Stockland cuts distribution as values fall, CEO to retire
Stockland chief executive and managing director Mark Steinert is retiring after seven and half years on the job, as the diversified property developer flags significant valuation falls across its portfolio from the coronavirus pandemic.
Mr Steinert’s long tenure at the country’s largest house and land developer saw the developer bounce back late last year in a strong home buyer-driven recovery only to come unstuck when the COVID-19 outbreak hit earlier this year.
The group is a property bellwether for home buyer sentiment in the land markets and its portfolio of retail malls are at the heart of suburban shopping destinations.
“A flexible period of transition has been agreed with Mark to provide for a smooth handover and to ensure that there is a strong focus on leading the organisation through the COVID19 recovery period,” Stockland’s chairman Tom Pocket said in a statement to the ASX.
“A process will now commence to identify a successor from a field of internal and external candidates.”
The pandemic is threatening earnings from Stockland’s land estates and retail portfolio.
The property manager said it will reduce its estimated distribution for the six months to June, down to 10.6?? per security from its previous estimate of 14.1?? per security.
“The reduction in the estimated second half 2020 distribution .. is reflective of the impact of COVID-19 on our business during the last quarter of the financial year and the timing of the expected recovery of operational cashflow,” the group said.
An independent preliminary draft valuation of the group’s commercial property portfolio saw book values plummet 6 per cent in line with other large ASX-listed property managers.
Valuations fell the most for the group’s malls, about 10 per cent, although 95 per cent of tenants by rental income in the retail town centres are reopened and trading.
“Due to the level of volatility created by COVID-19 these draft valuation outcomes may change prior to finalisation,” Stockland said.
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