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Stockland
(Sydney:SGP)
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Rating:76Outperform
Price Target:
AU$5.00
â–˛(8.93% Upside)
Action:Reiterated
Date:08/20/26
The score is driven mainly by strong financial performance (rebounding profitability and materially stronger free cash flow) and supportive earnings-call outlook (continued FFO growth guidance and conservative gearing). Valuation is also favorable (low P/E and high yield). Technical signals are only moderate, with the stock still below the 200-day average and softer momentum indicators.
Positive Factors
Strong FFO and residential growth
Double-digit FFO growth and higher residential settlements indicate stronger operating delivery and demand across Stockland’s communities. Sustained volume and earnings growth can support cash generation and broaden the platform’s earnings base over the next several periods.
Negative Factors
Residential cyclicality and margin pressure
Residential development remains exposed to interest rates, tax uncertainty, geographic demand shifts and project mix. Lower margins and weaker volumes can reduce the contribution from Stockland’s communities business, making group earnings more cyclical despite portfolio diversification.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong FFO and residential growth
Double-digit FFO growth and higher residential settlements indicate stronger operating delivery and demand across Stockland’s communities. Sustained volume and earnings growth can support cash generation and broaden the platform’s earnings base over the next several periods.
Read all positive factors
Stockland (SGP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$11.15B
Dividend Yield5.7%
Average Volume (3M)6.56M
Price to Earnings (P/E)10.6
Beta (1Y)0.79
Revenue Growth14.63%
EPS Growth18.93%
CountryAU
Employees1,674
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.41
Shares Outstanding2,431,644,000
10 Day Avg. Volume7,109,613
30 Day Avg. Volume6,560,095
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)0.92
Price to Sales (P/S)2.75
P/FCF Ratio11.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$5.35Price Target Upside16.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.38
Revenue Forecast (FY)AU$1.23B
Stockland Business Overview & Revenue Model
Company Description
Established in 1952, Stockland (ASX:SGP) has evolved into one of Australia's premier diversified property developers, owners, and managers. The company oversees a substantial portfolio encompassing bustling retail hubs, vibrant residential communi...
How the Company Makes Money
Stockland makes money primarily through a mix of property development profits, recurring rental and property income from its investment portfolio, and fees earned from funds management.
1) Residential development revenue and profits: Stockland ge...
Stockland Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call emphasized strong operational delivery and strategic progress: double-digit FFO growth, improved gearing and NTA, record residential settlements, expansion of recurring management income and the launch of a material data center program with ~450 MW of power secured. Management also highlighted active capital recycling, new blue-chip partners, and sustainability milestones. Offsetting these positives were margin pressure in the MPC business driven by mix shifts, higher overheads and capitalized interest as the development pipeline is activated, some moderation in residential market activity (notably Victoria), and early-stage execution and customer-contractor risk for data centers. On balance, the positive operational and financial outcomes, clear capital-partnering pathway and diversified growth drivers outweigh the near-term execution and cost pressures.Positive Updates
Funds from Operations Growth
FFO rose 10.4% to $892 million; FFO per security increased 9.1% to $0.369, sitting at the top end of guidance.
Negative Updates
Margin Pressure in MPC and Margin Outlook
MPC development operating profit margin reported at 21.2% (in line with guidance) but management indicated a lower margin outlook versus prior years due to mix shifts (trading out of higher-margin projects) and a more moderate near-term market.
Read all updates
Q4-2026 Updates
Positive
Negative
Funds from Operations Growth
FFO rose 10.4% to $892 million; FFO per security increased 9.1% to $0.369, sitting at the top end of guidance.
