The Newswire

Your daily serving of financial goodness

Stockland Lifts Revenue and Profit in FY15

Stockland Lifts Revenue and Profit in FY15
Aug 19, 2015 By Simon Herrmann

Stockland Group (ASX:SGP) announced strong full year result for FY15 lifting underlying profit by 9.4% to $608m. Revenue increased 19.6% to $2.6bn as the company experienced strong growth in all cores business areas.

Stockland Group traded already ex-dividend on 30 June distributing a 12 cent dividend to eligible shareholders. The company intends to lift its dividend for FY16 to 24.5 cents, which is a slight increase to last year’s 24 cents. Stockland’s current payout ratio is 93% if underlying earnings per security, which emphasises management’s effort to reward SGP shareholders.

SGP was last traded at $4.16 on Tuesday, trading basically flat for the past 12 months. However with a strong yield of 5.8% at the current price, SGP has proven to be a worthwhile and solid investment opportunity.

Stockland Chief Executive Officer and Managing Director Mark Steinert is pleased with the ‘sustainable growth’ and it is a result that demonstrates the ‘significant success implementing our (Stockland’s) strategy.” He said: “All core business areas contributed with Residential, Retirement Living and Logistics and Business Parks each up more than 15%. Retail which reliably provides around 60% of the group’s earnings, was up 4.2% on a comparable basis.

The company expects the strong momentum to continue through FY16 and targets EPS growth of 6-7.5% as well as 8.5-10% increase in Funds from operations (FFO) per security. The targeted growth will then result in an increased dividend as mentioned above.

Statutory profit increased to $903m which includes a $297m revaluation of Commercial property assets as well as $80m gross profit from the sale of its interest in Australand.

Stockland’s results are expected to satisfy shareholders as management executes the company’s strategy in a disciplined and sustainable way. The company’s balance sheets remains solid with gearing of 23.4%, which is at the lower end of the company’s target range. All core operations achieved guidance and are expected to carry momentum throughout FY16.

Wise-owl subscribers bought SGP a while ago following our recommendation and we will inform our members exclusively about any valuation updates regarding this position.

Share this article

Simon Herrmann Author: Simon Herrmann Aug 19, 2015

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

Private credit underpins Metrics listing

Investors have poured more than $300 million in just nine days into the latest ASX listing of alternative asset manager Metrics, which will offer retail investors exposure to the difficult-to-access private credit market.

Author: Simon Herrmann Mar 26, 2019


Sign Up for Free Trial
Recent Tweets
Recent News