Walker Group, the global real estate powerhouse founded by the late billionaire Lang Walker, has posted a modest $5.6 million loss for the 2025 financial year, signalling a sharp turnaround from the hefty writedowns that weighed on its books in recent years. According to a report by The Australian Financial Review, the result marks a major step in the company’s recovery, as stronger sales in its development arm offset lingering valuation pressures.
The privately held group, whose $6.6 billion commercial portfolio spans major office towers on Melbourne’s Collins Street, Parramatta in Sydney, and the newly completed Festival Tower in Adelaide, has seen renewed strength across both its commercial and residential divisions. Walker’s revenue climbed to $668 million, up from $633 million a year earlier, driven by a combination of higher rental income and robust residential property sales.
Managing director David Gallant said the company’s “development revenue has remained consistently strong,” recording $244 million in residential sales and an improvement in profit margins of $31 million year-on-year. Walker achieved 1,068 dwelling sales across six projects, with both its Australian and Malaysian developments performing well.
The group’s Malaysian venture, Senibong Cove in Johor, continues to expand, with growing demand allowing the company to increase density across its 800-hectare site. The project’s pipeline has now ballooned to around 50,000 homes, representing an end value of $12 billion. A similar trend is emerging in Australia, where Walker is diversifying its housing mix to include more townhouses, terraces, and apartments, alongside a greater focus on modular housing that can be assembled within just 12 weeks.
“The re-mix of products across our projects in response to this demand has resulted in our Australian development pipeline increasing to over 39,000 dwellings with an end value exceeding $41 billion,” Gallant said.
Despite challenging conditions in recent years, highlighted by a $455 million loss in the previous financial year due to property devaluations, the company appears to have turned a corner. Writedowns have fallen dramatically to $51 million this year from $682 million a year earlier.
Walker Group’s financial position also remains strong, with cash reserves of nearly $540 million, a 24 per cent increase from 2024. The completion of Festival Tower in Adelaide further bolstered the company’s commercial holdings, helping lift investment profit by 6 per cent to $292 million.
Gallant noted that the company’s 520,000-square-metre investment portfolio is enjoying near-full occupancy, with vacancy rates below 1 per cent. “The quality of our investment portfolio continues to be a deciding factor supporting long-term lease negotiations and rent increases,” he said, adding that Walker expects to see “a return to positive revaluations” as market conditions improve.
Ownership of the company remains in family hands following Lang Walker’s passing in early 2024, with his wife Sue and children Blake, Chad, and Georgia collectively holding 75 per cent of the business. Veteran executives Bruce Hancox and Mark Wilkinson own the remaining quarter.
While Walker Group has not paid dividends over the past two years, its latest results suggest growing financial stability and strategic momentum. With a diversified portfolio, resilient cash position, and a clear focus on adapting to evolving housing trends, the company is positioning itself for sustained growth as the broader property market rebounds.
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