Full Year 2024 Stockland Corporation Ltd Earnings Call Transcript
Key Points
- Stockland Corp Ltd (STKAF) delivered FY24 financial results at the top end of their guidance range.
- The company maintained a strong balance sheet with gearing at 24.1%, comfortably within their target range of 20% to 30%.
- Stockland Corp Ltd (STKAF) executed three new capital partnerships, enhancing their operating model and generating new sources of recurring income.
- The company launched 15 new master-planned communities (MPC) and land lease communities (LLC) during FY24, with a further 8 new communities expected in FY25.
- Stockland Corp Ltd (STKAF) made significant progress in their ESG strategy, including a partnership with Energy Bay to achieve 100% renewable energy across their portfolio by 2025.
- FY24 funds from operations (FFO) were down 4.5% relative to FY23, primarily due to a higher weighted average cost of debt and lower contributions from commercial development activities.
- Net tangible assets (NTA) per security were down slightly to $4.12, impacted by net valuation movements in the workplace portfolio.
- The company experienced a decline in commercial development profits and related management income, reflecting a lower level of development activity for third parties during FY24.
- The effective tax rate increased to 7% in FY24 compared to 4% in FY23, as the company utilized the last of their tax losses in FY23.
- Operating cash flow for FY24 was significantly impacted by land payments, although it is expected to be stronger in FY25.
Welcome to Stockland's FY24 result briefing. There will be a formal presentation followed by a Q&A session. (Operator Instructions) I'll now hand over to Suren Gupta, Managing Director and CEO for opening remarks.
Good morning. My name is Tarun Gupta, CEO and Managing Director. Welcome to Stockland's financial results update for FY24. Before we begin, I would like to start by acknowledging the traditional owners and custodians of the land on which we meet. The Gadigal people of the Eora Nation and pay my respects to elders past, present and emerging.
Joining me today is Alison Harrop, our CFO; Kylie OâConnor, CEO of Investment Management; and Andrew Whitson, CEO of Development. FY24 was a year of continued strong execution of our strategy and solid operational performance. We were pleased to deliver FY24 financial result at the top end of our guidance range while retaining a strong balance sheet position and progressing our strategic priorities.
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