Stockland Reports 66% Drop in Net Profit

Stockland, a leading residential property developer, reported a significant decrease in its half-year net profit. Despite this decline, the company remains optimistic about the demand for residential properties due to the stabilization of interest rates.

Financial Performance Overview

• Net Profit: The net profit for the six months through December was reported at A$102 million, marking a 66% decline from the previous year's figure of A$301 million.
• Funds from Operations: Stockland's preferred measure of ongoing operating profits dropped by 25% to A$266 million.
• Interim Distribution: The company declared an interim distribution of 8 Australian cents per security, down from 11.8 cents in the previous year.

Future Outlook and Guidance

Stockland reaffirmed its guidance for annual funds from operations per security in the range of 34.5 cents to 35.5 cents before tax. Additionally, the company expects the total distribution for the year to fall within a target payout ratio of 75-85% of funds from operations after tax.

Despite the challenges faced in the first half of the year, Stockland remains committed to meeting its financial targets and providing value to its investors.