Stockland (SGP) H2 2024 earnings summary

Executive summary

• FY24 delivered pre-tax FFO per security of 35.4 cents at the top end of guidance, with statutory profit of $305m, down from $440m in FY23 due to $310m in net property devaluations.

• Accelerated strategic execution included $1.06bn in MPC acquisitions, $210m in LLC acquisitions, and $690m in non-core asset disposals.

• Strong residential sector performance, with 5,637 MPC and 444 LLC settlements, both above targets.

• Progress on ESG targets, including net zero scope 1 & 2 by 2025 and $219m in social value created in FY24.

• Confirmed as preferred proponent for the Waterloo Renewal Project in NSW.

Financial highlights

• Pre-tax FFO was $843m, or 35.4 cents per security, down 4.5% year-over-year but at the top end of guidance.

• Post-tax FFO was $786m or 33 cents per security, down 7.2% from FY23.

• Statutory profit was $305m, down 30.5% year-over-year.

• Distribution per security was 24.6 cents, a 6.1% decrease from FY23, with a 75% payout ratio.

• NTA per security declined to $4.12 from $4.24, impacted by property devaluations.

Outlook and guidance

• FY25 post-tax FFO per security guidance is 32.0–33.0 cents, excluding any benefit from pending 12 MPC project acquisitions.

• Distribution per security expected within 75–85% of post-tax FFO.

• Eight new communities expected to launch in FY25; strong contract positions in MPC and LLC.

• Anticipates stronger operating cash flow in FY25, with elevated development expenditure as new projects are launched.

• Step change in production rates expected as pipeline activation increases, with earnings contributions 12–18 months after project starts.