Property development group Stockland Corporation [ASX:SGP] has posted its third-quarter update for fiscal 2023.
In tracking 98% rental collection and continued high occupancy levels, the group experienced a steady performance for the third quarter.
The group has said it will maintain its FY23 guidance, even with uncertain market conditions.
SGP was trading for around $4.27 at the time of writing earlier this morning, having bumped up slightly by 1.5%.
Over the past month, the stock has moved up 11%, and it remains higher in its sector average by more than 17% and the ASX 200 by 5%:
Source: tradingview.com
Stockland’s third quarter trade and guidance
The diversified Australian property development company provided the latest operational summary for its third quarter of fiscal 2023.
The group says it has achieved 98% rent collection in the latest quarter for its commercial property portfolio, keeping its occupancy levels at an even keel.
The group’s leasing accelerated to 20.5%, with its logistics side of business up 2.9% for its Town Centre projects over the financial year to date.
SGP’s Town Centre portfolio was noted to have delivered comparable sales growth of 15.9%, with speciality sales up 21.8% on an MAT basis and occupancy costs dropping by 14.8%.
The group said it is now on track to deliver $1.2 billion of logistics developments over FY23 and FY24. Targeted FY23 completions of more than $500 million have also now been 92% pre-leased.
SGP has settled a $50 million non-core retail asset disposal and reported net sales of $1,048 in the quarter, which was in line with expectations and reflected ongoing COVID recovery.
Stockland’s Land Lease Communities have net sales of 50 homes, which will allow for a production catch-up in answer to strong demand.
The group’s liquidity is expected to reach around $1.4 billion by June, suggesting resilience as the group chases new opportunities.
Managing Director and CEO, Tarun Gupta stated:
‘Stockland has delivered a strong operational result for the quarter, again demonstrating the strength of our diversified portfolio against a backdrop of continued macroeconomic uncertainty.
We achieved strong operational performance across our Commercial Property portfolio, including accelerated rental growth in our rapidly expanding Logistics portfolio, and double-digit sales growth in our Town Centres portfolio while maintaining positive leasing spreads.’
Stockland said it is on track to deliver its FY23 guidance.
The group’s focus will remain on operations and performance across a diverse portfolio, with strategic initiatives put in place to drive future growth, particularly within the current, unpredictable macroeconomic environment.
The FY23 FFO per security guidance range is maintained at 36.4 to 37.4 cents on a pre-tax basis, and tax payable in FY23 is expected to be at the lower end of the guidance range (5-10% of pre-tax Group FFO).
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Regards,
Mahlia Stewart,
For The Daily Reckoning
