Should I Buy Lendlease Shares 2021
About Lendlease Shares 2021
Lendlease is a globally integrated real estate and investment group with core expertise in shaping cities and creating strong and connected communities. Being bold and innovative characterises our approach and doing what matters defines our intent.
Headquartered in Sydney, our people are located in four operating regions: Australia, Europe, the Americas and Asia
On the 5-year price performance chart, Lendlease Shares have been relatively sideways moving, however reaching an all-time high back in mid-2019, before falling back down to ~$12.5/share over the proceeding six months.
Today the Lendlease share price is $12.165, which is in the middle of its 52-week range of 10.73-14.89.
ASX:LLC Shares Dividend History
Lendlease shares typically announce a dividend with the release of its half-yearly results in February and full-year results in August
The dividend yield of LLC is 1.46%.
there seems to have been a large slowdown of revenue and an even greater drop-off in earnings from FY2019 – FY2020.
Looking at the groups EBIDTA this has taken a substantial impact since reaching all-time highs in 2018 over A$1billion. This seems to be largely attributed to the groups underperforming engineering business projects on the NorthConnex, Kingsford Smith Drive and Gateway Upgrade including what is also looking to face similar circumstances in their Joint Venture on the Melbourne Metro Project.
ASX:LLC As A Development Arm:
Lendlease highlight the requirement of increasing capital expenditure however also expecting a larger development production from invested capital moving forwards. This is largely due to their renewed focus on city building in massive pipeline communities, where they should be able to get economies of scale due to the size of the developments and favourable operating conditions.
ASX:LLC As An Investment Company
Lendlease is significantly growing its investment arm, from a total Funds under management in FY2010 of A$10billion to a Funds under Management in FY2020 of over A$36billion. The group also seems to have this decently diversified across Australia, Asia, Europe and the Americas.
Lendlease Construction Arm:
If the picture here isn’t very clear yet, the future aim of Lendlease can pretty much be summed up in our opinion as an “end-to-end, city builder” (ETECB), where they will secure and redevelop large parcels of land under favourable conditions and contracts. The building division is there to construct these developments, under once again favourable conditions.
The EBIDTA margin on the construction division is typically much lower than their other businesses in investment and development as this is a very traditional business with a large amount of players.
Departure Of The CEO And CFO
On the 26th of November 2020, the group announced the departure of the companies CFO (Tarun Gupta). Tarun will leave the Group. Mr Gupta has accepted the role of Managing Director and Chief Executive Officer of Stockland. Whilst this seems like a logical step for the CFO to take it raises questions when only months later the groups CEO Steve McCann Announces his resignation.
Steve McCann has since moved on to lead Crown Resorts as their CEO. This only raises the question, that if the CFO was in the know surely he would have been a front runner to step up into Steve’s shoes on a much larger salary than he would be on at Stockland Group.
There may be nothing more around this, however, the timing seems a little strange.
Cheers for reading, let me know your thoughts
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