Stockland (SGP) H1 2026 earnings summary

Executive summary

• Delivered strong financial performance for 1H FY26, with FFO up 29.5% year-over-year and statutory profit up 19.3%, driven by robust residential, logistics, and development platforms.

• Achieved a step change in strategy execution, increasing production volumes and activating more of the development pipeline.

• Portfolio weighted towards high-value sectors, with 55% of NFE in Residential and Logistics.

• Maintained a strong balance sheet, disciplined risk management, and capital efficiency while investing for future growth.

• ESG leadership continues, achieving net zero Scope 1 & 2 emissions and ongoing renewable energy initiatives.

Financial highlights

• FFO for the period was AUD 325 million, up 29.5% year-over-year, with FFO per security of AUD 0.135.

• Statutory profit was AUD 292 million, compared to AUD 245 million in 1H25.

• Distribution per security was AUD 0.09, with a 67% payout ratio.

• Net tangible assets increased to AUD 4.25 per security; gearing ended the half at 28.1%.

• Operating cash flow for the period was -AUD 315 million, reflecting increased development expenditure; second half cash flow expected to be materially stronger.

Outlook and guidance

• Reaffirmed FY26 FFO per security guidance of AUD 0.36–0.37.

• FY26 distribution per security expected at AUD 0.252, in line with FY25 and within the 60%-80% payout ratio.

• Settlement guidance range for lots remains at 7,500–9,000, with a strong contracts-on-hand position supporting the outlook.

• Commercial development profits and activity expected to become a more material driver of returns in future periods.