Stockland Is Holding Ground Amid Tough Conditions and Can Pivot Quickly if Conditions Improve

About 75% of Stockland's capital is deployed in its commercial property portfolio. Of that, approximately half is retail property, the rest industrial and a smaller amount in office. The other 25% of capital goes into residential development and land-lease. The development business is cyclical and its contribution to earnings can swing substantially, while the commercial rental business is relatively stable. Earnings from the residential business have been remarkably resilient despite interest rate rises and house price falls, in part due to relative affordability from Stockland's developments and land-lease communities, and an undersupply of housing in Australia.