S1111la11d Gro111J

23 February 2017

The Manager

Company Announcements Australian Securities Exchange

Dear Sir/Madam,

SUNLAND GROUP ANNOUNCES FY17 HALF YEAR PROFIT OF $5 MILLION AFTER TAX

  • Net profit after tax of $SM (lH 2016: $3.2M)

  • Fully franked interim dividend of 4 cents per share (lH 2016: 3 cents)

  • Basic earnings per share 3.1 cents (lH 2016: 1.8 cents)

  • Net tangible assets per share of $2.20

  • $47M in strategic site acquisitions in Queensland and New South Wales

  • Sound balance sheet with good capacity; $4.lM in cash and $82.3M in undrawn credit lines

  • Gearing remains at acceptable levels, with 42% debt to assets and 81% debt to equity

  • Strong forecast cash flow generated from Group portfolio in the second half of the year

  • Abian, Sunland's luxury tower i[l the Brisbane CBD is nearing completion, with settlements anticipated in late FY17 and beyond

Leading property developer Sunland Group ('Sunland' or 'Group') today announced an after tax profit of $5.0 million for the half year ended 31 December 2016, up 45% on the previous corresponding period (lH 2016: $3.2 million).

Sunland Managing Director, Sahba Abedian, said the result represents a healthy increase in settlement numbers and an increasing contribution from the Group's retail holdings.

Mr Abedian said the bulk of the Group's earnings are weighted to the second half of the financial year, with Sunland's first high-rise development in the Brisbane CBD, the $240 million luxury Abian residential tower, expected to contribute to the full year result.

The Group has reaffirmed full year earnings guidance of $35 million net profit after tax. Operational Highlights

Sunland generated revenue of $95.4 million from 204 settlements during the period (lH 2016:

$79.9 million from 120 settlements).

Major contributors to first half earnings include residential housing and land settlements at The Heights and The Terraces (QLD), The Gardens and Carre Residences (VIC), and Dahlia Residences (NSW).

S UNLA N D G A O UP_C O M A U S U NL A N D GR O UP L IMIT E D A B N 6 5 0 6 3 4 29 15 3 2

St111-lan_d Gro111J

Project launches in Sydney and the Gold Coast also contributed to a significant increase in sales activity. "Sales volume more than doubled during the first half, with 281 sales completed to the value of

$200 million (lH2016: 134 sales to the value $106 million)," Mr Abedian said.

"Contracts in hand now total 825 with a combined value of $669 million, providing earnings visibility towards the short and medium term," he said.

Sunland launched three new projects during the first half of the year, including The Lakes Residences and Marina Concourse on the Gold Coast and 18 Macpherson Street in Warriewood on Sydney's Northern Beaches. The Group plans to launch up to six new projects during the second half of FY17.

Sunland continued to replenish its development portfolio during the period, with new site acquisitions totalling $47 million in Sydney (Mount Annan), Gold Coast (Greenmount Resort) and Brisbane (Everton Hills), adding 425 allotments to the portfolio with an estimated end value of $389 million.

Sunland's national portfolio currently comprises 5,800 residential housing, urban development and multi-storey products with a total end value of approximately $3.8 billion, providing a sustainable pipeline of premium developments to be delivered primarily over the next five years.

Capital Management &Dividend

Directors have declared an interim dividend of 4 cents per share fully franked, to be paid 23 March 2017 (lH 2016: interim dividend of 3 cents per share).

Mr Abedian said the share buyback program, announced on 13 December 2016, is approximately 25% complete with 4.6 million shares to the value of $7.5 million purchased at an average price of $1.65 per share. Sunland has the ability to purchase up to 16.4 million shares during the buyback program.

This initiative continues to add long-term value to the Company's net assets per share and earnings per share. During the half year, earnings per share increased to 3.1 cents, up 72% from the corresponding period (lHFY15: 1.8 cents).

Future Outlook

Mr Abedian said Sunland's return to the multi-storey sector is expected to make significant contributions to earnings during the second half of 2017 and beyond as key projects are delivered and settled.

"The strong cashflow generated from the settlement of significant projects, including the luxury Abian residential tower in the Brisbane CBD, will assist in the delivery of projects, portfolio replenishment and shareholder returns in the year ahead," he said.

He said Sunland will continue to maintain a conservative approach to portfolio delivery and replenishment to mitigate risk as it navigates the market cycles, with a focus on strategic sites in south­ east Queensland, Sydney and Melbourne.

Su111a11d Group

The Group intends to pay total dividends of 10 cents per share for the FY17 financial year (4 cents per share interim dividend and 6 cents per share full year dividend). Dividends will be fully franked.

Mr Abedian said Sunland's sound balance sheet, access to capital and cash flow forecast continue to provide a stable platform for sustainable shareholder returns.

Yours faithfully,

----

c--C-2)··-

)

Sahba Abedian Managing Director

Media contact: Sarah Dixon, National Communication Manager, 0418 748 892 .

Sunland Group Limited published this content on 23 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 March 2017 15:08:04 UTC.

Public permalinkhttp://www.publicnow.com/view/0CEE8B50E3ABB56AB6CEDDA26DA86F60731F5C0E