Two losses for Stockland

PROPERTY developer Stockland has warned full-year profit will be lower than expected.

PROPERTY developer Stockland has warned full-year profit will be lower than expected after it paid out more than expected in restructuring costs.

The profit downgrade came as managing director Matthew Quinn said he would step down after 11 years in the top job.

Stockland said yesterday its expected earnings per share for the year to June would be 29.3c rather than the 29.8c forecast. The company said the downgrade was mainly owing to one-off restructuring costs that were expected to deliver efficiency benefits next year.

But the group admitted it had acquired fewer shares than expected in its buyback program, and timing of settlements for its "super-lot'' developments also had a small impact on earnings.

It is Stockland's second downgrade this year, after the company warned in March that a weak residential property market and out-of-cycle interest rate would hit earnings.

Morningstar Equities property analyst Tony Sherlock said slow growth forecasts in the retail and residential property markets would continue to put pressure on the group, but the company had taken steps to protect its margins.

He said a change in leadership could also reinvigorate the business.

Chairman Graham Bradley said the company would remain resilient, as he paid tribute to the contribution made by Mr Quinn.

"While Stockland's performance in recent years has been impacted by extremely challenging market conditions, under Matthew's leadership Stockland has grown to be a market leader in its core businesses,'' Mr Bradley said.

Mr Quinn said: "It has been a privilege to lead Stockland and I am very proud of the legacy I will leave behind.''
The company will announce its full-year results on August 8. Stockland's share price closed down 0.3 per cent at $3.19.