Stockland profit up 20% as development surges: FY26 results and outlook

The Stockland Corporation Ltd (ASX: SGP) share price is in focus today as the property group reported a statutory profit up 20.2% to $994 million for FY26, and post-tax Funds From Operations (FFO) rising 10.4% to $892 million, hitting the top end of its guidance range.

What did Stockland report?

• Statutory profit up 20.2% to $994 million
• Post-tax FFO up 10.4% to $892 million; FFO per security of 36.9 cents
• Net Tangible Assets (NTA) per security rose 4.0% to $4.39
• Full year distribution steady at 25.2 cents per security; payout ratio of 69%
• Development FFO surged 17.3% to $540 million
• Gearing at 22.7%, within its 20–30% target range

What else do investors need to know?

Stockland has made significant progress with its capital partnering strategy. It welcomed prominent global partners—including Morgan Stanley Real Estate, EdgeConneX and Mercer—across retail, data centre, and land lease sectors. Approximately $1.5 billion of third-party capital was raised during the year, and $0.7 billion was recycled, reflecting continued capital discipline.

Operationally, Stockland settled 8,902 lots in its Masterplanned Communities (up 30% year on year) and 777 homes in its Land Lease Communities (up 48%). The group also secured power for around 450MW of future data centre development, highlighting its push into digital infrastructure.

What did Stockland management say?

Managing Director and CEO Tarun Gupta said:

FY26 was a year of strong execution. We delivered FFO per security at the top end of guidance, achieved record development settlement volumes and maintained disciplined capital management. We grew sales by 53% across our Masterplanned Communities and Land Lease platforms, delivering more affordably-priced housing solutions for Australians.

What’s next for Stockland?

Looking ahead to FY27, Stockland expects to maintain its distribution at 25.2 cents per security, with FFO per security guidance of 38.0 to 39.0 cents. The company is targeting between 7,300 and 8,300 Masterplanned Community settlements and plans to continue growing its Land Lease platform, targeting 850 to 950 settlements. Management believes growth in other business areas will offset a lower contribution from community settlements in the coming year.

Stockland is also expecting its data centre developments to start delivering FFO in FY27, complementing steady income growth from its core investment portfolios.

Stockland share price snapshot

The Stockland share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a disappointing decline of almost 30%.

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The post Stockland profit up 20% as development surges: FY26 results and outlook appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.