The listed Land Lease Community operator says “weather-related” delays on major projects are “predominantly” to blame for a drop in its FY17 profits.
Gateway now expects its distributable earnings to be around $39M for FY17, down $4.2M on its prior guidance.
Underlying net profit guidance have also been adjusted to circa $40M, a drop of $4.8M.
The slower rate of construction resulted in 240 settlements – less than the 260 to 290 previously anticipated – in May and June, forcing the group to issue the revised guidance. The settlements will now take place in the first quarter of FY18.
Gateway Lifestyle CEO Trent Ottawa says however that their core strategy of growing long-term rentals through the settlement of new homes remains “robust”.
The operator has had an average of 25 sales a month since September last year, and says it expects carried forward sales to be between 80 and 90 from 30 June – which should improve its numbers for the next quarter.