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Lend Lease Group (LLC) Share To Buy

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Publish date: Tue, 24 Sep 2013, 11:02 AM
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Lend Lease Corporation (LLC) is an international fully integrated property solutions provider.

LLC has built itself up as a major player in the property business, using its wide number of subsidiaries to win contracts in Australia and abroad.

The regional business units generate earnings from four lines of business, as follows:

>> Development: involves the development of urban communities, inner-city mixed-use developments, apartments, retirement, retail, commercial and healthcare assets;
>> Construction: involves project management, building, engineering and construction services;
>> Investment Management: involves property and infrastructure investment management, property management and asset management and includes the Group's ownership interests in property and infrastructure investments; and
>> Infrastructure Development: arranges, manages and invests in Public Private Partnership (PPP) projects

Key Points:

FY13 Results:

>> Revenue grew over the 2013 fiscal year by 6% to $12.2 billion
>> Net profit after tax (NPAT) came at $553 million was up 9% on the prior year, and just ahead of the guidance range of $540 million to $550 million
>> EBITDA increased 12% to $744.2 million
>> The major drivers of the growth for LLC was the Development and Infrastructure Development divisions – Development was boosted by the disposal of the initial two Barangaroo office towers in Sydney, and from the sale of its stake in the Singaporean retail and office development, JEM
>> LLC's balance sheet is healthy, with interest coverage sitting at 6.4x and gearing (Net debt to total tangible assets, less cash) falling over the year from 6.3% to 6.1%
>> The group paid 42 cents a share to investors over the year, an 11% increase on the prior year's results

Outlook

LLC has weathered the storm over the last few years and looks set to start collecting the rewards. The group's future growth will be driven by a strong pipeline of work, which currently sits at $37.4 billion.

Another avenue we see LLC going down is the acquisition path. We think that given the company's strong balance sheet it may start to acquire some of the smaller players in the industry on the cheap.

Overall we see continued earnings growth for LLC, which should inturn lead to further share price appreciation.

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Lend Lease Group (LLC) Share To Buy is a post from: Australian Stock Report Share Tips

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