Stockland shares rose 2.4 per cent on Thursday after the developer said operating profit margins across its residential development business remained intact, despite rising construction costs and a weaker housing market outlook, and as it affirmed its full-year earnings guidance of 35.1¢ to 35.6¢ per security as part of a third quarter update.

The diversified group said the sale of its retirement living business to Swedish investor EQT Infrastructure for $987 million, announced in February, as part of a refocus by Stockland chief executive Tarun Gupta on its residential, office and logistics divisions, was on target to be completed by the end of the financial year or early in the 2023 financial year.