Stockland (ASX:SGP) is capitalising on the recovery in the residential property market, reporting stronger settlement volumes across its housing estates and lifting profit to A$826 million in FY25, compared to A$305 million a year earlier. The result was aided by a A$197 million property portfolio revaluation and higher development fee income.
The company has integrated 12 estates acquired from Lendlease and expanded its pipeline further with the A$620 million purchase of the Kings Forest site from billionaire Bob Ell. Stockland is also benefiting from solid performance in its logistics portfolio and a series of new capital partnerships, while actively pursuing opportunities in residential, logistics, and data centre sectors.
Chief executive Tarun Gupta said the result was at the upper end of guidance, with forecast settlements of 7,500 to 8,500 in FY26 underpinning expectations for strong earnings growth. Funds from Operations (FFO) rose 2.8% to A$808 million, or 33.9 cents per security, at the top of its 33 to 34 cent guidance.
For FY26, Stockland expects FFO per security of 36 to 37 cents, while distributions are expected to remain flat at 25.2 cents. Citi analysts said the stronger result, data centre partnership and FY26 guidance should support the share price, noting the company had trimmed its medium-term payout ratio target to 60–80% to reinvest for growth.
Shares in Stockland (ASX: SGP) were trading 7.17% higher at midday today at A$6.13.