Shares in diversified property giant Stockland Corporation Ltd (ASX: SGP) are up 1.3% to $4.20 today after the announcement of an on market security buy-back for up to $350 million of Stockland securities as part of an “active approach to capital management”.
Stockland handed down its FY18 results on August 23 with revenue climbing 6.6% – above its guidance – despite a drop in profit out of its retirement business with growth in its shopping centre revenue.
Stockland CEO Mark Steinert said investing in its own securities is “an attractive and accretive use of capital” at this point and the company is well-placed to finance the buy-back with $335 million in non-core asset sales over the past year and an intention to sell up to $400 million of retail town centre assets in the next 1-2 years.
The buy-back will commence on September 21.
Other real estate stocks to keep an eye on post reporting season include landlord company DEXUS Property Group (ASX: DXS), after the release of solid results on August 15 saw its share price climb.
National Storage REIT (ASX: NSR) is also on watch as it announced it would align with Stockland to create storage developments within Stockland’s portfolio.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.