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Stockland posts strong 1H26 result on development surge

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The Stockland Corporation Ltd (ASX: SGP) share price is in focus today after the diversified property group posted a statutory profit of $292 million for the first half of FY26, up 19% on last year, and a 29.5% surge in post-tax Funds From Operations (FFO) to $325 million.

What did Stockland report?

  • Statutory profit: $292 million (1H25: $245 million)
  • Post-tax FFO: $325 million, up 29.5%
  • FFO per security: 13.5 cents
  • Distribution: 9.0 cents per security (1H25: 8.0 cents)
  • NTA per security: $4.25 (FY25: $4.22)
  • Gearing: 28.1%, within target range of 20%–30%

What else do investors need to know?

Stockland’s Development business had a standout half, with Masterplanned Communities settlements up 60% to 3,168 lots and development FFO nearly tripling to $106 million. The company’s Investment Management arms, including Town Centres and Logistics, continued to deliver steady growth, despite some asset disposals and partnership transfers.

The group also reaffirmed its full-year targets for both its Masterplanned and Land Lease Communities, and completed its target of net zero scope 1 and 2 emissions across operations, highlighting its focus on sustainability.

What did Stockland management say?

Tarun Gupta, Managing Director and CEO said:

We delivered a strong first half result, with earnings growth supported by higher development production and continued progress in executing our strategy.

Our Investment Management portfolios performed well, delivering positive comparable growth across all sectors, supported by strong leasing outcomes and contributions from recent project completions. We continue to expand our capital partnering platform and recycle capital toward attractive growth opportunities, while maintaining balance sheet strength and funding flexibility.

What’s next for Stockland?

Looking ahead, Stockland expects development earnings and cash flow to be “materially weighted” to the second half of FY26, as more settlement receipts flow through. The company is targeting 7,500–8,500 lot settlements in Masterplanned Communities and 700–800 for Land Lease Communities for the full year.

Management also expects gearing to moderate further by year-end, and the distribution per security to be in line with FY25 at 25.2 cents. Stockland will keep progressing its commercial pipeline, especially with new data centre opportunities and an expanded focus on the Land Lease sector.

Stockland share price snapshot

Over the past 12 months, Stockland shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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The post Stockland posts strong 1H26 result on development surge appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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