FY26 result delivered at top end of guidance range
Stockland (ASX: SGP) delivered its FY26 result for the twelve months to 30 June 2026 at the top end of its guidance range, capping a year defined by record development settlement volumes and an expanded global capital partnering platform.
The diversified property group reported statutory profit up 20.2% to $994m and post-tax Funds From Operations (FFO) up 10.4% to $892m, translating to FFO per security of 36.9 cents, the top end of guidance.
Net asset backing strengthened, with NTA per security up 4.0% to $4.39. The result was underpinned by a step-change in delivery, with 9,679 combined settlements across Masterplanned Communities (MPC) and Land Lease Communities (LLC).
Tarun Gupta, Managing Director and Chief Executive Officer
“FY26 was a year of strong execution. We delivered FFO per security at the top end of guidance, achieved record development settlement volumes and maintained disciplined capital management.”
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Financial results and segment breakdown
FFO for the year reached $892m, up from $808m in FY25, lifting FFO per security 9.1% to 36.9 cents. Statutory profit growth of 20.2% included a positive net investment property revaluation movement of $202m, equivalent to $264m of valuation gains across the investment platform on a look-through basis.
Two engines drove the outcome. Investment Management delivered FFO of $606m, up 2.6%, with comparable growth of 3.5% supported by operational performance and development completions. The result demonstrated portfolio resilience following approximately $1.8bn of asset recycling across FY25 and FY26.
The Development segment delivered FFO of $540m, up 17.3%, reflecting higher MPC and LLC settlements, increased partnership fee income and a stronger Commercial Development contribution.
| Metric ($m) | FY26 | FY25 | Change |
|---|---|---|---|
| Investment Management FFO | 606 | 591 | 2.6% |
| Development FFO | 540 | 460 | 17.3% |
| Total Post-tax FFO | 892 | 808 | 10.4% |
| FFO per security (cents) | 36.9 | 33.9 | 9.1% |
| Statutory profit | 994 | 826 | 20.2% |
Development platform drives record settlements
The development platform was the standout operational story, with management describing a step-change in delivery. Across the MPC and LLC platforms combined, sales grew 53%, which Gupta linked to delivering more affordably-priced housing solutions for Australians.
Segment detail included:
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Masterplanned Communities: 8,902 lot settlements (up ~30%); net sales 8,541 (up 49%); operating margin 21.2%; 3,824 contracts on hand
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Land Lease Communities: 777 settlements (up 48%); net sales 1,080 (up 88%); margin 20.6%; 701 contracts on hand
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Commercial Development: FFO $35m; completed ~$0.8bn and commenced ~$1.2bn of projects
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Development management fee income: $91m, up 35%
Stockland also progressed its data centre strategy, securing power for approximately 450MW of data centre development across three sites, subject to final design, documentation and customer negotiations. The group is progressing a further four pipeline opportunities.
New global capital partners join the platform
FY26 saw three leading global organisations join the partnering platform. Key partnerships established or expanded during the period included:
- Stockland EdgeConneX Data Centres partnership — a 50/50 partnership with EdgeConneX (Data Centres)
The Stockland EdgeConneX data centre partnership, a 50/50 joint venture structure that shares capital requirements and operational risk while providing access to established cloud and AI customer relationships, underpins the group’s ambition to generate development FFO from data centres in FY27.
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Morgan Stanley Real Estate Investing — a strategic partnership comprising three newly developed convenience retail assets valued at approximately $250m (Retail)
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Stockland M&G Land Lease Partnership — seeded with two existing assets at an initial gross asset value of approximately $200m
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Expanded M&G Logistics partnership (approximately $438m, NSW and QLD) and welcomed Mercer to the Stockland Residential Rental Partnership
Across the year, Stockland raised approximately $1.5bn of third-party capital and recycled $0.7bn of capital.
Capital discipline underpins the balance sheet
Stockland ended FY26 in a strong financial position, maintaining disciplined capital management across the balance sheet.
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Gearing 22.7% (down from 28.1% at 31 December 2025), within the 20–30% target range
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Available liquidity $3.2bn
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Weighted average cost of debt 5.3% (expected to average 5.9% in FY27)
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Weighted average debt maturity 5.3 years; A3 investment-grade rating from Moody’s, stable outlook
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Operating cash flow $876m
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Distribution 25.2 cents per security, payout ratio 69%
FY27 outlook and guidance
Management framed FY27 around multiple drivers of growth, with Gupta noting the outlook is built on the group’s strategy over the past five years.
Tarun Gupta, Managing Director and Chief Executive Officer
“Our disciplined execution of our strategy over the past five years has established multiple drivers of high-quality and sustainable growth. We expect the growth in other parts of our business to more than offset a lower MPC FFO contribution in FY27.”
All forward-looking figures remain subject to no material change in market conditions. Stockland guided to FY27 FFO per security of 38.0 – 39.0 cents and an FY27 distribution of 25.2 cents per security, in line with FY26.
Operational targets set out for the year ahead include:
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MPC settlements 7,300 – 8,300; development operating margin ~20%
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LLC settlements 850 – 950; margin above 22%
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Data Centre operations positioned to generate development FFO in FY27
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Underlying investment portfolio income growth complemented by build-to-hold developments
With record development delivery, an expanded global partnering platform and a diversified spread of earnings drivers, Stockland enters FY27 positioned to pursue growth across its residential, retail, logistics and data centre exposures.
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