Lendlease Reports Wider Annual Loss Amid Strategy Shift and Project Sale Delays
Australia’s Lendlease posts a wider annual loss of A$1.50 billion as it grapples with a strategy overhaul and delays in the sale of community projects.
Australia, Bollywood Fever: Australia’s largest property developer, Lendlease, reported a significantly wider annual loss on Monday as it navigates the impacts of an operational strategy shift and delays in the sale of community projects.
The real estate giant recorded a full-year loss after tax of A$1.50 billion ($1.00 billion), a sharp increase from the A$232 million loss reported the previous year.
The company is in the process of retreating from its overseas construction business, a move that is expected to free up to A$4.5 billion ($3.01 billion) in capital.
This strategic shift is part of Lendlease’s broader effort to streamline operations and focus on its core strengths.
In May, Lendlease warned that its annual core earnings would be negatively impacted by a delay from the Australian Competition and Consumer Commission (ACCC) in reviewing a A$1.3 billion sale of community projects to Stockland Corp. The review was extended by over two months, adding to the company’s financial challenges.
Our results for FY24 reflected challenging business conditions and the early actions from our refreshed strategy,” said CEO Tony Lombardo.
He noted that the company has already achieved further cost savings through a simplified management structure, which is part of their ongoing efforts to improve efficiency.
As Lendlease continues to navigate these challenges, the focus will be on how the company adjusts its strategy and operations to return to profitability in the coming years.
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