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Stockland (ASX:SGP) - Outgoing Managing Director and CEO, Mark Steinert
Outgoing Managing Director and CEO, Mark Steinert
Source: Urban.
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  • Stockland (SGP), the county’s largest-mixed use property developer, has enjoyed a bump in sales and enquires off the back of government stimulus packages
  • The company expects to settle 6300 homes this year and sold 1891 lots in the March quarter
  • Sales enquiry levels reached 33,000 in the March quarter, which is approximately 40 per cent above the company’s long-term average
  • The company said it is focussed on restocking to meet future demand, acquiring 1950 lots in the March quarter, including 900 lots from recent acquisitions in Wantirna in Victoria and in Piara Waters in WA
  • The performance of the company’s retirement village portfolio has also improved, posting its strongest quarter in over four years with 190 sales
  • Shares in Stockland are trading 1.44 per cent lower at $4.45 each

Stockland (SGP), the county’s largest-mixed use property developer, has enjoyed a bump in sales and enquires off the back of government stimulus packages.

The company expects to settle 6300 homes this year and sold 1891 lots in the March quarter.

The company said sales enquiry levels reached 33,000 in the March quarter, which is approximately 40 per cent above their long-term average.

“Our third quarter results demonstrate the value of Stockland’s diversified model following the strategic reallocation of capital through an upgraded and upscaled Logistics business, the disposal of non-core retail and retirement village assets, the restocking of high-quality residential projects and the rebasing and remixing of our retail portfolio,” outgoing Stockland Managing Director and CEO Mark Steinert said.

Elevated residential business enquiries have translated into a strong net sales result of 1891 lots, up 69 per cent on last year’s third quarter.

“Given the HomeBuilder program concluded on 31 March 2021, we estimate that only 10 per cent of the lots exchanged in March 2021 are eligible for the government subsidy further demonstrating the strength of the market,” Steinert said.

“Supportive conditions including low interest rates, government incentives and credit availability have created new demand which Stockland has been able to meet with activated projects and our ability to scale production quickly.”

“These conditions are forecast to continue for some time, even with the conclusion of HomeBuilder, given the equilibrium of supply and demand in most housing sub-markets we operate in,” he concluded.

The company said it is focussed on restocking to meet future demand, acquiring 1950 lots in the March quarter, including 900 lots from recent acquisitions in Wantirna in Victoria and in Piara Waters in WA.

The performance of the company’s retirement village portfolio has also improved, posting its strongest quarter in over four years with 190 sales.

SGP’s first land lease community in Aura, South East Queensland, was launched in late February 2021, resulting in 25 sales to date.

The company’s second land lease community at Minta in Victoria will be launched in June 2021, with a pipeline of 3000 lots.

Stockland’s retail operations also enjoyed a sales bump of 3.2 per cent in the March quarter, while its workplace and logistic portfolio occupancy has risen to 94.1 per cent.

Shares in Stockland are trading 1.44 per cent lower as of 12:22 pm AEST at $4.45 each.

SGP by the numbers
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