Good morning, and welcome to the presentation of the FY '26 full-year financial results for Cedar Woods. My name is Nathan Blackburne, and with me is our CFO, Leon Hanrahan.

In this presentation, we will provide an overview of the company and its activities, our financial results, the outlook for the new housing sector, our portfolio, and then we will finish with the outlook for our business. Cedar Woods has built a strong reputation over many years as a disciplined developer of large-scale residential projects.

That has a consistent track record of delivering both earnings growth and sector-leading shareholder returns. Today, we have 36 projects across four states and more than 9,600 lots, apartments, and commercial opportunities in our pipeline.

This scale, combined with our diversified product mix and broad customer base, positions us well to perform across different market conditions. We are delivering approximately 1,100 dwellings and residential lots per year, and we have a good pipeline of projects to support future earnings.

Importantly, we maintain a conservatively geared balance sheet and continue to leverage strategic partnerships to expand the business in a capital-efficient manner. These foundations, combined with favorable long-term housing fundamentals, continue to underpin our confidence.

Now to a summary of our FY '26 financial results. FY '26 was another strong year for the business.

We delivered a record net profit after tax of $65.6 million, up 36% on the prior corresponding period. Revenue increased to more than $502 million.

Earnings per share rose 33%, and dividends per share increased 34%. Operationally, we achieved 1,326 net sales and 1,068 settlements during the year.

Presales at the year-end stood at a record of $830 million, providing excellent earnings visibility for future periods. Over 90% of the settlements we need for FY '27 have already been sold and contracted, and we are making good progress with the sales needed even for FY '28.

We also replenished and expanded the portfolio through acquisitions that added more than 1,100 lots to our future pipeline. Leon will cover off on our financials in more detail shortly.

Our strategy remains unchanged and has served the company well through a range of market cycles. We focus on building a geographically diversified portfolio offering a broad range of product types and price points.

This diversification reduces risk, broadens our customer base, and allows us to respond to changing market conditions across the country and is a key differentiator for our business. The strength of the Cedar Woods model is our integrated approach.

Value creation begins with disciplined acquisitions supported by comprehensive research, conservative assumptions, and structured risk management. From there, we focus on quality project design and delivery, respectful stakeholder management, and a strong sales and marketing platform that maximizes demand and conversion.

This approach has consistently delivered attractive returns while maintaining prudent risk settings. Partnerships are becoming an increasingly important part of our growth strategy.

They enable us to accelerate growth, improve returns on capital, diversify funding sources, and generate recurring fee income. Further diversification and greater scale allow the company to perform even more consistently through the cycles.

We have relationships with QIC and Tokyo Gas Real Estate. The three projects we have recently completed with Tokyo Gas performed above expectations, and our plan is to expand the partnering component of the business.

Now on to ESG highlights. Sustainability and community outcomes remained integrated into the way we develop projects.

During the year, we progressed a range of initiatives, including innovative energy solutions, affordable housing projects, and our community grants programs. Cedar Woods also continues its national partnership with The Smith Family, Australia's leading children's education charity.

We also continued preparations for mandatory climate-related reporting and maintained a focus on workplace culture and employee engagement. I will now hand over to Leon.

Thanks, Nathan. Good morning, everyone.

Looking at the full-year results in more detail, higher revenue and growing margins have resulted in a much improved profit outcome for FY '26. Revenue is up 8% for the year, notwithstanding fewer settlements, due to improved pricing and, to a lesser extent, a different product mix that settled.

Gross margin improved to 30%, up from 28% in the prior year, and group margin is expected to be stable into FY '27. Project operating costs were lower, largely due to savings in landholding costs, also with lower marketing costs incurred than planned.

Higher admin costs in FY '26 were associated with increased headcount and incentives, as we've reward- rewarded performance and continue to invest in new projects reflecting our accelerated acquisition strategy. Finance costs expense were lower than the prior period as a result of lower average debt, gains on interest rate hedges, and higher capitalization of interest, which reflects the stage of our developments.

Now taking a look at key elements of the balance sheet and the capital position of the business. Total assets at 30 June of $884 million were up $26 million on the prior-year balance, reflecting the net growth in our property inventory.

