Stockland share price slips as statutory profit lifts 25% in FY22

Stockland posts earnings.

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Key points

  • Stockland posted its FY22 earnings today 
  • Improvements were seen vertically throughout the income statement 
  • In the past 12 months, the Stockland share price has slipped 10% 

The Stockland Corporation Ltd (ASX: SGP) share price is on the move today following the release of the company's FY22 results.

At the time of writing, the Stockland share price is trading 1.5% in the red at $3.75 apiece straight from the open.

Stockland continues asset, profit growth in FY22

Key takeouts from the period include:

  • Booked statutory profit of $1.38 billion, a 25% gain on the same period for FY21
  • Funds from operations (FFO) recorded at $851 million, up 8% year on year
  • FFO per security of 35.7 cents, up around 8% on the same time in FY21
  • Full-year total distribution per security (dps) of 26.6 cents, signifying an 8.1% growth on FY21
  • Net tangible assets (NTA) of $4.31 per security, again up around 8% from 30 June 2021

What else happened last period for Stockland?

Stockland again achieved a return on invested capital (ROIC) above the target 6-9%, securing a 10% recurring ROIC.

It delivered a statutory profit of $1.38 billion, up 25% on the same time last year. Its commercial property business came in with a FFO of $5.53 million, whereas it saw a valuation uplift to $725 million.

In particular, the workplace portfolio delivered a FFO of $110 million, itself flat on the year. Meanwhile, logistics FFO grew 37% year on year to $155 million. 

Management commentary

Speaking on the announcement, Stockland CEO, Commercial Property, Louise Mason said:

Our Logistics development pipeline continues to offer attractive returns on a risk-adjusted basis and significant future earnings growth, notwithstanding the impact of elevated construction costs.

Our development pipeline is located in prime Eastern Seaboard markets that continue to benefit from constrained supply and elevated occupier demand and comprises land holdings that have been acquired at attractive points in the real estate cycle.

What's next for Stockland?

In FY23 Stockland forecasts FFO per security in the range of 36.4 to 37.4 cents before tax, with a 5-10% estimated tax bill.

Meanwhile, distribution per security is expected to be within the targeted payout ratio of 75-85% of after-tax FFO.

In the past 12 months, the Stockland share price has slipped 10%.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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