The Magnum Mining and Exploration Ltd. (ASX: MGU) share price is rocketing today, after news the company will have a green hydrogen plant built at its Nevada facility. It has also signed a new marketing agreement.

At its intraday high, the Magnum share price was up by a whopping 16%.

At the time of writing, shares in the company have dropped to 19 cents, which is still a gain of 8.5% on yesterday’s closing price.

Let’s take a closer look at the news out of the mining and exploration company.

Magnum’s green hydrogen future

Today, Magnum shared the news it has signed an exclusive green hydrogen supply agreement with AVF Energy.

The agreement will see AVF Energy building and funding a green hydrogen plant at Magnum’s Nevada steelmaking facility. The hydrogen is deemed ‘green’ as it will be produced from waste products.

The agreement will allow Magnum to purchase green hydrogen from AVF Energy for 10% less than the market rate.

As a result, Magnum will be able to market its hot briquetted iron (HBI) and high purity iron (HPI) products to the US steel market and battery industry as ‘green friendly’.

A clause of the agreement is, if AVF Energy is unable to provide the quantities of hydrogen power needed to run Magnum’s facility, Magnum can seek out other suppliers.

A new marketing agreement for Magnum

Magnum has also signed a non-exclusive sales and marketing agreement with M Resources Trading Pty Ltd.

The agreement will see M Resources acting as Magnum’s sales agent for its magnetite, HBI, HPI, pig iron, and steel products in the US.

As part of the arrangement, Magnum will pay M Resources between 1% and 1.5% of the sales revenue.

Magnum will also issue M Resources with 20 million stock options. These will have a strike price of 20 cents and a 3-year duration.

Commentary from management

Magnum’s managing director Dano Chan commented on the news the company released today:

The agreements with AVF Energy allow Magnum to fast track its mining and green steel development for the local domestic market in the United States. The Company is also well positioned to take advantage of the Biden Administration infrastructure stimulus and to service the growing demand for green friendly infrastructure particularly from California.

Magnum share price snapshot

The Magnum share price is having a great year on the ASX, with today’s news giving it its latest boost.

Currently, the Magnum share price is up 280% year to date. It’s also up by 375% over the last 12 months.

Magnum has a market capitalisation of around $74 million, with approximately 425 million shares outstanding.

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• Why the Money3 (ASX:MNY) share price just hit an all-time high
• Why the Keytone Dairy (ASX:KTD) share price opened 23% higher today

Motley Fool contributor Brooke Cooper 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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The National Australia Bank Ltd. (ASX: NAB) share price is falling slightly today. This comes after its chair, Phil Chronican, said credit limitations would be a “rational” response to curb the booming housing market.

Founded in 1982, NAB is among the largest listed companies on the ASX. It is also one of the “big four” Australian banks in terms of market capitalisation, earnings, and customers. In addition, it is the 21st largest bank in the world by market capitalisation.

At the time of writing, the NAB share price is down 0.41% to $26.58.

Limiting Australia’s housing boom

Record-low interest rates have led to a surge in Australian house prices. Currently, prices in Australia’s capital cities are rising at their fastest rate in 32 years.

Chronican said this was the expected result of the reserve bank’s cash-rate policy. Additionally, he stated that the government could focus on macroprudential policies instead. Chronican believes this could curb the housing boom without losing the positive effects of a low rate.

Macroprudential policies are centralised regulatory controls in the financial market. They are aimed at identifying and reducing systemic risks. In this case, Chronican believes such policies would be focused on limiting borrowing and credit lending amounts.

Management commentary

According to the Sydney Morning Herald, Chronican told a Governance Institute lunch in Sydney:

Chronican continued:

There are plenty of economies, particularly in economies like Singapore and New Zealand, where macroprudential policies have been brought in for short periods of time to take the heat out of the market. And if that happens, then as I said, that would be understandable,” 

And I just point out that we’re seeing this strong house price growth at a time when Australia’s population growth is at record lows. You can imagine what the pressure is going to be like as migration is reopened in the coming years.

NAB share price falls against strong 2o21 gains

The NAB share price has fallen slightly today but has performed well in 2021 so far, up 17%.

This far exceeds the growth of the Commonwealth Bank (ASX: CBA) share price, which has gained 7%. However, it is still below both ANZ (ASX: ANZ) share price gains of 23% and runaway leader Westpac (ASX: WBC), which is up 30%. 

