The company has 3739 properties yet to be released or under construction on the Gold Coast, accounting for 62 per cent of its portfolio.
Its developments include the $85 million Marina Concourse apartment project at Royal Pines and the flagship $850 million The Lakes precinct at Mermaid Waters.
Managing director Sahba Abedian said Sunland takes a counter-cyclic approach to acquisitions, purchasing sites when the market is flat or recovering.
Sunland paid $61 million in 2014 for the 42ha The Lakes, with market sources saying valuers have since put its worth at twice that sum.
“We are seeing the flowthrough of acquisitions to the profit outcome across the group,” he said.
Sunland reported a net FY2016 profit of $31.5 million yesterday, up 5 per cent from $30.1 million a year earlier.
The result exceeded the company’s guidance of between $25 million to $29 million.
It declared a final dividend of 5¢ a share, delivering a full-year dividend of 8¢a share.
The company launched 10 projects in FY16 including Magnoli Residences at Palm Beach and The Heights community at Pimpama.
Mr Abedian said increased development margins, capital management, and earnings from retail assets had driven the solid result.
Sunland is looking to expand its multistorey product offerings to include integrated mid-rise unit developments and hopes such projects will make a greater contribution to profit in FY17.
Mr Abedian said the price gap between Sydney and Melbourne and the Gold Coast makes the city highly attractive to southern buyers.
“When you think about the discrepancy between the median house price in Sydney and Melbourne and the Gold Coast, it is considerable. We have observed an increase in activity on the Coast since the federal election and I feel confident moving into this financial year.”
He urged the Gold Coast council to give strong consideration to the $600 million two-tower Mariner’s Cove proposal, a controversial development planned for the Spit.
“When you analyse the opportunity it should be given strong consideration,” he said.
“The city should determine whether it needs a development of such magnitude for the long-term benefits.”
Sunland racked up $261 million in sales for FY16 compared to $509 million in the previous year.
The company said the dip in sales was due to projects in NSW and Victoria selling out and no additional projects being released in those states.
It accrued $235.6 million from 443 property settlements and ended the year with $19.9 million in cash and its debts equating to 33 per cent of the value of assets.
Its shares closed at $1.65, up 14¢ or 9.27 per cent.
Original article published at www.goldcoastbulletin.com.au by Alister Thomson 24/8/16