Property giant Stockland’s (ASX:SGP) half yearly results showed substantial gains on prior year with statutory profit up 99% to $425M on 1H10. The underlying profit was less spectacular with growth of 14% to $380M.
Importantly the profit growth did not solely come from cost-cutting with half year revenues up 36% from $583M to $796M.
Stockland’s strategic focus is on the “three Rs” of residential communities, retirement living and retail development. Managing Director, Matthew Quinn said that all three of these businesses had made “good progress”.
The company has a robust balance sheet with gearing at the lower end of the targeted range of 25% to 35%.
The company’s UK division delivered an operating loss of $700,000 with the expectation of a small profit in H2 and into 2012.
In October the company reported that it lost $208M on the sale of GPT group so the positive news will be welcomed by investors that have seen Stockland’s share price bouncing along near 52 week lows. Stockland opened today 12c up at $3.83