Stockland plans to refine its strategy in hope it will create a pathway that will lead to stronger future returns.
At the moment, the company has reported that third quarter performance is in with expectations. However, the 2013 financial year EPS guidance is 25 per cent below the previous year.
As a result, Mark Steinert, Stockland managing director and CEO, said in order lift performance it plans to improve returns for investors.
“We have a clear objective to deliver EPS growth and a total risk-adjusted shareholder returns above the sector average. We will strive to generate reliable earnings, while steadily increasing returns on assets, earnings per share and distributions over time,” he said.
“We will achieve this through the agile allocation of capital within a disciplined risk/return framework, driving returns from our existing assets and tightly controlled costs.”
The company will continue to execute its strategy of being a leader in regional areas and having a clear point of difference in metropolitan areas. It will also pursue more capital partnering to avoid over-exposure to some assets and contribute partial funding for accretive $1.5 billion development pipeline.
“Our business performed in line with our expectations in the third quarter of FY13 with retail sales growing…however margins remain under pressure due to mix, market conditions and the capitalised interest policy application change,” Steinert said.
“We reached two particularly pleasing milestones in the quarter. The rezoning of our land at East Leppington in NSW was an important step to ensure this key project is on track to achieve first settlements in FY14. We also commenced the $115 million accretive redevelopment of our shopping centre at Hervey Bay in Queensland.”