Sunland takes conservative approach under pandemic pressure

Queensland property developer Sunland has scraped through the financial year with a $2.4m profit after tax.

Managing director Sahba Abedian of Sunland said the company will focus on existing projects. Pic Annette Dew

Queensland property developer Sunland has scraped through the financial year with a $2.4m profit after tax.

Managing director Sahba Abedian acknowledged the trying economic conditions created by the pandemic had impacted the company’s ability to generate profits.

Underlying earnings of $16.4m were achieved through the 2019 financial year, but the figure does not include the after tax adjustments on some projects which totalled $13.9m.

“The group is not immune from the economic implications brought about by the COVID-19 pandemic on the property industry and the broader market, which flowed through to the group’s performance and strategies as we manage through these unique and challenging times,” Mr Abedian said.

Revenue generated from property sales was down on the 2019 year. Sales totalled $159.8m from 236 settlements, down on the previous year’s achievement of $277.6m from 382 settlements.

Mr Abedian said Sunland will be conservative when it comes to reinvesting in new projects in the future, preferring to focus on its current portfolio in development.

Controversial Gold Coast development, The Lanes Residences at Mermaid Waters, is set to be completed in early next year. Neighbouring project, 272 Hedges, is scheduled to be completed at the start of 2022 but strong sales within the project means only six more apartments are available.

Sunland currently has three projects in the design and development phase – two on the Gold Coast and one in Brisbane.

The group confirmed fully franked final dividend of 7 cents per share, representing a payout ratio of 58 per cent based on underlying earnings. No interim dividend was declared.