Stockland reports to the market – initials results

The financial press over the past week has been suggesting that the new Stockland CEO, Mark Steinert, would be taking a critical review of Stockland’s retirement investment with his report to the market this week. He did announce they would divest specific underperforming property investments but retirement assets were not included, although a further review will be announced in May.
In fact Stockland Retirement has done well in the past six months to December 30 compared to the rest of Stockland Residential. We will do a full analysis of the Stockland Retirement business next week but here is a quick snapshot.
They now have 7,928 ILU’s across 63 villages plus a short term and medium-term development pipeline of 4,301 ILU’s. The highlights are that the average resale price remained the same at about $315,000 with an $82,000 cash profit [26%]. However for their new ILU’s they managed to increase their price by 7% to an average of $403,000. All up over in 6 months they sold 388 ILUs or 15 per week. They expect stronger sales January to June.