Stockland raises earnings outlook after better than expected interim profit
Stockland today raised its full year earnings outlook to the upper end of its guidance, after a better than expected interim net profit.
A 39% surge in its residential business helped the listed diversified property group produce a stellar 5% increase in underlying profit, to $267 million for the six months to 31 December.
Underlying earnings per security (EPS) was steady at 11.6 cents.
Funds from operations (FFO) per security were in line with underlying EPS at 11.7 cents and up 4.5% on 1H13.
Stockland managing director Mark Steinert said: “This is a good result that demonstrates the progress we are making in improving our operational performance.”
He also made a point of saying that while the business was well positioned, the group remained conservative in its outlook for FY14 due to continuing uncertain economic conditions.
Despite that note of caution, Mr Steinert said: " we are confident we are on track to achieve the upper end of our guidance, and have therefore tightened this to 5-6% EPS growth in FY14, assuming there is no material decline in market conditions.”
Management is forecasting a positive seasonal skew in residential and retirement living earnings in the second half, "underpinning a stronger second half EPS".