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Motley Fool contributor Lucas Radbourne-Pugh 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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The EcoGraf Limited (ASX: EGR) share price is up after news the Australian Government has re-announced its Battery Anode Materials Facility’s Major Project Status.

At the time of writing, the EcoGraf share price is 62.5 cents, 1.63% higher than yesterday’s close.

Let’s take a closer look at the graphite producer’s news.

Major Project Status

The federal government bestowed the Kwinana Battery Anode Materials Facility’s project with its new status in March this year, but re-announced it yesterday. The day the news was first announced in March the EcoGraf share price closed 11% higher than the previous session.

Yesterday, the news came from a joint media release from the Minister of Industry, Science and Technology, the Hon Christian Porter MP, and the Minister for Resources, Water and Northern Australia, the Hon Keith Pitt MP.

Together, the MPs said the project supports both the Australian Government’s Critical Minerals Strategy and Western Australia’s Future Battery Industry Strategy.  

Companies awarded with Major Project Status are eligible for support from the Major Projects Facilitation Agency. This support includes a single-entry point for Australian Government approvals, project support and coordination.

The Kwinana Battery Anode Materials Facility, located near Perth, is still under construction.

In the media release, Minister Porter said the project is bringing multiple benefits to Western Australia, including up to 250 new jobs during construction and up to 65 new jobs during operation. He said:

The Australian Government is committed to boosting investment in the Australia’s critical minerals industry to help build our sophisticated manufacturing capability and deliver new jobs across the country, and particularly to our regional areas.

Minister Pitt said the project’s new status recognised its significance to Australia:

EcoGraf is an excellent example of what we want to see more of in Australia – our raw materials being downstream processed right here in Australia, adding value to our exports and creating well paid and sustainable jobs for Australian workers in the process. 

EcoGraf share price snapshot

Today’s news it the latest boost for the EcoGraf share price, which is having a roaring year on the ASX. Many investors are eyeing the company’s incredible growth.

Currently, the EcoGraf share price is up a whopping 267% year to date. It’s also bloomed 941% over the last 12 months.

EcoGraf has a market capitalisation of around $279 million, with approximately 454 million shares outstanding.

More reading

• Up 940% since last year: What’s with the EcoGraf (ASX:EGR) share price?

Motley Fool contributor Brooke Cooper 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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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is sinking lower. The benchmark index is currently down 0.4% to 7,037.9 points.

Here’s what is happening on the market today:

Afterpay Q3 update

The Afterpay Ltd (ASX: APT) share price is edging lower despite the release of a strong third quarter update. For the three months ended 31 March, Afterpay reported underlying sales growth of 104% over the prior corresponding period. Positively, the company also revealed that its gross losses continue to remain below historical rates in all operating regions. Finally, management advised that it is actively looking into listing in the United States.

Woolworths’ investment

The Woolworths Group Ltd (ASX: WOW) share price is lower today despite announcing a major investment. According to the release, Woolworths is investing $223 million to increase its stake in data science and advanced analytics business Quantium from 47% to 75%. Management believes the combination of Quantium’s advanced analytics capability and Woolworths’s retail capabilities can unlock value across its entire retail ecosystem.

Rio Tinto Q1 update

The Rio Tinto Limited (ASX: RIO) share price is trading broadly flat today following the release of its first quarter production update. For the three months ended 31 March, the company achieved Pilbara iron ore shipments of 77.8 million tonnes. This was 7% higher than the first quarter of 2020. However, production was down 2% on the prior corresponding period to 76.4 million tonnes. This was driven by above average wet weather in the mines through February and fixed plant reliability. Guidance for the full year has been maintained.

Tech shares on watch

The best performer on the ASX 200 on Tuesday has been the Mineral Resources Limited (ASX: MIN) share price with a 3% gain. This has been driven by a bullish broker note out of Macquarie. The worst performer has been the Challenger Ltd (ASX: CGF) share price with a 12% decline. This morning the company released its third quarter update. While its performance has been solid, investors appear disappointed that it is only guiding to the low end of its guidance range.

More reading

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Woolworths Limited. 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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The Money3 Corp Ltd (ASX: MNY) share price is on the rise in late morning trade, reaching a record high. This comes after the company announced it has been approved a new facility to support its ongoing loan book growth.

At the time of writing, the financial services company’s shares are fetching for $3.22, up 1.26% — an all-time high.

New facility to support growth

Investors are pushing Money3 shares into positive territory following the company’s sights to fund growth in the New Zealand market.

According to the release, Money3 advised its subsidiary, Go Car Finance has secured a NZ$40 million facility with Heartland Bank.

