Full Year 2026 Stockland Corporation Ltd Earnings Call Transcript
Key Points
- FFO per security grew 9.1% to $36.9, at the top end of guidance, with group FFO up 10.4% to $892 million.
- Record residential settlements (8,900+ lots, up 30%) and a 53% increase in sales, with strong contracts on hand for FY27.
- Data center strategy advanced with 450 MW of secured power across three sites and four additional pipeline opportunities, with initial earnings expected in FY27.
- Capital partnering platform expanded with three new partners (Morgan Stanley, Mercer, EdgeConneX), growing AUM by $5 billion over three years with minimal net capital.
- Balance sheet strengthened with gearing down to 22.7% and NTA up 4% to $4.30 per security.
- Land lease business delivered strong growth, with FFO up 67% to $100 million and an 88% uplift in net sales volumes.
- Logistics portfolio delivered comparable FFO growth of over 8%, supported by strong leasing and development completions.
- MPC operating profit margin declined to 21.2% (from low-20s range) due to a mix shift to lower-margin projects and moderating price growth.
- Residential sales momentum slowed in the second half, with July net sales down to $512 million, reflecting buyer caution amid rate hikes and tax uncertainty.
- Weighted average cost of debt is expected to rise to 5.9% in FY27 from 5.3% in FY26, increasing interest costs.
- Commercial development FFO is expected to be lower in FY27, with no major contribution from that segment.
- Data center earnings contributions are still early-stage and subject to conditions precedent, with limited visibility on timing and scale.
- MPC settlements in Victoria remain below long-run averages, and the company is deploying rebates in that market to support demand.
- Capitalized interest in MPC increased to 6.3% of revenue, above the historical range, due to long-dated project launches.
Welcome to Stockland's FY26 result briefing. There will be a formal presentation followed by a Q&A session.
I will now hand over to Tarun Gupta, Managing Director and CEO, for opening remarks.
Good morning, and thank you for joining Stockland's full-year 2026 financial results update. Joining me today is Josh Mchutchison, our CFO. And joining us for Q&A will be Kylie O'Connor, CEO, Investment Management; and Andrew Whitson, CEO of Development.
Before we begin, I'd like to acknowledge the traditional owners and custodians of the land on which we meet, the Gadigal people of the Eora Nation, and pay my respects to Elders, past, present, and emerging.
Over the last five years, our focus has been on reshaping our portfolio, embedding additional growth pathways, and positioning the business sustainable performance. This time last year, we said that FY26 would mark an inflection point in both activity levels and strategic
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