SGP Shares: Strong Residential Sales Posted in Q1 FY22 (ASX:SGP)

Stockland [ASX:SGP] today released its operational update for Q1 FY22.

SGP’s quarterly report has certainly indicated positive results, although Stockland [ASX:SGP] share price rose mildly. Stockland is trading hands for $4.63 at time of writing.

Today, we’ll go over Stockland’s update and reveal our outlook for the company’s performance in the coming months…

Resilience in the face of COVID-19

According to the release, the property developer has recorded total residential sales of 1,947 lots, which is up 8% from the prior June quarter.

This is despite COVID-19 restrictions limited imposing on tenants of its ‘retail town centre’ portfolio.

Furthermore, Stockland only collected 75% of its retail rent before adjusting for abatements or deferrals in the quarter.

More than 150 leasing deals were completed over this period.

CEO Tarun Gupta said:

During this quarter we continued to deliver on our key strategic priorities, rebalancing our portfolio to provide future growth while generating stable long-term returns. Our communities business maintained its strong residential sales momentum with new enquiries remaining elevated. The Commercial Property business saw occupancy rise to 99 per cent across the Logistics and Retail portfolio.

In undertaking the review, we have considered four key long-term drivers that we expect to shape our industry: urbanisation; the impact of rapid technological advancement; the continued growth of institutional capital flows; and the critical importance of environmental, social and governance (ESG).

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Stockland share price outlook

It’s not all peachy news from the housing giant’s management team.

The company cautioned that current market conditions remain ‘uncertain and challenging.’

But Stockland has reconfirmed its FY22 guidance with the following details for investors to take note…

It has forecast its funds from operations (FFO) per security forecast to be in the range of 34.6 to 35.6 cents for FY22.

Investors can expect 75–85% of funds as dividends if the company’s predictions are correct.

Stockland has noted that its guidance relies on Australia’s vaccination roll out continuing undisturbed and restrictions easing.

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