Stockland · ASX:SGP
Stockland — H1 2025 Earnings Presentation
30 slides from Stockland's earnings presentation, Feb 19, 2025
Slide 1: 1H25 Results
1H25 Results 19 February 2025 Stockland Yarrabilba, QLD
Slide 2: Acknowledgement of Traditional Custodians
Stockland acknowledges the Traditional Custodians and knowledge-holders of the land on which we live, work and play. We recognise and value their continued and inherent connection to land, sea, culture and community. We also pay our respects to their Elders past and present and extend that respect t
Slide 3: Agenda
Agenda Group update Tarun Gupta Managing Director & CEO Financial results Alison Harrop Chief Financial Officer Investment Management Kylie O’Connor CEO, Investment Management Development Andrew Whitson CEO, Development Summary and outlook Tarun Gupta Managing Director & CEO 1H25 Results 3
Slide 4: Group update
Group update Tarun Gupta Managing Director & CEO Stockland Springfield Rise, QLD
Slide 5: 1H25 results
1H25 results Funds From Operations FFO per security NTA per security (FFO) $251m 10.5c $4.14 Investment Down 5.6% on 1H24 $4.12 at 30 June 2024 Down 5.6% on 1H24 Management Development Distribution per security Statutory profit Gearing Portfolio value Pipeline – residential lots 8.0c $245m 27.9% ~$1
Slide 6: Strategic momentum
Strategic momentum Continued execution of strategy during 1H25 Reshape Accelerate Scale Sustainable portfolio pipeline partnerships growth • Completed the strategic acquisition1 of 12 • Launched two4 communities with six further • Established two new Logistics partnerships7 • Disciplined capital man
Slide 7: Positioned for sustainable growth
Positioned for sustainable growth Growth drivers now in place across the platform Reshape portfolio Accelerate pipeline Scale partnerships • Increase Residential, Logistics and Workplace from 50% • Accelerate delivery of secured development pipeline • Improve return on capital and operating leverage
Slide 8: Financial results
Financial results Alison Harrop Chief Financial Officer Stockland Calderwood Valley, NSW Artist’s impression
Slide 9: Funds from operations
Funds from operations Material 2H25 skew 1H25 ($m) 1H24 ($m) Change (%) • Lower FFO driven by reduced earnings from prior period asset recycling in the Town Investment Management FFO 298 319 (6.7)% Centre portfolio; comparable1 FFO growth of 3.5% across the portfolio • Stronger LLC contribution offs
Slide 10: Capital management
Capital management Strong balance sheet position Key Metrics 1H25 FY24 Available liquidity (cash and undrawn facilities) $2.2bn $3.1bn Gearing5 27.9% 24.1% • Considerable available liquidity of ~$2.2bn with strong anticipated cash inflows in 2H25 Gearing (look-through)5 28.6% 25.0% 1,2 Weighted aver
Slide 11: 1H25 operating cashflows
1H25 operating cashflows Operating Cashflow1 Operating Cashflow before land acquisitions1 Prudent cashflow management: $(187)m $(81)m • 1H25 distribution reflects a payout ratio of 76% of $(362)m in 1H24 $67m in 1H24 post-tax FFO • 1H25 operating cashflow reflects: Cash movements between FY24 and 1H
Slide 12: Investment Management
Investment Management Kylie O’Connor CEO, Investment Management Stockland Ingleburn Logistics Park, NSW
Slide 13: Investment Management
Investment Management High quality portfolio delivering strong performance • FFO of $298m reflects reduced earnings from the Town Centre portfolio due to prior period non-core asset disposals • Strong comparable1 FFO growth of 3.5% driven by: Portfolio value2 - 8.7% comparable1 FFO growth in Logisti
Slide 14: Logistics
Logistics Strong demand for well-located metropolitan assets • Strong comparable1 FFO growth of 8.7%, driven by: - Positive re-leasing spreads2 of 33.2%, with ~159,000 sqm of leasing during the period - High portfolio occupancy3 of 97.3% reflecting continued strong demand for well-located metropolit
Slide 15: Workplace
Workplace Maximising income while preparing the portfolio for redevelopment • Majority of the $1.7bn Workplace portfolio is being positioned for future development • Comparable1 FFO of (1.1)%, driven by higher vacancy levels in the Perth and Macquarie Park markets Portfolio value • Limited scale of
Slide 16: Town Centres
Town Centres Consistent performance from optimised portfolio $m 1H25 1H24 • Comparable7 FFO growth of 2.5% Town Centres FFO $158m $187m • FFO impacted by prior period disposals1 Portfolio value $4,532m1 $5,012m Occupancy2 99.1% 99.1% • Positive re-leasing spreads of 2.8%6 with the portfolio having g
