(Adds CEO comment, Dexus results)
By Tom Westbrook
SYDNEY, Aug 17 (Reuters) - Australian diversified real estate investment trust Stockland Corp Ltd SGP.AX posted an 8.5 percent rise in annual profit on Wednesday, stoked by a booming property market in the country's most populous city, Sydney, and record low interest rates.
Underlying profit came in at A$660 million ($508 million) compared with A$608 million a year ago, in line with the A$661 mean estimate of nine analysts polled by Thomson Reuters.
"The interest rate setting is supportive as is the low dollar for the broader economy, but it really comes down to the number of people versus the availability of housing," Stockland chief executive Mark Steinert told Reuters by phone.
"We have strong population growth and housing on the eastern seaboard in metropolitan areas remains undersupplied."
Stockland said funds from operations rose 12.5 percent to A$740 million, beating guidance of 9 percent to 10 percent growth. It announced a final distribution of 12.3 cents, for a total distribution of 24.5 cents, in line with guidance.
Rising property prices have underpinned strong results in several listed property companies this earnings season. Also on Wednesday, Dexus Property Group DXS.AX reported its annual profit doubled to A$1.26 billion, driven mainly by revaluation gains in its office towers.
($1 = 1.2999 Australian dollars)