Property developer Stockland has lifted its full year profit five fold, due to improvements in the property market and the impact of a major writedown in its previous result.
Stockland made a net profit of $527 million in the year to June 30, up from $105 million a year ago.
The previous year’s result was weighed down by a $355 million writedown to the company’s residential assets. Underlying profit, which excludes the impact of the writedown, was up 12 per cent to $555 million.
Stockland said it was well placed to lift its earnings in 2014/15 and maintain its annual distribution at 24 cents a security.
It has targeted earnings per security growth of between six and 7.5 per cent this financial year.
Stockland’s statutory earnings per security for 2013/14 was 22.8 cents a security, while its underlying result was up 7.1 per cent to 24 cents.
The developer said while businesses and consumers remain cautious, housing markets were benefiting from population growth, low interest rates and improved buyer sentiment.
“We expect that this sector will continue to be positive for the balance of FY15,” the company said in a statement on Monday.
“In addition, housing construction is likely to provide a boost to economic activity over the next few years.”
Stockland expects property settlements at the upper end of its target range of 5,000-6,000 lots this financial year. It also flagged two to three per cent growth in net operating income for its commercial property division, and an improvement in retirement living unit turnovers.
Stockland’s 2013/14 profit result was driven by increased earnings across its retail, residential, logistics and business parks, and retirement living divisions.
Stockland declared a final distribution of 12 cents a security