Net assets and equity were up 11% from 30 June '25, largely reflecting the full-year results earning less dividends paid in the period. While group debt increased modestly to support growth and acquisitions, finishing the year at $157.7 million, gearing remained conservative at 18% on a net bank debt to total tangible assets less cash basis.

Gearing is currently at the lower end of our target range and is expected to remain in comfortable levels throughout FY '27. In the absence of new acquisitions that are not currently under consideration today, expected to finish the year in '27 around 20%.

The company extended the tenure of its three- and five-year corporate finance facilities during the year, ensuring continued secure, long-term funding availability with an average debt maturity of three years. We maintain a strong liquidity position with significant facility headroom available at year-end and interest cover at 8 times comfortably above our facility covenants of 2 times.

I'll now hand back to Nathan.

Thanks, Leon. I'll I'll now touch on the performance of our portfolio and the sales conditions that we're experiencing around the country.

FY '26 saw record inquiry and sales activity, despite a noticeably softer market in the final quarter. During the year, we received more than 30,000 inquiries, up 25% on FY '25, while gross sales increased 5% to a record 1,521 lots, homes, and offices that were sold.

Affordable and mid-priced land products were the strongest performers. Conditions weakened during the fourth quarter across all states as buyer confidence was impacted by rising interest rates, the Middle East conflict, and taxation changes.

Importantly, the weaker fourth-quarter numbers were also explained by lower marketing spend, which generates less inquiry and sales, as well as low stock volumes at the time. Anticipating this slowdown, we focused on securing sales further ahead of settlement and successfully built a large book of presales.

As a result, more than 90% of our FY '27 targeted presales are already contracted, providing strong earnings visibility for the year ahead. Most of the sales we are doing now are to support FY '28 and FY '29.

Whilst sales have slowed, we expect to have ample time to secure the sales we need for FY '28. The weaker con- conditions evident in Q4 have continued thus far into FY '27.

Investors and owner-occupier numbers have been impact- impacted, although, in pockets, investors outnumber owner-occupiers, especially in Victoria. Sales can- cancellations remain at near record lows across the business.

We are confident that significant underlying latent demand exists for our projects, which will again flow through to inquiry and sales once buyers have recalibrated to the new fiscal settings and market dynamics. We expect FY '27 margins to be broadly in line with FY '26 margins.

Over the past three years, prices for many projects increased by over 30% in most markets, resulting in the very strong margins we have across these projects today. Prices increased by even 50% at some projects around the country.

Some pricing pressure is to be expected, given the strong price growth and margin growth experienced, and we have taken this into account in providing guidance for FY '27. The housing market is currently experiencing weaker conditions with higher interest rates and other factors weighing on buyer confidence and sales activity.

We expect these conditions to persist through much of FY '27. However, the longer-term fundamentals remain very supportive.

Australia continues to face significant uh housing shortages, population growth remains strong, and unemployment is low, all of which support underlying housing demand. Government incentives continue to assist first-home buyers, an important customer segment for Cedar Woods, whilst interest rates are expected to ease during 2027.

Historically, confidence and sales activity improved once rates peak and begin to decline. With more than 9,600 lots and dwellings in our pipeline and a strong presence in growth markets such as Western Australia and Queensland, we believe Cedar Woods is well-positioned to benefit when market conditions improve.

The Victorian market arguably provides the greatest upside for Cedar Woods, with that market yet to experience the price growth achieved elsewhere and making it the most affordable major capital. I now wanted to provide some insights into our portfolio.

The portfolio remains highly diversified by geography, product type, and customer profile. Residential land lots continue to pres- represent our largest product category, while owner-occupiers and first-home buyers remain our dominant customer groups.

This diversified structure provides resilience and reduces dependence on any single market or product segment. These charts demonstrate that diversification in our portfolio.

Our Western Australian portfolio has been benefiting from strong economic conditions and a chronic housing undersupply. Our WA portfolio is comprised of nine projects with a mixture of residential lots and apartments, and we are in a good spread of locations north and south of the CBD.

Sales were strong for most of the year, and prices grew significantly again, improving margins even further, but demand slowed in the fourth quarter and remained subdued in FY '27 thus far. In Victoria, we currently have 13 projects which offer a wide range of products, including land lots, townhouses, apartments, and offices.

We have over 10 hectares of high-value, mixed-use land at Williams Landing that remains undeveloped and is expected to accommodate a further 1,000-plus dwellings and strata offices. Victoria remains a medium-term growth opportunity.

