• Stockland is still forecasting a pretax FFO/security of A$0.345 to A$0.355 for the fiscal year.
• The company’s FY24 Distribution per security is expected to fall within the targeted payout ratio range of 75% to 85% of post-tax FFO.
• Stockland anticipates a high single-digit percentage of pre-tax FFO for the FY24 tax expense.
• Gearing at June 30 is expected to remain in the upper half of the 20%-30% target range.
• The construction of the final two buildings at MPark Stage 1 is ongoing.
• The sales volumes in Masterplanned Communities division are expected to remain at the current levels in the near term.
• A more precise target settlement range for FY24 has been set at between 5,300 and 5,500 settlements.
• The low 20%s is expected to be the operating profit margin in the development sector.
• There is likely to be a larger settlement and FFO skew to 2H than in FY23, following previous guidance.
• The Land Lease Communities business will continue to target around 400-450 settlements during FY24.
• Current standing includes 5 buys, 3 holds and 2 sells based on comparisons to the company’s past results as reported in their original disclosures.
A look at Stockland Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Stockland, the diversified Australian property group, has been assessed using Smartkarma Smart Scores across various key factors. With a strong emphasis on value and dividends, Stockland has received high scores of 4 in both categories. This indicates a positive long-term outlook for investors looking for stable returns and consistent income.
However, the company scored lower in growth and resilience, with scores of 2 in each category. While Stockland may not be expected to show significant growth or be highly resilient in challenging market conditions, its strong momentum score of 4 suggests that the company is currently in a favorable position in terms of market trends and investor sentiment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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