CANBERRA, AAP – Property developer Stockland has posted a $1.1 billion net profit on Australia’s home buying frenzy and demand for pandemic-era logistics.
Shopping malls and offices have lost value and income from rent holidays amid lockdowns.
But there is strong demand for more industrial precincts and warehouses to fix any supply chain woes and support online business growth.
Chief Financial Officer Tarun Gupta, once Lend Lease’s bean counter, said on Friday he is looking at a $33 billion development pipeline across the group.
Some $5.5 billion for the logistics division includes Melbourne Business Park, Truganina, Altona and Cranbourne West in Victoria, and Macquarie Park, Gregory Hills and the Leppington Business Park in NSW.
Projects ready to start development include Carole Park and Yatala assets in Queensland.
Stockland is also eyeing residential land purchases in Sydney, Southeast Queensland and Melbourne.
Retirement sales delivered record sales growth, with settlements up 22 per cent.
Residential sales volumes rose more than 50 per cent in 2020/21 to 7700 lots, buoyed by ongoing low interest rates and buyer fear of missing out.
There is “strong momentum” continuing this year in home sales, the company said.
Stockland will distribute 24.6 cents per security, up 2.1 per cent on a year earlier, on August 31.
Guidance for 2022 is 34.6-35.6 cents per security.
The outlook across the group assumes COVID-19 restrictions end in calendar 2021 and the vaccination rollout continues steadily.
The return to profit followed a $21 million net loss a year ago.