REPORTING SEASON: Stockland (SGP)

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Figure 1: Stockland 12 month chart

 

Property group Stockland (SGP) has swung back into the black, posting a first half profit of $298 million, up from a loss of $147 million in the prior period.

The result was slightly above market expectations and underpinned by a 39% improvement in the performance of SGP’s Residential business.

The 1H 13 result had been impacted by the forced offloading of a number of struggling residential and commercial office assets, with SGP posting a 79% drop in FY13 profit.

1H14 underlying profit – which strips out SGP’s non-cash items such as asset revaluations – rose 5% to $267 million. Stockland Managing Director and CEO Mark Steinert said it was a good result and demonstrated the progress the company has been making to manage its assets and improve their profitability.

“It is however, important to note that economic indicators have been mixed, creating some uncertainty about what we should expect from the market in the second half,” he added.

The company did say it is on track to achieve a full year profit at the upper end of its guidance and has tightened its forecasts to 5-6% earnings per share growth in FY14 “assuming there is no material decline in market conditions.”

An interim distribution of 12 cents per security will be paid to shareholders on 28th February 2014.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliette Saly, Market Analyst,