Citi says Stockland's FY27 outlook stays intact as data centre pipeline advances

By Reuters News

** Citi maintains its "buy" rating and A$5.40 target price on Australia's Stockland SGP.AX, citing valuation, progress in its data centre pipeline and resilience in land lease operations

** Brokerage says co's 1Q27 Masterplanned Communities net sales fell to 1,506 housing units from 2,117 a year earlier, while settlements declined to 828 units from 1,026, reflecting the residential slowdown previously flagged by SGP

** But Citi says Stockland remains on track to achieve its FY27 residential settlement target of 7,300 to 8,300 lots, supported by 4,502 contracts on hand and pricing that remains above FY26 levels

** Highlights progress on Stockland's 450MW secured data centre power pipeline, with initial FY27 funds-from-operations contributions expected from land transactions

** Citi believes the market has largely priced in residential weakness but not potential upside from data centres and land-lease operations

** Stock down nearly 30% this year, as of last close

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