Slide 17: Communities Rental Income
Communities Rental Income Increased LLC completions driving growth • Rental income of $11m compared with $9m for the prior corresponding period primarily driven by LLC settlements • Established LLC assets - 248 settlements during the period - Portfolio of 3,047 homes with a stable net operating marg
Slide 18: Investment Management valuations
Investment Management Valuations underpinned by resilient, diversified portfolio Net valuation movement $79m 1,2 Logistics Workplace Town Centres 34%3 of assets independently revalued during 1H25 0.8% increase on 30 June 2024 book value Net valuation movement1: Net devaluation movement1: Net valuati
Slide 19: Investment Management partnerships
Investment Management Focused on strategic long-term partnerships; introduced two new capital partners in 1H25 Stockland M&G Asia Partnership Trust Stockland Logistics Partnership Trust • 50/50 open-ended Core partnership with M&G Real Estate seeded with • 70/30 open-ended Core-Plus partnership with
Slide 20: Development
Development Andrew Whitson CEO, Development Stockland Sienna Wood FutureSienna Wood, WA Town Centre, , WA
Slide 21: Development
Development Development FFO skewed to 2H25 Solid performance in residential development with strong contribution from LLC offset by commercial development • MPC settlements of 1,9741 lots at 14.2% development operating profit margin • LLC settlements of 248 homes at 21.8%2 development operating prof
Slide 22: Masterplanned Communities
Masterplanned Communities Performance in line with expectations • Delivered 1,9741 settlements reflecting a material skew to 2H25 - Limited contribution from the acquired MPC portfolio due to completion timing2 of the transaction FFO EBIT • Development operating profit margin of 14.2% reflects a mix
Slide 23: Masterplanned Communities: steady sales rates
Masterplanned Communities Steady sales rates Net sales by quarter • Net sales of 2,371 lots in line with expectations • Continued demand and sustained price growth in QLD and WA, including for newly 1,947 1,868 acquired communities 180 250 1,562 1,545 • NSW demand remains strong notwithstanding affo
Slide 24: Australian residential market: 12-month outlook
Masterplanned Communities Australian residential market: 12-month outlook State Price Volumes Market commentary Market outlook • Emerging pent-up demand and monetary easing are supportive for a volume recovery • Residential market fundamentals remain healthy NSW • Affordability constraints remain a
Slide 25: Land Lease Communities
Land Lease Communities Increased settlements driving strong FFO • FFO of $31m reflects increase in home site settlements (+60% vs 1H24) and the transfer of LLC projects1 into the Stockland Land Lease Partnership (SLLP1), generating cash-backed profit • Development operating profit margin of 21.8%2,
Slide 26: Land Lease Communities: new project launches
Land Lease Communities New project launches driving sales Net sales by quarter 136 135 135 138 131 • Strong demand for Land Lease Communities reflected in: 7 6 13 111 104 - Net sales of 273 homes, up 13% on 2H24 93 100 93 - Positive response to 2H24 project launches with first sales in NSW and WA 76
Slide 27: Commercial Development
Commercial Development Disciplined activation of ~$13bn1 Commercial Development pipeline Logistics Mixed Use / Workplace Town Centres ~$6.1bn1 ~$5.3bn1 ~$0.7bn1 Masterplanning focused on brownfield projects in deep markets across the Eastern Seaboard Focused on progressing opportunities Focused on p
Slide 28: Summary and outlook
Summary and outlook Tarun Gupta Managing Director & CEO Stockland Willowdale, NSW
Slide 29: Summary and guidance
Summary and guidance Drivers now in place for sustainable growth • Residential fundamentals supportive; strong customer take-up for new releases; improving interest rate environment • Commercial valuations stabilising; strengthening investor demand for our targeted sectors • Reshaped portfolio posit
Slide 30: Important Notice
Important Notice This Presentation and its accompanying Annexures (“Presentation”) has been prepared and issued by Stockland Corporation Limited (ACN 000 181 733) and Stockland Trust Management Limited (ACN 001 900 741; AFSL 241190) as Responsible Entity for Stockland Trust (ARSN 092 897 348) (“Stoc