This article is from the Australian Property Journal archive
STOCKLAND maintained its full-year funds from operations guidance as it reported elevated residential enquiry levels “well above historical” levels and positive price momentum.
It saw 1,562 sales in the March quarter, in line with expectations, with new project launches skewed to the final quarter of the financial year.
“Our enquiry levels remain strong and there is considerable unsatisfied purchaser demand, given the supply constraints experienced over the last 12 months,” CEO, Communities, Andrew Whitson said.
“Current market fundamentals remain positive; however, we expect the strength of market conditions to moderate over the medium term in line with rising interest rates.”
The impact of cost inflation stemming from supply and labour disruptions due to ongoing COVID-19 restrictions and flooding on the eastern seaboard “has been more than offset” by price growth and contingency allowances.
Stockland is still targeting close to 6,000 settlements over the full year, with target operating profit margin guidance of over 18%. Underlying price growth and deferral of some settlements into the next financial year is expected to result in a higher operating profit margin for the second half than previously anticipated.
Estimated FFO per security guidance range was maintained at 35.1 to 35.6c, while distribution per security for the full year is expected to be within target payout ratio of 75% to 85% of FFO.
Across its town centres retail portfolio, total comparable sales rose by 2.8% in the March quarter, while comparable specialty sales rose 1.5%. Rent collection was at 93% and portfolio occupancy at 99.1%.
It completed its $146 million divestment of Stockland Cairns.
Its logistics portfolio recorded rent collection and portfolio occupancy of 99%. Positive rent reversions were reported and 269,000 sqm of space has been leased over the nine months to the end of March, with a further 124,000 sqm under heads of agreement.
The workplace portfolio recorded 99% rent collection and 90.2% occupancy. Construction has commenced on its M_Park stage one development in partnership with Ivanhoé Cambridge.
