Stockland · ASX:SGP
Stockland — Investor Presentation (April 2003)
60 slides from Stockland's investor presentation, Apr 24, 2003
Slide 1: Stockland
© Stockland
Slide 2: Organisation structure and directors
b judy Non Executive Directors Peter Daly Chairman Nick Greiner Deputy Chairman Bruce Corlett Director David Fairfull Director Barry Thornton Director CEO CEO CEO CEO Shopping Comm & Development Hotels Centres industrial Division Finance General Manager Group Manager Director Research & Human Analys
Slide 3: Stockland
| © Stockland
Slide 4: Agenda
nN Ss £ Oo g ‘Agenda = Market Commentary = Stockland Highlights = Acquisitions = Development « Leasing and Management = Sales = Marketing and Branding « The Future
Slide 5: Market Commentary
ie {iJ acme = Sales remain strong, but growth continues to weaken. ABS figures show a peak of 8.3% (Jan 02). Growth is now running at 6.9% Market Commentary = MAT growth from sub regionals is higher than regionals - Top regionals specialty MAT growth (8.0%) vs sub regionals at (12.0%) Source SCN - L
Slide 6: Stockland Highlights
“Stockland Highlights = Management team continues to add value through acquisitions, development and leasing = Portfolio continues to perform well with comparable net income growth of 4.4% to 31 March 2003 = High occupancy levels with vacancy rate remaining below 1% « Arrears only 0.28% of annual bi
Slide 7: Acquisitions
Acquisitions * Strategy remains focused on acquiring sub regional, district and specialty centres with expansion potential * Since start of year have acquired Shin Yen Portfolio (§112M) - Burleigh Town Marketplace - Benowa Gardens - Burleigh Town Centre
Slide 8: Development
yO NOS os _ Development Project Estimated Capital Status Expenditure $M Wetherill Park 26 Completed April 2003 Batemans Bay 48 April 2004 Piccadilly 8 October 2003 Bay Village 31 Majors negotiations/DA preparation Glendale 30 Preliminary investigations Merrylands 80 Preliminary investigations Baigow
Slide 9: Development — Wetherill Park
ie {iJ Development — Wetherill Par Investment Performance Current Forecast Total Cost $24.9 million Return on Cost (Yr 1} 10.25% * 4 month ahead of program ($233K) = Existing centre improvements - signage / branding - bus way - carpark
Slide 10: Development — Wetherill Park Stage Plan
ee U IO eve opment — Stage 3 Plan STAGES STOCKLAND WETHERILL PARK STAGE 3 NEW TARGET STORE & SPECIALTY SHOPS: 410
Slide 11: Development — Batemans Bay Original Plan
SHOPPING oe _ _ _ So Development — Batemans Bay Original Plan 4
Slide 12: Development — Batemans Bay Revised Plan
ane . ___sdsai_i_iN”tCOititétC(tC..W ~ Deve opment — Batemans Bay Revised Plan 12
Slide 13: Development — Batemans Bay Artists Impression
SHOPPING CENTRI _ — Development — Batemans Bay Artists Impression 13
Slide 14: Development — Batemans Bay Artists Impression
{4 ] Development — B Artists Impression 14
Slide 15: Development — Burleigh Heads
ie oss Development — Burleigh Heads Centre Sales $115M 28% above average Specialty Sales $5,881/sqm 13% above average Supermarket Sales ~ Woolworths $11,595/sqm 20% above average IGA $5,722/sqm 5% below average Specialty Tenant 8.9% Average is 11.1% Occupancy Cost Population MTA 57,110 Population Gr
Slide 16: Development — Burleigh Heads Existing Centre Plan
a ‘Development — Burleigh Heads Existing Centre Plan 16
Slide 17: Development — Burleigh Heads
SHOPPING CENTRES Development — Burleigh Heads
Slide 18: Development — Burleigh Heads Proposed Plan
Development — Burleigh Heads Stockland Proposed Development Plan ‘STOCKLAND PROPOSAL 18
Slide 19: Development — Bay Village
o ie oss Ui Development — Bay Village Centre Sales $140.7M 44.5% above average Specialty Sales $10,969/sqm 13.8% above average Supermarket Sales $8,335/sqm 2.3% above average Specialty Tenant 7.9% Average is 11.1% Occupancy Cost Population MTA 51,925 Population Growth Forecast 1.3% pa Retailer Deman
Slide 20: Development — Bay Village Proposed Plan
WIGIIG: Ys Development — Bay Village Stockland Proposed Development Plan 20
Slide 21: Leasing and Management
@ ie oss Leasing and Management 180 specialty shop renewals/ new leases completed to end of March 2003 Average rental increase of 8.0% on renewals New deals $150K of unbudgeted income added to portfolio 4 Stockland shopping centres now ranked in Top 10 centres nationally for specialty turnover/ m2 (
Slide 22: Centre sales and occupancy cost by centre
{iJ Sm . RE Yy t By en Specialty Shop Av. Specialty Shop Av. Occupancy Cost Total MAT % Sales - $/m? (GST Incl.) % of MAT (GST Incl.) $m Change SGP Portfolio JHD Benchmark SGP Portfolio JHB Benchmark Baulkham Hills 94.1 8.8 7,377 5,218 10.8 10.3 Bay Village 140.7 78 410,098 6,129 7.3 11.4 Caims 174.
