Stockland’s 1H26: $1.25B Revenue, $325M FFO, and New Partnerships Unveiled

Strong Financial Momentum

Stockland has delivered a compelling set of results for the half year ended 31 December 2025, showcasing solid growth across its core business segments. Revenue surged 23.2% to $1.248 billion, while net profit after tax attributable to securityholders rose 19.3% to $292 million. Funds from operations (FFO), a key indicator of underlying cash earnings, jumped 29.5% to $325 million, reflecting the company’s operational strength and strategic execution.

The uplift was primarily driven by a significant increase in settlements within the Masterplanned Communities (MPC) segment, which saw lot settlements rise by approximately 60% to 3,168 lots. This growth was complemented by higher development fee income and robust performances from the Logistics and Town Centre portfolios, underscoring Stockland’s diversified revenue streams.

Operational Highlights and Segment Performance

The Development segment’s FFO more than doubled to $106 million, buoyed by the MPC business and increased management income from partnerships. The MPC business alone contributed $163 million in development FFO, supported by strong demand and price growth in Queensland and Western Australia, alongside strategic acquisitions such as the 4,390-lot Kings Forest in New South Wales.

Investment Management delivered steady FFO of $296 million, maintaining operational growth despite prior period asset disposals and transfers into partnerships. The Logistics portfolio, valued at approximately $3.5 billion, recorded a slight FFO decline due to strategic disposals but achieved strong leasing spreads and occupancy rates. Town Centres and Workplace portfolios also contributed positively, with Town Centres reporting a 3.2% comparable FFO growth and occupancy at 99%.

Capital Management and Balance Sheet Strength

Stockland’s balance sheet remains robust, with gearing at 28.1%, comfortably within the target range of 20% to 30%. The company holds $2.1 billion in available liquidity, providing flexibility to pursue growth opportunities and capital recycling initiatives. Weighted average cost of debt stood at 5.2%, with a weighted average debt maturity of 4.8 years, reflecting prudent financial management amid a challenging interest rate environment.

Strategic Partnerships and Future Outlook

Looking ahead, Stockland is advancing key partnerships, including a data centre joint venture with EdgeConneX and a new 50/50 Land Lease partnership seeded with two development assets valued at approximately $200 million. These initiatives align with the company’s strategy to leverage third-party capital and expand its platform capabilities.

The Board declared an interim distribution of 9.0 cents per security, representing a 67% payout ratio of FFO, consistent with the policy targeting 60% to 80%. Guidance for FY26 anticipates FFO per security between 36.0 and 37.0 cents and distributions of 25.2 cents per security, subject to stable market conditions.

Stockland continues to navigate supply constraints and interest rate variability with a disciplined approach, underpinned by long-term structural tailwinds in its chosen sectors. The company’s focus on risk management, capital efficiency, and sustainability positions it well for sustained growth.