The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterTue 15 Aug 17

Stockland's Annual Profit Increases 34% to $1.2 billion

Stockland_4-3_12498701_1760532_59938cc7a5398f4317c8eee3_sd_800x600

Diversified property developer Stockland's annual profit has increased to $1.2 billion but surging electricity prices will dampen earnings growth for the group this financial year.

According to Stockland, rising power costs in its retail portfolio - its largest asset class - will slow earnings in 2017-18.

Growth in funds from operations, its preferred profit measure, is up 8.5 per cent to $802 million on FY16, and would be "slightly" lower next year than the 7.4 per cent increase recorded in the year to June to give it a better-than-expected 33.4¢ per security profit.
Stockland Managing Director and CEO Mark Steinert today announced a strong performance for the group for FY17, with the developer reporting growth in all core businesses, with residential operating profit up 17.4% on FY16.

Steinert said: “We’ve delivered another positive performance this financial year across our diversified business, by reinforcing our position as the leading creator of communities in Australia, strategically repositioning our assets and restocking the portfolio.

“All of our businesses contributed to this result. Our residential and retirement living businesses achieved record results, and commercial property delivered a good performance across the different asset classes, despite challenging conditions in the retail market."

Steinert said while earnings were boosted by the retirement and residential divisions, the rising cost of electricity would weigh on future earnings, although the group said it had contracts locked in until 2019. It is also the largest user of rooftop solar panels in the southern hemisphere.


Stockland commercial property executive John Schroder said east coast electricity costs have jumped by almost two-thirds.

"The issue for FY18 is electricity," Schroder said.

"The electricity increase in our portfolio across the nation is 48.4 per cent, or 60 per cent on the eastern seaboard.

"That also has an implication on occupancy costs and the ability to drive rent growth."

Stockland CEO Mark Steinert

ResidentialAustraliaSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Fraser and Partners founder Callum Fraser
Exclusive

Saving Our CBDs: Architect’s Blueprint Paves Way for Office-to-Resi that Works

Leon Della Bosca
8 Min
Exclusive

Watchdog’s Court Loss Throws Spotlight on Union Balancing Act

Clare Burnett
6 Min
Time and Place's The Queensbridge Building at 90 Queens Bridge Street in Melbourne's Southbank.
Exclusive

Innovation Keeps Time & Place’s Southbank Skyscraper Rising

Marisa Wikramanayake
6 Min
Breathe Architecture founder Jeremy McLeod in front of his Featherweight Home design
Exclusive

Nightingale Founder’s Bid for Affordable Architectural Kit Homes

Leon Della Bosca
7 Min
View All >
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
The proposal for the gene therapy precinct at Westmead comes as sector investment continues to ramp up…
LATEST
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
3 Min
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
3 Min
PBSA DA Hindmarsh Square student accomodation tower
Student Housing

Student-Friendly Adelaide Draws 35-Storey PBSA Proposal

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/stocklands-annual-profit-increases-34-1-2-billion