Read all positive updates
Company Guidance
Stockland guided FY‑27 FFO per security of $0.38–$0.39 (post‑tax) and a distribution per security of $0.252 (in line with FY‑26), expects its weighted average cost of debt to rise to 5.9% (from 5.3% in FY‑26) and is maintaining conservative gearing (22.7% at year end, down from 28.1%); by way of context FY‑26 delivered FFO $892m (+10.4%) and FFO/sec $0.369, statutory profit $994m (+20.2%), operating cash flow $876m, NTA $4.39 (+4%), MPC settlements ~8,900 (+30%) with sales up c.49–53%, land‑lease FFO $137m (+40%) and a commercial development pipeline end value of ~ $16bn (c. $9bn logistics). Management highlighted initial FY‑27 earnings from data‑center site transfers (450MW secured across 3 sites, 4 further opportunities), estimated data‑center capex ~ $20m/MW, and that data‑center cash equity is expected to be ~10% of group net funds employed (funds employed ~ $15bn → ~ $1.5bn over time); cumulative development revaluation gains will only be recognized in FFO when cash‑backed (not expected to materially affect FY‑27).Stockland Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
81
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.59B | 3.13B | 2.99B | 2.81B | 2.81B |
| Gross Profit | 1.28B | 1.22B | 1.18B | 862.00M | 760.00M |
| EBITDA | 1.15B | 1.00B | 701.00M | 614.00M | 755.00M |
| Net Income | 994.00M | 826.00M | 305.00M | 440.00M | 1.38B |
Balance Sheet | |||||
| Total Assets | 18.82B | 17.74B | 17.06B | 16.64B | 20.41B |
| Cash, Cash Equivalents and Short-Term Investments | 796.00M | 647.00M | 807.00M | 306.00M | 399.00M |
| Total Debt | 4.93B | 5.18B | 4.77B | 3.95B | 4.51B |
| Total Liabilities | 8.11B | 7.56B | 7.17B | 6.46B | 10.05B |
| Stockholders Equity | 10.71B | 10.19B | 9.89B | 10.18B | 10.36B |
Cash Flow | |||||
| Free Cash Flow | 865.00M | 325.00M | 110.00M | 309.00M | 896.00M |
| Operating Cash Flow | 876.00M | 328.00M | 114.00M | 332.00M | 918.00M |
| Investing Cash Flow | -109.00M | -139.00M | 101.00M | 763.00M | -976.00M |
| Financing Cash Flow | -618.00M | -261.00M | 233.00M | -1.22B | -705.00M |
Stockland Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$11.15B | 10.56 | 9.44% | 6.12% | 14.63% | 18.93% | |
74 Outperform | AU$9.00B | 8.47 | 9.83% | 4.90% | -7.59% | 178.60% | |
69 Neutral | AU$57.70B | 20.71 | 11.41% | 1.05% | 17.33% | 59.19% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$6.24B | 13.14 | 4.83% | 6.46% | -28.16% | 250.74% | |
58 Neutral | AU$808.76M | -10.38 | -4.99% | 9.19% | -5.19% | -377.08% | |
54 Neutral | AU$9.75B | 26.43 | 20.47% | 2.28% | -19.06% | 6.95% |
* Real Estate Sector Average
AU:SGP
Stockland
4.42
-1.53
-25.73%
AU:CHC
Charter Hall Group
19.84
-3.20
-13.89%
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Dexus
5.78
-1.33
-18.69%
AU:GMG
Goodman Group
28.02
-6.38
-18.55%
AU:GPT
GPT Group
4.65
-0.73
-13.52%
AU:ABG
Abacus Property Group
0.90
-0.23
-20.21%
Stockland Corporate Events
Stockland Maps Out 2026 Governance Compliance in ASX Appendix 4G Filing
Aug 18, 2026
Stockland has lodged its Appendix 4G and confirmed the availability of its corporate governance statement for the financial year ended 30 June 2026, in line with ASX Listing Rules. The statement is incorporated in the governance section of its ann...
Stockland Details Diversified $14.8bn Property Portfolio Mix for 2026
Aug 18, 2026
Stockland has outlined its property portfolio composition as at 30 June 2026, highlighting a balanced mix of asset classes across logistics, workplace, retail, masterplanned communities and land lease communities. The portfolio totals $14.8bn in n...
Stockland Confirms Half‑Year Distribution on Stapled Securities
Aug 18, 2026
Stockland has confirmed the actual distribution to be paid on its fully paid ordinary stapled securities for the six‑month period ended June 30, 2026, updating details first flagged in June. The notification formalises the dividend timetable...
Stockland’s 2026 Report Highlights Indigenous Reconciliation Focus
Aug 18, 2026
Stockland has used its 2026 annual report to underscore a deepening commitment to reconciliation with Aboriginal and Torres Strait Islander peoples, framing this as central to how it develops and manages communities. The report foregrounds an Indi...
Stockland lifts profit and asset values as it reshapes property portfolio
Aug 18, 2026
Stockland reported a strong financial performance for the year ended 30 June 2026, with revenue from ordinary activities rising 14.6% to $3.59 billion and net profit after tax attributable to securityholders up 20.2% to $994 million. Funds from op...
Stockland Reports Lapse of 42,313 Performance Rights
Jul 8, 2026
Stockland has reported the lapse of 42,313 performance rights, designated as SGPAA securities, following the failure of the relevant conditions to be satisfied. The cessation, effective June 30, 2026, slightly reduces the company’s pool of p...
Stockland Declares Semi-Annual Distribution of 16.2 Cents per Stapled Security
Jun 22, 2026
Stockland has declared a distribution of AUD 0.162 per fully paid stapled security for the six-month period ending 30 June 2026, continuing its practice of semi-annual payouts to investors. The distribution will trade ex-distribution on 29 June, w...
Stockland Confirms 2H26 Payout and Suspends DRP for Latest Distribution
Jun 22, 2026
Stockland has confirmed an estimated distribution of 16.2 cents per Ordinary Stapled Security for the six months to 30 June 2026, taking the full-year payout to 25.2 cents and aligning with earlier guidance to investors. The record date is set for...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.