Lend Lease has increased full year profit by nearly 50 per cent and says the outlook is positive for the next three years.
The developer and builder’s net profit of $822.9 million included the profit on its sale of its interest in the Bluewater shopping centre in the UK.
Profits at Lend Lease’s European operations were boosted by the sale of the Bluewater shopping centre in England, while profit in the Americas also rose.
But profits in Australia and Asia were lower.
Lend Lease chief executive Steve McCann said he was comfortable with analysts’ expectations of a net profit of $604 million to $622 million in the 2014/15 financial year.
“Forward pre-sales in our residential development business and embedded returns in our existing pipeline clearly underpin our earnings visibility over the next three years,” he said on Wednesday.
In the 2013/14 financial year, profit after tax in Lend Lease’s Australian operations fell 12 per cent to $446 million.
Residential development was up, the retirement business was stable, investment management profit lifted, but results for the construction business were lower.
The construction business was affected by lower revenue, restructuring charges, higher bid costs on major engineering projects, and a fire at the Barangaroo South site in Sydney.
Profit in Asia fell by more than a third to $73.7 million.
Construction profit fell due to a lower contribution from the telecommunications business in Japan.
European profits quadrupled to $446.9 million, with the sale of the Bluewater shopping centre in June generating a net profit of $485 million.
Construction generated a loss of $24 million in the wake of the sale of the Spanish construction business and continued difficult market conditions.
Lend Lease’s profit in the Americas lifted 46.9 per cent to $78.9 million.
Construction profit increased to $50.9 million following an improved contribution from the building of military housing, and core markets in New York abd Chicago.