Lend Lease upgrades profit forecast

Australian property group Lend Lease has upgraded its net operating profit outlook for its fiscal year ended 30 June 2012 to between AU$ 485 million (US$ 500 million) and AU$ 505 million (US$ 520 million), excluding any profits from Barangaroo South, its AU$ 6 billion (US$ 6.15 billion) waterfront project in Sydney.

The upgrade follows a number of new project signings for the group's infrastructure business, Valemus. According to CEO and managing director Steve McCann, Lend Lease has focused on expanding its infrastructure business to balance its development and construction portfolio.

The change in forecast is a jump from the market expected results of about AU$ 435 million (US$ 450 million), and means that the company expects to remain flat or show marginal growth over last year's figures. For fiscal 2011, Lend Lease reported net profit of AU$ 485 million (US$ 500 million).

Since Lend Lease's investor day on 16 May 2012, the group has made announcements including lease agreements with tenants for the first two commercial buildings at Barangaroo South, a number of construction project wins, the launch of new funds and successful recycling of capital.