Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Cedar Woods Properties Maintains FY27 Profit Growth Outlook as Presales Exceed AU$763 Million
Highlights:
Cedar Woods Reports First-Quarter FY27 Performance
27 October 2026: Cedar Woods Properties Limited (ASX: CWP) has reaffirmed its financial outlook for FY27, supported by a substantial presales pipeline, steady settlement activity and a strong balance sheet. In its first-quarter operational update released on 27 October 2026, the property developer said it remained on track to deliver approximately 15% growth in net profit after tax (NPAT), with a target of around AU$75 million.
More than 90% of forecast FY27 revenue had been settled or presold as of 30 September 2026, providing visibility over the company’s expected earnings. Presales stood above AU$763 million at quarter-end, broadly in line with the corresponding period last year.
Of this amount, approximately AU$380 million is expected to settle during FY27, followed by AU$316 million in FY28 and AU$67 million in FY29. Cedar Woods Properties Limited (ASX: CWP) was trading at AU$6.310, up AU$0.170 or 2.768%, according to the supplied market data.
Settlements Exceed Budget Despite Softer Sales
Cedar Woods completed 311 settlements during the quarter, exceeding its budget and progressing towards its FY27 target of between 1,100 and 1,200 settlements. Activity included land releases at Ariella, Eglinton Village and Millars Landing in Western Australia, alongside Clara Place in Victoria.
The Douglas Apartments development in Noble Park, Victoria, was completed and settled during the period, with the project sold in a single transaction to a not-for-profit community housing provider. Meanwhile, the first two stages of the Smith Works office warehouse development in Williams Landing were released and sold out, with prices increasing between stages.
However, gross sales declined to 167 during the quarter, down 24% from the previous quarter and 57% from the prior corresponding period. The company attributed the weaker performance to successive Reserve Bank of Australia cash rate increases, cost-of-living pressures, taxation reforms, fewer project stage releases and reduced marketing expenditure. Cedar Woods plans to increase marketing activity and introduce new project stages in the second quarter. It also reported early signs of improving sales during Q2.
Acquisition Opportunities and Dividend Outlook
The company completed a AU$15.55 million acquisition of land adjoining its Bushmead estate in Western Australia during the quarter. The additional site is expected to accommodate 161 residential lots. Further acquisition opportunities are under consideration, with several sites undergoing negotiations or formal due diligence.
Cedar Woods also highlighted its funding position, supported by AU$330 million in corporate finance facilities, including facilities with three-year and five-year tenures. Its fully franked FY26 final dividend of 25 cents per share is scheduled for payment on 30 October 2026, marking the largest dividend in the company's history.
Outlook Remains Positive
Cedar Woods expects its development pipeline of approximately 9,600 lots, homes and offices across four states to support medium-term growth. The largely sold Elegan at Glenside and Incontro at Subiaco apartment projects are expected to complete and settle in the first quarter of FY28.
With strong presales, planned project completions and potential acquisitions, the company continues to target earnings growth despite subdued market conditions. The company’s ability to convert presales into settlements, revive sales activity and secure additional development sites will remain important to its FY27 performance.
Note: All data presented is based on information available at the time of writing.
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