Lend Lease
Lend Lease Corporation Limited (LLC) is an Australia-based company that is engaged in construction and project management, property development and property investment management. LLC focuses on the construction and management of a variety of real estate assets with extensive operation in 40 countries around the world focusing on the Asia Pacific, Europe, Africa, The Middle East and US market. LLC was listed on the Australian Stock Exchange on the 30th of June 1962. The average annual revenue of LLC reaches $14 billion out of its issued capital of $4 billion.
Lend Lease plans to expand its business in retirement homes. As Australia's population is moving quickly into the grey region, the company sees growth prospects in the business. It plans to takeover Babcock and Brown's listed funds to break away B&B Communities (BBC) from its parent company. Lend Lease was listed as one of the prospective buyers of 6.18 percent substantial stake for Babcock and Brown Communities, which owns substantial number of retirement homes and aged-care facilities.
Lend Lease (LLC) have a reiterated Outperform recommendation and a price target of $21.05 per share from analyst Macquarie Research Equities (MRE). As investors were yesterday reeling from the heavy selling that plagued global markets, the reporting season continued, with Lend Lease (LLC) reporting its interim result. Management announced Net Profit After Tax (NPAT) of $163.5m (excluding revals), which was in line with Macquarie Research Equities (MRE) forecast with 12/5 percent EPS growth on track.. LLC reported NPAT of $163.5m (excluding revaluations), was in line with MRE’s $164.4 forecast, though the composition differed, mostly a result of the recently flagged $118.8m provision taken on UK construction operations and the distribution from Lend Lease Global Property Fund ($33m 1H07 with a profit of $87m expected in 2H07). FY07 guidance of $399m (+12.5%) was reiterated. A strong performance over the six months saw over $600m of new equity raised, providing $2bn of future FUM. Total FUM is now A$10.2bn and this is set to increase significantly as new funds are launched and existing funds continue to grow. New fund initiatives flagged include UK wholesale funds for retail and residential assets, further expansion of the Asian retail fund launched in December 2006, and he potential for a communities fund in the US. MRE believe that LLC should undergo further multiple re-rating as it increase its funds management earnings contribution, and is therefore an important catalyst for the stock looking ahead. The retail development pipeline expanded +$1.1bn over the half to A$5.3bn and the gross sales value of the communities backlog is now >A$30bn. The US communities business will provide a significantly increased contribution over the next few years driven by Actus (+72% profit contribution) and further expansion into masterplanned communities. Management flagged more US communities acquisitions, such as Lowry Range and Horizon City, over the next 12 months to build scale. Delfin/LLD performed well given the stage of the cycle and new managed fund initiatives (LLCF1) provide the platform to grow earnings in an otherwise challenging environment. With the Bluecircle option dealt to during the half year, Bluewater ($1.6bn) is now one step closer to the selling block. Recent Provisions taken for losses on UK projects at the 1H07 result take into account an extensive review on the profitability of all current projects in the UK. Strong contributions and outlooks from the US and Asia Pacific divisions supported by a record order book continue to drive EPS growth over the medium-term. LLC continues to trade at a discount to its peer group and will undergo furthermultiple re-rating as it increases its funds management earnings contribution. In addition, the construction division continues the process of de-risking.
Search
Must Read Articles
- Australian Electronics Retailer Companies
- Australian Fashion Companies
- 8 Steps to Scalp the Forex Market
- Australian Media Companies
- Australian Television Companies
- Australian Newspaper Companies
- Australian Publishing Companies
- Australian Internet Companies
- Australian Radio Companies
- Australian Telecommunications Companies
- Australian Automobile Industry Companies
- Australian Capital Goods Companies
- Australian Commercial Services Companies
- Australian Consumer Durables Companies
- Australian Consumer Services Companies
- Australian Online Share Trading
- List of Trading Books
- Interesting Thoughts about the Australian Dollar
- What's the Meaning of Hawkish?
- Do You Know How To Use the P/E Ratio
- Trading, Religion and Politics - Do They Have Anything in Common?
- Shares that are Volatile that Double and Half in the Short Term
- Telstra (TLS) T3
- Margin Call by E-mail
- The Cost of Holding a Position
- Lack of Disclosure: Compensation from ASX Listed Company
- Unrealistic Returns and Benchmarks
- CMC Markets Down
- Quality versus Quantity Forex Trading
- Trading Risk and Leverage Case Study
- The Losing Companies of the 10th Week
Date added 13-03-2010 - The Winning Companies of the 10th Week
Date added 13-03-2010 - Oroton Profitable
Date added 11-03-2010 - Myer Sales Warning
Date added 11-03-2010 - Orica's Tax Bill
Date added 10-03-2010 - Qantas Yields Turnaround
Date added 10-03-2010 - Qantas Troubles
Date added 09-03-2010 - Top 3 Winners of the ASX for This Week
Date added 09-03-2010 - Top 3 Losers of the ASX for This Week
Date added 09-03-2010 - Arrow Energy Takeover Bid
Date added 08-03-2010 - Australian Gold Mines 2010
Date added 07-03-2010 - Dai-Ichi Mutual Life Insurance APRA Approval
Date added 04-03-2010 - Coking Coal Prices Jump
Date added 03-03-2010 - Tatts Group Buys NSW Lotteries
Date added 01-03-2010 - Top 3 Winning Stocks of the Week
Date added 27-02-2010
Top 150 Public Companies Listed on the Australian Stockmarket as at 29/05/2009
- BHP Billiton
- Westpac Banking Corporation (WBC)
- Commonwealth Bank of Australia (CBA)
- National Australia Bank (NAB)
- Telstra (TLS)
- ANZ
- News Corporation (NWS)
- Woolworths Limited(WOW)
- Woodside Petroleum Limited (WPL)
- Rio Tinto
- Westfield Group (WDC)
- Westfarmers Limited (WES)
- QBE Insurance
- CSL
- Newcrest Mining Limited (NCM)
- Origin Energy Limited (ORG)
- Santos Limited (STO)
- AMP Limited (AMP)
- Maquarie Group (MQG)
- Foster’s Group Limited (FGL)