Market conditions have been soft, as in other states, although three of our Victorian projects have been generating good sales, and prices grew modestly in recent months. We have eight projects in Queensland and a total of 2,133 lots and dwellings to deliver.

There is a mix of land estates, townhouses, and apartments in this portfolio. Our projects here performed strongly for much of FY '26, but like the rest of the country, slowed in Q4, and those slower inquiry and sales numbers are still evident in FY '27 to date.

We have a strong presales book in Queensland, are expecting strong Queensland contributions again in FY '27. Prices grew strongly in FY '26 in Queensland as well, further improving margins.

The demand and price growth for affordable land product has been very good. The construction sector in Queensland continues to experience capacity constraints, especially with apartment builders on the Gold Coast.

Queensland is expected to come good as sentiment improves, supported by migration, employment growth, and a lim- limited supply of housing. South Australia delivered another solid contribution, with continued demand across our portfolio there.

The state enters FY '27 with a visible settlement pipeline and significant future development opportunities. Sales conditions were good for most of the year, but slowed down in the fourth quarter as per the other states.

In total, we have over 1,600 townhouses, apartments, and residential lots yet to deliver, a pipeline which will keep us busy for approximately a further uh eight years. Our South Australian projects are well-established with strong reputations for quality and sustainability and will continue to make meaningful contributions in coming years.

Maintaining a strong development pipeline is critical to supporting long-term growth, and acquisitions remained a major focus throughout FY '26. In the prior year, we implemented an accelerated acquisition strategy and successfully secured six sites, adding 1,184 lots to the portfolio.

This has further strengthened our future earnings pipeline and increased the proportion of land subdivision projects within the portfolio. Importantly, acquisitions activity has continued into FY '27 with the expansion of our high-performing Bushmead estate in WA.

We also have a number of additional opportunities that are currently under due diligence. We are now focusing our efforts on master-planned community sites and townhouse sites, and at this stage, we are open to opportunities in all four states, noting that the housing undersupply is nationwide.

Our strong balance sheet and disciplined acquisitions process positions us well to continue to prudently replenish and grow the portfolio. Now to the outlook for our business.

Looking ahead, we are confident in the short- and medium-term outlook for the business. Australia continues to face a significant housing undersupply, while population growth and low unemployment provide strong support for underlying demand.

Interest rates are forecast to fall in 2027, and we expect this to be a catalyst for improved sentiment and higher sales volumes. We enter FY '27 from a position of strength with a strong balance sheet, ample liquidity, and a successful acquisition program that continues to replenish and expand our portfolio.

Importantly, we have a record $830 million in presales contracts in place, including approximately $290 million in presales that will settle in FY '28 and FY '29, providing significant earnings visibility beyond the current year. We are targeting FY '27 NPAT growth of 15%, building further upon the 36% growth delivered in FY '26 and 19% delivered in FY '25.

This brings us to the end of our results presentation. We are now happy to answer any questions.

Hi, Nathan and Leon. Um, just on the $290 million-plus presales for the '28 and '29.

I I know it's early days and subject to change, but are you able to give an indication of how much of this will land in in each period? Yeah.

Of the total balance, um, about 30% we're expecting in FY '28, and there's just over $50 million in FY '29. In saying that, um, the 50-odd million for FY '29 relate to a building that has PC currently in June '28.

That's practical completion. There is a possibility that all of those could settle FY '28, but that's not our base assumption at this stage, where we have 50-odd million landing in FY '29.

Okay. Thank you.

Um, and then just just on the admin costs. I know, uh, you called out that '26 had the impact of increased headcount.

Um, can we expect this trend to continue in '27, or is headcount expected to be uh more stable this year?

Michael, uh, yeah, we expect um the headcount to be largely consistent with FY '26. Uh, there is an uh an increased sort of volume of activity uh in place across the business in terms of acquisitions, delivery, sales, marketing.

Um, so there may be a minor increase, but I wouldn't expect it to be uh in line with the increases we experienced from '25 to '26. Yeah.

To talk to admin costs more broadly, we could see some growth in those admin costs as we have some investment into some IT projects and some system things, uh, albeit headcount's not necessarily ramping up.

