Stockland (SGP) H1 2025 earnings summary

Executive summary

• FFO for 1H25 was AUD 251 million, down 5.6% year-over-year, with FFO per security at 10.5 cents, reflecting a second half settlement skew and strong contributions from logistics and land lease, offset by lower Town Centre earnings and timing of masterplanned communities (MPC) settlements.

• Statutory profit rose to AUD 245 million from AUD 102 million in 1H24, driven by a net positive revaluation of investment properties and strong logistics and LLC performance.

• Integrated 12 newly acquired MPCs, with 81% of the residential pipeline now active and further project launches planned.

• Expanded capital partnerships, including new logistics partnerships with M&G Real Estate and KKR, and further growth in land lease partnership with Invesco.

• Maintained leadership in ESG, with renewable energy initiatives on track for net zero Scope 2 emissions by year-end.

Financial highlights

• FFO of AUD 251 million, down 5.6% year-over-year; FFO per security of 10.5 cents; statutory profit after tax increased to AUD 245 million; revenue for 1H25 was AUD 1,013 million.

• Investment management FFO of AUD 298 million, down 6.7% due to asset disposals, but with 3.5% comparable growth.

• Development segment FFO of AUD 36 million, with strong land lease and fee income, but no third-party commercial development contribution.

• Operating cash flow for H1 was AUD -187 million, reflecting development spend and settlement timing; strong cash flow expected in H2.

• Distribution per security increased 4% to 8.0 cents, with a payout ratio of 76%.

Outlook and guidance

• FY25 FFO per security guidance maintained at 33–34 cents post-tax; distribution expected at ~75% of post-tax FFO.

• Anticipates stronger H2 operating cash flow due to higher settlement receipts and contracted disposal proceeds.

• Residential market fundamentals expected to remain positive, with volume recovery in Victoria and continued strength in Queensland and WA.

• Land lease settlements for FY25 now expected at ~600, reflecting weather delays and lower Victorian sales.

• Guidance is subject to no material change in market conditions.