The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
LESS THAN 2 WEEKS UNTIL OUR FLAGSHIP CONFERENCE JOIN MORE THAN 550 ALREADY ATTENDING
JUST 2 WEEKS TO GO UNTIL URBANITY-25 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterTue 15 Aug 17

Stockland's Annual Profit Increases 34% to $1.2 billion

Stockland_4-3_12498701_1760532_59938cc7a5398f4317c8eee3_sd_800x600

Diversified property developer Stockland's annual profit has increased to $1.2 billion but surging electricity prices will dampen earnings growth for the group this financial year.

According to Stockland, rising power costs in its retail portfolio - its largest asset class - will slow earnings in 2017-18.

Growth in funds from operations, its preferred profit measure, is up 8.5 per cent to $802 million on FY16, and would be "slightly" lower next year than the 7.4 per cent increase recorded in the year to June to give it a better-than-expected 33.4¢ per security profit.
Stockland Managing Director and CEO Mark Steinert today announced a strong performance for the group for FY17, with the developer reporting growth in all core businesses, with residential operating profit up 17.4% on FY16.

Steinert said: “We’ve delivered another positive performance this financial year across our diversified business, by reinforcing our position as the leading creator of communities in Australia, strategically repositioning our assets and restocking the portfolio.

“All of our businesses contributed to this result. Our residential and retirement living businesses achieved record results, and commercial property delivered a good performance across the different asset classes, despite challenging conditions in the retail market."

Steinert said while earnings were boosted by the retirement and residential divisions, the rising cost of electricity would weigh on future earnings, although the group said it had contracts locked in until 2019. It is also the largest user of rooftop solar panels in the southern hemisphere.


Stockland commercial property executive John Schroder said east coast electricity costs have jumped by almost two-thirds.

"The issue for FY18 is electricity," Schroder said.

"The electricity increase in our portfolio across the nation is 48.4 per cent, or 60 per cent on the eastern seaboard.

"That also has an implication on occupancy costs and the ability to drive rent growth."

Stockland CEO Mark Steinert

ResidentialAustraliaSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Kurraba Point 93 Kurraba Road TUD PLUS
Residential

Council Over Court: How HFO Won Rare North Sydney Approval

Vanessa Croll
7 Min
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
5 Min
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
View All >
NSW Housing Pattern Book HERO.
Policy

Housing Pattern Book Supercharges NSW Planning

Vanessa Croll
Residential

Fortis Plots Placemaking Project at Hamilton

Taryn Paris
Kurraba Point 93 Kurraba Road TUD PLUS
Residential

Council Over Court: How HFO Won Rare North Sydney Approval

Vanessa Croll
A luxury harbourside build that’s wider and higher than permitted has been greenlit in one of the most complex LGAs in N…
LATEST
NSW Housing Pattern Book HERO.
Policy

Housing Pattern Book Supercharges NSW Planning

Vanessa Croll
5 Min
Residential

Fortis Plots Placemaking Project at Hamilton

Taryn Paris
2 Min
Kurraba Point 93 Kurraba Road TUD PLUS
Residential

Council Over Court: How HFO Won Rare North Sydney Approval

Vanessa Croll
7 Min
Inglewood Beaufort Street rendering front HERO
Residential

Apartment Scheme Revealed for Perth Heritage Strip

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/stocklands-annual-profit-increases-34-1-2-billion