Finbar banks record profit
The rapid uptake of apartment living is paying off for Finbar, the biggest supplier of apartments to Perth's residential market.
The company today reported a net profit of $36.5 million, up 17 per cent on the previous year and said new sites purchased in 2014 had boosted its medium and long-term pipeline of projects to $1.8 billion.
Managing director Darren Pateman said strong apartment sales and promising development sites were supporting growth.
"We've had a busy and successful year across our portfolio with a reasonably robust apartment sales market supporting construction commencements for major projects," Mr Pateman said.
Finbar purchased seven new sites in 2014 with the capacity for 1300 apartments and an end value of $883 million.
The biggest contributors to earnings were profits from its metropolitan projects St Marks, Ecco and Au and the Pelago project in Karratha.
Finbar will pay a fully-franked dividend per share of 10 cents, following its eight consecutive year of profit growth.
The company said completed apartment projects in 2014 contributed to a $61 million cash position to fund working capital.
Finbar recorded the sale of 80 apartments worth $65 million earlier this month in the first week of marketing for the 38-storey Concerto project on Adelaide Terrace in East Perth.
Strong sales were achieved across metropolitan projects, the company said, with construction starting at the Spring View Towers, Toccata, Subi Strand and Norwood developments.
"We have also secured some terrific sites that we are confident will drive our sales growth as they move through the development process, which is becoming even more efficient as Finbar and the apartment market continues to mature," Mr Pateman said.
