For the year to June 30, Stockland reported a statutory profit of $440 million, down from the $1.38 billion in the previous corresponding period, mainly due to a drop in asset values across its office and retail business.

The logistics operations performed strongly and Stockland will maintain its policy of adding more assets to the business segment and less to its office division.

The funds from operation, a more accurate measure for property trusts as its excludes the revaluations, fell a marginal 0.4 per cent to $847 million, which was in line with market expectations.

Gupta said net sales in the master planned communities were 3770 lots compared with 6922 lots at the same time last year, reflecting continued uncertainty in the interest rate environment and affordability constraints. Default and cancellation rates are running slightly above historical averages at about 6 per cent.

Winston Sammut, property director at Euree Asset Management said that on the residential side, demand appears to have stabilised to pre-COVID 19 levels with the master planned communities generating higher earnings, notwithstanding lower lot settlements.

Loading

“The market’s positive outlook on the residential market should provide support for Stockland on the back of this result,” Sammut said.

Saranga Ranasinghe, vice president of Moody’s Investors Service, said while consecutive interest rate rises have moderated sales volumes, “we expect Stockland’s [master planned communities] to benefit from long-term fundamentals for residential property, including relatively low unemployment, population growth and a rebound in net overseas migration amid still-limited land supply”.

Stockland declared a final dividend of 14¢, payable on August 31.