(Adds background on Australian housing downturn) Aug 21...

(Adds background on Australian housing downturn)

Aug 21 (Reuters) - Australian residential developer Stockland Corp (SGP) on Wednesday posted a nearly 70% drop in annual net profit, hurt by devaluations in certain portfolios and warned on a softer performance for the 2020 fiscal year.

The company has been under pressure from tighter consumer spending and lower sales amid the biggest property downturn in a generation, with housing prices declining in every month since late 2017.

While data from a major analysis firm shows there has been an uptick in buyer confidence at property auctions, the company on said on Wednesday it remains cautious about the pace of recovery.

Stockland said it expects flat growth in funds from operations per security, which is a measure of profitability, in fiscal 2020.

Meanwhile, retail centre devaluations totaled A$474 million for the year, hit by harsh market conditions.

Statutory profit for the year ended June 30 fell sharply to A$311 million ($210.70 million), from a profit of A$1.03 billion a year earlier.

The company declared a distribution per security of 27.6 cents per share and said it expects distribution payouts at the bottom end of the 75%-85% target ratio.

($1 = 1.4760 Australian dollars)