According to The Australian Financial Review, a freshly shaken up leadership team is likely to report earnings at the top end of guidance.
The country's largest listed developer, which said residential head Andrew Whitson would also take over the retirement portfolio, is likely to report funds from operations, the industry's preferred revenue measure, rose about 6.5 per cent, at the top end of the 5 per cent to 6.5 per cent range it previously predicted in April.
The updated outlook made last month based on full-year settlements of 6400 dwellings is good news for a residential market that shows signs of slowing and sets the company's residential business up well for the current year.
Stockland's return to medium-density housing is also likely to shore up its residential business, said Deutsche analysts Leanne Truong and Lee Power.
"Although we are forecasting a fall in settlements in FY19, it is important to highlight that Stockland has been shifting its residential mix to now include more town homes," Ms Truong and Mr Power wrote. "As such, despite estimating a 1.2 per cent fall in settlements, we estimate revenue growth to remain relatively flat in FY19 (- 0.6 per cent)".
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