Stockland: Approvals Secured for Masterplanned Communities Acquisition

No-moat-rated Stockland upgraded earnings forecasts after securing all regulatory approvals for the AUD 1.1 billion acquisition of 12 masterplanned community development projects from Lendlease, which we previously excluded. We lift our earnings forecasts in line, but the impact on our valuation is largely offset by higher capital expenditure. Other parts of the business are tracking broadly in line with our expectations. We maintain our AUD 4.55 per security fair value estimate and consider the stock slightly overvalued at present.