Founded in 2011, Heartland Bank is a New Zealand-owned bank, and a subsidiary of ASX-listed Heartland Group Holdings Ltd (ASX: HGH).

In addition, Money3 stated that the 3-year facility is an addition to the existing facility with the Bank of New Zealand. The new line of credit, however, will replace the current mezzanine finance facility. It’s also estimated that the cost of funding will be improved by more than 3% for the switch over.

Notably, Money3 has now secured facilities from four different banks. Two in Australia and also two in New Zealand. Furthermore, the group highlighted that it’s strategic intent was to diversify its funding strategy to ensure adequate funding capacity.

Moving into FY22, Money3 will seek to grow its loan book to more than $800 million since securing funding partners.

Management commentary

Money3 CEO, Scott Baldwin touched on the company’s progress, saying:

Over the past 24 months the Go Car team have executed perfectly on our growth strategy. Growing introduction partnerships across New Zealand and growing a quality loan book allowing us to introduce Heartland Bank to the Group.

The new facility along with the existing debt with the Bank of New Zealand will allow the group to further grow our loan book.

Heartland Bank CEO, Chris Flood added:

Heartland Bank is pleased to support Go Car Finance with funding for its New Zealand loan book. The funding aligns with Heartland Bank’s strategy to diversify business lending and is consistent with our long history of providing motor vehicle finance in New Zealand.

Money3 share price summary

In the past year, the Money3 share price has been ascending on an upwards trajectory, gaining over 120%. The company’s shares hit a record high today on the back of positive investor sentiment.

Based on the current share price, Money3 has a market capitalisation of roughly $671 million, with 207 million shares outstanding.

More reading

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Motley Fool contributor Aaron Teboneras 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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The Keytone Dairy Corporation Ltd (ASX: KTD) share price is soaring today after the company released its annual revenue report for the 2021 financial year. Keytone Dairy shares opened 22.86% higher at 21.5 cents before considerably retracing. At the time of writing, the company’s shares are trading at 18.5 cents, up 5.71% for the day so far. 

Let’s take a closer look at the dairy manufacturer and exporter’s results.

Annual revenue results

The Keytone Dairy share price is on the move today after the company released its unaudited results for the year ending 31 March 2021. The results show significant growth in Keytone Dairy’s sales and business divisions.

Aside from the growth constraints caused by Australia and New Zealand’s bleakest period of the COVID-19 pandemic, the company says its brands have continued to record strong growth.

The company’s statutory total sales revenue was up by a whopping 125% compared to the previous period.

According to its statutory results, the year that’s been has seen Keytone Dairy rake in $50.7 million in sales revenue. This is an impressive gain when compared to the previous year’s $22.5 million revenue.

The company’s Australian Contract Manufacturing segment also delivered robust gains. Its statutory results show it brought in $35.2 million in sales revenue, a 109% gain on the sales revenue of the prior year.

Keytone’s New Zealand Dairy division earned $11.3 million in sales revenue over the year, an increase of 126% over the previous year.

Finally, the company reported that its brands – including Onmiblend, which was acquired by Keytone Dairy in August 2019 – had a combined statutory income of $4.2 million. That represents an impressive 545% revenue increase on the prior corresponding period.

Commentary from management

Keystone CEO Danny Rotman commented on the company’s revenue results. He said:

The record growth across the group over the last twelve months has been extraordinary, particularly given the magnitude of disruption caused by COVID to global logistics and workplace environments. The pandemic caused significant headwinds for further penetration of our own brands and our clients’ businesses. Notwithstanding these challenges, the sales growth of the business has outperformed. I am incredibly proud of the way our loyal and dedicated staff have come together to successfully navigate through this unprecedented year and the foundations that have been built as we move into FY22.

Keytone Dairy share price snapshot

Today’s news has resulted in a welcome boost for the Keytone Dairy share price, which has had a rough trot on the ASX lately.

Even with today’s gains, Keytone Dairy shares are down almost 23% year to date. The company’s shares are also down by around 70% over the last 12 months.

Keytone Dairy has a market capitalisation of around $47 million, with approximately 273 million shares outstanding.

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Motley Fool contributor Brooke Cooper 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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Brokers remain divided on what’s next for the battered A2 Milk Company Ltd (ASX: A2M) share price. And for once, it almost feels as though there is no right or wrong answer. 

On one hand, A2 Milk has emerged as an iconic brand with a unique product in the dairy industry. Its shares held an Afterpay Ltd (ASX: APT) like status, driven by its outstanding growth and capital returns. This has led some brokers to highlight the potential medium-to-long term value in the company once sales channels stabilise.

