Lendlease operating profit falls 26% amid COVID-19 impacts

Dive Brief:

  • Australian development and advancement business Lendlease claimed Sunday that its 50 %-12 months running financial gain soon after tax fell 26% from the exact time period in 2019, from AU$278 million to AU$205 million (U.S. $219 million to U.S. $162 million). It also reduce its dividend by 50% to 15 cents. 
  • Profits in the firm’s development group for the final six months of 2020 was down 21% to AU$3.4 billion owing to ongoing COVID-19 impacts, delays in starting off new tasks and greater building time due to social distancing steps, mentioned CEO Steve McCann in a statement. 
  • New do the job totaled AU$4.9 billion, up from AU$3.1 billion. The weaker sector natural environment supplied an prospect to secure new assignments with financial investment companions on appealing phrases, McCann added. 

Dive Insight:

In New York City, the company’s 1 Java Street will renovate a city block into apartments for hire with an estimated close worth of $718 million. In latest months Lendlease also introduced its initial urbanisation venture in Los Angeles, an $600 million apartment/office environment creating. These tasks, both of those of which are in partnership with Australian superannuation fund Aware Tremendous, will help the progress of the investments platform. 

McCann mentioned the company’s task with Google to establish a significant blended-use job in San Jose, California, is on observe and that it has submitted arranging files for its very first two neighborhoods there. In the will work for extra than a few decades, the Downtown West Blended-Use System will develop 81 acres into a transit-oriented place consisting of new offices, housing and open house.

Steve McCann



McCann mentioned the business anticipates getting scheduling approval as early as the conclude of this year. 

The 50 percent-calendar year earnings simply call yesterday was the last for McCann, who will retire at the conclude of May after 16 decades with the corporation, 12 as CEO. He will be succeeded by Tony Lombardo, latest CEO of Lendlease’s Asia division.

Although the firm did not launch any new steerage, McCann claimed Lendlease has responded properly to a challenging operating ecosystem with gains recovering from the worst of the COVID-19 impacts, even as activity is continue to below pre-pandemic levels. He also declared that the corporation has set environmental targets of internet-zero carbon emissions by 2025 and absolute zero by 2040. 

“We are identified to be a chief in driving sector transformation to restrict global warming and to produce lasting social value,” he said.

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