Thanks. Uh, yeah, growth in '27, but less than than what was what came through in '26?

Something like that. Yeah.

Cool. Thank you.

hello. Can you hear me?

Yes.

Oh, thank you very much. Um, Nathan, Leon, just uh a couple of questions for me.

First, with regards to your um your property page in the appendix, just if you can help me understand um Williams Landing. If you can kind of run through uh what the status of that whole site is, what are sort of the major um uh developments or revenue generators you'll have for F '27 and maybe '28 there?

Yeah. FY '27, um, we're doing a small stage of townhouse lots, we have about 17 uh settlements there, uh, and we uh we'll also uh have some settlements from our completed strata-off- office building, Hudson Hub, um, around sort of 15, 20 settlements there.

Uh, and the latest thing we're doing there um is a new product for us, office warehouse, uh, which we're in market selling, and it's selling quite well. Um, and that will settle late '28, early FY '29.

Larry, there's a there's about 10 hectares of mixed-use land around the new the uh train station uh yet to be developed uh that can accommodate around 1,000 apartments or strata offices uh or similar products. Uh, the site has what's called a priority development zone, a PDZ, giving it ultimate flexibility in what uses are delivered on any particular site and uh without any height limit.

Uh, we'll look at any particular site, look at where we think the highest and best use is, and uh structure um a uh development approval around that. At any point in time, we can have apartments uh going at the same time as townhouses and of- office warehouse product or or or office product.

Uh, and we it's it's fair to assume that, in that land alone, there's another 8-plus years of development left to go, um, depending upon uh Melbourne's recovery uh and um and the take-up of apartments in in that location.

Great. Thanks.

A couple more questions for me, if I can. Um, just uh on the same thing with the properties, South Bank, uh, FY '29 is coming into view.

I think it was originally slated for uh sale, settlement around that time. Can you talk to South

Bank? South Bank, we're uh we're just about uh or we're preparing for the launch of that project.

It's been uh it's got the planning approvals, it's got the branding in place. Um, and in that market, uh, the the capacity in the construction sector is much greater.

Uh, there's there's, many larger scale builders with the capacity to deliver that project that we're talking to. Uh, we'll go through a a 6- to 12-month presales campaign, and then, subject to those presales, get it under construction, um, and then we'll have a a couple of years uh worth of delivery, and then it uh and then it will settle.

Yeah. We expect to be in presales in coming months.

All our materials are are ready to go, um, and just going through final process. That could be late FY '29 or early FY '30 settlement.

Okay. Great.

Uh, last question for me, um, probably for Leon. Um, it looks like the uh FY '27 presales are $540 million.

Um, uh, thereabouts.

Yeah. That suggests that sales growth might be around $40 million.

If I just assume a 30% margin and a 70% tax rate, and then assume that kind of drops all the way to the bottom line, uh, it's like 13% of your 15% NPAT growth. These are all my numbers, but the point being is it seems like substantial, a substantial portion of your F '27 guidance has been presold.

Are there any detracting uh factors like you've got those extra staff or um other cost elements that we should think about? Um,

yeah, like you said, we're very well sold and secured for FY '27. More than 90% of full-year revenue is contracted in presales.

As we said on the call, we're expecting margin similar-ish uh in FY '27, relatively stable. Uh, as I mentioned to Michael earlier, we will have some modest growth in admin and and operating costs, but we'll get operating leverage because of the higher revenue and high gross margin.

Um, and, yeah, that will um spit out the guidance number, um, circa $75 mil, that 15% profit growth.

Are you going to have any

Uh,

sorry. Are you going to are you going to have any more um uh openings and uh releases for FY '27, or is that done and dusted?

There's still a few more uh releases to do uh to achieve sales for for FY '27, um, but uh but really we're more focused on building the presales for FY '28 and FY '29 at this point in time. Uh, the FY '27 task is more about delivery, and we're confident where construction programs are sitting at this point in time.

Excellent. Thanks, guys.

Morning, Nathan, Leon. Um, was hoping you could just give a bit more color on the uh the Q4 um '26 sales numbers.

I suppose uh the the activity into um uh the first quarter of this year. Uh, the reason I ask is, you've obviously And this has been been flagged quite a bit on this call.

