Key Highlights

  • Stockland’s FY26 statutory profit increased 20.2% to $994 million, while post-tax Funds From Operations rose 10.4% to $892 million.
  • FFO per security reached 36.9 cents, up 9.1% and at the top end of the company’s previous guidance range.
  • The FY26 distribution remained unchanged at 25.2 cents per security, while gearing declined to 22.7% from 28.1% at 31 December 2025.

Stockland Corporation (ASX:SGP) FY26 results showed higher statutory profit, increased Funds From Operations and a rise in Net Tangible Assets per security.

For the year ended 30 June 2026, Stockland reported statutory profit of $994 million, up 20.2% from $826 million in FY25. Post-tax FFO increased 10.4% to $892 million from $808 million, while FFO per security rose 9.1% to 36.9 cents.

Investment Management Delivers Moderate FFO Growth

Stockland’s Investment Management division generated FFO of $606 million, an increase of 2.6% from $591 million. Comparable FFO growth was 3.5%, with different property sectors contributing at varying rates.

Logistics FFO increased 3.8% to $179 million, with comparable growth of 8.1%. The portfolio recorded 97.5% occupancy and re-leasing spreads of 33.8%. Retail FFO rose 4.5% to $334 million, supported by 99.0% occupancy and comparable FFO growth of 3.1%.

Workplace FFO increased 2.7% to $114 million, although comparable FFO declined 1.0%. The Workplace portfolio also recorded a $57 million valuation decline, equivalent to 3.3%. By comparison, Logistics recorded a $117 million net valuation gain and Retail recorded a $199 million uplift.

Investment Management fee income declined 11.9% to $28 million from $32 million, while net overheads increased 12.0% to $73 million.

Development FFO Increases 17.3%

Development was a larger contributor to the Earnings increase, with FFO rising 17.3% to $540 million from $460 million. The result reflected higher settlement volumes, increased Partnership fee income and a larger contribution from Commercial Development.

Masterplanned Communities recorded 8,902 lot settlements, approximately 30% higher than the prior year, while net sales increased 49% to 8,541. Development FFO from the segment rose 2.4% to $535 million.

Land Lease Communities recorded 777 settlements, up 48%, while net sales increased 88% to 1,080. FFO from the segment increased 66.7% to $100 million.

Development management fee income also increased 35% to $91 million. However, development net overheads rose 13.1% to $221 million, reflecting expansion of the Masterplanned Communities and Land Lease Communities platforms.

Capital Position and Distribution

Stockland ended FY26 with gearing of 22.7%, down from 28.1% at 31 December 2025 and within its stated 20%–30% target range. Available Liquidity stood at $3.2 billion, while the weighted average cost of Debt was 5.3%, unchanged from FY25.

The weighted average debt Maturity increased to 5.3 years from 4.6 years at 30 June 2025. Operating Cash Flow was $876 million for FY26.

The full-year distribution was 25.2 cents per security, unchanged from FY25. The Payout Ratio was 69%, meaning the distribution did not increase despite the rise in FFO per security.

FY27 Guidance Points to Further FFO Growth

Stockland expects FY27 FFO per security to reach between 38.0 and 39.0 cents, compared with 36.9 cents in FY26. The company expects lower Masterplanned Communities FFO to be offset by contributions from other parts of the business.

Management is targeting between 7,300 and 8,300 Masterplanned Communities settlements, while Land Lease Communities settlements are expected to reach 850–950. Development operating margins are forecast at around 20% for Masterplanned Communities and above 22% for Land Lease Communities.

Stockland also expects its data centre operations to begin generating development FFO in FY27, following the securing of approximately 450MW of power across three sites, subject to final design, documentation and customer negotiations.

Conclusion

Stockland’s FY26 results show an increase in statutory profit, FFO and FFO per security, supported by higher development activity and continued contributions from its investment portfolio. The company also reduced gearing during the period, while maintaining its distribution at 25.2 cents per security. At the same time, the results contain areas of weaker performance, including a decline in comparable Workplace FFO, a Workplace valuation reduction and lower Investment Management fee income. For FY27, Stockland expects FFO per security to increase to 38.0–39.0 cents, with growth from Land Lease Communities, data centres and investment income expected to offset a lower contribution from Masterplanned Communities.