Stockland Group is optimistic of improved full-year earnings after posting its strongest growth in comparable speciality sales since 2009 in a strong third-quarter update to the market.
The company said its residential business also continued to perform well with residential deposits for the year to March 31 at the highest level in five years. This was despite third-quarter deposits being impacted by limited releases in key Sydney projects due to the timing of infrastructure delivery.
As a result, the company tightened its full-year guidance for earnings per share (EPS) growth to between 7 per cent and 7.5 per cent, from a range of 6.75 per cent to 7.5 per cent previously.
The 4.9 per cent growth in comparable sales growth in the third quarter was driven by communication technology, homewares, food catering and retail services.
Stockland managing director Mark Steinert said the company continued to be disciplined in implementing its strategies to grow returns.
"I am particularly pleased by our retail sales results which have lifted significantly, reflecting an improvement in market conditions and the impact of our continued focus on creating shopping centres that meet specific needs of their trade areas," Mr Steinert said.