Stockland Maintains Strong Performance and Reaffirms FFO Guidance

October 21, 2024 11:31 AM AEDT | By Team Kalkine Media

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Stockland Maintains Strong Performance and Reaffirms FFO Guidance — Image source: shutterstock

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Highlights

Stockland maintains its FFO guidance range.

Town center portfolio sees strong performance and rental growth.

Development business records solid sales across key segments.

Stockland has reaffirmed its funds from operations (FFO) guidance, remaining steady at 32 to 33 cents per share post-tax, according to its latest quarterly update. This update reflects consistent performance across its various business segments, maintaining a positive outlook despite broader economic conditions.

Chief Executive Tarun Gupta highlighted the company’s strong operational performance, particularly within its investment management portfolio. He noted that Stockland’s (ASX:SGP) town center portfolio, known for its essentials-based mix, continues to show resilience. The portfolio benefits from its focus on everyday needs, such as grocery stores and healthcare services, which are less affected by economic fluctuations. Additionally, Stockland's well-located logistics assets have reported strong occupancy levels and noticeable rental growth, further boosting its investment management segment's performance.

In terms of development, Stockland’s masterplanned community (MPC) business also performed in line with expectations. Gupta shared that the company achieved a solid sales figure of 1121 homes in the MPC segment, highlighting strong demand for Stockland's residential developments. This outcome aligns with the company’s forecasts and reflects stable customer interest in its offerings.

Stockland’s land lease community (ASX:LLC) business also experienced steady progress, recording 135 net sales of homes. This performance reflects the positive reception from customers for the company's new project launches. The LLC model, which allows homeowners to lease the land while owning the property, continues to attract interest from buyers, offering an affordable housing solution in various regions.

As Stockland continues to manage both its investment and development portfolios effectively, the maintained FFO guidance underscores the company's confidence in its operational strength and strategic direction.

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