Tracey Joynson

Stockland reports earnings growth on track

PROPERTY development giant Stockland has confirmed it remains on track to grow earnings per security by 4-6% in FY14.

At an investor briefing in Sydney today managing director and CEO Mark Steinert said the Group had made good progress in restructuring its business over the past 12 months and would continue to be disciplined in executing its strategy.

"Our objective is to deliver EPS growth and total risk-adjusted shareholder returns above the AREIT average, by creating and operating quality property assets and delivering value for our customers," Mr Steinert said.

"Earlier this year we set out a clear strategy to achieve this objective and made a number of important decisions to reposition the business. In FY14 we continue to build on these strong foundations.

"Our new management team is now in place, with the right mix of skills and experience to deliver our strategy. We have reallocated $507 million of capital from the Trust to the Corporation and successfully divested our FKP stake at a premium to our carrying value.

"We are also making excellent progress in each of our operating businesses. We commenced a number of new projects including the $222 million redevelopment of our shopping centre at Wetherill Park, our residential community Willowdale in southwest Sydney and further stages at five retirement villages.

"At the same time we have maintained our firm focus on ensuring the long-term success of our business through a continued commitment to sustainable business practices and employee engagement. Recognising this, Stockland was listed as the most sustainable real estate company in the world in the 2013-2014 Dow Jones Sustainability Index."