Stockland announces acquisition of MPC portfolio and new capital partnership

Stockland (ASX:$SGP) has announced the acquisition of a Masterplanned Communities (MPC) portfolio worth approximately $1.06 billion. The company has also established the Stockland Residential Communities Partnership (SRCP) as part of its strategic priorities, aiming to reshape its portfolio and strategically restock its landbank.

Executive commentary on strategic rationale and financial impact

Tarun Gupta, MD & CEO of Stockland, highlighted the significance of the acquisition, stating that it represents a step change in reshaping the company's portfolio and extends its residential platform. Andrew Whitson, CEO of Development, emphasized the unique opportunity to strategically restock and position for market recovery, while Alison Harrop, CFO, discussed the expected financial impact, including the accretive nature of the acquisition from FY25 and the enhancement of recurring income for the Group.

Summary of Stockland's acquisition and outlook

Stockland's acquisition of the MPC portfolio and the establishment of SRCP align with the company's strategic priorities, aiming to extend its residential platform and strategically restock its landbank. The move is expected to be accretive to the Group's FFO per security from FY25, enhancing ROIC and generating new recurring income streams. The company anticipates a potential increase in settlement volumes and upside from adjacent opportunities, positioning itself for future growth and market recovery.