Stockland (ASX:SGP) has warned investors its underlying earnings for fiscal 2013 will be at the lower end of guidance range due to ongoing difficulties in the Victorian residential market.
The property developer expects full year earnings to fall 10 – 15 per cent below last year’s result.
CFO Tim Foster says Stockland is confident of improved earnings from the next financial year as contributions from major retail and residential developments begin to be realised.
CEO of Residential Mark Hunter emphasised the company’s progress in diversifying its portfolio to counter the effects of a challenging market, in particular a focus on master planned communities.
Mr Hunter says more projects of this nature will drive stronger returns in coming financial years.
Stockland achieved a net profit of $487 million for fiscal 2012.
SGP Price at posting:
$3.39 Sentiment: None Disclosure: Held
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