Stockland · ASX:SGP
Stockland — Macquarie Australia Conference 2022
27 slides from Stockland's conference presentation, May 3, 2022
Slide 1: Macquarie Australia Conference May 2022
For personal use only Macquarie Australia Conference May 2022 Artist impression, M_Park, Macquarie Park, NSW
Slide 2: Acknowledgement of Traditional Custodians
For personal use only We acknowledge the Traditional Custodians of the land on which we meet, work and live. We pay our respects to First Nation Elders past, present and emerging and the care they have given this country. Stockland is committed to supporting organisations and individual Aboriginal a
Slide 3: Strong platform for growth
For personal use only Strong platform for growth Australia's leading creator of connected communities Building on our strengths #1 ~$5bn2 ~$9bn3 Masterplanned Land Lease Resilient Top 10 Dynamically Sustainable Workplace Extending Accelerating Scaling Communities Communities essentials- Australian r
Slide 4: Four major trends that underpin our strategy
Four major trends that underpin our strategy For personal use only Urbanisation Exponential growth Digital Growing and urban in institutional acceleration momentum renewal capital on ESG Population growth Growing availability of Increasing adoption of Increasing awareness and driving development in
Slide 5: Strategic priorities and targets
Strategic priorities and targets Leading creator and curator of connected communities For personal use only Dynamically Accelerate Scale Sustainable reshape delivery in our capital growth portfolio core business partnerships • Extend Residential leadership • Deliver $37bn3 secured development • Scal
Slide 6: Target capital allocation and income mix
Target capital allocation and income mix Reshaping the portfolio with focus on high quality, recurring income For personal use only By type By activity Capital allocation % of portfolio1 Capital allocation % of portfolio1 Income mix targets % of FFO3 19% Recurring Recurring Residential (own and deve
Slide 7: Maintaining strong capital discipline
Maintaining strong capital discipline For personal use only ROIC by activity Balance sheet gearing % ROIC1 % 40% Target range: 20-30% Balance Sheet 30% 27 25 23 • Maintain gearing target 23 22 21 20-30% 20% • Look through gearing2 19% 19% 14-18% <35% 10% FY17 FY18 FY19 FY20 FY21 1H22 6-9% 7% 5% Aver
Slide 8: One of Australia's ten strongest brands
One of Australia’s ten strongest brands1 Driven by excellence in our People, ESG and Innovation For personal use only Artist impression, Stockland Head Office, Piccadilly, Sydney, NSW Artist impression, Stockland Net Zero Home, Orion Braybrook, VIC Artist impression, Stockland Newport, NSW People ar
Slide 9: Executing our strategy
For personal use only Executing our strategy 9 Artist impression, Whiteman Edge, WA
Slide 10: Executing our strategy: Key transactions
Executing our strategy: Key transactions For personal use only • Accelerates returns from secured land bank, creating ongoing development margins and Stockland Residential high quality recurring income Rental Partnership with • Provides significant opportunity to scale Mitsubishi Estate Asia platfor
Slide 11: Maintaining strong financial position
Maintaining strong financial position Ample available liquidity, materially strengthened post transactions For personal use only As at 1H22 Gearing Investment grade Available liquidity Fixed Hedge Ratio 73%2 credit ratings (cash and undrawn facilities) 23.3% A-/A3 ~$1.3bn At the low end of target St
Slide 12: Strong Operational Performance
For personal use only Strong Operational Performance 3Q22 Market Update 12QLD Artist impression, Halcyon Lakeside,
Slide 13: Commercial Property – Town Centres
Commercial Property – Town Centres Resilient performance from essentials-based mix Positive sales trend above pre-COVID-19 levels For personal use only Maintained positive leasing spreads across new leases and renewals and high Comparable monthly growth2,3 vs 2019 portfolio occupancy at 99.1%1 7.1