Slide 23: Comparable MAT growth
‘% Comparable MAT % Growth (Excluding $M Growth Green Hills/ Wetherill Park) Supermarkets 730.1 9.0 3.3 DDS 297.7 5.8 4.3 Specialties 571.7 14.5 7.9 Total * 1,778 13.2 4.8 * Includes other categories — cinemas, mini-majors 23
Slide 24: Marketing and Branding
Slide 25: Presentation and Fitout Standard
VU Yee Ye Yn Ye Presentation and Fitout Standar 25
Slide 26: Presentation and Fitout Standard
Slide 27: VU ar
VU ar
Slide 28: Presentation
V/s Presentati
Slide 29: The Future
ef {iJ inn The Future Focus on driving rental growth from high specialty sales ($7,880) and low specialty occupancy costs (average 10.4% of MAT) Continued focus on acquiring new centres Deliver development pipeline Continue to bring the best experience from the Retail Industry to the sub regional se
Slide 30: Stockland
24 APRIL 200 © Stockland
Slide 31: Strategy, Risk Management, Capabilities, Sustainability
= Strategy = Risk Management = Capabilities = Sustainability 31
Slide 32: Stockland
ig © Stockland
Slide 33: Business Overview: Market Segments
BUSIN ON MARKET SEGMENTS Non Discerning Discerning Owner Occupiers Investors 33
Slide 34: Business Overview: Market Segments
BUSIN ON MARKET SEGMENTS Discerning Non Discerning Owner Occupiers Investors a4
Slide 35: Business Overview: Market Segments
BUSIN ON MARKET SEGMENTS Owner Occupiers Investors Discerning Non Discerning 35
Slide 36: Philosophy is Value Added
Danae PHILOSOPHY IS “VALUE ADDED” FINANCIAL & RISK MANAGEMENT CONCEPT DELIVERY MARKETING ACQUISITION) DESIGN | DOCUMENTATION] CONSTRUCTION) MARKET POSITIONING] SALES * * * There are 3 key areas where significant “value added” is generated. 36
Slide 37: Lot price increase since 2000
= In 2000 price for 450 m2 lot was $160,000 = In 2003 price for 450 m? lot is $290,000 = There are 292 lots remaining 37
Slide 38: Average lot price since 2000
= In 2000 average price of a 600 m? block was $85,000 = In 2003 our average price is $125,000 = We have approximately 3,000 lots remaining 38
Slide 39: Acquired in 2000 master plan revision
= Acquired in 2000 ona yield of 590 lots at an average price of $160,000 =» Revised master plan to focus on discerning buyers and increased yield to 619 lots = Average price achieved for first 100 lots was $285,000 39
Slide 40: Cross Functional Structure
TTT ie ise engi ana _ (A .. ___sddddcdlclclclclclclclclclclclclLlLcLlclclcllll CROSS FUNCTIONAL STRUCTURE Stockland’s cross — functional team approach does provide: + Efficient transfer of best practice + Lower project risk * Creative and efficient design * Economies of scale « Added value to projec
Slide 41: Stockland
© Stockland
Slide 42: Research
RESEARCH » Three key objectives: i. Continually analyse the market ii. Inform the decision-makers ili. Identify strategic opportunities = Team of six people » Integrated management approach 42
Slide 43: Building Approvals
Ud BUILDING APPROVALS 20000 5 17500 5 15000 5 12500 4 10000 4 7500 5 5000 7 2500 5 (ON) Ajujuo| ‘speaoiddy Burpying Total Private Other Private Houses 43
Slide 44: Purchaser Sentiment
PURCHASER SENTIMENT juouiuas Jaseyoing Oo oO Oo oO Oo Cc wo wt N =) Oo Oo ” _ So _ _ ic) t ES E o E << Pag OQ 35000 - 30000 - 25000 4 20000 4 15000 + SJUSWISDUSWWOD 10000 + 5000 4 Private Commencements (ihs) 4A TBD Index (ths) - Advanced 3 Qtrs.
