Stockland Corporation Ltd posted a 10.4% increase in funds from operations (FFO) to A$892 million for the 2026 fiscal year, while FFO per security rose 9.1% to A$0.369, matching the upper end of guidance. Statutory profit climbed 20.2% to A$994 million, including net fair value gains of just over A$200 million.
The group reduced gearing to 22.7% from 28.1% at December, with net tangible assets per security up 4% to A$4.39. Operating cash flow was broadly in line with FFO at A$876 million. Investment management contributed A$606 million to FFO, while commercial development added A$35 million and land lease development delivered A$100 million, a 67% increase year-over-year. The combined land lease business generated A$137 million, up 40%.
Total group overheads grew 6.4% annually over the last three years, outpaced by revenue growth of more than 13% per annum. Investment management net overheads rose 12%, and development net overheads increased 13.1%. The weighted average cost of debt was 5.3%, with capitalized interest expected to remain around A$220 million.
Master-planned communities recorded 8,900 settlements, up 30% from FY25, with sales volumes rising 49%. Land lease settlements totaled 777 homes, an increase of 48%. The commercial development pipeline reached an end value of approximately A$16 billion, including A$9 billion in logistics. Stockland secured 450 megawatts of power across three data center sites, with a pipeline of four additional opportunities on controlled land.
For FY27, the group guided FFO per security to A$0.38–A$0.39 on a post-tax basis, while maintaining a distribution per security of A$0.252. The cost of debt is expected to rise to 5.9% from 5.3%.
Shares jumped 14.44% to A$4.635 in early trading, following a close of A$4.05 the previous session. Stockland has paid dividends for 35 consecutive years.
CEO Tarun Gupta highlighted a step change in development volumes and growth in the capital partnering platform, while CFO Josh McHutchison described the result as characterized by a significant earnings uplift and a strong balance sheet.
