Company Interview / Stockland building the next leg of growth

Key points:

Record FY26 settlements and FFO at top end of guidance across Stockland’s development platformFY27 guidance signals softer masterplanned communities but continued group FFO growthLogistics, data centres and convenience retail positioned as key diversified growth engines

Tarun Gupta, Managing Director and CEO of Stockland (ASX:SGP) outlines what he portrays as a pivotal FY26, marked by a step change in development. He states group net profit rises 20% to $994 million, with funds from operations up 10.4% to $892 million and FFO per security at 36.9 cents, the top end of guidance. Gupta highlights record development settlement volumes of 8,900, up 53% across masterplanned communities and land lease, and claims Stockland is supplying almost 10,000 affordably priced homes amid a structurally undersupplied housing market.

For FY27, Gupta guides to lower masterplanned communities settlements of 7,300–8,300, reflecting weaker enquiries after multiple interest rate rises and recent federal tax changes. He accepts expectations of softer earnings from that division, but projects group FFO growth of 3–5.7%, following 10.4% growth in FY26, supported by diversified income streams in logistics, land lease and management platforms. Gearing at 22.7% is described as modest.

Logistics is presented as a key earnings driver, with comparable rental growth of about 8%, rental reversion of 33% and a $9 billion Sydney-focused pipeline. Gupta also points to a growing data centre joint venture with EdgeConneX and resilient, near‑full retail occupancy anchored in everyday convenience centres.