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Stockland Trust (SGPAU: A3/A-): FY24 Results

REAL ESTATE

Neutral. A difficult year but equity market likes last quarter’s momentum

  • Post tax FFO $786m down -7.2% yoy but ahead of expectations by +11%
  • Adj FFO $659m down -10.1% yoy was in-line with analysts
  • Gearing increased to 24.1% (vs 21.9% FY23) but well inside 50% covenant
  • Weighted Average Cost of Debt 5.3% (vs 4.3% FY23)
  • ICR 4.3x well exceeded 2.1x covenant

Interest costs weighed on the business last year. Bright spots were Logistics +20.8% and Community Rental Income +17.1%. The residential landscape is mixed with Victoria problematic.

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