Property company Stockland (ASX:SGP) says preliminary draft revaluations indicate a reduction in the book value of its portfolio of approximately 6 per cent.
The devaluation includes a 10 per cent decrease in its retail portfolio.
The company will pay a distribution of 10.6 cents for the six months to June. This equates to a full year distribution payment of 24.1 cents.
Stockland says due to the continuing uncertainty, funds from operations guidance for FY20 remains withdrawn.
Following the introduction of government stimulus programs in particular the HomeBuilder program and the easing of social distancing restrictions, the company says new enquiry levels in its residential communities have recovered to be above pre-COVID-19 levels.
The company has also reduced the estimated 2H20 distribution against the original guidance of 14.1 cents per Ordinary Stapled Security due to the impact of COVID-19.
Separately, Stockland boss Mark Steinert will retire as Managing Director of the country’s largest residential developer. He has held the top job for more than seven years.
Shares in Stockland (ASX:SGP) are trading 0.7 per cent lower at $3.60