Northlake, Winton Land's huge Wanaka development. Photo / Winton Land
Northlake, Winton Land's huge Wanaka development. Photo / Winton Land
NZX-listed property developer Winton Land suffered revenue and net profit drops after real estate sales declined in what its chief called a “challenging economic environment and property market”.
Revenue fell from $92.8 million in the six months to December 31, 2022, to $85.6m in the half-year to December 31, 2023.
Net profit after tax tumbled from $34.5m to just $9.7m in the latest half-year, partly due to revaluations that had boosted accounts by $15.6m, rising only $2.6m in the latest period but also due to the revenue fall.
Winton had sold 219 property units previously, but only 158 in the latest period, it said.
The company, which is building many new retirement villages, is headed by Chris Meehan.
It was listed on the NZX three years ago, is majority-owned by Meehan and is a large-scale developer that specialises in integrated or master-planned communities in New Zealand and Australia.
Meehan today referred to the “current challenging economic environment and property market”, but indicated a strong workload, particularly with new retirement villages under the company’s Northbrook brand.
He said highlights this year so far included starting construction at Northbrook Wynyard Quarter, Northbrook Wanaka and Northbrook Arrowtown.
Winton is getting accolades for the new dining precinct Ayrburn near Arrowtown, at a historic 160-year-old farm.
A stone woolshed has been turned into a 240-seat breakfast-through-dinner restaurant where you can sit indoors or outside under umbrellas.
Ayrburn Farm was established by William Paterson. It was one of the first in the area after W.G. Rees settled in the district in 1860, and after gold was discovered in the Shotover River in 1862.
Winton Land CEO Chris Meehan has acknowledged a subdued property market in today's half-year result to December 31, 2023.
He acknowledged factors driving the housing market down.
Some positive indicators were appearing, including slowing inflation, an increase in net migration, and decreasing residential lending rates.
“In the short term, we are prepared for sales to remain slower, inflation to remain elevated, and continued pressure on borrowers. However, we are focusing on buyer groups that are the least affected by these headwinds and are generally well positioned to use current market conditions to our advantage,” Meehan said.
Winton has already flagged lower revenue for its June 30, 2024 result due to the timing of construction, settlements and the continuation of a subdued property market.
Shareholders will get a 0.55¢-a-share dividend for the latest half-year.
Last February, Winton nearly doubled its revenue and significantly boosted bottom-line profit after making strong residential sales for the interim period.
In the six months to December 2022, the company earned $81.1m revenue, up from the previous $44.3m in the six months to December 31, 2021.
Winton Land's Northbrook Arrowtown is a retirement village and luxury boutique hotel.
A previous interim net profit after tax of just $1.3m rocketed up to $34.5m net profit after tax in the December 2022 half-year.
Its bottom line was also boosted by $15.6m revaluations when many other listed property companies were suffering devaluations in interim results.
Yesterday, Winton shares were trading at $2.47, up 30 per cent annually. But two years ago, shares were at $3.50.
The company has a market capitalisation of $732m.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
