Stockland shares soar as FY25 result beats estimates
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More news: Stockland shares rallied after the property group topped estimates for the 2025 financial year, and issued FY26 guidance in-line with analysts' forecasts.
Shares were up 7.2% to $6.13 at 12:30pm AEST, taking 12-month gains to 34%.
UBS analyst Tom Bodor noted that Stockland announced a lower payout ratio of 60-80% from FY26, down from the previous range of 75-85%.
What they said: "The lower payout range makes sense in light of the substantial forward capital requirements across the business (funding recent logistics and resi acquisitions on deferred terms and/or with future capex)," Bodor wrote.
Stockland full-year profit leaps to $826m, with revaluation gains
The news: Property developer Stockland has reported a 171% leap in full-year profit to $826 million, driven by a lift in settlement volumes from masterplanned communities, higher development fee income and an improved performance from its logistics portfolio.
The news: The result was up from $305 million last year and included $197 million in positive net investment property revaluations.
Funds from operations (FFO) grew 2.7% to 33.9 cents per security. Stockland will pay a full-year distribution of 25.2 cents per security, up 2.4% from 24.6 cents per security in FY24.
Stockland has guided for FFO of 36-37 cents per security in FY26, and a full-year distribution of 25.2 cents per security, in line with this year's payout.
The context: Stockland said "significant progress was made in positioning the business for sustainable growth", including the integration of 12 active masterplanned communities, the addition of three new capital partnerships, and further asset recycling during the year.
The company also announced a partnership with EdgeConneX — a data centre provider backed by EQT Infrastructure — to develop, own and operate a portfolio of Australian data centres.
"Subject to documentation and approvals, this collaboration marks a significant step forward with a high-quality operator in hyperscale infrastructure," said managing director and chief executive Tarun Gupta.
The source: ASX
