Property developer Stockland says its earnings will drop because of the costs associated with changes to improve its long-term performance.

Chief executive Mark Steinert said on Monday that he had put a heavier focus on reducing costs after conducting a review of the company’s strategy.

Stockland owns retail, residential, office and industrial property.

Mr Steinert said the company would cut costs by 10 per cent in the coming year, after already cutting costs by 10 per cent over the past 12 months.

Costs would be reduced by centralising Stockland’s human resources, finance and marketing operations, as well as improving efficiency in all its operations, Mr Steinert said.

He said the initial costs of the changes would cause the company’s earnings per stapled security to drop by 25 per cent in the year to June 30, compared with 2011/12.

Stockland would pay a distribution of 24 cents per security to securityholders in the 2012/13 year and that would remain at 24 cents in 2013/14, as long as market conditions did not deteriorate, he said.

“This decision recognises that our business remains in transition and we have a clear strategy to achieve stronger future returns through consistent application of a disciplined, risk-focused capital allocation framework combined with agile execution,” Mr Steinert said in a statement.

Stockland securities were up four cents at $3.86 at 1444 AEST.