The diversified property developer is now actively selling from 14 Stockland Halcyon land lease communities (LLC), whereas it only had five similar communities in FY23.
Announcing its FY24 financial result ($305 million net profit (31% fall from FY23), Stockland said its LLC division earned $67 million (compared to $58 million in FY23) by achieving 444 LLC home settlements (37 a month) in FY24 (382 in FY23).
Stockland achieved a development operating profit margin for FY24 of 23%, which it stated was positively impacted by the deferral of launch costs for three projects to FY25. It sold 481 homes, compared to 270 homes 12 months earlier.
“This reflects a combination of stable demand for LLC development product and the activation of our pipeline, with the launch of nine new LLC projects during FY24. Our Land Lease platform is positioned for further growth. We have established two high-quality capital partnerships during the period," Stockland FY24 annual report stated.
“During FY25, we expect to launch a further five new communities. We ended the period with good visibility into FY25, with 351 contracts on hand at a slightly higher average price point compared with FY24 settlement pricing. For FY25, the LLC business is targeting 600 - 650 settlements and development operating profit margins in the low 20% range.”
Net sales rose dramatically, with 481 sales in FY24 versus 270 for FY23, reflecting a combination of consistent demand for LLC development product and the activation of Stockland’s pipeline, with the launch of nine new LLC projects during FY24
