Stockland 3Q24 Operational Update

Stockland Corporation Ltd (ASX: $SGP) has released its operational update for the third quarter of 2024, showcasing robust performance across its Commercial Property and Communities sectors. The company reported significant achievements in leasing spreads, total sales growth, and net sales volumes, reflecting continued improvement and strong operational metrics.

Executive Commentary on 3Q24 Performance

Over 3Q24, Stockland has delivered strong operational performance, while continuing to execute against our strategic priorities. Our Commercial Property portfolio has achieved strong results, with leasing spreads accelerating to 42.0% in our Logistics portfolio and continued positive leasing spreads of 3.5% in our Town Centres portfolio. The skew towards essential-based categories has positioned our Town Centres portfolio well, delivering +3.4% total MAT growth. Our Masterplanned Communities business achieved 1,242 net sales, reflecting continued improvement in sales and enquiries over the past four quarters. In Land Lease Communities, net sales volumes of 104 homes and strong enquiries in 3Q24 reflected the launch of five new communities over the financial year-to-date and support from improvements in the established housing market.

Summary of 3Q24 Update and Outlook

Stockland's 3Q24 operational update demonstrates a strong performance across its Commercial Property and Communities sectors. The company reported robust leasing spreads, total sales growth, and net sales volumes, indicating continued improvement and strong operational metrics. The acquisition of 12 actively trading MPC projects and the disciplined approach to capital management further strengthen the company's position. Looking ahead, Stockland maintains its FY24 pre-tax FFO per security guidance at 34.5 to 35.5 cents, with tax expense expected to be a high single-digit percentage of pre-tax FFO. The company also expects the distribution per security to be within its targeted payout ratio range of 75% to 85% of post-tax FFO on a full-year basis. Stockland's outlook remains subject to no material change in market conditions, reflecting the company's commitment to navigating uncertain market dynamics while delivering strong operational performance.