Key Highlights

  • The final dividend is 6.5 cents, fully franked, taking FY26 dividends to 13.0 cents, up 68%.
  • Net operating profit rose 77% to $103.4 million, and operating EPS was 22.1 cents.
  • Contracts on hand were $851 million, up 39%, and gearing fell to 24.8%.
  • The approximate yield is near 8.0%, or about 11.4% grossed up, with no reinvestment plan.

Peet Limited (ASX:PPC) is an Australian residential land developer with its main operations in Western Australia and Queensland. It acquires land, builds roads and services, and sells lots to home builders and buyers, and it also manages development projects for third-party investors through a funds management business.

FY26 was a record year, with net operating profit of $103.4 million. The company sold 2,996 lots and settled 2,665, and contracts on hand were $851 million at 30 June 2026. Its earnings follow housing demand, land prices and settlement timing, and it earns fees and interest from funds management projects as well. Gearing of 24.8% sits within its target range of 20% to 30%, and its fully franked dividend rose 68% for the year.

The Dividend Picture

PPC has an approximate yield of about 8.0% at a price near $1.63, franking of 100%, a grossed-up yield of about 11.4% and no reinvestment plan. The board declared a fully franked final dividend of 6.5 cents, taking FY26 dividends to 13.0 cents, a 68% increase. Operating earnings per share were 22.1 cents, so the dividend equals about 59% of operating EPS, a calculation from the stated figures.

Understanding the Dividend Data for Peet

At a share price of approximately $1.63, the approximate yield is 8.0%. Franking is 100%, which lifts the grossed-up yield to about 11.4% from the cash yield of about 8.0%. The grossed-up figure adds the value of franking credits for holders who can use them, and it is not a cash payment. No distribution reinvestment plan is available, so payments are made in cash. As an illustration of the arithmetic only, a holding worth $10,000 at that price and yield would correspond to roughly $798 of cash distributions over a year before tax, calculated from the stated percentage. The 68% rise in the FY26 dividend means earlier years are a limited guide. Yields of this kind depend on the share price on the day and on which payments are counted, so they move as the share price changes and are not a forecast.

Results

Peet Limited (ASX:PPC) announced its FY26 results on 25 August 2026.

Net operating profit rose 77% to $103.4 million. Revenue rose 3% to $450.2 million, and EBITDA rose 54% to $162.8 million at a 36% margin. The release credits strength in Western Australia and Queensland, higher settlement prices and increased fee and interest income from funds management projects. Net tangible assets were $1.49 per share, up 9%.

Sales and Balance Sheet

Peet sold 2,996 lots, up 8%, and settled 2,665, up 1%. Contracts on hand were $851 million, and pipeline activation rose to 80%. Cash and debt facility headroom was about $260 million, and gearing fell to 24.8%, within a 20% to 30% range.

Balance Sheet Progress

Net debt fell to $201.3 million from $243.6 million, supported by operating cash generation from developments and higher distributions from funds management projects. Peet completed the early repayment of $75 million of Peet Notes, which it says reduces debt costs and improves flexibility. Cash and debt facility headroom of about $260 million provides capacity to fund the current portfolio and future growth, and gearing of 24.8% sits within a 20% to 30% target. Revenue of $450.2 million includes statutory revenue of $419.1 million and a $31.1 million share of profits from associates and joint ventures, against $22.5 million a year earlier.

Sales Pipeline

The company sold 2,996 lots and settled 2,665, so sales ran ahead of settlements, and contracts on hand of $851 million, up 39%, support future earnings. Pipeline activation rose to 80%, meaning most planned lots are in launched projects. Book net tangible assets of $1.49 per share do not fully reflect the market value of development projects and funds co-investments, a limitation the company notes. Operating earnings per share rose 77%, matching the profit gain, while the 68% dividend rise was slightly lower, so the payout ratio eased a little.

How the Payout Measure Works

The measure that matters for this dividend is operating earnings per share. Operating earnings per share of 22.1 cents against dividends of 13.0 cents give a payout near 59%. Net operating profit includes the share of profits of associates and joint ventures. Investors comparing the figure with a yield should remember that the yield is calculated on a price, while the payout compares the dividend with the company's own earnings measure, so the two answer different questions. A high payout can leave little retained cash, while a low payout can leave room for growth or debt reduction, and the right balance depends on the business.

Key Dates and Timing

The results were released on 25 August 2026. The extract does not give the payment date for the final dividend. Dividend and distribution amounts can change from period to period, and the announcement is the source for amounts and dates. Anyone relying on a date should confirm it against the company's notice, because record dates and payment dates vary by security.