Mr Steinert said while earnings were boosted by the retirement and residential divisions, the rising cost of electricity would weigh on future earnings, although the group said it had contracts locked in until 2019. It is also the largest user of rooftop solar panels in the southern hemisphere.

Funds from operations, the more accurate measure for real estate investment trusts, was $802 million, up 8.5 per cent on the 2016 year. A distribution per security of 25.5?? will be paid on August 31.

Mr Steinert said he expected the 2018 financial year FFO growth to be slightly lower than 2017, primarily due to non-Sydney office let-up assumptions, higher commercial property outgoings, particularly electricity prices, and lower retirement living development profits reflecting project timing.

"We have been looking at our energy costs for some time and have signed contracts with fixed electricity prices until 2020," Mr Steinert said. "But in those contracts, we have a clause that when we bring more solar panels online, we are not committed to buy more solar, so it's a cost saving in the longer term.

"Our measures are reflected in being awarded the S&P Dow Jones Sustainability Indices (DJSI) Global Real Estate Sector Leader for the second consecutive year."

Amid the focus on the retirement sector, Stockland undertook a survey of its 12,000 residents and got an 84 per cent approval rating. The group said it had not seen a spike in complaints.

The business, which includes the new Cardinal Freeman home in Sydney, will continue to grow profits in 2018 but at a more moderate level due to the timing of development completions.

"We simplified our contracts and in our new Aspire projects in NSW and WA, we do not have deferred management fees in the contracts, so people can buy and sell the units as freehold assets," Mr Steinert said.

The retirement business, run by Stephen Bull, reported an operating profit of $63 million, up 11.1 per cent, reflecting strong sales, active management of the portfolio and improved margins.

Mr Bull said: "This is the fourth consecutive year of double-digit growth for our business, driven by our focus on resident satisfaction and underpinned by a customer-centric culture.

"We understand there is a lot of focus on the sector at the moment. We take pride in our retirement living business and are committed to open, transparent and respectful relationships with our residents.

"Every year, we engage independent consultants to assess resident satisfaction. Last year more than 6800 residents participated in the survey, and rated their overall satisfaction with Stockland at 8.4 out of 10," Mr Bull said.

In the coming year, Mr Steinert expects residential settlements to again exceed 6000 lots, including about 350 medium-density homes.

"While current regulatory settings are likely to lead to some moderation in growth rates for residential property prices, we continue to expect an elongated cycle for the east coast markets," he said.

"We enter the 2018 financial year in a position of leadership in housing affordability with strong pre-sales.

"While lending conditions to investors and foreign buyers are tightening, owner occupiers remain our core focus and represent 75 per cent of our net residential sales, with less than 3 per cent of the total to buyers requiring Foreign Investment Review Board approval."