Why the Stockland (ASX:SGP) share price is sliding today

The Stockland share price is sliding lower today, down 2% in morning trade. We take a look at the company's latest results.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Stockland Corp Ltd (ASX: SGP) share price is sliding, down 2% in morning trade. At the time of writing, the Stockland share price was down 0.88% to $4.49.

We take a look at Stockland's results for the financial half-year ending 31 December (H1 FY21) below.

falling bar graph representing house prices and asx share price

Image source: Getty Images

What financial results did Stockland report for H1 FY21?

The Stockland share price is sliding after the company reported a 30.4% drop in statutory profits of $350 million for the half year. This was down from $504 million in H1 FY20. Net profits before tax dropped 39.5% from the prior corresponding period (pcp) to $312 million.

Stockland's earnings before interest (EBIT) of $468 million was down 8.1% from the $509 million reported in the first half of the 2020 financial year.

Funds from operations increased by 0.4% year-on-year to $386 million. That works out to 16.2 cents in funds from operations per security, up 0.6%. However, adjusted funds from operations per security slid 0.7% from the corresponding half year to14.1 cents.

Stockland reported net operating cashflows of $430 million. It credited strong residential settlements and its commercial property rent collection which accounts for 90% of net billings.

Management Commentary

Commenting on the results, Stockland's CEO, Mark Steinert, said:

We continue to successfully deliver on our strategic priorities divesting non-core assets, increasing our capital allocation to Workplace and Logistics, and restocking our Residential landbank. This is repositioning the Group to deliver more consistent, above-sector average total returns and drive value for our stakeholders.

Stockland's CFO, Tiernan O'Rourke, added:

As a result of delivering on our strategic priorities and the actions undertaken during the pandemic including the acceleration of Residential production and release levels, and a focus on Commercial Property rental collection, we have reported strong operating cashflow and capital management metrics all of which will support future opportunities.

Stockland will pay a dividend of 11.3 cents, an increase of 6.6% from H2 FY20. For the full year, the company expects dividends to be in line with its payout ratio of 75–85% of funds from operations.

Share price snapshot

The Stockland share price has yet to fully recover from last year's COVID-driven market rout, which saw shares plummet more than 65% by 23 March. While up 149% from the 23 March lows, Stockland shares remain down 12% over the past 12 months. That compares to a 0.5% loss on the S&P/ASX 200 Index (ASX: XJO).

Year-to-date the Stockland share price is up 5%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man looking at his laptop and thinking.
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the ASX 200 after the Easter break.

Read more »

green arrow rising from within a trolley.
Defensive Shares

Woolworths' $37 share price is near an all-time high, so why am I going to buy some as soon as possible?

Why I still see Woolworths shares as a buy despite trading near all-time highs.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Broker Notes

Buy, hold, sell: Aristocrat, BHP, and Woodside shares 

Analysts have given their verdict on these shares. What are they saying?

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Broker Notes

Buy, hold, sell: Cochlear, South32, and Westpac shares

Analysts have given their verdict on these popular shares.

Read more »

Woman with a scared look has hands on her face.
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »

A young man goes over his finances and investment portfolio at home.
Broker Notes

Buy, hold, sell: ANZ, Breville, and Macquarie shares

Is Morgans bullish or bearish on these shares in April? Let's find out.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Man sitting in a plane seat works on his laptop.
Broker Notes

Down 34% in 2026, are Virgin Australia shares a good buy today?

A leading analyst delivers his outlook for Virgin Australia’s beaten-down shares.

Read more »