Australia's Lendlease flags FY24 profit hit as regulator delays sale review (updated)

Stockland

31/05/2024 11:11

(Adds details)
       May 31 (Reuters) - Australia's Lendlease  LLC.AX  warned
on Friday that its core earnings for this fiscal year would be
affected due to the competition regulator delaying its review on
a sale of community projects by more than two months.
    The Australian Competition and Consumer Commission (ACCC)
had invited public opinion on the developer's proposed sale of
12 Australian master-planned community projects to Stockland
Corp  SGP.AX  for A$1.3 billion ($863 million).
    The ACCC's review was due by mid-April, but Lendlease said
the regulator would release its review on July 4 and added that
the "may be a final decision or release of a statement of
issues."
    The company's fiscal year 2024 ends on June 30.
    "On the basis that completion (of sale) does not occur in
FY24, Lendlease's FY24 Group guidance for return on equity is
anticipated to be impacted by approximately 2%," it said in a
statement.
    The company said that its expected sale-related profit of
A$130 to A$160 million would be recorded in the first half of
fiscal 2025, instead of fiscal 2024.
    Lendlease expects its gearing for fiscal 2024 would be at or
around the upper end of its 10%-20% target range, before the
anticipated provision for impairments and charges.
    It had earlier forecast its gearing would be "modestly"
above the mid-point of the target.
 
 ($1 = 1.5065 Australian dollars)

 (Reporting by John Biju and Poonam Behura in Bengaluru,
additional reporting by Sherin Sunny; Editing by Varun H K and
Savio D'Souza)
 ((John.Biju@thomsonreuters.com;))