Stockland annual profit slumps on property devaluations
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The news: Property developer Stockland has posted a slump in full-year profit as commercial property valuations declined.
The numbers: Statutory profit for the year to June dropped 30.5% to $305 million, which included $310 million of net investment property devaluations. Revenue for the year was up 6.1% to $2.99 billion but funds from operations were down 7.2% to $786 million.
It will pay a final distribution of 16.6 cents per security, taking full-year distribution to 24.6 cents per security, down from 26.2 cents in FY23.
Stockland shares were up 1.6% to $4.68 in early trading on the ASX.
The context: Despite the weaker result, the developer said the residential market is performing well and it is positioned for a step change in production in its residential unit after launching 15 new housing estates last year.
Its strategy to move into land lease projects is also paying off. It also sold around $700 million of shopping centres as it shifts to investments in logistics. Stockland outlined a FFO guidance of 32 to 33 cents per security for FY25 on a post tax basis.
This does not include the benefit from its purchase of the Lendlease housing business, which is awaiting approval from the competitions regulator. Distribution per security is expected to be within the targeted payout ratio of 75% to 85% of funds from operations.
The source: ASX announcement
