Key Highlights

  • FY26 net profit after tax increased 40.9% to AUD 20.3mn.
  • Record pre-sales reached AUD 567.2mn.
  • Net Debt declined by AUD 36.4mn during the year.
  • Total FY26 dividends increased to 5.5 cents per share.

Finbar Group Limited (ASX:FRI) delivered its highest annual profit since FY15 as profitable apartment settlements lifted FY26 Earnings despite lower statutory revenue. Record pre-sales, reduced net debt and a higher fully franked Dividend also shaped the Perth property developer’s annual result.

What the company does

Finbar is a Perth-based residential property developer that has built, marketed and sold apartments across the Western Australian market for more than three decades, typically retaining an interest in completed buildings' retail and commercial components rather than developing purely as a builder-for-sale. Its Business model concentrates on off-the-plan apartment sales in and around the Perth CBD, South Perth, Fremantle and other inner-metropolitan precincts, funded through a mix of presale contracts, bank debt and its own balance sheet.

Latest developments

Alongside the FY26 result, announced to the ASX on 20 August 2026, Finbar reported record pre-sales of $567.2 million, with average monthly off-the-plan sales of $29.1 million during the year — evidence, management said, of converting its order book into "the strongest reported profit since FY15". Net debt fell by $36.4 million over the year and cash on hand rose to $50.7 million at 30 June 2026, up $14.3 million on the prior year. Projects under construction include Garden Towers, Riverbank Residences and Palmyra West Apartments, with the Romeo development recently launched to market. The company also completed the sale of non-core subsidiaries during the period, sharpening its focus back onto core apartment development.

Financial and dividend evidence

The board declared a fully franked final dividend of 3 cents per share, taking total FY26 dividends to 5.5 cents per share — a substantial step up after FY25's final dividend of 2 cents per share marked the resumption of payouts following a period without distributions. At a recent share price of around $0.76, that equates to a trailing Yield in the order of 7%, though investors should treat this as a snapshot rather than a stable, ongoing rate: Finbar's dividend has swung sharply from year to year as the company alternated between paying and preserving cash depending on settlement volumes and balance-sheet priorities. The screener's implied dividend growth figure of roughly 175% year-on-year is broadly consistent with the jump from FY25's 2 cents to FY26's 5.5 cents, but the underlying Payout Ratio should be read with caution given how development profits are recognised in lumps rather than smoothly across periods.

Risks to weigh

Finbar's fortunes are tied tightly to the Perth apartment market, construction costs and interest rates, all of which can move faster than a multi-year development pipeline can adjust to. Presales worth $567.2 million provide Revenue visibility, but settlement risk — buyers failing to complete, finance falling through, or construction delays — remains a feature of the sector. The company's five-year, roughly $1.8 billion development pipeline is aspirational rather than contracted, and dividend continuity is not guaranteed given the company's recent history of suspending and resuming payouts.

What to watch

Investors should watch settlement progress on Garden Towers, Riverbank Residences and Palmyra West Apartments, further pre-sales momentum on the newly launched Romeo project, and whether the board maintains or grows dividends into FY27 as more of the current pipeline converts from presale to settled revenue.