Stockland Corporation Limited, an Australian real estate firm, announced on Monday that its performance in the first quarter continues on a positive trajectory. The company upheld its fiscal 2025 forecast for Funds From Operations (FFO) per security, estimating it to be between 32.0 and 33.0 cents post-tax, not accounting for the potential benefits from the acquisition of 12 Masterplanned Communities that was disclosed in December 2023.
In its trading update ahead of the 2024 Annual General Meeting, Stockland highlighted that the Investment Management segment, particularly the Town Centre portfolio, is thriving due to its essentials-focused assortment. The logistics properties have also experienced robust occupancy levels and rental increases.
The Town Centres recorded a total comparable Moving Annual Turnover (MAT) growth of 2.8%, while specialty sales within this metric saw a 1.5% rise. In the Development division, the Masterplanned Community segment achieved 1,121 sales, meeting expectations. Meanwhile, the Land Lease Community segment reported net sales of 135 homes, indicating a favorable consumer reaction to recent project launches.
Tarun Gupta, the Managing Director and Chief Executive Officer, remarked, "The first quarter for Stockland has sustained the positive momentum and solid operational results experienced in the previous year."
For the fiscal year, Stockland anticipates a distribution per security that aligns with its target payout ratio of 75% to 85% of post-tax FFO annually. The company plans to revise its fiscal 2025 guidance after completing all necessary approvals for the acquisition of the 12 Masterplanned Community projects.
