Stockland Group has posted a strong lift in full-year profit, but provided some cause for caution as it targets a broader earnings per share range and a modest lift in its total dividend in fiscal 2016.
In the year to June 30, Stockland posted a net profit of $903 million, a 71.4 per cent increase on the previous year's $527m.
On an underlying basis, profit rose 9.4 per cent to $608m.
Revenue in the same period was 19.6 per cent higher at $2.605 billion.
Underlying earnings per share came in at 25.9c, a 7.8 per cent increase over the year and ahead of the upgraded guidance range of 7 per cent and 7.5 per cent.
The earnings per share guidance was raised in May after Stockland posted its strongest growth in comparable speciality sales since 2009 in a strong third-quarter update to the market.
However, Stockland flagged slower earnings per share growth in fiscal 2016, targeting a much broader range between 6 per cent and 7.5 per cent.
The property group will pay a final dividend of 12c per share
Combined with its interim dividend of 12c per share, Stockland's total dividend payment for the year comes to 24c, in line with its full-year target dividend of 24c per security.
The property group is targeting a full-year dividend payout of 24.5c in the year ahead.
Chief executive Mark Steinert said Stockland was well placed to continue to deliver profitable growth from its core businesses in fiscal 2016.
“While the outlook for specific markets remains uneven, with some caution among businesses and consumers, we expect conditions to remain reasonably supportive,” he said.
“We have commenced the new year with a high level of residential contracts in hand and retirement living net reservations, and with good momentum in retail sales."
Mr Steinert said interest rates are expected to be stable and the economy is expected to continue to grow, albeit at below trend levels.
Meanwhile, Stockland is betting on Brisbane being the place to be for the next few years as Sydney and Melbourne's booming markets finally come off the boil.
Chief executive Mark Steinert says that after years of lagging behind its southern counterparts, the Brisbane market is primed for stronger growth.
"Brisbane has got high affordability and is showing the largest spread between house prices relative to Sydney that's been recorded in history," he said.
"Now that we've starting to see jobs growth emerging in Brisbane that's a market that we think will probably show the strongest growth in the next few years."
Residential property prices have increased by around four per cent in the past year, a far cry form the 17.7 per cent rise in Sydney and 12.3 per cent rise in Melbourne, according to CoreLogic RP Data.