You've obviously got quite a lot of presales um baked in for for '27 and beyond. Um, and um, the the the presales number for Q4 uh dropped quite a bit, but um it's actually not too far away from, I suppose, your your required replacement run rate.

Um, I I imagine it's it's it's possible, uh, given how much price growth we've seen, to secure more presales if you're happy to be a bit more flexible on price or market a little bit more aggressively. Um, I I I was just curious to hear um how much of this drop-off in in Q4 is is market-related uh versus, strategic, where um, you'd you'd rather um you'd rather play into the order book that you already have uh as opposed to um as opposed to, I suppose, dropping the price to meet the market.

Uh, just just how you're thinking about all of that, please. Uh,

yes. Look, it's it's difficult to say precisely, Murray, um, how much of the drop in inquiry is uh due to one factor or another.

Um, but the first thing I'll say is that um, the demand is still there, the buyers are still cautious. That demand hasn't disappeared.

Buyers are just uh, digesting uh all of different factors that are in play at the moment. Uh, and the cumulative effect of all of that is a drop in a drop in sentiment and and confidence.

Um, so, yeah, the first factor there is is that we have uh less marketing. We engineered less sales and inquiry by marketing less.

Um, we had too much inquiry uh, and um and there was no need to spend that money generating that inquiry. Also, uh, we had a gap in releases.

Um, in the in Q uh 2 and 3, we advanced sales releases in order to capitalize on the strong conditions with an internal view that things were going to slow, as they eventually did. We brought forward some sales, if you like, from that Q4 into Q3.

Um, and don't be too frightened by the drop-off, uh, the scale of that drop-off, because Q3 was a record number. Uh, you look left across the bar charts um that we've provided in previous years um and uh and in the sales chart.

In fact, the sales number numbers we've delivered in the context of sales over the last 5 to 7 years aren't that bad. Um, it looks a little more severe than it is in reality.

Uh, and we're comfortable uh for a period of slower sales, noting that we're sitting here in August of 2026 uh, and we're already uh we already have a great head start on FY '28 presales uh and have plenty of time in which to secure the sales that we need uh for that year. Um, depending of course how long these sub- subdued conditions persist for.

Uh, as I said in um the the the main presentation, it's fair to assume some moderation of prices in some locations. I don't expect that to be severe because buyers are still anxious about the supply issue.

Um, and a lot of uh buyers are in the money, in the sense that they've purchased and have are sitting on some capital growth. We think um, they're very keen to to to to hold on to hold on to those sales.

Thanks, uh, Nathan. Could I could I just ask um as a follow-up, um how you are pricing um the the current uh or I suppose I suppose more recent um stages across I guess Queensland and WA versus versus where they would have been previously?

Uh,

as a general rule, um, prices consistent. Um, in pockets, uh, in fact, three projects in Victoria, we have increased our prices uh twice in the last few months.

Uh, and in a couple of projects in WA, we have slightly moderated our prices.

Thanks. Um, and just one more on um the acquisition pipeline, please.

Obviously quite a bit of activity uh that that's taken place in the last six months on that front, um, and uh it's starting to um uh starting to show up new releases for for '29, 2030, and beyond. Um, I was just wondering what you're seeing from a um uh from an un-market perspective, as far as land is concerned.

Is there much um opportunity for um uh for acquisition through I suppose more distressed channels, or um what are your uh what are you seeing in terms of opportunities? Um I suppose what what would you expect in terms of being able to to land in terms of new new land pockets in the next 12 months?

Uh, um

firstly, uh, we don't need to make acquisitions in order to achieve earnings growth in '27 uh or '28, possibly even '29, um, uh subject to to to how things go. We're in an incredibly strong position, uh, and and we like it that way.

Uh we're not in a position where we have to scurry to uh convert opportunities for uh near-term prop up. Uh, I'm I'm I'm happy with with that.

Um, the medium-term outlook for the new housing sector is a very positive one uh backed by uh the growing population and structural shortfall we have in housing. It's a good business to be in, and we want to do more of it.

Consistent with strategy, we want to get out there and and uh continue to replenish and grow our portfolio uh around the country. Um, there are plenty of opportunities at any one point in time uh uh that we're seeing at at the moment um around the country.

Um, some of those are distressed. Uh, most of them are not.

