Property group Stockland has suffered a $147.1 million interim net loss and flagged lower earnings for the full year.

Stockland's net loss for the six months to December 31 compared to a net profit of $307.6 million in the previous corresponding period.

Revenue fell to $791.9 million from $936 million.

Stockland last December warned investors its underlying earnings would be lower for 2012/13 as it waited for a turnaround in the property market.

Its underlying net profit excluding significant items fell 26 per cent to $255 million.

Stockland said its earnings had been hit by challenging conditions in the new housing market and asset sales.

Managing director Mark Steinert said earnings per security were expected to fall by 20-25 per cent this financial year.

It had previously forecast a drop of 10-15 per cent.

However, despite the pressure on its earnings, Stockland confirmed it would pay a full year distribution of 24 cents per security.

Stockland's first half distribution was 12 cents a security.

Mr Steinert said that while the group's retail business, which accounts for 60 per cent of earnings, had performed well, the residential operations had suffered from a soft housing market.

Stockland would sell 13 residential projects that were not meeting certain targets.

Mr Steinert said any recovery in the detached new housing market was expected to be patchy and slow.

"Market conditions, however, are expected to remain challenging with ongoing weakness in Victoria and uncertainty in Queensland where we will watch closely to monitor any impact on already weak consumer sentiment following the recent floods," he said in a statement on Wednesday.

While Stockland's retail and retirement living businesses were expected to lift earnings this year, returns from its office and industrial portfolios were expected to drop.

"We remain confident earnings will begin to improve from FY14 as we see the benefit of major new retail and residential projects coming on line," Mr Steinert said.

"For this reason, the board has re-affirmed the FY13 distribution of 24 cents per security, notwithstanding the impact of the changes we have announced today."