REPORTING SEASON: Stockland (SGP)
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Figure 1: Stockland 12 month chart
Buoyant property market builds profit growth for Stockland Group
Stockland Group (SGP) is the largest domestic property group in Australia with $14 billion of real estate assets. The group manages and stgelops shopping centres, logistics centres and business parks, office assets, residential communities, and retirement living villages.
SGP reported an underlying profit of $290 million for the half year to 31 December 2014, an increase of 8.5% on the previous corresponding period.
The result was underpinned by growth in all business segments, although low interest rates and strong property demand in its markets helped the Residential business deliver sales growth of almost 22%. This result paved the way for profit growth of almost 73% for the segment compared to the same time last year.
The Retirement Living business delivered underlying profit growth of 5.8% helped by new stgelopment and increased sales which rose by 6.6% compared to the same period a year ago
Stockland’s Commercial Property business comprises retail centres, logistics and business parks, and office assets. Underlying profit for the business rose by 4.7% in the period.
SGP is on track to achieve earnings at the upper end of its guidance range. Full year earnings growth is expected to be in the range of 6.75 – 7.5%. The full year distribution is expected to be maintained at 24.0 cents per security.
The dividend and distribution payable for the half year to 31 December 2014 is 12.0 cents per stapled security which is unchanged compared to the same time last year and will be paid on the 27th of February.