Lendlease posts $1.5b loss after strategic pivot
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The news: Lendlease has posted a $1.5 billion loss after announcing a strategic refresh in May — following a concerted activist investor campaign to simplify the business and refocus on Australia.
The numbers: The company announced a statutory loss of $1.5 billion on the back of $1.38 billion in impairments and a 10% reduction in investment property valuations.
Core operating profit was up 2% to $263 million as Lendlease cut corporate costs by 13%, offset by higher financing costs more broadly. Core operating EBITDA rose by 23% to $669 million.
It will pay a final dividend of 9.5 cents per share.
The company expects to receive $2.4 billion cash this financial year from apartment settlements at its One Sydney Harbour project.
The context: It comes as Lendlease talked up the early progress of its strategic overhaul, including the progressing of $1.9 billion of sales to recycle $2.8 billion of assets this financial year, the elimination of regional management structures and divesting its US construction arm.
What they said: “Our results for FY24 reflected challenging business conditions and the early actions from our refreshed strategy,” group CEO Tony Lombardo said, noting the company’s simplified management structure would continue to deliver savings.
“Our priorities remain strengthening the balance sheet, returning capital to securityholders, investing in our high return Australian operations and growing our international investments platform.”
The source: ASX announcement
