Lend Lease announces A$ 226 mln profit after tax

Lend Lease Corporation Limited announced an after tax operating profit of A$ 226.3 mln for the year ended 30 June 2002, reflecting an increase of 49.5% over the previous year.

Earnings per share (eps) were 52.4 cents for the year to 30 June 2002 compared to 33.5 cents for the year to 30 June 2001, an increase of 56.4%. Pre-amortisation eps were 73.7 cents for the year to 30 June 2002 compared to 54.2 cents for the previous year, an increase of 36%.

The Lend Lease Board of Directors announced a final dividend of 9 cents per share fully franked (September 2001: 8 cents per share) to be paid on 19 September 2002. The total dividend for the 2002 financial year is 18 cents per share fully franked, as foreshadowed this time last year.

Lend LeaseÂ's Real Estate Solutions ('RES') and Real Estate Investments ('REI') global businesses both contributed to the improved result. RES delivered A$153.3 million profit after tax, up 26% on 2001, and REI delivered a 20% growth in after tax profits to A$140.8 million.

Lend Lease Chairman, Jill Conway, said the Board was pleased with the result, which was achieved despite turbulent global economic conditions.

Real estate investments (REI)
The Real Estate Investments business contributed A$140.8 million after tax for the year to June 2002 compared to A$116.9 million for the previous year (excluding US restructuring provision of A$30.3 million after tax), an increase of 20%. Profit contributions from the Australia/Pacific, European and Asian regions were higher for the year to 30 June 2002 than the previous year. However, the overall result from the United States was down due to a challenging economic environment and despite good performance from various business units within the US operations.

Worldwide Assets Under Management (AUM) at 30 June 2002 were A$86 billion. This number was affected by the stronger Australian dollar at the end of June compared to the previous year. In home currencies, AUM grew in all regions except the United States, where AUM was down 1% from 30 June 2001.

The US Real Estate Investments business profit for the year to 30 June 2002 was A$84.9 million after tax compared to A$89.9 million for the year to 30 June 2001. This lower result was expected as foreshadowed in February this year.

In Australia, the REI business profit was A$30.6 million after tax for the year to 30 June 2002, up 58.5% from the previous year. The 2002 result comprised a 35% increase in operating earnings as well as a A$4.3 million profit after tax from the sale of the investment in Kiwi Property Group.

The results for Europe and Asia reflect the still early stage of building the REI business in those regions.

The European REI profit for the year to 30 June 2002 was A$31.9 million after tax, up 78.2% from the previous year, and included an after tax profit of A$9.0 million on the sale of Lend LeaseÂ's 50% interest in the Arrábida Shopping Centre in Portugal.

In Asia, the result was a loss after tax of A$6.6 million for the year to 30 June 2002, lower than that for the previous year. The 2002 result included A$11.5 million after tax of expenses in relation to preliminary work on the establishment of REIT businesses in Singapore and Japan.

Earnings outlook
Robert Tsenin, Lend Lease Group Finance Director, said Lend LeaseÂ's ability to maintain its outlook for 2003 earnings and budget for a slight increase over the 2002 result, underscored the companyÂ's strengthening operations.

For more information please visit www.lendlease.com.

(source: Lend Lease)

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