The Stockland Corp Ltd (ASX: SGP) share price is sliding, down 2% in morning trade. At the time of writing, the Stockland share price was down 0.88% to $4.49.
We take a look at Stockland’s results for the financial half-year ending 31 December (H1 FY21) below.
What financial results did Stockland report for H1 FY21?
The Stockland share price is sliding after the company reported a 30.4% drop in statutory profits of $350 million for the half year. This was down from $504 million in H1 FY20. Net profits before tax dropped 39.5% from the prior corresponding period (pcp) to $312 million.
Stockland’s earnings before interest (EBIT) of $468 million was down 8.1% from the $509 million reported in the first half of the 2020 financial year.
Funds from operations increased by 0.4% year-on-year to $386 million. That works out to 16.2 cents in funds from operations per security, up 0.6%. However, adjusted funds from operations per security slid 0.7% from the corresponding half year to14.1 cents.
Stockland reported net operating cashflows of $430 million. It credited strong residential settlements and its commercial property rent collection which accounts for 90% of net billings.
Management Commentary
Commenting on the results, Stockland’s CEO, Mark Steinert, said:
We continue to successfully deliver on our strategic priorities divesting non-core assets, increasing our capital allocation to Workplace and Logistics, and restocking our Residential landbank. This is repositioning the Group to deliver more consistent, above-sector average total returns and drive value for our stakeholders.
Stockland’s CFO, Tiernan O’Rourke, added:
As a result of delivering on our strategic priorities and the actions undertaken during the pandemic including the acceleration of Residential production and release levels, and a focus on Commercial Property rental collection, we have reported strong operating cashflow and capital management metrics all of which will support future opportunities.
Stockland will pay a dividend of 11.3 cents, an increase of 6.6% from H2 FY20. For the full year, the company expects dividends to be in line with its payout ratio of 75–85% of funds from operations.
Share price snapshot
The Stockland share price has yet to fully recover from last year’s COVID-driven market rout, which saw shares plummet more than 65% by 23 March. While up 149% from the 23 March lows, Stockland shares remain down 12% over the past 12 months. That compares to a 0.5% loss on the S&P/ASX 200 Index (ASX: XJO).
Year-to-date the Stockland share price is up 5%.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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