Property group Stockland (SGP) has reaffirmed its full-year earnings guidance after reporting strong growth in the March quarter. The company says total sales rose 2.3% in the three months ended March 31, boosted by specialty stores sales growth of 3.5% in its retailing division.
Stockland said it remains on track to achieve full-year earnings per share growth of 6.5-7.5%, and a full-year distribution of 24.5 cents a security, despite retail sales growth having eased to 2.5%.
Chief executive Mark Steinert said in yesterday’s statement Stockland had maintained high sales volumes across its residential business but had seen a slight moderation in retail sales growth.
"In residential, we’ve seen strong market conditions continue in New South Wales; Queensland is strengthening, generating good demand and strong sales on our new projects; Victoria remains robust and we had a good response to the campaign we ran in Western Australia," Mr Steinert said in the statement to the ASX.
Stockland’s residential business secured 1706 net deposits in the quarter, with new projects and new townhouse sales helping to generate 279 more sales than the corresponding period in fiscal 2015.
Mr Steinert said the residential business was on track to achieve full year settlements slightly above its target range of 5000 to 6000 lots.
Stockland securities eased 2% at one stage before recovering in late trading to end the day up 0.2% at $4.32 yesterday.
