Stockland expects low interest rates and population growth will help support its residential business, as strong results in that arm lifted the property giant's first-half profit.
Stockland posted an underlying profit of $290 million for the six months to December 31, up 8.5 per cent from $267m in the first half of the 2014 financial year, thanks to a particularly strong contribution from Stockland's residential business arm.
Stockland's net profit rose 55 per cent to $462 million in the half.
Shares in the group rallied 2.61 per cent to $4.72 at 11.00am (AEDT) against a benchmark index fall of 0.38 per cent.
Stockland's residential segment saw its strongest first-quarter result in four years, the company said in October, with 1,652 net deposits achieved in the three months ending September 30.
Revenue for the group lifted to $990m for the first half of the financial year, up from $876m for the prior corresponding period.
The group also upgraded its full-year earnings per share growth target, forecasting a growth range between 6.75 per cent to 7.5 per cent, revised from Stockland's previous forecast of 6 per cent to 7.5 per cent.
For the first half of the financial year the group saw an underlying earnings per share growth of 6.9 per cent.
Stockland confirmed a previously announced payment of an interim dividend of 12c a share. The group also maintained its full-year target dividend of 24c per security.
The group said it expected consumers to remain cautious and focussed on "cost of living" issues, and said it saw employment growth in the economy to be likely constrained. But the company said population growth and low interest rates would support the growth of residential markets.