The Stockland Corp Ltd (ASX: SGP) share price is sliding, down 2% in morning trade. At the time of writing, the Stockland share price was down 0.88% to $4.49.
We take a look at Stockland's results for the financial half-year ending 31 December (H1 FY21) below.
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What financial results did Stockland report for H1 FY21?
The Stockland share price is sliding after the company reported a 30.4% drop in statutory profits of $350 million for the half year. This was down from $504 million in H1 FY20. Net profits before tax dropped 39.5% from the prior corresponding period (pcp) to $312 million.
Stockland's earnings before interest (EBIT) of $468 million was down 8.1% from the $509 million reported in the first half of the 2020 financial year.
Funds from operations increased by 0.4% year-on-year to $386 million. That works out to 16.2 cents in funds from operations per security, up 0.6%. However, adjusted funds from operations per security slid 0.7% from the corresponding half year to14.1 cents.
Stockland reported net operating cashflows of $430 million. It credited strong residential settlements and its commercial property rent collection which accounts for 90% of net billings.
Management Commentary
Commenting on the results, Stockland's CEO, Mark Steinert, said:
We continue to successfully deliver on our strategic priorities divesting non-core assets, increasing our capital allocation to Workplace and Logistics, and restocking our Residential landbank. This is repositioning the Group to deliver more consistent, above-sector average total returns and drive value for our stakeholders.
Stockland's CFO, Tiernan O'Rourke, added:
As a result of delivering on our strategic priorities and the actions undertaken during the pandemic including the acceleration of Residential production and release levels, and a focus on Commercial Property rental collection, we have reported strong operating cashflow and capital management metrics all of which will support future opportunities.
Stockland will pay a dividend of 11.3 cents, an increase of 6.6% from H2 FY20. For the full year, the company expects dividends to be in line with its payout ratio of 75–85% of funds from operations.
Share price snapshot
The Stockland share price has yet to fully recover from last year's COVID-driven market rout, which saw shares plummet more than 65% by 23 March. While up 149% from the 23 March lows, Stockland shares remain down 12% over the past 12 months. That compares to a 0.5% loss on the S&P/ASX 200 Index (ASX: XJO).
Year-to-date the Stockland share price is up 5%.
