Property development firm Stockland increased its full-year earnings guidance by more than three percent per share, predicting higher revenue based on the strength of commercial property rents and residential sales.

During the second half of last year, the company's statutory profit rose by 99 percent to $425.1 million not highlighting the effects of the floods on Queensland. "Commercial property delivered strong performance, stronger than expected and this is one of the reasons for our upgrade and that's despite a A$3 million impact from the Queensland floods," Managing Director Matthew Quinn said in a statement.

"The outlook is good. Consumer sentiment is currently soft as households de-leverage and save, but despite that we are achieving rental growth but not putting our retailers under adverse pressure," he said.

The company's share in the residential market was also up from 24 percent to 30 percent because it chose to sell smaller yet more affordable homes. The company claims that housing affordability was showing signs of improvement since wages have increased despite the central bank interest hikes.

"We were pleased that the last interest rise didn't have a negative impact as we'd expected. Customers have taken that very much in stride," Quinn said.

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