Slide 14: Commercial Property – Logistics & Workplace
Commercial Property – Logistics & Workplace Solid operational metrics from a high-quality portfolio For personal use only Logistics • Continued positive rent reversions, with both occupancy1 and rent collection2 strong at 99% in 3Q22 3Q22 3Q21 LOGISTICS 9 months ended 9 months ended • Portfolio WALE
Slide 15: Communities – Residential
Communities – Residential Strong momentum continuing into 3Q22 For personal use only • Enquiries remain well above historical averages, with strong demand reflected Net sales by quarter 2,036 1,974 1,947 1,891 in further price increases over 3Q22 1,799 1,868 382 314 180 324 250 1,562 327 • Net sales
Slide 16: Communities – Land Lease Communities
Communities – Land Lease Communities Strong performance and rapid growth in business For personal use only Continued momentum and rapid growth in the business • Sustained strength in demand for over-50s lifestyle communities product, reflected in average sale price increase of 4.3% over 3Q22 • Net s
Slide 17: Summary & Outlook
For personal use only Summary & Outlook Calleya, WA 17
Slide 18: Summary and Outlook
Summary and Outlook For personal use only Outlook • Positive residential market conditions with continued elevated demand. Conditions expected to moderate over the medium term, in line with rising interest rates • Resilient Retail performance from essential-based mix • Acceleration in Logistics deve
Slide 19: Annexure
For personal use only Annexure Newport, QLD 19
Slide 20: Stockland quick facts – as at 1H22
Stockland quick facts – as at 1H22 Trust – $10.5bn1 Corporation – $3.9bn2 For personal use only Town Logistics Workplace Residential Retirement Land Lease Centres Living Communities 39% 21% 14% 16% 7% 3% portfolio weighting3 portfolio weighting3 portfolio weighting3 portfolio weighting3 portfolio we
Slide 21: We are well positioned with a diverse portfolio
We are well positioned with a diverse portfolio For personal use only Book value by state1,2 QLD - $3.6bn, 22% of portfolio As at 1H22 134 13 Commercial Residential WA - $0.9bn, 6% of portfolio 9 17 5 11 Retirement Land Lease3 Commercial Residential NSW - $8.9bn, 54% of portfolio 2 4 Retirement Land
Slide 22: Australian Macroeconomic Indicators
For personal use only Australian Macroeconomic Indicators Annexure Image WIP Newport, QLD Whiteman Edge, WA
Slide 23: Commercial Property – Town Centres
Commercial Property – Town Centres Performance – Spending improved over 1H22 in line with COVID-19 recovery cycles For personal use only Retail trade1 Consumer sentiment above pre COVID-19 levels2 30% Y/Y Growth Annual Growth (rolling 12 months) 130 25% 120 20% 15% 110 10% 100 5% 0% 90 (5)% 80 (10)%
Slide 24: Communities – National house and land prices
Communities – National house and land prices Pricing remains elevated for both land and established houses, with stock of available land still limited For personal use only Land price per sqm1 Capital city house prices – Rolling annual change2 2,000 Metro Sydney Melbourne SEQ Perth 45% Sydney Melbou
Slide 25: Communities – Vacant land sales
Communities – Vacant land sales Sales easing from historic highs For personal use only NSW vacant land quarterly sales VIC vacant land quarterly sales 4,000 10,000 3,500 9,000 8,000 3,000 7,000 2,500 6,000 2,000 5,000 1,500 4,000 3,000 1,000 2,000 500 1,000 0 0 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar
Slide 26: Communities – Residential vacancy rates
Communities – Residential vacancy rates Falling in Sydney and Melbourne and historically low in Brisbane and Perth For personal use only 6% 5% 4% 3% Melbourne 2% Sydney 1% Brisbane Perth 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: SQM Research March 2022. 26
Slide 27: 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 For personal use only ARSN 092 897 348 LEVEL 25 133 Castlereagh Street SYDNEY NSW 2000 Important Notice This Presentation (“Presentation”) has been