ferrets stock to watch: peet limited

Ferret's Stock to Watch: PEET LIMITED
09:18, Monday, 25 September 2006

A BOOMING LAND COMPANY COMING OUT OF THE WEST

Sydney - Monday - September 25: (RWE Aust Business News)
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OVERVIEW
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Peet Ltd (ASX:PPC) has Australia's third largest landbank among
ASX listed companies, with an end value in excess of $4.2 billion.

As the first and largest land syndicator in Australia, Peet has
consistently delivered high returns to its investors and shareholders.

Directors told shareholders this in July when it announced a
slight name change.

The company attracted Ferret's attention following an impressive
story in the Weekend Financial Review relating to the chairman Tony
Lennon, written by Marsha Jacobs.

Mr Lennon pays full credit to the company's chief executive
Warwick Hemsley, who has been the key architect in the property company's
successful strategy.

Peet began its life in Perth in 1895 and changed the status of
east going west, even before the advent of Alan Bond and his easy riders.

The Peet Company has come out of the west to spread across the
continent.

All this was happening as Alan Bond built and lost his empire
while Peet went quietly about its business in good and bad times.

Peet today says it is well set to take advantage of any
improvement in the east coast market with over 13 years of supply of
land.

It points out individual states have different dynamics - WA is
strong, Victoria and Queensland steady and New South Wales flat.

In his interview, Lennon says the company is aiming for at least
10 per cent growth a year, a goal which it has more than exceeded in the
past three years of reporting.

The company is aiming for an after-tax profit of $50 million by
the 2007-08 financial year.

Peet achieved earnings growth of 24 per cent for FY06, targeting
15 per cent EPS growth for FY07 (21.2 cps).

Full-year net profit was $36.8 million (2005: $29.6 million AIFRS
adjusted basis).

Final dividend of 9.5c per share fully franked, bringing the
full-year payout to 17c.

Sales of 2,427 lots from syndicated, joint venture and owned
projects resulted in a gross sales value in excess of $355 million.

More than 1,220 lots sold are yet to settle for a value of $214
million, with revenue to Peet of $32 million.

There has been continued progression on Income Fund and
retirement living strategies/products, while the market value of
inventory has increased by 86 per cent to $325 million.

A strong acquisition program continues to deliver land bank
growth, the company said in its full-year report.

Gearing target range is 30-40 per cent, currently at 36 per
cent - and the company has successfully completed three land syndications
for funding of $48 million of land

SHARE PRICE MOVEMENTS
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Shares of Peet on Friday traded steady at $4.01. Rolling high for
the year has been $4.30 and low $1.92. Dividend is 19.5c to yield 4.86
per cent. Earnings per share is 18.4c and p/e ratio is 21.79. The company
has 200 million shares on issue with a market cap of $802 million.

Peet says funds and asset management are underpinned by
Australia's third largest land bank and an established company owned
distribution network.

Its business model allows the use of syndication and income fund
platform to manage cash-flow and capital position.

In funds management/land syndication there was strong demand for
residential land in WA and steady market conditions in Victoria and
Queensland.

Peet's land syndicate product generated three capital raisings
which closed early and oversubscribed, raising over $48 million.

An additional five development projects should begin in the
current financial year.

The company is confident of further earnings growth in this
division for FY07 & FY08 as further joint venture opportunities are being
pursued.

Peet is entering a new era, starting development of apartments,
group housing, retirement villages and commercial and industrial
properties.

To reflect the new approach, the company has developed a
distinctive new look and have changed the company name from Peet & Co to
the more contemporary Peet Ltd.

BACKGROUND
**********

Peet Ltd was listed on the Australian Stock Exchange in August
2004 but has been a public company since 1895.

The company has been developing land and property in all that
time.

Peet has developed over 100 land estates in Western Australia,
Victoria, Queensland and New South Wales, and now owns the third largest
land bank of Australian ASX-listed companies, with a value in today's
prices in excess of $4.6 billion.

The company boasts it has achieved this success by listening to
clients and focusing on its expertise of delivering land estates and
property of the highest standard to meet clients' requirements,
achieving strong investment performance for investors and providing a
professional environment for its team.

Peet's core activities are the development of broad-acre
residential land estates, the development of medium-density residential
property, land syndication and funds management.

It has a renowned history of creating profitable property
investment syndicates and capital raisings, as well as a wide range of
joint ventures and partnerships, in order to develop high-quality land
estate projects.

Recent diversification has seen the company extend its expertise
into residential property development, with projects in medium-density
housing (townhouses/villas), low-rise apartments, urban renewal,
retirement villages and commercial/office units.

Peet is dedicated to asset and funds management through land
syndication, income property funds and the development and project
management of award-winning land estates in Australia.

The Peet team also works closely with specialist environmental
consultants to deliver the highest quality developments to its clients.

Awards in recent years have come from the Urban Development
Institute of Australia (UDIA), HIA-GreenSmart, Landcare, Waters & Rivers
Commission and Greening Australia.

ENDS