Stockland, a prominent Australian property group, reported a significant 20.2% year-on-year increase in statutory profit to $994 million for FY26, exceeding analyst expectations. Post-tax Funds From Operations (FFO) also rose 10.4% to $892 million, hitting the top end of their guidance range, with FFO per security increasing 9.1% to 36.9 cents. This robust performance, particularly in development, led to a substantial jump in Stockland's share price, which rallied 13.2% to $4.58 by 11:07 am AEST, and even saw a 14.81% increase to $4.65 by 10:22 am on August 19, 2026, marking its best day since 1987.
The strong results were primarily driven by a surge in development FFO, which increased 17.3% to $540 million. Masterplanned Communities settled 8,902 lots, a 30% increase year-on-year, while Land Lease Communities saw 777 settlements, up 48%. The company also successfully raised $1.5 billion in third-party capital and recycled $0.7 billion, demonstrating disciplined capital management. Gearing improved to 22.7% from 28.1% at the end of December 2025, falling within the target range of 20-30%.
Looking ahead, Stockland provided optimistic guidance for FY27, projecting FFO per security between 38 cents and 39 cents. The full-year distribution per security is expected to remain steady at 25.2 cents. The company anticipates continued growth from its Land Lease Communities, with targeted settlements of 850-950, and expects data center developments to begin contributing to FFO. While Masterplanned Community settlements are forecast to be lower (7,300-8,300), growth in other business areas, including a new push into digital infrastructure, is expected to offset this, suggesting resilience despite potential headwinds in the broader housing market.
