Queensland election boosts confidence (and the bottom line): Stockland

Queensland election boosts confidence (and the bottom line): Stockland
Jonathan ChancellorDecember 7, 2020

Stockland’s residential deposits are running at the highest levels in five years with the developer saying it is well placed to achieve full year lot settlements at the upper end of its 5,000-6,000 expectations.

There was "strong momentum" going into FY16, its chief executive Mark Steinert said, adding Stockland was on track to achieve 7.0 – 7.5% earnings per share (EPS) growth in FY15, tightening previous guidance, on presenting its quarter three stock market update.

There were 1,427 net deposits for the quarter, the strongest year to date result in over five years, with third quarter results impacted by moderation in Queensland though confidence re-emerging following the Queensland election.

Stockland reported Victorian market conditions remain robust while reduced net deposits were achieved in NSW due to limited Sydney releases and settlements delayed pending the delivery of trunk infrastructure.

The successful summer sales campaign drove WA volumes, where market conditions continue to moderate.

“We continue to be disciplined in implementing our strategy to grow returns and this has seen us achieve another positive quarter across all areas of our business,” Steinert said.

Expanded customer reach and continuing positive market conditions sees Stockland on track to settle at the upper end of its 5,000 to 6,000 lots through the cycle target range in FY15 with strong momentum going into FY16.

“Our focus on creating thriving communities that enhance the wellbeing of our customers continues to drive high satisfaction," Steinert said.

"A recent survey of residents in our masterplanned communities revealed that our customers have a personal wellbeing score well above the Australian average.”

Stockland has acquired around 4,000 new lots during the quarter, including residential lots and apartment sites.

The Group’s other core businesses also continued to perform well, with Retirement Living and Logistics and Business Parks making good progress implementing their growth strategies.

The Retirement Living business is on track to deliver an increase in sales in FY15, with the $160 million Cardinal Freeman redevelopment in Ashfield, Sydney, underway with the first stage of 28 apartments, due for completion in April 2016, already 65% reserved.

Construction of stage two has now commenced.

Stockland has reported strong retail sales during the third quarter, with comparable specialty sales showing the strongest growth since 2009.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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