Principle of Financial Management: Analysis of Stockland Corporation Limited

Running Head: Principle of financial Management
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Project Report: Principle of financial Management

Principle of financial Management 2
Contents
Introduction.......................................................................................................................3
1.Industry description.......................................................................................................3
2.Company description.....................................................................................................4
3.Financial instrument analysis........................................................................................5
4.Financial structure analysis............................................................................................6
5.Financial market analysis............................................................................................10
6.Findings, conclusion and recommendation.................................................................12
References.......................................................................................................................13
Appendix.........................................................................................................................15

Principle of financial Management 3
Introduction:
Financial management is one of the major parts which include the recording,
evaluating and analyzing the financial aspects of an organization. This process is followed in
an organization to measure the performance of an organization and evaluate whether the
business is a good option for the investors to make the investment or not. In this report,
STOCKLAND Corporation limited has been taken into consideration. It is a real estate
company which is operating its business in Australian market since a long time. The study
represents whether investing in the organization is a good option or not.
1. Industry description:
In order to analyze the performance of STOCKLAND Corporation limited, real estate
industry has been studied initially. Real estate industry of Australia defines a huge growth in
the overall market in last few years. The growth has been seen in the market because of the
huge demand of the real estate in the market along with the various changes in the
government regulations. Real estate industry includes the manufacturing property and
building along with the warehouses. Buildings and plots could be used by the organizations
and individuals for corporate and individual purpose.
The study explained that real industry is a cyclic industry which reacts to the macro
economical factors of a country such as population growth, government policies, and
economical strength of the country. In case of Australia, it has been estimated that overall
growth of the business is improving (Higgins, 2012). Top 7 companies of the industry has
been studied a found that overall profitability of the business has been improved along with
the better market share. The total GDP contribution of the industry has also been grown up.
Earlier, in the year of 2010, the industrial performance was higher but with the time, the
changes have been seen in the industry. However, currently, the performance of the industry
has again grown up due to the population growth and demand of the real estate property in
the market (Krantz, 2016). The growth and performance of industry could be identified on the
basis of below given graph:

Principle of financial Management 4
(Market Screener, 2019)
2. Company description:
STOCKLAND Corporation limited is one of the Australian biggest organization which
deals in the diversified property group. The company owns, develops and manages the largest
portfolio in the Australian market related to the workplace, retail town centres, residential
communities, logistic areas and retirement living villages. In 1952, STOCKLAND
Corporation limited has been established and since that time, the company has invested into
various diversified property group to enhance the market share and diversify the market base
of the business. The main mission of the business is to assist the communities through
offering them a good place to live, shop and work.
Ownership structure of the company has been studied further and found that there is
no member from board of directors in the top 20 shareholders of the business. All the main
shareholder of the company is corporate and banks who have invested in the business to have
a control over the business activities. Below is the ownership structure and management
structure of the business: