Stockland delivered a result that met the highest expectations, achieving Funds From Operations per security of 36.9 cents at the top end of its guidance range for the financial year ended 30 June 2026. Statutory profit climbed 20.2% to $994 million while post-tax FFO rose 10.4% to $892 million, signalling strong underlying earnings momentum across the group. This performance reflects a step-change in execution quality and sets up attractive prospects for the year ahead.
The standout driver was acceleration across the development division, where FFO surged 17.3% to $540 million. Masterplanned Communities delivered record settlement volumes of 8,902 lots, up 30% year-on-year, while net sales climbed 49% to 8,541 lots, suggesting a pipeline of future settlements remains robust. Land Lease Communities performed even more impressively, with home settlements jumping 48% to 777 and net sales up 88% to 1,080, demonstrating the firm’s ability to scale more affordable residential offerings. Commercial development also progressed materially, with around $800 million in projects completed and $1.2 billion commenced during the year.
Investment Management contributed stable earnings growth, with comparable FFO rising 3.5% on an ex-acquisitions basis. Logistics properties continued outperforming, posting 8.1% comparable FFO growth and 97.5% occupancy alongside re-leasing spreads of 33.8% that reflect persistent undersupply in industrial space. Retail held steady with 3.1% comparable growth and 99% occupancy, though re-leasing spreads of 3.9% point to a more measured environment. Management fee income climbed 20% to $119 million, boosted by successful capital partnerships and three new global organisations: Morgan Stanley Real Estate, EdgeConneX and Mercer, across data centres, retail and land lease platforms respectively.
Capital management remained disciplined with gearing of 22.7%, comfortably within the 20-30% target range. The company raised approximately $1.5 billion in third-party capital and recycled $0.7 billion through divestments, supporting growth initiatives whilst maintaining financial flexibility. The full-year distribution of 25.2 cents per security was maintained with a reasonable 69% payout ratio, preserving capital for reinvestment. Net Tangible Assets rose 4% to $4.39 per security, whilst recurring ROIC held steady at 7% and development ROIC reached 17%, both within target ranges.
Guidance for FY27 points to further growth, with FFO per security expected to reach 38.0 to 39.0 cents whilst distributions are held at 25.2 cents, suggesting earnings momentum but a moderated payout ratio allowing for development capex. Investors should monitor development settlement momentum into FY27 and any shifts in capital partner appetite, which could influence funds under management and fee income trajectory. The company’s secured power for approximately 450 megawatts of data centre development also warrants watching, given structural tailwinds in artificial intelligence and cloud infrastructure. This announcement is price sensitive and has been flagged as material by the ASX.
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About Stockland Corporation Limited (ASX: SGP)
Stockland Corporation Limited is one of Australia’s leading diversified property groups that develops masterplanned residential communities and manages commercial, retail, and logistics properties across the country. Operating as a Real Estate Investment Trust since 1952, the company specializes in creating connected communities through residential land development, town centers, and workplace facilities. The company serves as both a residential property developer and commercial property investor, operating and managing a diverse portfolio of real estate assets.
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