The Stockland Corporation Ltd (ASX: SGP) share price is up this morning after the company released its operational update for the first quarter of financial year 2022.
The housing developer and commercial property giant had a seemingly strong quarter despite COVID-19 restrictions impinging on tenants of its ‘retail town centre’ portfolio.
At the time of writing, the Stockland share price is $4.64, 0.87% higher than its previous close.
Let’s take a look at the quarter just been for Stockland.
Stockland share price gains after Q1 update
The Stockland share price is rising despite the company collecting just 75% of its retail rent without adding abatements or deferrals over the quarter just been.
Stockland noted discussions of COVID-19 rent relief with its retail tenants are still underway.
It was a better story for the company’s logistics portfolio. It ended the quarter with 98.9% occupancy, up from 98% in June 2021. Additionally, only 2% of rent for Stockland’s workplace and logistics assets went unpaid during the quarter just been.
The company’s residential arm also saw stronger performance. Residential property sales were up 8% compared to those of financial year 2021’s first quarter.
The company sold 1,947 lots over the quarter just been. It also acquired approximately 5,900 new lots to restock its assets.
Retirement living sales were in line with expectations, though, they were affected by COVID-19 restrictions. The integration of the Halcyon platform is progressing well, with Land Lease Communities’ sales in line with expectations.
Stockland’s managing director and CEO Tarun Gupta commented on the news driving the company’s share price today:
The group’s strong financial position was maintained at the end of the quarter with low gearing and ample liquidity, underpinned by our solid operational business performance.
Additionally, the company forecasted its funds from operations per security will be between 34.6 and 35.6 cents for financial year 2022. It expects to pay out 75% to 85% of funds from operations per security as dividends.
However, Stockland noted its guidance rests on Australia’s vaccination rates continuing to increase and COVID-19 restrictions easing alongside.
Market watchers interested in the Stockland share price, keep an eye out for another operational update on 8 November.