Commercial property provides solid return for Stockland
Strong performances by Stockland's commercial property portfolios have the company on track to surpass its 2014 earnings growth by up to 7.5 per cent per security in 2015.
In its First Quarter 2015 Market Update, Stockland told the Australian Securities Exchange (ASX) that its commercial property business was "delivering solid returns", with significant growth in its logistics and business parks portfolio in recent years.
The company revealed its logistics and business parks portfolio had grown by $400 million in value since the end of the 2013 financial year, to $1.6 billion today.
The market update also revealed that Stockland executed leases on 10,400 sqm of space in the logistics and business park sector in the first quarter of the financial year, while heads of agreement were signed to lease a further 74,900sqm.
Stockland's office portfolio also showed signs of growth, its vacancy rate declining from 9.7 per cent at 30 June 2014 to 7.1 per cent, below the national average.
Stockland chief executive, Mark Steinert, said the company's retail property assets were performing strongly.
"Our retail assets comprise around 50 per cent of our overall property portfolio and have achieved strong quarterly sales across most retail categories," he said.
"We've seen the highest quarterly speciality sales since 2009 with food catering and retail services the strongest categories.
"Speciality sales grew 5.7 per cent in the first quarter of the 2015 Financial Year and comparable quarterly growth was 4.7 per cent."
AUTHOR
Nicholas O'Donoghue
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
