Global property developer Lend Lease has forecast higher earnings after unveiling a near two per cent rise in net profit for its 2012/13 financial year.
Lend Lease unveiled a net profit of $501.4 million for the year to June 30, up from $492.8 million in the previous year.
It said the result had been hit by property investment revaluations of $5.8 million.
Excluding the effects of those revaluations, the group's operating profit rose 4.5 per cent to $507.2 million.
Chief executive Steve McCann said the group was well placed to deliver earnings growth in the 2013 financial year.
The growth would be driven by its construction business and profits on the first two commercial towers at the Barangaroo South development in Sydney's CBD, plus the sale of London's Greenwich Peninsula to Quintain Estates.
"The strength of the group's construction backlog combined with the depth of the group's significant urban regeneration pipeline and strong base of funds under management gives us strong visibility of earnings over the medium term, provided we continue to execute well," he said in a statement on Thursday.
"We have a significant project pipeline and clear priorities on where we will allocate our capital and are well on the way to delivering our 15 per cent return on equity target over the medium term."
In a regional breakdown of Lend Lease's global operations, Mr McCann said the group would focus on growing in key specialist infrastructure sectors in Australia such as ports, rail, road and energy transmission.
The company's strong internal development pipeline would also help offset the low levels of activity in the non-residential building sector, he said.
In Asia, Mr McCann said Lend Lease would focus on pursuing higher yielding development opportunities and mixed use integrated projects.
European construction markets were expected to remain challenging, but there were signs of recovery in the London residential market.
New York and Chicago were also improving, but Mr McCann said the overall market in America was expected to remain difficult.
Meanwhile, Lend Lease has more than $2.2 billion of available liquidity.
Group chief financial officer Tony Lombardo forecast a rise in gearing from 6.5 per cent, saying the increase would come as Lend Lease invests in its development pipeline.
Lend Lease increased its unfranked final distribution to 22 cents a security from 15 cents a year ago.
