Australia

Stockland rides out housing trough with Pipeline 10 project

Annual settlement volume totaled close to 6000 lots, in line with previous guidance. This was achieved despite volumes impacted by COVID-related construction delays and extreme wet weather, particularly at the Queensland project in Stockland.

The $9.1 billion ASX-listed Stockland is a diversified company that develops, owns, manages and invests in residential, land leasing, office and logistics, malls and large retail town center assets.

Stockland’s community chief Andrew Whitson said the group is targeting an average operating margin of about 18% and 6,000 settlements next year, skewed toward the second half of the financial year. This is the same as the previous period.

Whitson said Stockland’s burgeoning land leasing sector, which owns land and rents properties, is doing well, with 499 contracts on hand at the beginning of 2023. , the average price is 18% higher. Previous year.

“This gives us a better outlook for the year ahead,” Whitson said. “We are targeting around 350 homesite settlements in 2023, with an average development operating profit margin he is in the range of 10-15%.”

Saranga Ranasinghe, vice president of Moody’s Investors Service, said Stockland’s retail, workplace and logistics performance remained strong during this period despite pandemic-related turmoil and an uncertain economic environment due to rising inflation and interest rates. Assets have performed well, he said.

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“Despite our expectation of moderate demand for Stockland’s master-planned community projects, the REIT’s credit profile remains strong given the stable and predictable returns from its diversified commercial real estate portfolio,” Ranasinghe said. We hope it will live up to our expectations.

A $6.4 billion development pipeline in Stockland’s logistics business, which includes M_Park in Sydney’s Macquarie Park and plans to redevelop Piccadilly Center in Sydney CBD and Affinity Place in North Sydney, will likely offset lower home sales. help.

Stockland has declared a final distribution of 14.6 cents to be paid on August 31st. This brings his total yearly distribution per security to 26.6 cents.

Stockland rides out housing trough with Pipeline 10 project

Source link Stockland rides out housing trough with Pipeline 10 project

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