Villa World forecasts 5% profit growth in 2017

Leading residential property developer Villa World has confirmed it is on track to continue its financial success in 2017, forecasting profit growth of at least five per cent.

With its half-year result due for release in mid-February, Villa World has announced it is targeting a Net Profit After Tax (NPAT) of between $19.5 million and $21.4 million for the first six months of FY17.

The result will depend on the timing of land and housing projects in Victoria and compares with a $20.4 million profit for 1H16.

Villa World Managing Director and Chief Executive Officer Craig Treasure said strong carried-forward sales and momentum in the Queensland and Victorian housing markets meant the company was poised for continued growth.

He said the Villa World board had reaffirmed its expectation to pay a full-year shareholder dividend of at least 18 cents per share, fully franked, which is in line with the company′s payout policy of 50-75 per cent of NPAT, paid semi-annually.

Mr Treasure said the strength of the Villa World balance sheet continues to support maintenance of a five to six-year pipeline of strategic acquisitions within growth corridors in east coast states.

This includes a $50 million joint venture acquisition of 153 development-ready hectares at Greenbank, in South East Queensland, with Sydney-based Greenfield Development Company. The site has approval for more than 1000 residential lots.

Villa World is also developing an initial 90-dwellings with Greenfield in Oran Park, its re-entry into the New South Wales market.

Established in 1986, Villa World is a leading east coast residential developer delivering success through property.