Stockland FY26 Statutory Profit $994m, FFO 36.9c/Security

Stockland (ASX:SGP) reported its financial results for the twelve months ended 30 June 2026, with comparatives against the twelve months ended 30 June 2025 unless otherwise stated. Statutory profit was up 20.2 per cent to $994 million and includes a positive net investment property revaluation movement of $202 million; the release separately notes $264 million of valuation gains across the investment platform on a look-through basis. Post-tax Funds From Operations, a non-statutory measure, was up 10.4 per cent to $892 million from $808 million, and FFO per security was 36.9 cents, up 9.1 per cent, which Stockland said was at the top end of its guidance range. AFFO per security was 31.7 cents and net tangible assets per security were up 4.0 per cent to $4.39. Management fee income was up 20 per cent to $119 million, and recurring return on invested capital of 7 per cent and development return on invested capital of 17 per cent were both within target ranges. Gearing was 22.7 per cent, down from 28.1 per cent at 31 December 2025 and within the group's 20 to 30 per cent target range. Available liquidity was $3.2 billion, the weighted average cost of debt was 5.3 per cent for FY26 and is expected to average 5.9 per cent for FY27, weighted average debt maturity was 5.3 years against 4.6 years at 30 June 2025, and the fixed hedge ratio averaged 65 per cent. Operating cash flow was $876 million. The full-year distribution was 25.2 cents per security post tax, in line with FY25, at a payout ratio of 69 per cent.

By segment, Investment Management delivered FFO of $606 million, up 2.6 per cent, with comparable growth of 3.5 per cent on a basis that excludes acquisitions, divestments and assets under development. Within it, Logistics recorded comparable FFO growth of 8.1 per cent, re-leasing spreads of 33.8 per cent and occupancy of 97.5 per cent; Retail recorded comparable growth of 3.1 per cent measured on a Shopping Centre Council of Australia comparable basket that excludes assets redeveloped within the past 24 months and excludes Stockland Piccadilly, rental growth on the stable portfolio of 3.9 per cent on an annualised basis, and occupancy of 99.0 per cent across the stable portfolio based on signed leases and agreements at 30 June 2026; and Workplace recorded comparable growth of negative 1.0 per cent alongside a $57 million valuation decline. Development FFO was $540 million, up 17.3 per cent, reflecting higher settlement volumes across Masterplanned Communities and Land Lease Communities, increased partnership fee income and a stronger contribution from Commercial Development. Masterplanned Communities recorded 8,902 lot settlements, up around 30 per cent, a figure that includes 4,880 settlements under joint venture or project development agreements against 3,216 in FY25, with net sales up 49 per cent to 8,541; Land Lease Communities recorded 777 home settlements, up 48 per cent, with net sales up 88 per cent to 1,080. Stockland raised around $1.5 billion of third-party capital and recycled $0.7 billion, forming partnerships with Morgan Stanley Real Estate Investing across convenience retail, EdgeConneX in data centres and welcoming Mercer to its land lease platform, and secured power for around 450MW of data centre development across three sites subject to final design, documentation and customer negotiations. For FY27 the group guided to FFO per security of between 38.0 and 39.0 cents and a distribution per security expected to be 25.2 cents, in line with FY26, with all forward looking statements remaining subject to no material change in market conditions. Managing Director and Chief Executive Officer Tarun Gupta said the company expects growth in other parts of the business to more than offset a lower Masterplanned Communities FFO contribution in FY27. Separately, the outlook section states the group is targeting 7,300 to 8,300 MPC settlements at a development operating profit margin of around 20 per cent.