Stockland’s FY23 Results

14 November 2023

Workplace insights 

The majority of Stockland’s ~$2.0bn Workplace portfolio is being positioned for future development, including mixed-use opportunities. This is reflected in the portfolio’s weighted average lease expiry of 4.2 years. 

  • The Workplace portfolio delivered FFO of $108m for FY23, compared with $110m in FY22. The comparable FFO decline of 1.9% reflected vacancy at one asset. New leases and renewals negotiated over the period (including those yet to be executed) resulted in an average increase of 0.9%*. 
  • Stockland’s exposure to well-located Workplace sites provides the Group with a potential pipeline of longer-dated mixed-use developments. 
  • Stage 1 of the MPark development, in partnership with Ivanhoé Cambridge, is progressing well, with completion of the first two buildings and commencement of the final two buildings in 1H24. The mixed-use MPark Stage 2 development is currently going through the masterplanning approvals process.  
  • The valuation of Stockland’s Workplace portfolio declined by $237m, or 11.1%, reflecting 56 basis points of cap rate expansion. 

FY23 overview 
Some highlights of Stockland’s financial year ended 30 June 2023) include: 

  • An increase in pre-tax Funds From Operations of 3.8% from FY22 to $883 million 
  • Full-year total distribution per security of 26.2 cents 
  • Strong operational performance across both our Commercial Property and Communities businesses 
  • We have closed the year with a very strong balance sheet and maintain flexibility to consider new opportunities in FY24 

A refreshed ESG strategy 

Stockland has also released a refreshed ESG strategy with a focus on areas where we have an opportunity to demonstrate leadership and make a meaningful impact. This includes: 

  • Decarbonising our footprint 
  • Embedding circularity principles in our operations 
  • Enhancing social impact by supporting housing diversity and affordability, and 
  • Strengthening the climate resilience of our portfolio. 

Looking ahead 

While the business environment isn’t without its challenges, we look forward to the future for both our staff and customers with excitement. As always, we are inspired by possibility and delivering change. 

For over 70 years, Stockland has been creating thriving communities where people live, shop and work.