REIT's are getting a lot of negative press lately but I interpret the Stockland update in a positive light.
I hold this IRL for its diversified property holdings and cash flow from dividend payments.
I like the following about Stockland:
- Logistics portfolio growing in both m2 and rental rate.
- Town centre sales increasing 15.9% annually
- Masterplanned communities sales contracts have increased over the last 2 quarters to pre covid levels. Macro trend of long term support due to national housing shortage.
- Growth pipeline in Land Lease Communities (Retirement Living not aged care) with high margins of 22 to 27% and an aging population trend.
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The 3rd QTR update has confirmed the half year guidance.
The market clearly likes the results with SP climbing ~16% over the last 6 weeks.
In summary (guidance) FFO 36.4 - 37.4 cents for FY23. Payout ratio 75% to 85% of FFO.
This puts the FY23 dividend at 27.3 to 31.8 cents less 11.8 cents paid at half year.
Final dividend 15.5 to 20 cents.
