This article is from the Australian Property Journal archive
OVER the first quarter of FY25, Stockland (ASX: SGP) saw a positive response to its new project launches with 1,121 sales for its masterplanned communities business and 135 homes for its land lease communities business.
MPC net sales were in line with expectations, with 3,992 contracts on hand into FY25 and the FY25 target maintained at a settlement range of 5,300-5,700 lots, with a skew to the second half.
There were 353 contracts on hand for land lease communities (LLC), at a higher average pricing compared to FY24 settlements.
With LLC FY25 target settlements maintained at 600-650 homes, with development operating profit margin in the low 20% range.
“Stockland’s first quarter has continued to build on the positive momentum and the solid operational performance of the previous year,” said Tarun Gupta, managing director and CEO at Stockland.
“During 1Q25, we were pleased to be confirmed as the preferred proponent to deliver the Waterloo Renewal Project, alongside our consortium partners and Homes NSW.”
“Operationally, our portfolio continues to perform well. In the investment management segment, our town centre portfolio is benefiting from its essentials-based mix, and our well-located logistics assets have recorded strong occupancy and rental growth,” added Gupta.
Town centres saw total comparable MAT growth of 2.8% and comparable MAT specialty growth of 1.5%.
Stockland’s commercial developments are progressing with the ongoing construction on the final two buildings at Stage 1 of MPark and its logistics development pipeline of circa 0.3 billion expected to commence during FY25.
Logistics saw positive leasing spreads of 36.0% and a WALE of 3.3-years. While workplace assets saw positive re-leasing spreads of 1.0%.
Stockland reaffirmed its FY25 FFO per security guidance at 32.0–33.0 cents post-tax.
With Distribution per security expected to be within Stockland’s targeted payout ratio range of 75% to 85% of FFO on a full- year basis.
