Stockland has revised its fiscal 2009 guidance downwards, with residential pre-tax profit expected to be $60 million below previous guidance.
“While the further impairment in our residential communities business is disappointing, our sales performance remains strong and we continue to gain market share in our key market segments,” said Stockland managing director Matthew Quinn.
Stockland’s commercial property business remains on track to achieve FY09 profit targets and four to 4.5 per cent comparable rental growth.
In the retail sector, recent sales performance in Stockland’s shopping centres is encouraging but some retailers face pressure on margins and retailer demand for new space is patchy.
Quinn said current operating and capital market conditions were challenging and “we will continue to manage our business prudently through the downturn.
“As such, we have conducted a rigorous review of our business operations and carrying values, adapted our strategy in response to the changing market dynamics and revised our future distribution policy.
“Our continued focus on the property fundamentals of sales, management and leasing will ensure we are well positioned for an even more profitable future.”
Economic conditions in the UK continue to deteriorate and while Stockland’s current projects underway will be completed, no further capital will be committed to new projects.