Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Lendlease’s (ASX:LLC) FY19 Report Has Sent The Share Price 8% Higher

The Lendlease Group (ASX:LLC) share price has risen over 8% in response to the FY19 report release.

The Lendlease Group (ASX: LLC) share price has risen over 8% in response to the FY19 report release.

Lendlease is a listed property group specialising in project management and construction, real estate investment and development. The business has been operating for over 60 years and now has around 13,000 employees across Australia, Asia, Europe and the Americas.

Lendlease’s FY19 Result

Lendlease reported that its core operating EBITDA (click here to learn what EBITDA means) fell by 9% in a mixed result. ‘Development’ EBITDA rose by 18% to $793 million, ‘Construction’ EBITDA declined by 29% to $211 million and ‘Investment’ EBITDA fell by 27% to $489 million.

Core EBIT also dropped by 11% to $1.23 billion. However, the business’ total net profit after tax (NPAT) fell by 41% to $467 which included a $500 pre tax provision on underperforming projects which were accounted for in the first half of the financial year.

The market was expecting a net profit of $425 million according to CommSec and Bloomberg, so it appears to beaten the expectations.

Lendlease is in the process of selling its non core business (engineering and services) which generated an after tax loss of $337 million. Several interested parties are currently undertaking detailed due diligence.

But, there were plenty of positives in the report. Its development pipeline is approaching $100 million and it achieved 17% growth of its funds under management (FUM) to $35.2 billion.

It also won a number of new projects, including three major urbanisation projects in Milan, Chicago and Sydney. It also won a $20 billion project in the San Francisco Bay Area after the end of the financial year. It’s also preferred on on two projects in London and Birmingham valued at approximately $17 billion.

It also told investors about its US residential investment partnership with a US$1 billion equity commitment.

Lendlease Management Comments

Lendlease CEO and Managing Director Steve McCann said: “It was a difficult year for the Group with the provision taken in the first half for underperforming Engineering projects impacting the overall result. 

As the separation process progresses, we remain committed to delivering the best possible outcome for our clients, employees and securityholders.”

Is Lendlease A Buy?

Lendlease certainly looks like an interesting option with its very large development pipeline and growing funds under management. But, I’m not sure about what a good price to pay is for Lendlease, and there are certainly risks involved with these huge projects. It might be easier to stick to reliable businesses like the ones in the free report below.

[ls_content_block id=”14945″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content