Stockland reports 8.1 percent increase in first-half underlying profit
Stockland, the nation's largest diversified real estate investment trust, today reported an 8.1 per cent increase in first-half underlying profit to $313 million.
After the group settled 2,770 lots in the six months ended December 31, its chief executive, Mark Steinert said that favourable conditions in Sydney and Melbouurne saw the company ending its first half with a record number of contracts in hand.
"We've activated a high proportion of our residential land bank and we have sufficient depth to our projects in high demand corridors to underpin future organic growth," he said.
Stockland delivered a 45 per cent increase in operating profit in its residential division.
Its material improvement in profitability was driven by new projects and market conditions.
With record contracts on hand, full year settlements are expected to be slightly above its through the cycle range of 5,000- 6,000 lots.
The company said it adopted a disciplined restocking focussed on key urban markets - Craigieburn and Mickleham, Melbourne, consolidation ~1,000 lots; Rowville, Melbourne, stand alone medium density, 180 dwellings; Waterway Downs, Gold Coast, ~750 dwellings
Its sell outs included at Arve (Ivanhoe, Melbourne) with 150 townhomes under construction.
Stockland signaled it was bringing to market four additional projects in priority metropolitan corridors in 2H16: Schofields (Sydney); Macarthur Gardens (Sydney); Newport (Brisbane) and Pallara (Brisbane).
