REAL-TIME GLOBAL RESEARCH
Stockland (SGP.AX): From Master Plans to Megawatts... Deeper insights from the results call
Research evidence excerpt
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19 Aug 2026 00:36:37 ET │ 14 pages
Stockland (SGP.AX)
From Master Plans to Megawatts... Deeper insights from the results call
CITI'S TAKE
Stockland’s (SGP) FY26 results demonstrate robust operational
execution, highlighted by FFO of 36.9c at the top end of guidance and
gearing reduction to 22.7%. The key highlight is the strong FY27 FFOps
guidance of 38–39c, which is well ahead of consensus and supported by
the initial earnings contribution from data center site transfers. While
residential (MPC) margins face near-term headwinds from project mix
shifts and Victorian rebates, a solid pre-sales backlog of over 3,800
contracts provides strong volume visibility. SGP's strategic pivot toward
data centers via the Edgeconnex JV and active capital recycling (targeting
a reduction in office exposure) positions the group for sustainable, multisector growth. Despite the strong rally today, the stock trades only at a 4%
premium to NTA, meaning further upside likely on data center pricing. We
are Buy rated.
Buy
Price (18 Aug 26 16:00)
A$4.05
Target price
A$5.10
Expected share price return
25.9%
Expected dividend yield
6.5%
Expected total return
32.4%
Market Cap
A$9,848M
US$6,979M
Australian Real estate
Suraj Nebhani, CFAAC
Howard Penny
Akshit Batra
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