Stockland (SGP) H2 2024 earnings summary

Executive summary

• FY 2024 delivered pre-tax FFO per security of 35.4 cents, at the top end of guidance, with strong operational execution and a robust balance sheet despite market headwinds.

• Strategic focus on residential sector growth, with major acquisitions, new capital partnerships, and above-target settlements in MPC (5,637) and LLC (444).

• Accelerated execution of strategy, with capital redeployed to growth areas and expanded capital partnerships.

• Disciplined capital management, including $690m in non-core disposals and increased gearing to 24.1%.

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

Financial highlights

• Pre-tax FFO was AUD 843 million, or AUD 0.354 per security, at the top end of guidance; post-tax FFO was AUD 786 million or AUD 0.33 per security.

• Statutory profit was $305m, down 30.5% year-over-year, impacted by $310m in net property devaluations.

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

• Operating cash flow was AUD 114 million, reflecting increased development expenditure and land acquisitions.

• NTA per security at AUD 4.12, down from AUD 4.24 at June 2023.

Outlook and guidance

• FY 2025 post-tax FFO per security guidance is AUD 0.32–0.33, excluding any benefit from the pending 12 MPC project acquisition.

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

• Eight new communities to launch in FY25; strong contract positions in MPC (3,415) and LLC (351).

• Anticipates stronger operating cash flow in FY 2025, with elevated development expenditure as new projects are launched.

• Focus on scaling investment management and ramping up development production rates.