Walker Group core profits rise again as development revenue ramps up

The growth in profits before financing costs, tax and revaluations came off the back of a 35% lift in development revenue, led by strong housing delivery across Walker’s development projects in Australia and Malaysia, alongside steady earnings from the Group’s commercial investment portfolio.

With the Group’s commercial investment portfolio returning to positive revaluations, Walker’s profit before tax rose to $289 million, up $270 million on last year.

Walker CEO and Managing Director David Gallant said the Group’s development business remains steady in a year of continued economic constraints on housing supply.

“Development revenue rose by $86 million to $330 million, with gross margins at 34%, lifting development profits by $30 million year on year, as we continue to deliver much needed housing in Australia and Malaysia,” Mr Gallant said.

“Our design and delivery teams have broadened the housing choice within our residential communities, and our Australian development pipeline enables us to deliver 39,200 dwellings with an end value in excess of $40.6 billion.” 

Across all developments, Walker achieved 1,314 residential sales in FY26, and the Group has a strong forward sales workbook for the year ahead.

“In NSW, at Appin Grove, we settled all 259 new lots with most homes now under construction, bringing much needed new housing supply to families in Southwest Sydney’s growth corridor,” Mr Gallant said. 

“Riverlea, South Australia’s largest master planned community has achieved over 1,900 sales with over 1,300 homes settled to date. A strong community of over 3000 residents is already connected to the brand-new Palms Shopping Village alongside the first K to 12 school which opens for lessons in February 2027.”

The Group invested $100 million in developing and delivering the Palms Shopping Village which opened in June, adding to the Group’s growing retail property revenue stream. The Centre, anchored by a premium Coles Supermarket has more than 25 specialty stores, the Paisley Park Early Learning Centre, a medical centre, and an outdoor dining plaza.

“We are seeing buyers follow through on their commitments within our developments as purchasers see the long-term value proposition that comes with buying in a masterplanned high-quality development where the developer is providing schools, retail, parks and an active amenity. We see this both in our greenfield and our medium density projects where the long-term value and living amenity is the determining purchasing factor, over the competition," Mr Gallant said.

“Whilst construction labour and material costs have remained elevated, development margins at 34% highlight the strategic advantage of controlling our own land and ensuring delivery meets the necessary sales rates. We are seeing an increase in demand for construction activity as other projects stall.”

Globally, Walker’s Malaysian development business lifted revenue by 56% to $281 million, with gross profit up 43% to $94 million AUD, as demand from Johor Bahru and Singapore buyers continued to build ahead of the opening of the Rapid Transit System (RTS) link to Singapore.

At the Group’s Kews Development community, Kew Woods was launched in March 2026, with the first release, Kew Green 1, effectively sold out and Kew Green 2 over 70% sold.
In Senibong Cove, Hillview’s three 36 Storey towers will deliver 1,181 serviced apartments, the last high-rise component of the township’s hillside, while reclamation works to create the four islands in the Johor Strait are progressing providing a combined end value of RM7.33 billion ($2.5 billion AUD).

The Group’s Malaysian vehicle WM Senibong is now preparing to launch Centennial ParcVista, a 960-acre industrial, residential, and commercial township opposite our Crest@Austin development with an end value of RM10 billion ($3.4 billion AUD). The first phase will deliver 1,007 landed homes and 118 shop top units from mid-2027.

“Our Malaysian development communities will benefit from their direct connection to Singapore via the soon to be opened Rapid Transit System and buyers are responding strongly to well-planned housing that is close to great amenity and open space. With Centennial ParcVista coming to market next year, our Johor Bahru land bank of almost 2,000 acres provides a pipeline of over 47,000 homes with an end value of over $13 billion AUD,” Mr Gallant said.

On the Group’s Investment side, the assets portfolio grew to $6.9 billion, with rental income of $381 million and EBIT holding steady at $292 million.

Property revaluations in the commercial sector returned to positive territory, adding a further $96 million to the value of the portfolio after a $51 million markdown the previous year.

“The opening of Basalt coincides with the 10-year anniversary of the completion of Tower 4 and Tower 2 in Collins Square, and the premium experience is a direct response to our tenants telling us what they want more of in our precincts,” Mr Gallant said.

“Our ability to generate revenue growth from our investment business is intrinsically linked to our ability to listen to our tenants and help their businesses expand by providing them with the best environment to succeed."

Parramatta Square and Collins Square have once again secured top rankings in the 2026 NABERS Sustainable Portfolio Index, which is the country’s most rigorous independent benchmark for building performance.

Parramatta Square ranked number one in Australia for Office Energy Efficiency and Indoor Environment Quality.

Collins Square ranked number one for Indoor Environment Quality and number two for Office Energy Efficiency.

In Adelaide, the all-electric One Festival Towers holds a 6-star Green Star rating, 5.5-star NABERS Energy rating, and 4-star NABERS Water rating, and has also achieved a WELL Gold V2 Certification.

Walker’s exceptional sustainability rankings across all its commercial precincts reflect the company’s commitment to high-quality environments which continue attract and retain blue-chip corporate, institutional and government tenants.

Adelaide’s Festival Tower Two is under construction with the core rising fast on the 38-storey state of the art commercial tower, which will be Adelaide’s first skyscraper and open in 2029 with over 40% committed 24 months out from completion.

In Queensland, 50 First Avenue, the first premium commercial tower in the Maroochydore City Centre, opened in June with major tenants including Unitywater, ANZ, Mott MacDonald and LPE taking up close to 90% of the tower. 

Planning has commenced for the next A-Grade commercial tower in the Maroochydore City Centre, while construction is progressing on schedule on the $300 million SOL by Walker two residential towers. Plans have been lodged to build the next landmark residential tower, Celeste by Walker rising 100 metres at 29 storeys will deliver 208 much needed residences to the precinct.

The Maroochydore City Centre precinct will ultimately bring over 4,000 new homes as the Sunshine Coast's principal commercial and residential centre anchored by the Brisbane 2032 Sunshine Coast Arena and Athletes Village.

On the Gold Coast, early works have been cleared to begin at Walker’s Lakesview Robina project, a Queensland State Facilitated Development which will deliver over 2750 new homes well connected to parklands and Robina train station.

Total Group assets rose by $544 million to $9.1 billion as Walker continued to invest in its development pipeline, lifting development properties by 26% to $1.1 billion. The Group holds strong cash reserves of $459 million.