Slide 1: FY22 Results
FY22 Results 19 August 2022 Ingleburn Logistics Park, NSW
Slide 2: Acknowledgement of Traditional Custodians
Stockland acknowledges the Traditional Custodians and knowledge holders of the land where we live, work and play, and pay our respects to their Elders past, present and emerging Furthermore, we thank all Aboriginal and Torres Strait Islander Peoples for enriching our nation with their leadership, la
Slide 3: Agenda
Agenda Group update Tarun Gupta MD & CEO Financial results and Alison Harrop CFO capital management Commercial Louise Mason CEO, Commercial Property Property Communities Andrew Whitson CEO, Communities Summary and Tarun Gupta MD & CEO Outlook Stockland Harrisdale, WA 3
Slide 4: Group update
Group update Tarun Gupta 4 Highlands, VIC
Slide 5: 8% FFO growth, FFO per security 35.7c
8% FFO Delivering on Operational Balance sheet growth strategy excellence strength FFO ps 35.7c Artist impression, Affinity Place, Affinity Artist impression, North Sydney, Place,NSW 5 NSW North Sydney,
Slide 6: Delivered on our Group strategic priorities
Delivered on our Group strategic priorities Reshape portfolio Accelerate pipeline Scale partnerships Sustainable growth • Divestment of Retirement Living business • Enhancing our business through • Capital partnerships allow the Group to: • Achieved FY22 Recurring ROIC of 10%, completed in July 2022
Slide 7: FY22 Result slightly above guidance
FY22 Result slightly above guidance 8% FFO growth and FFO ps of 35.7 cents FFO1 FFO1 per security FY22 Highlights $851m 35.7 cents FFO per security of 35.7 cents, slightly above guidance range 8.0% on FY21 7.9% on FY21 Achieved FY22 Recurring ROIC2 of 10% above target range, and Development ROIC
Slide 8: Enterprise-wide capabilities in ESG and innovation
Enterprise-wide capabilities in ESG and innovation Innovative culture driving leadership Commitment to innovative designs enhancing ESG: Innovative use of data-rich sources across the business: • Creating Australia’s first certified Green Star Home1 at Waterlea, VIC, in • Driving unique competitive
Slide 9: People and Culture bringing our vision to life
People and Culture bringing our vision to life One of Australia’s ten strongest brands1 • Purpose-led team achieving operational excellence under refreshed leadership team and strategy • Employee engagement at >80%, above the Australian National Norm2 • ‘Hub and Home’ hybrid working model in place,
Slide 10: Financial results and capital management
Financial results and capital management Alison Harrop Artist impression, Stockland Halcyon Greens, QLD 10
Slide 11: Strong capital position
Strong capital position Robust balance sheet and capital structure • Significant headroom in financial metrics, with pro-forma gearing and liquidity materially strengthened post settlement of the Retirement Living divestment • Provides capacity and optionality for future redeployment opportunities •
Slide 12: Strong operating cashflows
Strong operating cashflows FY22 operating cashflow Focused cashflow management Distribution covered by strong operating cashflows Operating Cashflow1 Operating Cashflow before land acquisitions1 FY22 distribution reflects payout ratio of 75% $918m $1,536m Settlement of key transactions over FY
Slide 13: Funds from operations
Funds from operations 8.0% FFO growth in FY22 Strong FFO result reflects: $m FY22 FY21 Change Comparable FFO growth of 5.5%4. New leases • Masterplanned Communities operating profit margin Logistics 155 113 37.2% generated average rental growth of 8.5%1 expansion to 18.3% due to price growth and set
Slide 14: Commercial Property
Commercial Property Louise Mason Stockland Balgowlah, NSW 14
Slide 15: Commercial Property – Year in review
Commercial Property – Year in review Leveraging multi-sector capability to create and curate the portfolio Accelerate Reposition and Focus Maximise Logistics & Workplace Town Centres portfolio Value of our asset base • ~$300m logistics development completions, • Portfolio benefiting from active remi
Slide 16: Commercial Property
Commercial Property Strong operating metrics from a high-quality portfolio • Solid underlying FFO result and cash collection underpinned by: • Positive comparable FFO growth (pre-abatements and ECL) of 3.3% $10.7bn • Town Centres positive leasing spreads of 1.5%1 • Strong Logistics tenant demand und
Slide 17: Commercial Property valuation uplift
Commercial Property Valuation uplift underpinned by strategically positioned portfolio Padstow, NSW Piccadilly, NSW Stockland Burleigh Heads, QLD Net valuation increase of $725m 1 7.3% increase on June 2021 book value With 98%2 of assets independently revalued over FY22 Logistics Workplace Town Cent
Slide 18: Logistics
Logistics Strong performance underpinned by high quality portfolio • Comparable FFO growth of 5.5%1, driven by 8.5%2 average rental growth on new leases negotiated over FY22 FY22 FY21 • FY22 FFO3 includes trading projects achieving strong margins as investment demand remains elevated for quality ass
Slide 19: Logistics development pipeline
Logistics Accelerating pipeline provides strong earnings visibility 6 DAs lodged representing ~$480m end value2 across ~200,000 sqm GLA Total ~$6.4bn2 development pipeline Targeting ~$600m development completions for FY23 1. Subject to approvals and where applicable, the acquisition and/or completio
Slide 20: Workplace
Workplace Solid performance from a portfolio set for future growth • Flat comparable FFO with solid rental growth offset by the down-sizing of one major tenant • Majority of portfolio currently being positioned for future development • Strong occupancy of 91.3%1,2 and rent collection at 99.9%3 • ~31
