Stockland posts 19.3% HY profit increase, below estimates
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The news: Property developer Stockland reported a 19.3% increase in first-half statutory profit to $292 million, driven by a positive net investment in property revaluation.
The numbers: The profit figure missed average forecasts of $447.7 million, according to Visible Alpha.
Post-tax funds from operations (FFO) of $325 million were up 29.5% compared to $251 million a year ago.
The investment management arm saw FFO growth of 3.7% to $296 million, in line with the first half of FY25 while development FFO hit $106 million, up from $36 million in the previous corresponding period.
The number of lots settled in the first half was up 60% to 3,168 and Stockland reaffirmed its FY26 target of 700 to 800 lots.
The company declared an interim dividend of nine cents per share, up from eight cents a year prior and in line with consensus estimates.
The company is guiding funds from operations per security between 36 cents and 37 cents for FY26, while its distribution per security guidance is expected to be 25.2 cents per security, in line with FY25.
The context: The increase in profit and funds from operations was "underpinned by a material uplift in Masterplanned Communities settlement volumes, higher Development fee income and a resilient performance from the Logistics and Town Centre portfolios," according to Stockland managing director and CEO Tarun Gupta.
The source: ASX
