CEO Mark Steinert will retire and a flexible transition period has been agreed in order to smooth the handover in the context of the recovery from the pandemic.
Separately, the company has also indicated it will pay a second half distribution of 10.6c, which is ahead of UBS estimates but lower than the guidance that was previously withdrawn.
Stockland also announced draft valuations for the commercial property portfolio, with retail assets expected to be down -10% the overall portfolio down -6%. Gearing will remain in the target range of 20-30%.
UBS expects the market-leading residential development business will remain core under an incoming CEO.
Neutral rating maintained but under review. Target is $3.55.
Sector: Real Estate.
Target price is $3.55.Current Price is $3.52. Difference: $0.03 – (brackets indicate current price is over target). If SGP meets the UBS target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
