Stockland 3Q24 Market Update

Stockland (ASX: $SGP) has provided a market update for the third quarter of 2024, highlighting key developments. The company acknowledges the Traditional Custodians and knowledge-holders of the land on which it operates. The update includes the progress of a $1.06bn acquisition of 12 actively trading Masterplanned Communities projects, settlement of non-core Town Centre disposals, and a $400m medium-term note issuance to strengthen the balance sheet. Stockland expects the gearing at 30 June 2024 to remain within the top half of the 20-30% target range, with the FY24 FFO per security guidance range maintained.

Executive Commentary

Stockland's 3Q24 update reflects the company's commitment to strategic priorities and strong operational performance. We are pleased with the progress of the $1.06bn acquisition of 12 actively trading Masterplanned Communities projects, which are currently progressing through the regulatory approval process with FIRB and ACCC. Additionally, the settlement of non-core Town Centre disposals and the issuance of a $400m medium-term note further strengthen our balance sheet, providing resilience and flexibility to capitalize on market opportunities. We anticipate a larger Group FFO skew to the second half of FY24 than in FY23, primarily driven by the timing of MPC settlements.

Summary and Outlook

Stockland's 3Q24 market update demonstrates the company's execution of strategic priorities and strong operational performance. The progress in the acquisition of Masterplanned Communities projects, settlement of non-core Town Centre disposals, and the issuance of a medium-term note reflects the company's commitment to strengthening its position in the market. Looking ahead, Stockland is focused on a step change in production rates in Communities, with approximately 66 communities expected to be active across MPC and LLC by the end of FY24. The company also aims to continue progressing the $1.1bn active Logistics development pipeline and capturing positive rental reversion opportunities. Stockland maintains its guidance range for FY24 FFO per security and expects the gearing at 30 June 2024 to remain within the top half of the 20-30% target range, with a larger Group FFO skew to the second half of FY24 than in FY23.