SYDNEY--Stockland's share price rises 15% to a five-month high of 15.06 Australian dollars after trouncing expectations for annual residential settlements and forecasting fiscal 2027 earnings ahead of market hopes.

Stockland said it settled 8,902 residential lots in its Masterplanned Communities business in the 12 months through June. That was ahead of guidance of 7,500-8,500 settlements affirmed to investors as recently as the end of April.

It also forecast funds from operations per security of between 38.0 Australian cents, equivalent to 26.9 U.S. cents, and 39.0 Australian cents in the 12 months through June, 2027. If achieved, that represents a 4.3% rise at the midpoint of the range compared to 36.9 Australian cents reported for the prior year.

Jarden says this guidance is well above its estimate of 36.4 Australian cents heading into Wednesday's result.

Analyst Tom Bodor says softness in Stockland's residential business is being cushioned by boosts from other divisions. They include data centers, which are expected to contribute to funds from operations in the new fiscal year.

Citi said Stockland's forecast of 7,300-8,300 residential settlements in fiscal 2027 suggests a slight fall on a year earlier, but it remains well supported by a robust pre-sales backlog of 3,842 units.

Analyst Suraj Nebhani says Stockland's outlook should be viewed positively, given some negativity in the market ahead of the result.

"Overall, this is a strong, guidance-led beat that shifts focus to data center execution and residential margin outlook," he says.