FX.co ★ Stockland Reports Strong Commercial Property Operational Metrics In Q3; Backs FY24 Pre-tax FFO View

Stockland Corporation Limited, an acclaimed property firm from Australia, recently announced its third-quarter performance highlighting robust operational parameters in their commercial property segment.

The leasing spreads for Logistics stood at a significant 42.0 percent, while the Town Centres witnessed a 3.5 percent spread. Moreover, the Town Centre portfolio, which primarily focuses on essentials, exhibited a comparable total sales growth of 3.4 percent. The comparable specialty sales, when reviewed on an MAT basis, showed an encouraging 1.3 percent growth.

The Masterplanned Communities, abbreviated as MPC, reflected a favourable trend with net sales amounting to 1,242 lots. This showcases a steady improvement in sales over the past four quarters.

With a forward-looking perspective for the fiscal year of 2024, the firm anticipates pre-tax funds from operations (FFO) per security to lie between 34.5 to 35.5 cents. The expected tax expense is predicted to be in the high single-digit percentage of pre-tax FFO.

The Distribution per security is foreseen to comply with Stockland's targeted payout ratio range, i.e., 75 to 85 percent of post-tax FFO.

However, the firm acknowledges the ongoing market uncertainty and fluctuating conditions.

Tarun Gupta, the Managing Director, and Chief Executive Officer of Stockland, commented on the performance. He said, "Throughout the third quarter of 2024, Stockland has showcased a robust operational performance while maintaining its focus on strategic priorities."

Lastly, the shares of Stockland got a lift of 2.19 percent in the Australian market, touching A$4.43.