Desane Group Holdings (ASX:DGH) disclosed a statutory profit of $0.02 million for the financial year ended 30 June 2026 at its 2026 Annual General Meeting, with total assets of approximately $105.9 million, net assets of approximately $69.1 million, and net tangible assets of $1.69 per share, according to the CEO's address filed with the exchange.

Key Points

  • Statutory profit of $0.02 million for FY26, with total assets of approximately $105.9 million and net assets of approximately $69.1 million
  • Special dividend of 2.0 cents per share paid during FY26, franked at 82%
  • 13 Sirius Road, Lane Cove sold for approximately $8.7 million excluding GST
  • Penrith City Council approved the required stormwater easement for the 91 Thornton Drive 44-unit industrial development; construction budget of approximately $14.0 million
  • Incoming Chairman Peter Krejci acknowledged; new Director Melissa Ashcroft joined the Board in March 2026; retiring Chairman Professor John Sheehan AM recognised for more than four decades as a Director

FY26 Financial Position and Property Portfolio Valuation

At 30 June 2026, Desane held cash and financial assets of approximately $10.9 million and borrowings of approximately $13.9 million. The property portfolio recorded a net fair value uplift of approximately $2.1 million during the year. Principal positive movements were recorded at 7 Sirius Road, Lane Cove, independently valued at $12.15 million in November 2025, and 16 Industrial Avenue, Wacol, independently valued by Knight Frank at $20.1 million as at June 2026. The year-end valuation process also reflected a reduction in the carrying value of 35 Norton Street to align with more recent external evidence. The statutory profit result was materially lower than the prior year, reflecting significantly reduced property revaluation gains and higher finance and operating costs.

91 Thornton Drive Penrith Industrial Development and Property Sales

The most significant development opportunity disclosed is 91 Thornton Drive, Penrith, where a proposed 44-unit industrial development advanced through planning, design and approval phases during FY26. Following the reporting date, Penrith City Council approved the creation of the required stormwater easement. The negotiated construction budget provides for approximately $14.0 million in construction costs and approximately $0.5 million in pre-construction and approval costs. Separately, the Group completed the sale of 13 Sirius Road, Lane Cove for approximately $8.7 million excluding GST, following more than two decades of ownership, with the accounting treatment resulting in a modest reported loss on disposal.

322 Norton Street Petbarn Redevelopment and Core Income Assets

At 322 Norton Street, Leichhardt, the Group progressed a redevelopment for Petbarn under a 10 + 5 + 5 year lease structure, with demolition, enabling works and environmental remediation substantially advancing during FY26. Construction continued following year end, with the Group delivering the premises on a cold-shell basis. At 159 Allen Street, Leichhardt, Desane retained a development approval for 46 residential apartments, with the property fully leased and carried at $25.0 million. Brisbane City Council's lease at 16 Industrial Avenue, Wacol extends to June 2030 and is expected to generate approximately $4.5 million in rental income over the lease period, while Signature Orthopaedics' lease at 7 Sirius Road extends to November 2032 and is expected to generate approximately $5.0 million in rental income over the lease period.