SYDNEY, AUSTRALIA-Lend Lease reported its earnings Wednesday afternoon and soon followed that with two major announcements; the resignation of Greg Clarke and the decision not to sell shares to retail investors through a strategic purchase plan.

The company’s net operating profit after tax at the end of December 2008 was $120.5 million, down from last year’s operating profit of $165.2 million. According to company executives, “This represents a decline of 27% from the corresponding prior year period primarily due to lower profit from capital recycling and tough market conditions in our communities businesses.” Lend Lease’s earning report looks at the past 6 months, rather than by quarter.

Lend Lease’s statutory loss after tax totaled $387.7 million. According to the earnings report, this is due in large part to “deteriorating economic and market conditions.” “There is no doubt that 2009 is challenging as the effects of the global financial crisis continue to be felt,” says Lend Lease Group CEO, Steve McCann. “Lend Lease is not immune to these factors, but the Group’s strong financial position, focus on cash flow management and the maintenance of its significant liquidity buffer provides a strong foundation to withstand these pressures.”

McCann goes on to say, “We expect the current market volatility to remain for the foreseeable future with the timing of recovery dependent on the recovery of liquidity in the financial markets. Our strategy is to preserve our strong cash position, resize overhead in light of market conditions and to consolidate our pipeline of projects to ensure we will be in a leading position when financial markets recover.”

Today, Lend Lease has told potential investors that the proposed Share Purchase Plan, which would give retail investors in Australia and New Zealand a chance to purchase shares of the company, will no longer move forward. The plan was initially made public at the beginning of February. But now executives say, in a release, “Lend Lease has decided not to proceed with the Share Purchase Plan due to the current market value of its securities remaining below the A$6.05 institutional placement price and a deterioration in equity market conditions.”

Simultaneous to this decision not to move forward with the Share Purchase Plan and the past 6 month’s earnings report, Greg Clarke has stepped down from his position as managing director. CEO McCann, who was just appointed to the position in the middle of December, will take over as managing director and become a member of the Lend Lease board.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.