By a staff reporter
Stockland Ltd is expecting its full-year earnings per share to come in at the lower end of its guidance, because of costs associated with a restructure of the group.
The group made the announcement as part of a strategic update, in which Stockland said its business had performed in line with expectations in the third quarter with retail sales growing, leasing in the industrial and office portfolios progressing well and solid reservations in retirement living.
"Stockland expects FY13 full year EPS to be 25 per cent below FY12," the group said.
"This is at the lower end of guidance after now taking into account the impact of its restructure provision."
Stockland said it expects to maintain its 24 cent distribution in fiscal 2014, "assuming no material decline in trading conditions.
"This decision recognises that our business remains in transition and we have a clear strategy to achieve stronger future returns through consistent application of a disciplined, risk-focused capital allocation framework combined with agile execution,” Stockland chief executive Mark Steinert said.
The group also revealed a $49 million impairment on previously impaired residential projects, reflecting further analysis and, in some instances, divestment negotiations.
"A material amount of this additional impairment relates to a court appeal, where we have assumed the worst outcome," the group said.
"No additional material impairments are expected unless trading conditions deteriorate significantly."