Homepage
PR Newswire
18-08-2014, 10:09 PM
Stockland puts money on converting big-city office towers to apartments
THE AUSTRALIAN AUGUST 19, 2014 12:00AM
Sarah Danckert
Property Reporter
Melbourne
AUSTRALIA’S largest residential developer, Stockland, has flagged that it may look to convert some of its office towers into residential developments and build apartments atop its shopping centres as the residential market goes gang busters. The news came as Stockland forecast 6-7.5 per cent earnings per share growth in 2015, with the company starting the new financial year with a record 3185 contracts to buy homes across its estates on hand.
For 2014, Stockland posted a net profit of $527 million — up on the $105m of 2013 — thanks in large part to a 57.2 per cent improvement in residential profit to $95m. Its residential business was boosted by strong sales in Sydney, with prices up 5 per cent, but Perth was waning. Retail property profits rose 7.5 per cent to $347m, while business parks profits rose 5.5 per cent to $100m.
Across the business underlying profit rose 12.2 per cent to $555m, earnings per share grew by 7.1 per cent to 22.8c. The company paid a 24c distribution for the year. The shares climbed 3c to $4.17.
Phoenix Portfolios managing director Stuart Cartledge said it was a good solid result in line with expectations.
Several fund managers also brushed off suggestions that Stockland should have issued a special dividend after netting an $80m profit from the sale of its stake in Australand.
Chief executive Mark Steinert said Stockland had identified properties that might be suitable for alternative use as residential developments, including office towers in St Leonards and North Sydney and its Merrylands shopping centre, also in Sydney. He said some office properties could be sold to residential developers.
Stockland also confirmed it had considered selling its retirement business, which took another $73m writedown despite posting a 13.8 per cent lift in profit to $40m. Mr Steinert said the company would instead look to sell off some of its existing villages.
THE AUSTRALIAN AUGUST 19, 2014 12:00AM
Sarah Danckert
Property Reporter
Melbourne
AUSTRALIA’S largest residential developer, Stockland, has flagged that it may look to convert some of its office towers into residential developments and build apartments atop its shopping centres as the residential market goes gang busters. The news came as Stockland forecast 6-7.5 per cent earnings per share growth in 2015, with the company starting the new financial year with a record 3185 contracts to buy homes across its estates on hand.
For 2014, Stockland posted a net profit of $527 million — up on the $105m of 2013 — thanks in large part to a 57.2 per cent improvement in residential profit to $95m. Its residential business was boosted by strong sales in Sydney, with prices up 5 per cent, but Perth was waning. Retail property profits rose 7.5 per cent to $347m, while business parks profits rose 5.5 per cent to $100m.
Across the business underlying profit rose 12.2 per cent to $555m, earnings per share grew by 7.1 per cent to 22.8c. The company paid a 24c distribution for the year. The shares climbed 3c to $4.17.
Phoenix Portfolios managing director Stuart Cartledge said it was a good solid result in line with expectations.
Several fund managers also brushed off suggestions that Stockland should have issued a special dividend after netting an $80m profit from the sale of its stake in Australand.
Chief executive Mark Steinert said Stockland had identified properties that might be suitable for alternative use as residential developments, including office towers in St Leonards and North Sydney and its Merrylands shopping centre, also in Sydney. He said some office properties could be sold to residential developers.
Stockland also confirmed it had considered selling its retirement business, which took another $73m writedown despite posting a 13.8 per cent lift in profit to $40m. Mr Steinert said the company would instead look to sell off some of its existing villages.