Stockland reported a 10.4% rise in funds from operations (FFO) to $892 million for the fiscal year ended June 30, 2026, as development earnings surged 17.3% to $540 million. The company’s FFO per security reached 36.9 cents, at the top end of its guidance, up 9.1% from 33.9 cents in FY25. Statutory profit climbed 20.2% to $994 million, while net tangible assets per security grew 4.0% to $4.39.
The development segment led growth, with masterplanned communities settling 8,902 lots—a 30% year-over-year increase—while land lease communities saw home settlements rise 48% to 777. Net sales in masterplanned communities jumped 49% to 8,541 lots, and land lease net sales surged 88% to 1,080 homes. Development operating profit margin held at 21.2%, while recurring return on invested capital (ROIC) reached 7%, within its 6–9% target range.
Investment management FFO increased 2.6% to $606 million, supported by a 14.2% compound annual growth rate in assets under management, which rose to $14.9 billion. Management fee income climbed 25.1% to $119 million. Portfolio valuations increased by $264 million, or 2.5%, with retail and logistics assets leading gains. Weighted average capitalization rates compressed 12 basis points to 6.0%, reflecting tightening market conditions.
Stockland maintained its distribution per security at 25.2 cents, representing a 69% payout ratio. Gearing improved to 22.7%, down from 25.2% in June 2025, while net interest expense fell 21.0% to $62 million. The company’s available liquidity stood at $3.2 billion as of June 30, 2026, supported by an $800 million domestic medium-term notes issuance that extended its weighted average debt maturity to 5.3 years.
For FY27, Stockland guided FFO per security to 38.0–39.0 cents, implying 3–6% growth, while distribution guidance remained unchanged at 25.2 cents. Masterplanned community settlements are targeted at 7,300–8,300 lots, with land lease communities expected to settle 850–950 homes. The company also highlighted progress in its data center strategy, securing 450 megawatts of power across three sites in a 50/50 joint venture with EdgeConneX, with funding expected to represent roughly 10% of group net funds employed.
Stockland shares rose 14.44% to $4.635 on the ASX following the announcement, reflecting investor confidence in the company’s execution and growth outlook.
