I am with you rivella on the Victoria and SA developments. Living in Melbourne, I think the infills and Williams Landing can't help but sell well.
What I think may slow down Cedar Woods' performance is that it appears to have been caught by the mining downturn with too many developments in WA. However, these WA projects can be spread over a greater number of years so that they still reach fruition (albeit at a lower profit than envisaged). As long as Cedar Woods holds off on any new developments in WA while spreading new ones across the eastern states and SA, I see returns to shareholders (dividends) being maintained. Indeed, the 1st quarter operational update 21 October 2015 says:
"Assuming the continuation of current market conditions, Cedar Woods anticipates reporting a net profit after tax similar to FY2015’s record result of $42.6 million. "
As CWP pays out only around 50% of its earnings in dividends and has a low debt ratio, it seems a nice little earner to me with a good dividend yield over 9% including franking credits.
Cantankerous James (but happy with CWP)
