Stockland has seen a fall in its retirement living sales in NSW and Victoria – but not in Queensland – as COVID-19 lockdowns impacted on sales.
Retirement living generated 156 sales over the quarter, in line with expectations, despite the impact of COVID-19; Stockland says it expects stronger sales as restrictions begin to ease, with enquiry levels remaining high.
In contrast, the developer reported sustained sales momentum in its land lease communities portfolio.
Stockland sold 119 homes across its combined land lease portfolio in the first quarter of the 2022 financial year, and says the integration of the Halcyon portfolio – purchased in July – is progressing well; it believes it is on track for its target of 300 settlements in FY22. Additionally, it acquired more than 600 sites over the quarter, with a planned total pipeline of 7,800.
Interestingly, Stockland says it is still open to opportunities to introduce third party capital at the appropriate time – suggesting a capital partnership may take place further down the line.
CEO Tarun Gupta welcomed the rise in COVID-19 vaccination numbers and resulting loosening of restrictions as a good sign for the business.
“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,” he said.
Total residential net sales volumes were up 8% on 1Q21, to 1,947 lots.