Stockland Corporation Ltd (ASX: SGP) shares are climbing higher into the green on Thursday.
At the time of writing, the shares are up around 2% and changing hands at $4.64 a piece.
Today's increase means the shares have now risen over 14% since the company posted its FY26 results ahead of the ASX open on Wednesday morning.
The property group reported a statutory profit up 20.2% to $994 million for FY26, and a 10.4% increase in post-tax Funds From Operations (FFO) to $892 million, hitting the top end of its guidance range.
Stockland announced a full-year dividend distribution steady at 25.2 cents per security, at a payout ratio of 69%. For FY27, the company expects to maintain the same 25.2 cents per security dividend payment.
Investors are clearly thrilled with the result, and many rushed to buy the shares following the announcement yesterday. The rally has continued this morning, with many more buying into the stock, sending the share price higher again.
There is still a long way to go before Stockland shares can recoup the losses it shed in late-2025 and early-2026, but its certainly a step in the right direction.
Stockland shares are now down around 19% for the year to date and 24% lower than 12 months ago.
The question now is, can the shares keep climbing higher? Or has the property group's shares now reached fair value?
Here's what the experts think.
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Analyst forecasts for Stockland shares over the next 12 months
If analysts' predictions are anything to go by, it looks like Stockland shares could be approaching fair value.
Market Index data shows that brokers are split between a buy and hold rating on the shares. But the $4.69 average target price implies a potential 1% upside at the time of writing.
Sentiment is a little more positive according to TradingView data. The majority (seven out of 10) have a buy/strong buy rating on Stockland shares, and another two rate the stock a hold. There is one sell rating.
The average $5.10 target price implies a potential 10% upside at the time of writing. But some are even more bullish and forecast the shares to climb another 26% to $5.80 over the next 12 months.
Ahead of the results announcement, the team at Shaw and Partners confirmed their hold rating on the ASX 200 property shares. They said the business is well-positioned to benefit from Australia's long-term population growth and housing supply constraints, while its development pipeline supports future earnings growth.
The broker added that higher interest rates have created some short-term headwinds across the property sector. However, Stockland's robust balance sheet and quality asset portfolio provide resilience.