But a large part of the company’s growth story has been associated with China and Chinese-related sales channels. As the infant formula industry continues to rapidly evolve in China and with daigou channels on hold, it didn’t take long for some brokers to say it’s time to move on. 

Another downgrade for the A2 Milk share price 

COVID-19 may have accelerated the global phenomenon of an aging population and declining birth rates. 

Credit Suisse has called out that the aggregate number of babies of infant formula age could be 30% lower in 2025. That is compared to 2018. 

The broker believes that the theme of declining birth rates could see the fall of the infant formula industry contract in China. It also says that this trend could undermine the growth from increased usage of milk formula. 

A2 Milk revenues are expected to recover in the medium-to-long term. However, the broker cites that its FY25 net profit will approach but not surpass the peak of FY20. 

As a result, the broker rated the A2 Milk share price as underperforming with a $7.15 target price. 

Share price snapshot 

On a monthly chart, the A2 Milk share price has closed lower every single month since August 2020, with the exception of November 2020. November was likely propped up by the sheer strength of the broader market, with the ASX 200 rallying 10% from 5,900 to over 6,500. This perhaps reiterates why investors should avoid trying to catch a falling knife.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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The Altium Limited (ASX: ALU) share price has come under pressure on Tuesday.

In morning trade, the electronic design software company’s shares are down 4% to $28.78.

This compares to a 0.4% decline by the S&P/ASX 200 Index (ASX: XJO) today.

Why is the Altium share price tumbling lower?

Today’s decline appears to have been driven by the release of a broker note out of Citi this morning.

Although the broker has held firm with its buy rating and $33.50 price target, some of its comments appear to have spooked investors and are weighing on the Altium share price.

What did Citi say?

According to the note, the broker points out that Altium has been discounting its platform, which it feels could be an indication of weak trading conditions. As a result, it fears there could be some level of pressure on its second half earnings.

One positive, though, is that Citi’s research shows that website traffic data for its Octopart business have been solid. It also notes a positive shift in preference to its Altium 365 platform.

Nevertheless, despite its aforementioned concerns, the broker remains positive on the company due to its belief that Altium’s downgrade cycle is nearing an end.

Is the Altium share price in the buy zone?

Based on the current Altium share price, Citi’s price target implies potential upside of 16.5% over the next 12 months.

Citi isn’t alone with its buy rating. UBS currently has a buy rating and $34.00 price target on its shares and Credit Suisse has an outperform rating and $35.00 price target.

And even more bullish are the analysts at Morgan Stanley. They currently have an overweight rating and lofty $37.00 price target on its shares.

All four price targets suggest the Altium share price could generate market-beating returns for investors between now and this time next year. Which certainly is food for thought for investors.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple (NASDAQ: AAPL) recently gave itself a pat on the back when it wrote a letter to recording artists noting it pays a penny per stream on its Apple Music service. That’s about twice the rate of Spotify (NYSE: SPOT), the world’s largest streaming service.

And while it’s leading in its payout rate on a per stream basis, it only pays out 52% of revenue to record labels. By comparison, Spotify pays out about two-thirds of its revenue to labels.

There are a number of factors that enable Apple to pay more per stream to artists while keeping more of its revenue for itself. Here’s what investors should consider.

The big difference between Spotify and Apple Music

Spotify offers a free ad-supported tier for listeners, but Apple Music is subscription only. That difference in strategy has a big effect on the rates each service pays to artists and the percentage of revenue those royalties account for.

Spotify has long held up its free ad-supported tier as an important driver of paid subscriptions in the long run. In fact, Spotify contends that offering a free tier prevents listeners from seeking “non-revenue-generating alternatives,” which you might just call “piracy.”

But there’s a drawback to offering a free tier — less revenue per listener. As of the end of 2020, Spotify had 199 million free listeners and 155 million paid subscribers. But ad-supported revenue in the seasonally strong fourth quarter totaled just 281 million euros versus 1.89 billion euros for the paid subscribers.

Importantly, when Spotify pays a royalty for a listener on its ad-supported tier, it pays it out of the ad-supported revenue. And with 199 million listeners, even if they’re less engaged on average than paid listeners, that’s going to drag down its average payout per stream.

On the other hand, Spotify’s contracts with record labels typically include guaranteed minimums, which means it may have to pay additional royalties if it doesn’t generate enough engagement with the service. That could push the percentage of revenue it pays higher on average than its paid tier, where revenue is much more predictable.

