Harry Triguboff's Meriton revenue sits at $1.45 billion, with 12,871 units in the works
Harry Triguboff's Meriton has seen a huge fall in profits in the recent financial year.
But Meriton has seen a 44 per cent boost in the number of units in various stages of development to 12,871 units.
It sat at 8954 in the 2019 annual return.
The financial documents lodged with the corporate regulator this week show after tax profits for Meriton Properties dropped 95 per cent from $356 million in 2019 to $19.4 million this year.
Revenue fell by $300 million to $1.45 billion as sales of apartments slowed and occupancy rates at his serviced apartments fell..
The Meriton balance sheet reveals a net asset base of $4.2 billion, up from $4.19 billion a year earlier, with more than $3.22 billion in land and buildings.
At 30 June 2020, the company expected to spend $1,127,571,929 on future construction activities for jobs under construction.
Meriton has some $227 million in vendor finance loans, up from $204 million.
The facilities are made on an average rate of 5.16% (2018: 5.86%) and are interest only loan with a maturity of two years.
The number of investment units including serviced apartments it owns now sits at 11,591 units, up 28 percent.
It got $447 million in rents, down from $481 million, but signalling hopes of returning rental units into short-term stays as pandemic interim leases rolled off.
“Whilst the COVID-19 pandemic has impacted sales, service apartments and rental markets in the short term, the group is on track to return to pre-COVID-19 levels by June 30, 2021,” a note in the financial report advised.
Triguboff recently admitted to The Australian of being “scared” of the consequences for the property sector of a fall in immigrants during the pandemic.
The company paid no dividend.
Selling exposes dropped from $49 million to $37 million, while salaries rose from $99 million to $101 million.
Much of the drop in profit was due to the accounting treatment of Meriton's inventory as revaluations turned negative and were booked as a $248.8 million loss, compared to a $66.5 million gain a year earlier.
The devaluation flowed from the values Meriton ascribes to elements of its large suburban projects which it hands over to local authorities as public space or roads, the AFR advised.
The Meriton financial results noted the company had signed a settlement deed with the Australian Tax Office in September.
It was over a dispute covering the 2014-2017 tax years, resulting in a $67.64 million bill, including shortfall interest charges and penalties.
It noted Meriton booked an $8.3 million tax bill in 2020 after paying $149 million the previous year.
The annual report to June 30, 2020, noted a new board member added in October, Albert Chan.
He joins Harry Oscar Triguboff, James Sialepis, David Cremona and Matthew Thomas.
The banking facilities are subject to an annual review with $480 million facility due to mature on 31 May 2023.
The margin loan facilities are with Credit Suisse with a limit of $100 million, Cretonne with a limit of $125 million, and Citibank Private a limit of $100 million.
"These amounts are undrawn," it noted.
