the Links Living investment and the New Zealand investments which settled in December 2007.

As at January 20, 473 lots had been sold, across the portfolio, with settlement expected prior to June 30. In addition, a further 98 lots have sold and are due to settle in FY09.

BLP also confirmed its net profit after tax guidance of $9.5 million for FY08.

“I’m pleased to confirm net profit after tax guidance of $9.5 million, not withstanding interest rate rises and heavy rainfall which may delay the delivery of lots at our Queensland and northern NSW projects.

“We continue to believe that the underlying fundamentals for residential land in Australia and New Zealand remain strong. Interest rate increases and affordability will remain our greatest challenges in the short term,” Balkin concluded.

Australian Property Journal