Full Year 2024 LendLease Group Earnings Call Transcript
Key Points
- Lendlease Group (LLESF) has made significant progress in its capital release strategy, with $1.9 billion of transactions already announced towards the FY25 divestment target of $2.8 billion.
- The company achieved $3.4 billion of underlying growth in funds under management and completed more than $8 billion in development projects.
- Operationally, Lendlease Group (LLESF) reported no fatal incidents across its portfolio and remains on track to reach its net zero carbon target by FY25 for Scope 1 and 2 emissions.
- The company has removed more than $60 million of overheads in FY24 and is targeting a further $125 million of pretax run-rate cost savings by the end of FY25.
- Lendlease Group (LLESF) maintains strong liquidity with $2.2 billion, comprising $1.2 billion of available undrawn debt and $1 billion of cash and cash equivalents.
- The group recorded a statutory loss after tax of $1.5 billion, which included $1.38 billion of impairments and charges required to implement the refreshed strategy.
- Core operating earnings per security were $0.381, equating to a return on equity of 4.4%, which is relatively low.
- The company faced delays in the completion of the Australian communities sale and the Asia Pacific Life Sciences joint venture, impacting the financial results.
- Gearing of 21% includes a 1% impact due to strategy-related impairments and charges, which is above the group's FY24 target range.
- The construction segment was impacted by supplier insolvencies, leading to retendering for various goods and services, with an estimated impact of $50 million in FY24.
Ladies and gentlemen, thank you for standing by, and welcome to LendLease's FY24 results briefing. At this time, all participants are in a listen-only mode. There will be a presentation, followed by a question-and-answer session with management and Lendlease's covering research analysts. (Operator Instructions) I must advise you that this call is being recorded today, Monday 19, August 2024.
I would now like to hand the call over to Mr. Tony Lombardo, our Group Chief Executive Officer. Please go ahead.
Good morning, and thank you for joining the Lendlease 2024 results presentation. I'm Tony Lombardo, Chief Executive Officer and Managing Director of Lendlease. With me is Simon Dixon, Chief Financial Officer, sitting here at Barangaroo in Sydney, and we're on the land of the Gadigal people and I extend my respect to their elders past and present.
Today I'll provide an overview of our FY24 results. Simon will then talk through the financials before
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