Stockland's promising start to FY25

Stockland (ASX:SGP) has provided a positive update for the first quarter of fiscal year 2025, ending on 30 September 2024. The company has made significant strides in its investment management and development segments. Key achievements include being named the preferred proponent for the Waterloo Renewal Project and securing clearance for acquiring 12 Masterplanned Communities. Stockland maintains its FY25 FFO guidance and expects gearing levels to rise but remain within targets.

Stockland's strategic focus and future outlook

Stockland has started FY25 with a strong performance, highlighted by its involvement in the Waterloo Renewal Project and the acquisition of Masterplanned Communities. The company's investment management segment shows resilience with growth in retail and logistics, while its development segment continues to meet sales expectations. Financial guidance for FY25 remains steady with FFO per security projected at 32.0-33.0 cents post-tax. Although gearing is expected to increase due to capital deployment, it will stay within the 20-30% target range. Looking forward, Stockland aims to launch eight new communities and manage its pipeline strategically to ensure sustained growth and development margins. The company remains committed to its core strategy of creating socially and economically valuable communities while maintaining a strong focus on sustainability and economic prosperity.

Executive insights on Stockland's progress

We are pleased with the progress made in the first quarter as we continue to execute our strategy of building connected communities and enhancing our portfolio's value. The recognition as the preferred proponent for the Waterloo Renewal Project and the clearance for the acquisition of 12 Masterplanned Communities position us well for future growth.