Stockland Earnings: Solid Residential Settlements and Resilient Commercial Property Portfolio

Stockland’s fiscal 2024 earnings met our expectations. Post-tax funds from operations per security dropped 7% to AUD 33 cents, largely due to lower commercial development earnings and development management fees, as well as higher costs of debt. The final distribution of AUD 16.6 cents per security takes full-year total distributions to AUD 24.6 cents per security, 6% lower than a year ago. This represents a 75% payout ratio of FFO at the lower end of management's target of 75%-85%. For fiscal 2025, management expects FFO of between AUD 32 and AUD 33 cents per security, slightly less than what we had anticipated, and distributions within the aforementioned range.