• FFO down 5.6% to $251m, FFO per security down 5.6% to 10.5c
• Statutory profit of $245m, up 140.5% on 1H24
• Gearing of 27.9%, expected to move towards 20-30% target range in 2H25

Stockland has reported its 1H25 results, with Funds From Operations (FFO) down 5.6% to $251m and FFO per security down 5.6% to 10.5c. The lower FFO was driven by reduced earnings from prior period asset recycling in the Town Centre portfolio, partially offset by stronger contributions from the Logistics and Land Lease Communities (LLC) portfolios. Statutory profit was $245m, up 140.5% on 1H24, including a $105m fair value gain. Gearing was 27.9%, reflecting a material 2H25 skew in Masterplanned Communities (MPC) settlement volumes, and is expected to move towards the target range of 20-30% in 2H25. The company has continued to execute on its strategic priorities, including reshaping the portfolio, accelerating the development pipeline, scaling partnerships, and pursuing sustainable growth. Key highlights include the acquisition of 12 active MPC projects, securing power and zoning for data centre development, and establishing new Logistics partnerships with M&G Real Estate and KKR. The Investment Management business delivered comparable FFO growth of 3.5%, driven by strong performance in Logistics and Communities. The Development business saw a 30.4% decline in FFO, with a material 2H25 skew in MPC settlement volumes and FFO.

Stockland is well positioned for sustainable growth, with growth drivers now in place across the platform. The company expects a material 2H25 skew in MPC settlement volumes and FFO, and is focused on disciplined capital management to support increased development activity.