Lendlease Group, (ASX: LLC) ,has announced a stronger financial performance for the 2025 financial year and provided a detailed update on its strategy during its Annual General Meeting. The meeting took place both in person and online from the company’s Sydney headquarters.
Lendlease’s Sydney head office hosted the hybrid Annual General Meeting
The update comes at a time when many investors are paying close attention to ASX hybrid securities 2025, especially as markets wait for the next IFTHA interest rate update and broader changes in the hybrid securities interest rate environment. These factors continue to influence how companies fund their operations and manage their balance sheets.
Lendlease said its renewed focus on its main markets and the reshaping of its operations are starting to deliver clearer financial results.
Key FY25 Findings
The company reported a noticeable improvement in its earnings and balance sheet position.
Main results
- Statutory profit after tax reached 225 million dollars
• Operating profit rose to 386 million dollars
• The total yearly distribution and dividend was 23 cents per security
• More than 2.5 billion dollars in capital recycling was completed or announced
• The international construction division was sold earlier than planned
• Corporate expenses were reduced after simplifying the organisational structure
Management said these results reflect a more disciplined and focused approach to investment decisions. The company also noted that its performance now sits closer to the average returns delivered by other large property and development groups around the world.
Economic and Strategic Benefits
The company’s strategic update comes during a period of higher funding costs and growing demand for high quality rental housing and commercial property. These conditions have influenced both development decisions and capital planning.
Chairman Michael Ullmer said that Lendlease is committed to creating long term value through careful use of capital. He noted that the company is concentrating on the markets where it expects the strongest opportunities.
Chief Executive Tony Lombardo said the streamlined business structure gives Lendlease a clearer path to growth. He also said the company is strengthening its investment platform in Australia and overseas.
These comments are being watched closely by investors who follow movements in ASX hybrid securities 2025. Many are waiting to see how the upcoming IFTHA interest rate update may affect borrowing costs and the broader hybrid securities interest rate outlook.
Pipeline and Project Updates
Lendlease confirmed that rebuilding the Australian development pipeline is a major priority. The company said it is continuing its work on new residential, commercial and mixed use projects. At the same time it remains focused on selling non essential assets in order to release capital for future growth.
The company plans to rebuild and expand its Australian development pipeline
The company also restated its commitment to responsible building practices, including community engagement, sustainable design and stronger reporting on environmental performance.
Market and Strategic Context
Lendlease’s plan is being carried out at a time when global investors are showing increasing interest in long lasting assets. These include logistics facilities, rental housing communities, retirement living and large urban renewal areas.
Industry forecasts suggest strong growth in the infrastructure, technology and defence related sectors over the coming decade. These areas may present opportunities for diversified property and construction companies that are based in stable markets.
Lendlease said that its long history in Australia, clear planning laws and strong oversight provide an advantage over competitors in regions where supply chains and financing conditions remain more uncertain.
Investor Outlook
Lendlease securities were trading at $5.46 at the time of the meeting. This is an increase of 0.74% for the day. The company’s market value stood at 3.74 billion dollars.
The company plans to begin a 500 million dollar on market buyback in the second half of the 2026 financial year once its asset sales are completed. Analysts say the buyback may support the share price over time, although continued progress on the strategy remains important for investor confidence.
For investors who follow ASX hybrid securities 2025, the improvement in Lendlease’s earnings and capital position provides more stability ahead of the next IFTHA interest rate update. However the final pricing of hybrid securities will continue to be shaped by movements in the wider hybrid securities interest rate conditions.
Also Read: Computershare Reports Robust FY25 Growth at Annual Meeting
Conclusion
The Annual General Meeting showed that Lendlease is making steady progress in reshaping the business and improving its financial strength. The company has simplified its structure, advanced its capital recycling program and set a clearer direction for its development pipeline.
For investors, especially those monitoring ASX hybrid securities 2025, the update offers more confidence in the company’s longer term role in property and infrastructure markets both in Australia and overseas.
FAQs
- What are hybrid securities?
Hybrid securities are investments that include features of both shares and bonds. They usually pay regular income like a bond but carry higher risk because they can be converted into shares or may lose value if the issuer faces financial pressure.
- Why is the market for ASX hybrid securities changing in 2025?
The market is shifting because regulators are phasing out certain bank hybrid structures over the next few years. This has reduced new issuance and created more focus on existing hybrids that may be called or restructured before 2027.
- What should investors know about hybrid securities interest rate risk?
Hybrid securities are sensitive to interest rate movements. When interest rates rise, the value of existing hybrids can fall because investors expect higher returns for taking on similar risk. This makes rate changes an important factor for pricing.
- How does the phase out of hybrid securities affect investor strategies?
The phase out encourages investors to review their portfolios. Some may shift toward other income-producing assets such as subordinated debt, high-dividend shares or fixed-income funds as older hybrids reach their call dates and are not replaced.
- Why does the hybrid market matter for companies like Lendlease?
Even though Lendlease is not a bank, broader market changes that affect funding costs and the IFTHA interest rate update can influence how large companies manage capital. This includes decisions about borrowing, distributions and long term planning.
