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Lendlease (LLC) vs Stockland (SGP) moving forward

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Question asked 13/09/2025

Lendlease (LLC) vs Stockland (SGP) moving forward

Hi, I was wondering if you could provide some comment on the Lendlease vs Stockland as far as valuation and future business would look like. Forgetting the past regarding Lendlease and look at it as a company restructured that owns property as well as develops Australian property. At a high level this is similar to Stockland (but with different property development and ownership) but the valuation is significantly lower. For example LLC is 15% discount to NTA SGP is about 50% premium. Frank

Answer

Hi Frank,

We often talk about performance reversion, and these are clearly two stocks that have moved in different directions post-COVID – so far in 2025 LLC has fallen 12%, a good year compared to some, while SGP has rallied an impressive +30%. Firstly, let’s look at some of the 2 companies’ metrics:

LLC is trading +31% above it 2-year average PE whilst SGP is only trading at a +20% premium.
SGP is forecast to yield 4.3% over the coming 12-months whereas LLC is marginally lower at ~4.2%.
Looking forward to FY27 LLC is forecast to deliver NPAT of ~$388mn while SGP ~$935mn.

As you say from a NTA perspective LLC looks cheap compared to SGP, but the latter has continually delivered over the last 3 years whereas LLC has moved from one disappointment to the next. From a PE, yield and forecast earnings perspective SGP still looks more appealing as the share price suggests.

We feel LLC is close to being a turnaround story having turned a $225mn profit in FY25, but the worm hasn’t yet turned.
We still prefer SGP over LLC but only just!

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Lendlease (LLC) vs Stockland (SGP)

LAST UPDATED 11/09/2025 14:18

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