"Conservative management" could be Sunland's best bet through market downturn

Despite exceeding its guidance, Sunland Group's (ASX: SDG) profit margin has dipped 11 per cent as market headwinds begin to emerge.

The Gold Coast-based property developer posted a $298.7 million revenue, down 26 per cent on FY17, as well as a 19 per cent reduced earnings before interest and tax result of $51.9 million.

While Sunland's FY18 financial performance may have left shareholders wanting, the group's operational progress was lifted by $32 million worth of new site acquisitions across Brisbane and Victoria.

Sunland also launched four new residential projects including Magnoli Apartments, 272 Hedges Avenue and Arbour Residences on the Gold Coast and The Hills Residences in Brisbane.

Managing director Sahba Abedian says that although property sales were diminished at $290.4 million, down 26 per cent, the "cyclical nature" of the industry is expected to revive performance beyond 2019.

"Following a nine-year period of expansion, the Australian property market has entered an inevitable phase of consolidation and adjustment," says Abedian.

"This is the natural consequence of the cyclical nature of our industry and evidenced by a reduction in the volume of property sales, a reduction in foreign investment, a tightening of the lending environment and softening economic conditions. Read more

Paris Faint - Business News Australia - 22 August 2018