Uh, we are having good success in securing acquisitions off-market, which is our preference. Uh, we converted a record number of sites in FY '26 as a result of an accelerated acquisition strategy that uh we uh endorsed and um put into place in FY '25.

Um, we're focused on on particularly master-planned community sites, but also medium density townhouse developments. Um, you'll see that a couple of the projects we've acquired in Victoria recently are infill sites that we can deliver townhouses on.

Uh, the demand for those types of products uh are are very resilient, and we expect those projects uh to perform well. Um, and as indicated in the results material, uh, we're working on a couple of other things, and um, we hope to be able to make some announcements in in coming months about other acquisitions.

Appreciate the color, Nathan.

Morning, gents. Um, got out the queue eventually, um, so that's good.

Just um look, a really quick one for me, which you've nearly answered already. Just, you've mentioned that inquiries slow, but I'm just um curious, you are still selling um what's available, or at least what you wish to sell, um, would that be um, a fair comment, albeit um perhaps more slowly?

Yes, yeah, we're still we're still We've got stock in market, and we're still selling. We're We're holding back some releases, um, but uh, through, particularly Q2, we'll we'll see an increase in the number of stage releases around the country, particularly WA.

Got it. Just one last one, um, just um talking about South Bank, um, you talked about taking it to market.

Just uh just to be clear, the conditions there, despite being a bit softer, the conditions there um are sufficiently strong for you to take it to market, is the current plan, would you say, and and and, um, if it's sold well, um, when would it look to complete, do you think?

Yes, um, yeah, we're gearing up for a launch of the project. Um, there's still flexibility as to when that occurs.

Uh, so ideally we're doing that um in in a few months' time, um, but there's also a case to to to do that in early '27 calendar year, um, but we're working on that that uh sooner timeframe as base case. Uh the expectation is that it it settles in the final quarter of FY '29, but it could be first quarter of FY '30.

Got it. Um, thanks, guys.

Great numbers.

Thank you.

Oh, hi. Um, great results there.

Congratulations. Um, just a firstly, clarification of a question that was asked before.

In WA, you said that your uh, moderated the pricing. Do you mean uh reduced a touch, or just moderated the growth in pricing?

Reduced a touch.

Reduced a touch. Yeah.

Thank you. Um, and the question that I sort of had was, um interest rates forecast to fall.

Who are you relying on that information for, or who's forecasting those interest rates? That leads on to presales of $830 million.

Um, conditional versus unconditional sale mix in that?

Yes, I can take that. First question, interest rates.

All four of the big four banks have uh their outlooks is rates have peaked and that they'll fall in in calendar year uh '27, uh as well as numerous other uh economists and market predictors. Uh, in relation to presales, um about three-quarters of those presales uh are unconditional, uh and the balance uh conditional.

Uh, and in saying that, we have good good success of conversion of those um conditionals into unconditional. Um, and we have a handle on how many will fall over, and um we factor that into our guidance and our outlook.

Oh, okay. You're you're sort of, yeah, the profit guidance for next financial year allows for some fall-offs there and and some new contracts as well.

Very much.

Yeah. Um, and one more question, if I may.

I was just wondering how um availability of contractors um and trades and construction costs, how they're tracking at the moment? Uh, um the

there is a chronic shortfall of construction trades around the country, uh somewhere between 80 and 130,000. Uh, thankfully, Cedar Woods has a uh, a deep um portfolio in each of its locations and therefore uh strong relationships with um with the the civil contractors and and the builders.

As a general rule, uh we can readily get what get built what we need to get built. Um, and there are pockets where it's harder than uh than than elsewhere, for example, Gold Coast uh and uh apartment construction and WA apartment construction.

Uh, we have to work a little bit harder there to secure a builder and on reasonable terms. Uh, in terms of construction costs, uh there has been um strong growth in costs in recent years.

Uh, that that uh that growth has been materially outpaced by revenue growth and hence the margin expansion that we've had. Uh, our base-case expectation is that costs continue to grow uh through FY '27 uh and FY '28.

It's possible that there will be uh that that costs will grow uh um more than prices in FY '27 in in in some locations.

Great. Um, thanks for that info.

Um, keep up the good work. Cheers.

Thank you.

Thank you, everyone, for listening in to our webcast. Uh, as I said, we're really pleased with the result uh and have confidence in our ability to uh materially beat it in FY '27.

Thank you very much.