Result of the week: Villa World

Josh Kitchen

Villa World continues to build on strong foundations, delivering a solid result and a 6% upgrade to full year earnings guidance. It is developing an enviable reputation of under-promising and over-delivering with FY17 set to deliver another record. Since 2014, EPS has grown at a compound rate of nearly 15% p.a..

Villa World constructs affordable residential housing in identifiable high growth corridors on the eastern seaboard of Australia where positive market conditions are supported by a rising population and job creation. The highly experienced management team is focused on achieving consistent growth through the cycle while maximising shareholder returns via dividends.

Trading on a non-demanding PE of only 7.3x with a fully franked dividend yield of 7.6%, healthy balance sheet and 5+ years of land bank, Villa World has flown under the radar for too long. A proven consistent performer, it is now becoming hard to ignore. Satisfying our investment objectives, it remains a core holding of the fund.

Josh Kitchen

Josh was one of the original staff members of K2 when the firm began operations in 1999. Since joining the firm Josh has had responsibility for managing the dealing operations of the firm and now didicates his time managing a portion of the...


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February 2017 Reporting Season ASX: VLW


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