STOCKLAND is on track for profit growth in 2008. Managing director Matthew Quinn said this is because the group's global expansion has been through skills rather than mere passive ownership or financial structuring.
At yesterday’s annual general meeting, Quinn said the recent credit crunch and drying up of liquidity has vindicated Stockland’s strategy of international expansion through property based skills.
This is especially important in the
The group’s chairman Graham Bradley said looking toward 2008, the group will face the volatility in global debt and equity markets, and the potential impacts on property markets, from a position of considerable strength.
Meanwhile Quinn said as a result of volatility, there are increased opportunities and also fewer competition for assets as the market softens.
“This may enable us to accelerate our growth, in this market through selective value based acquisitions in line with our strategy,” he added.
Quinn said whilst property development has always been a complex business, developers like Stockland now need much greater property and capital markets expertise to successfully and efficiently bring our product to market.
“We recognised this trend early and have cemented an enviable brand capable of leveraging our design and delivery expertise to create world-class projects in
Quinn reaffirms its August profit guidance for the 2008 financial year to achieve a target of 5% growth in earnings per security.
He said there is likely to be a skew in profits towards the second half of the year due to the timing of completion of some of its projects.
Domestically, Quinn said although core demand drivers for the residential market remain robust across the country, conditions do vary by state.
“Demand remains strong in Queensland; in Western Australia we have seen some easing off from the frenetic highs recorded last year; New South Wales is showing strong signs of recovery in the inner areas, but this is yet to be reflected in the outer suburbs; and we remain very confident about the Victorian residential market, with steady conditions and relatively high affordability compared with the other States.
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Quinn also raised the issue of housing affordability and restrictions on planning affecting availability of new supply.
“We believe that Governments at all levels need to work more collaboratively with our industry to bring more land to market, reduce the cost burden on new home owners and avoid the current major affordability issues becoming even more severe.
“We will continue to work with the authorities and the community to do our part in developing land in a timely and affordable manner, and we will continue to lobby hard for meaningful change from government in respect of planning and taxes,” he concluded.
Looking ahead, Bradley also viewed climate change concerns reshaping regulatory and corporate behaviour in
“In response, this year we submitted our second report to the Carbon Disclosure Project, reporting our carbon emissions for the past year. Our Climate Change Action Plan, currently in development, will define our further improvement goals for the years ahead which we are committed to publish. The board continues to actively oversee the progress of these initiatives through our corporate responsibility and sustainability committee.
“For us, this is not a matter of simple compliance with legal requirements. We have taken steps to embed genuine responsibility for environmental and social outcomes across our organisation. This year we have appointed two teams, one for sustainability and one for health and safety, to manage these issues across our business. Further, all our employees now have the opportunity to be recognised and rewarded for their contribution to corporate responsibility and sustainability through our new performance management system,” he concluded.
Australian Property Journal
