News: SGP UPDATE 1-Australia's Lendlease flags FY24 profit hit as regulator delays sale review

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May 31 (Reuters) - Australia's Lendlease (LLC) warned on Friday that its core earnings for this fiscal year would be affected due to the competition regulator delaying its review on a sale of community projects by more than two months.

The Australian Competition and Consumer Commission (ACCC) had invited public opinion on the developer's proposed sale of 12 Australian master-planned community projects to Stockland Corp (SGP) for A$1.3 billion ($863 million).

The ACCC's review was due by mid-April, but Lendlease said the regulator would release its review on July 4 and added that the "may be a final decision or release of a statement of issues."

The company's fiscal year 2024 ends on June 30. "On the basis that completion (of sale) does not occur in FY24, Lendlease's FY24 Group guidance for return on equity is anticipated to be impacted by approximately 2%," it said in a statement.

The company said that its expected sale-related profit of A$130 to A$160 million would be recorded in the first half of fiscal 2025, instead of fiscal 2024.

Lendlease expects its gearing for fiscal 2024 would be at or around the upper end of its 10%-20% target range, before the anticipated provision for impairments and charges.

It had earlier forecast its gearing would be "modestly" above the mid-point of the target.

($1 = 1.5065 Australian dollars)