Stockland said it is confident in achieving its upgraded earnings growth of 8.5 per cent for the financial year of 2011.

Stockland managing director Matthew Quinn said its 3R strategy is helping the company stay on track in achieving its goal.

“We have a sound and well-articulated 3-R growth strategy, based on Residential Communities, Retail development and Retirement Living, as well as a conservative and disciplined approach to capital management. Overall, our business is in good shape,” he said.

Its retail division, which is made up of 39 properties, experienced solid third quarter sales with 3 per cent comparable sales growth.

“Retail is on track for similar comparable NOI growth in the second half of 2011 to  the first half of 2011, which was up 4.3 per cent,” the company said.

Its acquisition of Hervey Bay shopping at 7.5 per cent initial yield with potential developments is expected to double the existing centre to 35,000 square metres over the next two years. The development is expected to cost between $100 million to $130 million.