Stockland shares gain after positive September quarter
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More news: Shares in Stockland are up 1.4% to $5.41 in early trading on the ASX after the property developer reported a positive September quarter update and reaffirmed its full-year funds from operations guidance of 32 to 33 cents per security.
Jarden analysts said there were no major surprises and the company maintained and trends across all divisions similar to FY24. Jarden has a 'buy' rating and a price target of $5.45 a share.
What they said: "We expect the MPC acquisition, a growing Lendlease Communities pipeline and steady growth in the commercial portfolio to drive attractive underlying FFO [funds from operations] growth even without a significant pick up in residential sales momentum," they said in a note.
Stockland keeps guidance after steady quarter
The news: Property developer Stockland has reiterated its full-year guidance for funds from operations after a steady September quarter operationally.
The numbers: The company expects funds from operations per security to be in the range of 32 cents to 33 cents for FY25. For the three months to September, it reported positive pre-leasing spreads of 36% on new leases and renewals in its logistics portfolio, while occupancy improved to 99.3%.
In the workplace portfolio, releasing spreads were 1% while occupancy was down to 89.7% from 93.5%.
The context: Stockland chief executive Tarun Gupta told investors the portfolio continued to perform well.
Its master planned community business achieved sales of 1,121 in line with its expectations, and the land lease community business achieved net sales of 135 homes, reflecting the positive customer response to new project launches.
The competition regulator last month cleared Stockland and Supalai’s acquisition of 12 communities projects from Lendlease, while a consortium including Stockland was also named the preferred proponent to develop the Waterloo Renewal Project in Sydney.
What they said: "In the investment management segment, our town centre portfolio is benefiting from its essentials-based mix, and our well-located logistics assets have recorded strong occupancy and rental growth," Gupta said.
The sources: ASX announcement, Jarden research
