Key Highlights

  • FY26 net profit increased 40.9% to AUD 20.3mn.
  • Record pre-sales reached AUD 567.2mn at 30 June 2026.
  • The five-year development pipeline carries an estimated end value of AUD 1.8bn.
  • West Leederville approval added a project worth approximately AUD 265mn.

Finbar Group (ASX:FRI) enters FY27 with record apartment pre-sales, its best profit since FY15 and approval for a major West Leederville development. Perth’s constrained housing Supply provides a supportive setting, but construction costs and settlement timing will shape when contracted sales become recognised earnings. Execution across the development pipeline is now the central focus.

Recent Developments

Finbar's FY26 full-year result, its strongest since FY15, reported net profit after tax of AUD 20.3mn, up 40.9% on the prior year, with underlying NPAT of AUD 22.1mn and Revenue of AUD 204.3mn. The company posted record pre-sales of AUD 567.2mn at 30 June 2026, averaging AUD 29.1mn of off-the-plan sales a month. Directors declared fully franked dividends of 5.5 cents per share for the year, including a 3 cent final dividend payable on 25 September 2026. Separately, on 13 August 2026 an assessment panel approved Finbar's West Leederville apartment development, a project with an estimated end value of about AUD 265mn, adding to a pipeline of new work.

Business and Investment Context

Finbar's appeal rests on its position in a supply-constrained Perth apartment market, backed by a five-year development pipeline valued at roughly AUD 1.8bn in estimated end value, with AUD 515.1mn of projects currently under construction. Record pre-sales provide forward revenue visibility, since apartment settlements are recognised on completion, meaning today's contracted sales feed profits over coming years. The fully franked dividend, and a Yield that has attracted income investors, is a further draw. The risks are those inherent to development: reliance on the West Australian economy and population growth, construction cost and labour pressures, settlement risk, and the long lead times between winning approvals and banking profits. Interest-rate settings and buyer confidence remain important swing factors.

What to Watch Next

The near-term catalysts are execution-driven. Investors will watch the commencement and Marketing of the newly approved West Leederville project, along with the launch and sell-down of other pipeline stages such as its Palmyra West and other WA developments. Settlement of completed towers will convert pre-sales into recognised earnings, so the timing of project completions matters for the FY27 profit profile. The 3 cent final dividend is payable on 25 September 2026. Broader signals - Perth housing demand, migration trends and construction cost movements - will continue to shape sentiment toward the stock.

Outlook and Key Considerations

Finbar has meaningful forward sales and a large pipeline, but property development Earnings remain dependent on completion and settlement schedules. Construction delivery, buyer confidence and the conversion of approvals into launched projects will guide the FY27 outlook.