Stockland Corporation Ltd (ASX: SGP) shares closed 6.7% lower at $4.29 today after the diversified property group posted a statutory profit of $311 million on funds from operations (FFO) of $897 million for financial year 2019. The statutory profit and FFO are down 69.4% and up 4% respectively on the prior year.
The group will pay total fiscal year dividends of 27.6 cents on FFO per security of 37.4 cents. The dividends and FFO per security are up 4.2% and 5.1% respectively over fiscal 2018.
Return on equity came in at 11.9% up 70 basis points on the prior year, with net tangible assets per security of $4.09. Gearing stands at 26.7% with a weighted average cost of debt of 4.4%.
While the mid-single digit growth is respectable it's the group's forecasts for flat FFO per security in FY 2020 that has sent investors heading for the exits today.
The group blamed the flat forecast on weakness in property markets due to slowing credit growth, flat wages and weak sentiment. Other property groups to consider for yield include Scentre Group Ltd (ASX: SCG) and Mirvac Group (ASX: MGR).
