Key Highlights

  • Masterplanned Communities net sales were 1,506 in the quarter, with 828 settlements and 4,502 contracts on hand.
  • Land Lease Communities net sales were 206, with 774 contracts on hand and portfolio occupancy of 100%.
  • Logistics leases executed rose to 121,199 sqm from 66,244 sqm, while retail comparable MAT growth was 3.5%.
  • FY27 FFO per security guidance of 38.0 to 39.0 cents and distribution of 25.2 cents per security were maintained.

Stockland (ASX:SGP) released its operational update for the three months ended 30 September 2026 (1Q27) on 19 October 2026. The update covered its investment portfolio, residential for sale, land lease, data centre platform and FY27 guidance.

Residential for sale

Masterplanned Communities net sales were 1,506. Stockland described interest rates and tax changes as slowing the market, citing moderating Queensland demand, more balanced conditions in Western Australia, affordability constraints in New South Wales and a Victorian market that is stable at low levels. Enquiry was reduced, partly offset by improved conversion. There were 828 settlements in the quarter and 4,502 contracts on hand at average pricing above FY26 settlements, with cancellation and default rates below long-run averages.

In apartments, planning approval was obtained for Victoria Parade in Collingwood, and the company is progressing the Waterloo Urban Renewal site of 3,300 apartments, about half for sale, and Stanton Place in Rosebery with 144 apartments.

Land Lease Communities

Land Lease achieved 206 net sales, which Stockland linked to longer customer decision timeframes and softer established market conditions, with higher conversion partly offsetting lower enquiries. There were 774 contracts on hand at average pricing above the FY26 average settlement price of $832,000 per home. The company is trading from 17 communities, with Halcyon Peninsula in Victoria and Halcyon Grevillea in Western Australia expected to launch during FY27. The established portfolio comprises 4,025 home sites, including 2,604 within capital partnerships.

Logistics, retail and workplace

In Logistics, leases executed totalled 121,199 sqm against 66,244 sqm a year earlier, with 122,283 sqm under heads of agreement. Leasing spreads were 17.6% and the portfolio is 8% under-rented. Development of $0.2 billion was completed at Kemps Creek, with $0.6 billion of Logistics under construction.

In Retail, total comparable moving annual turnover grew 3.5% and specialty sales grew 4.3%, with comparable specialty sales of about $11,300 per sqm. Occupancy was 99% and leasing spreads were 7.9%, which Stockland said are expected to moderate during the year. In Workplace, portfolio occupancy was 84.2%, WALE was 6.3 years, leasing spreads were 1.6% and 60-66 Waterloo Road in Macquarie Park was disposed of. Overall portfolio occupancy was 96.9% against 97.5% at 30 June 2026.

Data centre platform

Stockland has about 450MW of power secured across its identified data centre pipeline, with applications and planning continuing for additional power. Sites include MPark Stage 2 in New South Wales at about 100MW, and Cherry Lane and Brooklyn in Victoria at about 175MW each, alongside Kemps Creek, Wetherill Park, Macquarie Park and Melbourne Business Park. Initial FFO contribution is expected in FY27 from land transfers or sales, subject to final design, documentation and customer negotiations.

FY27 guidance

Stockland maintained FY27 FFO per security guidance of 38.0 to 39.0 cents and expects a distribution of 25.2 cents per security, in line with FY26, within a 60% to 80% payout range. FFO is expected to be weighted to the second half given the timing of data centre transactions and MPC settlements. Targets of 7,300 to 8,300 MPC lot settlements at an operating margin of around 20%, and 850 to 950 land lease settlements at a margin above 22%, are unchanged. Gearing is expected to remain within the 20% to 30% target range.