Stockland perform strongly in FY16 with 10% rise in revenues

Stockland performed strongly in FY16, growing asset returns, broadening its customer base and taking advantage of supportive market conditions. Revenues were up 10 percent.

They generated substantial profit growth from its business activities, with FFO of $740 million, up 12.5% on FY15.

Statutory profit was $889 million, down 1.6% on the prior year due to a number of unrealised fair value items.

Stockland's return on equity increased 1.1 percent to 11 percent, excluding workout assets.

Click here to enlarge Stockland's growth in FFO and underlying profit

The company's residential, commercial property and retirement living arms all made solid contributions.

Mark Steinert, Stockland managing director and CEO said the company delivered strong results in FY16 by executing strategy and delivering purposes in their communities and properties.

"I’m very pleased that each of our commercial property, residential and retirement living businesses have made significant contributions to the performance of the Group.

"Our commercial property business delivered comparable FFO growth of 4.5% and we achieved a record number of settlements in both our residential and retirement Living businesses. 

Click here to enlarge Stockland's key achievements over FY16

FY 16 Results

 Statutory profit of $889 million, down 1.6 percent on FY15

 Funds from operations (FFO) of $740 million, up 12.5 percent1

 FFO per security of 31.1 cents, up 11.1 percent

 Underlying profit of $660 million, up 8.5 percent

 Underlying earnings per security (EPS) of 27.8 cents, up 7.3 percent

 Profit growth in all core businesses, with Residential operating profit up 38.8 percent

 Return on equity (ROE) of 11.0percent, up 1.1 percent

Net tangible assets (NTA) per security of $3.82, up 3.8 percent. Distribution per security (DPS) of 24.5 cents, up 0.5 cents 

FY17 targets

Targeting growth in FFO per security of 5.0 – 7.0 percent, assuming no material change in market conditions

From FY17, our distribution policy will be based on FFO and will reflect a payout ratio of 75 – 85 percent. We are targeting an estimated distribution per security of 25.5 cents, a 4.1 percent increase on FY16, assuming no material change in market conditions