Stockland has reported lower results for the 2012 half year than previous corresponding period due to difficult property market and economic conditions.

Underlying profit was $350.8 million, down 8 per cent on the first half year of 2011

More specifically, its retail commercial properly profited $152 million in net operating income. It reported that actual net income grew 6 per cent while comparable net income grew 2.3 per cent.

Also, sales growth outperformed the market with comparable annual turnover of 3.5 per cent. The company also had high portfolio occupancy of 99.6 per cent.

According to the company, two-thirds of its retail centres are growing in regional areas. Its $2.4 billion investment into its retail development pipeline continues to “bear fruit” with three recently completed developments – Rockhampton, Merrylands (Stage 3) and North Shore – contributing significantly to the company’s first half year results.

Other major developments Stockland says are well underway are Shellharbour, Merrylands (final stage) and Townsville.

Stockland managing director Matthew Quinn said: “Economic conditions were very tough at the start of 2012 financial year resulting in poor consumer sentiment, reduced discretionary spending and weaker demand for Sydney CBD office space which affected our result.

“Despite these challenging conditions, our Retail business proved resilient with earnings growth of 6 per cent on the previous corresponding period. We also achieved a material reduction in overheads across our business.”

The group expects a stronger second half and confirms its full year guidance.