Apple doesn’t need a free tier

Apple’s biggest advantage over Spotify is that it owns the distribution platform. While it’s possible to use Apple Music on devices not made by Apple, it’s much more common among iPhone owners. And every iPhone comes with Apple Music pre-installed. It’s the default music app. Even if you want to listen to music you’ve already downloaded, you’ll use the Apple Music app by default on an iPhone.

That presents a big opportunity for Apple to onboard new subscribers. No need to tempt them with a free ad-supported service. No free tier means Apple’s average revenue per user is higher than Spotify’s.

What’s more, Apple’s paid users may not be as engaged as Spotify’s paid users. If a Spotify user doesn’t use the service as much, they may not mind the occasional ad while listening. As a result, Apple generates more revenue per stream, and it pays out more per stream.

What it all means for investors

For Apple investors, the important number to pay attention to isn’t that it pays more per stream than Spotify. It’s that it manages to pay out only half of the revenue as royalties. A lower cost of sales, combined with Apple’s position as a platform owner, allows it to bundle Apple Music without using it as a loss leader.

Indeed, Apple Music is at the core of Apple’s Apple One bundle, which includes all the various subscription services the company introduced over the last half decade or so. That allows Apple to profitably bolster its other services while increasing customer engagement with its services and retaining them as iPhone and Mac users year after year.

For Spotify investors, Apple’s relatively low royalty rate is also important. It indicates there’s a lot of room for improvement in the company’s premium gross margin, which came in at 28.9% in the fourth quarter. There’s a big gap between that and the 48% Apple keeps after paying royalties, which accounts for the bulk of cost of sales. Spotify keeps its contracts with record labels short, so it frequently has an opportunity to renegotiate and improve its margins.

Meanwhile, Spotify’s investing heavily in podcasts, both as a means to attract new users and to improve its margin for its ad-supported business. If Spotify can bring its ad-supported tier to break-even and raise the margin on its premium tier, it could become tremendously profitable given the scale the tech company’s already achieved.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Adam Levy owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Spotify Technology and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Stockland Ltd (ASX: SGP) share price was up in early trade after the Aussie real estate investment trust’s (REIT’s) latest quarterly results. This came as Stockland provided a market update on its performance for the quarter ended 31 March 2021 (Q3 2021). However, at the time of writing, the Stockland share price has retreated to $4.59, down 0.76%. 

What did Stockland report?

The diversified REIT said the quarter began strongly thanks to momentum carried through from the first half of the financial year. 

Highlights included elevated residential business enquiries boosted net sales by 69% on Q3 2020 to 1,891 lots. Additionally, Stockland is forecasting residential settlements of 6,300 lots for the full year. That’s largely thanks to “low interest rates, government incentives, and credit availability” boosting demand.

Stockland also reported a total of 33,000 sales enquiries in its residential business — 40% above the long-term average. That comes as the Aussie housing market continues to heat up on the back of favourable macroeconomic conditions.

Stockland said it can meet current demand levels in the current upcycle. The group has an 81,000-strong lot landbank which is ~70% activated. The Stockland share price will be worth watching in early trade after the bullish update and forecast.

The Stockland share price will be on to watch this morning as investors react to the latest figures and forecasts. Stockland is seeing improvements in retail trading conditions as coronavirus restrictions continue to ease in Australia. The Aussie REIT is seeing sales levels and store openings increasing to around pre-COVID levels.

Stockland reported comparable Q3 2021 total retail sales growth of 3.2% with speciality growth of 9.4%. Importantly, the group also reported low levels of “unresolved arrangements with retail tenants” helping to improve outstanding debt balances.

Stockland said strong capital management has allowed it to restock its Communities business. The Aussie REIT has acquired 10,100 lots within the portfolio in the financial year to date. Retirement Living sales were up 16.5% on Q3 2020 figures to 190 units during the quarter.

FY2021 guidance

The Stockland share price is up 7.9% in 2021, outperforming the S&P/ASX 200 Index (ASX: XJO). It will be worth watching after today’s update that included a note on FY2021 guidance provided on 25 February.

While guidance levels remain unchanged, Stockland said it expects full-year distributions at the low end of its 75% to 85% target payout ratio of funds from operations (FFO). Recent rent collections trends are expected to continue for commercial properties. Stockland is also forecasting 6,300 residential settlements for the full year per today’s release.

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Motley Fool contributor Ken Hall 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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