SGP -2.10%: FY22 was a better year for Stockland with Funds From Operations (FFO) coming in at $851m, up 8% y/y and above the estimate of $837.5m. That dropped down to FFO per security of $0.357 vs. consensus of $0.33 while the final distribution was solid at $0.146. FY23 guidance was above consensus, but they then went on to say that July sales were soft and enquiries had halved – i.e. not a good start to the year and no doubt the reason for some selling today. “While macro-economic conditions remain uncertain, the underlying performance of our business segments give us good visibility for the year ahead,” CEO Tarun Gupta said “Importantly, we enter FY23 in a very strong capital position, with gearing sitting below our target range of 20-30% on a proforma basis”.
MM remains a comfortable holder of SGP in our Income Portfolio
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