FBU - Fletcher Building

[Waltzing]

the profits will disappear into manage performance options...

at least thats how we would structure it . 25% of it making it way to the bottom line if that.

[Balance]

Thanks for the link, very fascinating indeed. Can't wait for HY results in couple of weeks time.

Likewise.

Means FBU is very well positioned in NZ's biggest & most profitable residential housing market - Auckland.

"Fletcher Residential lists locations where it is planning to build, building and/or selling homes all being in Auckland: Beachlands, Glen Innes, Hobsonville Point, Karaka, Ormiston Panmure, Red Beach, Stonefields, Swanson, Te Atatū Peninsula, Waiata Shores and Whenuapai." And now add, Riverhead.

There is latent value to be released from all the sections FBU already owns in Auckland and around NZ.

[Waltzing]

Total land bank value once developed? OCA hasnt made money on this yet and FBU has no track record of big profits from building houses has it?

[Balance]

Total land bank value once developed? OCA hasnt made money on this yet and FBU has no track record of big profits from building houses has it?

Actually FBU has a superb track record of making super profits from building houses.

Land bank is continuously replenished - as it has over the last 50 years.

[Waltzing]

We used to trade this one under 5 to range 9.

on Balance ....well time to take some notice again.

[sb9]

Looks like momentum is back here...

[winner69]

Building consents give an idea of the future ...it’s all good for FBU

Awesome numbers from Stats NZ re December consents

Westpac say:

December was another strong month for consent issuance, capping off what’s turned out to be a massive year.

On the residential side, issuance was up 4.9% in December (prev. +1.2%). Over the past 12 months, 39,420 new dwellings were consented. That’s the highest level since 1974 and even more impressive given the disruptions associated with the lockdowns in the middle of the year.

Much of the strength in issuance has been centred on Auckland, where just under 16,700 new dwellings were consented over the past year (up 10% vs 2019). That’s more than enough to keep up with population growth, and if that pace can be sustained it will erode the shortage of houses in the region. Underlying this strength in Auckland has been a massive lift in the number of medium density dwellings that are being consented (i.e. townhouses), the rate of which has surged higher in recent months.

We’re also seeing solid issuance in Canterbury, while numbers in other parts of the country have remained firm.

Today’s result reinforces our expectations for a significant rise in residential construction over the coming year. That’s being underpinned by the low level of interest rates and strong gains in house prices, which are boosting developers’ confidence. Yesterday’s labour market data signalled that this is already boosting employment in the construction sector.

We’re also seeing firmness on the non-residential side. While not roaring away like residential activity, spending on commercial buildings has retraced its lockdown-related fall and is holding at a solid level. We think that businesses will remain cautious about capex over the coming year. However, investor demand for commercial property has been resilient and the ongoing recovery in the economy is likely to support increases in commercial building activity over the coming year.

[Balance]

https://www.stuff.co.nz/life-style/h...r-1970s-heyday

Bit more colour to the December building consent numbers.

Major issue for the building & construction activity will be availability of resources to meet the construction demand.

So expect the boom to spread out way into 2022 and beyond.

Extremely positive for STU & FBU.

No wonder Milford is back buying into the sector after selling down and out 2 years ago!

[Balance]

https://www.nzherald.co.nz/business/...DN3XAYI5D5IMY/

paywalled

What to expect this earnings season when NZX companies report next week?

Jarden's reporting season preview report picks Fletcher Building, Spark and Ebos as having the potential for upside.

Allbon said this time last year Fletcher Building was shutting down its operations but was now benefiting from a booming housing market.

"That is one where it is in this Goldilocks period where they had trimmed the cost base much more dramatically down to a Covid-impacted activity level, and actually the activity level has been much stronger than anyone expected."

He said seven or eight months ago everyone hated the stock at $3.50 and now it had the potential for further upgrades.

[Checkmate]

https://www.nzherald.co.nz/business/...DN3XAYI5D5IMY/

paywalled

What to expect this earnings season when NZX companies report next week?

Jarden's reporting season preview report picks Fletcher Building, Spark and Ebos as having the potential for upside.

Allbon said this time last year Fletcher Building was shutting down its operations but was now benefiting from a booming housing market.

"That is one where it is in this Goldilocks period where they had trimmed the cost base much more dramatically down to a Covid-impacted activity level, and actually the activity level has been much stronger than anyone expected."

He said seven or eight months ago everyone hated the stock at $3.50 and now it had the potential for further upgrades.

Love it! I'm still holding from $4.20.