Shares in Stockland fell by 6.5% or 21 cents to A$3.03 (£1.47) in early trading after Australia’s second-biggest property group slashed its earnings guidance by two-thirds.
In an announcement on the Australian Stock Exchange, the group said that earnings per security after inventory impairments would be 10 cents, compared with guidance given in February of 31.8 cents.
Stockland said it had reviewed its inventory carrying values and taken a pre-tax impairment of up to A$400m (£195m) for its residential, flats and UK businesses.
Stockland chief executive Matthew Quinn said operating and capital market conditions were “challenging and we will continue to manage our business prudently through the downturn.
“As such, we have conducted a rigorous review of our business operations and carrying values, adapted our strategy in response to the changing market dynamics and revised our future distribution policy.”
