• Net profit of $9.4 million for 6 months to 31 December 2024
• $120 million in additional cash anticipated from sell down of debt-free completed stock
• New construction commencement at Bel Air
• Impairment in value of investment property

Finbar Group Limited (ASX:FRI) has reported a net profit of $9.4 million after tax for the half year ended 31 December 2024. The result was largely attributable to the continued selldown of completed stock at Civic Heart, Aurora, and The Point. In the 2024 calendar year, Finbar successfully completed 593 apartments across these three major projects, and the company continues to sell down the completed stock, all of which is debt-free, providing a strong source of capital replenishment. In total, Finbar anticipates it will extract $120 million in additional cash (net of JV interests) after the sale and settlement of the stock for these projects. This ongoing sales activity reinforces Finbar's financial position, supporting the capital requirements for Garden Towers construction and the recent commencement of work at Bel-Air, as well as the investigation of new development opportunities and future capital management initiatives. The company also reported an impairment in the value of its Fairlanes office property in East Perth and its Pelago Apartments in Karratha, recognizing after-tax impairments of $2.45 million and $1.58 million, respectively. Finbar is strategically positioned to capitalize on emerging opportunities in the current market, driven by challenges in the construction sector that have created openings for well-established secure developers and their development partners. The company is actively assessing new site opportunities to broaden its product offering in viable Perth locations.

Finbar is well-placed to leverage a range of favourable market dynamics that are expected to drive business growth. The company continues to generate strong cashflows from the successful selldown of completed stock, reinforcing its financial strength and ability to pursue new development opportunities. Western Australia's well-documented housing undersupply, combined with anticipated improvements to State Government policies, will provide further stimulus to demand, particularly among local buyers. Additionally, stabilisation in construction prices, continued residential property price growth, and recent Federal Government policies restricting foreign buyers from purchasing established dwellings are expected to further shift demand toward new developments.