Stockland reflects positive momentum

21 February 2024

Stockland (ASX: SGP) has today released its financial results for the half year to 31 December 2023, delivering a statutory profit of $102m, compared with $301m last year.

A distribution of 8.0 cents per security was declared, reflecting a payout ratio of 72%.

Managing Director and Chief Executive Officer, Tarun Gupta said: “Over 1H24, we have accelerated the execution of our strategic priorities and made meaningful progress in reshaping our portfolio.

“We announced a ~$1.06bn acquisition of 12 high-quality, actively trading MPC projects in partnership with Supalai, extending our residential and capital partnership platform while providing Stockland with attractive returns and new sources of recurring income. The acquisition represents a strategic restocking of our pipeline and increases our capital allocation to the residential sector, consistent with our focus on deploying capital towards our targeted growth sectors. We expect the transaction to be accretive to our FFO per security from FY25.

“We are seeing early signs of improvement in residential markets and are positioning our MPC and LLC businesses for increased production rates to meet demand in future periods. By the end of FY24, we expect to be actively trading from ~66 Communities projects across MPC and LLC, up from ~36 communities at June 202312. We also expect to commence construction on the majority of our $1.1bn13 active Logistics developments during FY24.

“Our high-quality Commercial Property portfolio continues to deliver strong performance and we are focused on maximising income generation opportunities across our well-located Logistics portfolio and pipeline. We maintain a disciplined approach to capital management and a strong balance sheet, with active capital recycling to fund our secured pipeline and redeploy into our growth sectors.”

FY24 FFO per security guidance is maintained at a range of 34.5 to 35.5 cents.