Stockland Corporation Limited - Accounting & Finance Assignment Help

Assignment Task

Executive Summary
As the fund manager of Stockland Corporation Limited (‘Stockland’), a listed company on the AREIT, an analysis into the company's portfolio will be prepared to local institutional investors. The objective of this report is to promote funding into Stockland.
For the purpose of this prospective report, within the first half of the report, profiles an introduction into the investment fund and provides the types of properties held within the company. A detailed analysis of Stockland performance against benchmarks will be identified and key attributes. Strategies and objectives, rate of return, portfolio asset altercations, overall market conditions and recommendations will be provided for the investors. The second half of the report provides research into the companies expected performance, asset allocation, risk management strategies and benchmarks against the property sector as well the predicated sale price of property of 10 years at $134,383,807.

Introduction
Stockland was founded in 1952 and is one of the largest diversified property groups within Australia with more than $17.9b real estate assets (Stockland, n.d). Stockland owns, develops, and manages a large portfolio consisting of retail town centres, workplace and logistic assets, residential communities and retirement living villages. In 1H21 net sales of 1,799 was the highest in over three years due to low interest rates, pent up demand, Government stimulus, credit availability and strength of the business (Stocklands, 2020).
Through a vast and diverse portfolio, long term low risk, and increased net quarterly sales enhances investment opportunities.

Properties held within the company.
Stockland has a large portfolio creating an advantage amongst other companies in the sector. Stockland consist of two categories, commercial and communities’ properties in Australia; Commercial Properties
- Logistics
- Workplace
- Retail Town Centres

1 Year Return
1-year return of 52.3%, exceeding AREITs industry of 26.5% over the past year.
Future 1-3 Year Growth
The predicted future growth 1-3 years for SCP of 13.8%, whilst AREIT 14.8% suggesting that SGP is expected to become profitable in the next 3 years.

Future Return on Equity 1-3years:
Regarding equity, ROE resides at 8%, compared to industry of 6.7%. These numbers suggest that SCP ROE will be low for the next 3 years.

Past Performances past 5 years:
Within the past 5 years Stockland produced an annual earnings loss at -33.7%

Return on Equity past 5 years:
Stockland ROE from the past 5 years returned a negative ROE at -1.83%, the market sat at 6.7% showing that SCP is currently unprofitable.

Forecast Dividend
Stockland is unable to provide a dividend yield against the bottom 25% of dividend payers as they have not reported pay-outs. However, SCP has forecast 5.73% whilst the market is predicted to be at 3.9%

Conclusion
The new portfolio of the industrial warehouse for investors is financially stable with a predicated sale of property of 10 years at $134,383,807. Stockland offers strong risk management strategies, and positive CV, coefficient of variation, and covariance proves strong relationships between current and new portfolios. Stocklands assets enhance diversity to minimise risk. Stocklands look forward to the acquisition, development and management
of the new portfolio to enhance asset portfolio. 

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