AV Jennings (ASX:AVJ)a leading residential property developer in Australia and New Zealand, today released its first quarter business update for FY25, reporting a 29% increase in deals compared to the previous corresponding period. In total, the company settled 122 lots valued at $50.4 million, a notable increase compared to data from the first quarter of fiscal 2024. Settlement volume growth – up 82% year-over-year – reflects increased land sales, although average revenue per plot was lower due to the shift towards land rather than “built-form housing” (i.e. completed residential units ready to move in). employment compared to sales of land alone).
In total, AVJennings signed 93 unconditional manufactured housing contracts valued at $34.5 million, down from 162 retail contracts signed in both the first quarter of fiscal 2024 and the fourth quarter of fiscal year 24. This decrease reflects both different market conditions and limited supply.
CEO and managing director Phil Kearns noted: “We are making good progress with our goal of modernizing and transitioning the business through disciplined capital management, optimizing our project pipeline and leveraging our Pro9 brickwork system. This approach, coupled with our active pursuit of capital partnership opportunities, positions us well to drive future growth and enhance shareholder value.”
The Pro9 wall system is a prefabricated construction technology developed by the Australian company Pro9, with which AVJennings has a joint venture. The technology combines a custom-designed load-bearing steel frame with efficient insulation and durable sheathing, resulting in resilient walls with high fire resistance. This system is designed to achieve high energy ratings and can significantly reduce construction times, allowing structures to reach the “lock-in” phase in just seven days after slab installation. The Pro9 system is generating interest across industry and government due to its potential to help address housing shortages and climate goals.
AVJennings reported no new land acquisitions during the quarter, reducing the total lots under review to 9,707.
The company is focusing its efforts on top-performing markets such as south-east Queensland and South Australia, while taking a cautious approach in areas such as Victoria, which is only showing early signs of recovery. In New Zealand, the company noted improved market sentiment following recent cash rate cuts by the Reserve Bank of New Zealand.
At 11am the stock was down 3.03% at 32 cents.