Slide 21: Creating the next generation of Workplaces
Workplace Creating the next generation of Workplaces • Leveraging our development and community creation strengths to provide a clear point of difference and attract capital partners • Opportunity to create the workplaces of the future via activation of ~$5.8bn1 development pipeline • Adding value a
Slide 22: Town Centres
Stockland Rockhampton, QLD Town Centres Resilient performance from essentials-based portfolio Resilient sales despite extensive COVID-19 trade restrictions over FY221,2 Resilient sales despite COVID-19 trade restrictions over majority of 1H22 Improvement in sales underpinned by essentials-based
Slide 23: Town Centres
Town Centres Well positioned portfolio Comparable FFO growth of 3.0%1 FY22 FY21 Achieved positive leasing spreads of 1.5%2 , including 4.3%2 rent growth on new Occupancy3 99.1% 99.1% leases WALE5,6 5.5 yrs 5.3 yrs Occupancy and rent collection rates remain strong at 99.1%3 and 99.5%4 Specialty
Slide 24: Commercial Property Outlook and FY23 focus
Commercial Property Outlook and FY23 focus Yennora Distribution Centre, NSW Artist impression, Affinity Place, North Sydney, NSW Stockland Shellharbour, NSW Logistics Workplace Town Centres Accelerate development Create the next-gen portfolio Leverage essentials-based mix • Maximise income generatio
Slide 25: Communities
Communities Andrew Whitson 25 Cloverton, VIC
Slide 26: Communities – Year in review
Communities – Year in review Significant progress on executing our strategy Extend Grow Optimise returns Residential leadership Land Lease Communities Sale of Retirement Living business • Leveraging strong market conditions over • Scaled at pace over FY22 with Halcyon • Delivered on strategy to redu
Slide 27: Masterplanned Communities
Masterplanned Communities Strong result reflects MPC market leadership • 5,964 settlements1 over FY22, in line with prior guidance • Default rates of 1.2% materially below historical averages 5,964 1 18.3% • Operating profit margin of 18.3% in line with guidance, positively impacted by higher propor
Slide 28: Masterplanned Communities demand moderating
Masterplanned Communities Demand moderating in line with rising interest rates • Strong net sales of 6,922 reflecting elevated demand over FY22 Net sales by quarter 2,036 1,891 1,974 1,947 1,868 1,799 • Interest rates have been rising at a steeper pace than market 382 314 180 250 1,562 expectations
Slide 29: Masterplanned Communities competitive advantage
Masterplanned Communities Strongly positioned with competitive advantage Landbank Brand Scale Strong embedded margins Proven track record over 70 years Operational excellence • Landbank average age of 10 years • Strength of Stockland brand built on quality of • Leverage scale to generate deep primar
Slide 30: Masterplanned Communities market outlook
Masterplanned Communities Market outlook • Structural drivers remain supportive, including strong labour market 12-month outlook conditions and population growth amidst constrained land supply State Price Volumes Market commentary • Expectations for further interest rate increases leading to demand
Slide 31: Land Lease Communities
Land Lease Communities Creating a leading platform • FFO of $15m reflecting part-period contribution of Halcyon • FY22 settlements 248 home sites, in line with target • Good earnings visibility with 499 contracts on hand, with ~18% higher average pricing1 • Strong price growth to date outpacing buil
Slide 32: Growing preference for over-50s lifestyle communities
Land Lease Communities Growing preference for over-50s lifestyle communities • FY22 net sales of 405, with results demonstrating the growing Net sales by quarter preference for over-50s lifestyle communities product • Demand supported by: Rapid population growth in over-50s age cohort1 Ongoing t
Slide 33: Land Lease Communities resilient asset class
Land Lease Communities Resilient asset class with high quality income streams Activation of pipeline to drive future settlement volumes • Over FY22, total portfolio increased to ~9,000 home sites across established and development pipeline Six projects actively trading Seven new launches in next 24
Slide 34: Communities Outlook and FY23 focus
Communities Outlook and FY23 focus Willowdale, NSW Stockland Halcyon Lakeside, QLD Masterplanned Communities Land Lease Communities Extend Leadership Create leading platform • Good visibility into FY23 with a record 5,908 contracts on hand • Good visibility into FY23 with 499 contracts on hand • Tar
Slide 35: Summary and Outlook
Summary and Outlook Tarun Gupta 35 Stockland Birtinya, QLD
Slide 36: Good progress towards strategic targets
Good progress Sector capital allocation1,2 Target FY22 towards strategic Logistics and Workplace 30-50% 40% Residential (for sale and ownership) 20-35% 20% targets Town Centres Alternate 20-30% 0-5% 40% 0% Capital allocation by activity1 Target FY22 Recurring 70-80% 82% Executing our strategy: Devel
Slide 37: Summary and outlook
Summary and outlook Outlook: Good visibility for FY23 despite macroeconomic uncertainty • Resilient and well positioned mix in Town Centre portfolio • Accelerating delivery in Logistics to grow recurring income, with ~$600m1 completions targeted in FY23 • Progressing ~$5.8bn1 Workplace pipeline to c
Slide 38: Important Notice
Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741; AFSL 241190 As responsible entity for Stockland Trust ARSN 092 897 348 LEVEL 25 133 Castlereagh Street SYDNEY NSW 2000 Important Notice This Presentation and its accompanying Annexures (“Presentation”)