Stockland shares have lifted after the group said it remains conservative in its full-year outlook due to continuing uncertain economic conditions but expects to achieve the upper end of its guidance after swinging to a first-half profit.
Investors were impressed by the news, sending Stockland shares 2.96 per cent higher to $3.83 at 1015 AEDT, against a benchmark index lift of 0.53 per cent.
Stockland Consolidated Group reported profit for the first half of fiscal 2014 attributable to securityholders of $298.1 million, compared with a loss of $147.1 million in the first half of fiscal 2013.
Total comprehensive income for the half attributable to securityholders was $311.1 million, compared with a loss of $151.8 million in the previous corresponding period.
Total revenue was $884.5 million for the half year, up from $791.9 million in the prior corresponding period.
The group will pay a distribution of 12 cents per security on February 28 to shareholders on the register on December 31, 2013.
Stockland said the operating environment was mixed during the half, with challenges in retail and office markets, although the group said retail continued to prove resilient with shopping centres achieving a solid result in soft conditions.
The group noted a significant improvement in its residential business, which capitalised on the improving housing market with a substantial uplift in sales, and lifted operating profit by 39 per cent to $39 million.
Managing director Mark Steinert said good progress made over the last year had been reflected in the first-half result.
"It is however important to note that economic indicators have been mixed, creating some uncertainty about what we should expect from the market in the second half," he said.
"We also continue to work through impaired projects in our residential business and optimising assets in our industrial portfolio as we position these businesses for stronger future growth. In the short to medium term this will constrain our earnings.
"In the second half we expect a positive seasonal skew in residential and retirement living earnings, underpinning a stronger second half earnings per share (EPS).
"We are confident we are on track to achieve the upper end of our guidance, and have therefore tightened this to five to six per cent EPS growth in full-year 2014, assuming there is no material decline in market conditions."
With AAP