Australian Property Giant Lendlease Plunges to Nearly 40-Year Stock Low

Major Australian property developer Lendlease Group reported a massive $318 million loss for the first half of their fiscal year, causing stock prices to crash to levels not seen since 1987. The company was hit hard by declining property values and write-downs on investments in the US, UK, and Singapore.

A major Australian property development company experienced a dramatic financial downturn Monday, with stock values plummeting to their lowest point in nearly four decades following the announcement of substantial losses.

Lendlease Group’s stock price dropped by as much as 9.17% to A$4.160, marking the lowest trading level since mid-December 1987. This represented the company’s most severe single-day percentage drop since February 19, 2024, while Australia’s main stock index fell only 0.7% during the same period.

The property development firm reported a net loss of A$318 million ($224.86 million) for the six-month period ending December 31, a stark contrast to the A$48 million profit recorded during the same timeframe the previous year.

Investment property devaluations and asset write-downs totaling A$118 million significantly contributed to the company’s financial troubles, with most of these losses occurring in properties located across the United States, United Kingdom, and Singapore markets.

The company’s operational losses reached A$200 million after taxes, despite A$87 million in profits generated by their Investments, Development and Construction division, which was overshadowed by a A$287 million loss from their Capital Release business unit.

While the Investments, Development and Construction segment saw reduced contributions from its investment and development operations, the construction arm showed marked improvement, generating A$69 million in operating profits compared to a A$25 million loss the year before, thanks to increased revenue and better project execution.

Company CEO Tony Lombardo described fiscal 2026 as a “transitional year” and expressed optimism that the Investments, Development and Construction division would show stronger performance in the second half of the fiscal year and continuing into 2027.

Despite the challenging financial results, Lendlease maintained its annual earnings forecast for the IDC segment at 28-34 Australian cents per share, citing anticipated gains from upcoming transactions.

Shareholders will receive an interim dividend payment of 6.2 Australian cents per share, representing a slight increase from the 6 cents distributed during the previous year’s comparable period.