This article is from the Australian Property Journal archive
STOCKLAND’S $987 million sale of its retirement living business to EQT Infrastructure has settled, while the diversified developer is expecting its full-year funds from operations to be at the top end of guidance range.
“The sale of the retirement living business is a significant step in the execution of the Stockland strategy. I thank all of the employees in the retirement living business for their contribution over the years, and their focus and commitment during this transition period,” Stockland’s CEO and managing director, Tarun Gupta said, adding the group has “started FY23 in a strong position”.
Proceeds from the retirement living business transaction will result in a pro forma reduction in gearing of circa 5%.
Stockland expects full-year FFO to be at the top end of the previously advised guidance range of 35.1 to 35.6c per security .
The sale of the retirement living business will result in a taxable gain for Stockland and the reshaping of the portfolio is expected to return Stockland Corporation Limited to an income tax paying position from FY23, in the range of five to 10% of group FFO.
Stockland will maintain its distribution policy of the higher of 100% of trust taxable income or 75 to 85% of FFO on an annual basis, and in FY23 group FFO will include tax payable.
Stockland will release its full-year results on 19th August.
