Stockland shares drop on decline in HY funds from operations
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More news: Stockland shares tumbled on the ASX after the property developer's first-half result missed consensus estimates.
Stockland shares were down 4.3% to $5.14 at midday AEDT, having advanced more than 10% over the last 12 months.
Despite posting a 140% surge in first-half profit compared to the prior corresponding period, post-tax funds from operations (FFO) of $251 million fell short of average forecasts of $273 million.
FFO per share of 10.5 cents was also behind market estimates of 11.5 cents per share.
UBS analysts said Stockland's miss to estimates was "somewhat expected", but noted that investors may be soothed by unchanged full-year guidance and a big skew to second-half FFO.
Stockland posts 140% leap in half-year profit, reaffirms guidance
The news: Property developer Stockland reported a jump in first-half profit and reaffirmed its full-year funds from operations guidance, which was upgraded in November.
The numbers: Statutory profit surged 140% year on year to $245 million as net tangible assets per share lifted from $4.12 to $4.14 half over half.
However, pre- and post-tax funds from operations (FFO) of $251 million were down 5.6% on the prior corresponding period.
Stockland maintained its half-year distribution of 8 cents per share. It also reaffirmed full-year FFO guidance of 33 cents to 34 cents per share, on a post-tax basis.
The context: Stockland said its results reflect "strong contributions" from its logistics portfolio and higher land lease communities settlements.
The company said there will be a "material skew" in full-year FFO towards the second half of the year, reflecting the completion of its $1.06 billion acquisition of 12 residential master-planned communities from Lendlease, first announced in December 2023.
What they said: "We were pleased to complete the acquisition of 12 actively trading masterplanned communities late in the half," said managing director and CEO Tarun Gupta.
"The transaction strategically restocks our pipeline at a favourable point in the residential cycle and positions us to accelerate production."
The sources: ASX announcement, UBS research
