Property business Stockland Corporation Ltd (ASX: SGP) has revealed some worrying developments in the property world.
Stockland is a property business that operates in various sectors including suburb community construction, owning and managing retail town centres, retirement villages, and workplace and logistics assets in Sydney, Melbourne and Brisbane.
Stockland revealed various aspects of its progress in an investor presentation.
The business said that it’s on track to achieve $400 million of divestments within the next 12 months, as of 30 April 2019 it had reached $284.5 million. Three non-core villages have been disposed as of May 2019 for $59 million.
Stockland has a logistics development pipeline of $950 million with two acquisitions made in growth corridors.
Stockland now expects approximately 5,900 settlements for FY19 due to production delays at Mt Atkinson in Melbourne which have been deferred to FY20 and the settlement timeframes have been extended.
Residential sales defaults have increased in the FY19 fourth quarter to 5%, above the long term average of 3%, with challenging market conditions and sales rates remaining low.
Who knows how long these conditions will last, but it won’t help house prices stop falling. This is a contributor to the Stockland share price falling more than 2%
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.