Slide 45: Managing the Cycles
MANAGING THE CYCLES 200000 5 - 3500 180000 4 r 3000 oO so & L 2500 & ‘@ 160000 4 5 g 3 3 + 2000 2 & 140000 4 Fad < + 4500 # o 2 c «© S 120000 + / ro) 2 i + 1000 o a % 100000 4 L 500 80000 7 T T T T T T T T T T T r 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Financial Year Ending G3
Slide 46: Research Conclusion
RESEARCH CONCLUSION _ = Market slowdown manageable = Low exposure to high risk areas = Residential Estates market comparatively stable = Apartments — No machine to feed — Well placed to exploit — Selective, opportunistic acquisition strategy 46
Slide 47: Business Diversification
ye YAGEME BUSINESS DIVERSIFICATION = Intense analysis of individual acquisitions = Focus on diversification (geographic, segment & timeframe) 47
Slide 48: Strategic Acquisition Matrix
ye : aii STRATEGIC ACQUISITION MATRIX Short Term Medium Term Long Term Inner City Middle Rim Fringe Main Focus Secondary Focus 48
Slide 49: Risk Management: Business Diversification
RISK MANAGEME BUSINESS DIVERSIFICATION = Intense analysis of individual acquisitions = Focus on diversification (geographic, segment & timeframe) = Program our projects to market 49
Slide 50: Risk Management: Financial Management
RISK MANAGEME FINANCIAL MANAGEMENT Intense Management Focus — Continuous Financial Reporting / Forecasting — Quarterly Business Unit Reviews — Strong Systems & Procedures 50
Slide 51: Risk Management: Philosophy of Managing Risk
ye : YAGEME PHILOSOPHY O Land Design Authority to Acquisition Approval Commence Proposal Construction CONCEPT DESIGN Project Vision | | APPROVALS > DOCUMENTATION t D&C Fixed Price Contract 50% Pre- Sales F MANAGING RISK Project Termination Review 51
Slide 52: Stockland
ig © Stockland
Slide 53: Development Division
I Ce eae YI _ ieee (A DEVELOPMENT DIVISION | _ DENIS HICKEY. CEO - Development Division 13 years experience LISA SCENNA General Manager - Finance 12 years experience BOBWALSH __ General Manager - Retail Projects | 21 years experience General Manager - Marketing & Design 15 years experience "WAYNE RE
Slide 54: Stockland
© Stockland
Slide 55: Financial Year 2003
BUSINESS s FINANC A L YEAR 2003 = Strong profit growth = Improved margins = Strategic acquisitions 55
Slide 56: Financial Year 2004
BNE FINANCIAL YEAR 2004 = Solid pre-sales carried forward = 10 new projects to market » Maintain strong margin performance 56
Slide 57: Future
i iueiai ales aa FUTURE = Additional 18 projects still to be released to the market = $2.5 billion projects still to be brought to account 57
Slide 58: Growth
i iueiai ales aa GROWTH = Still grow Residential Estate » Apartment and Retail Projects to kick-in = New market segments = Corporate Acquisition 58
Slide 59: Conclusion
CONCLUSION = Very solid Business Model » Intensive Management Focus = Proven Capabilities » We have a sustainable business 59
Slide 60: Corporation / Responsible Entity
Corporation/ Responsible Entity Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741 416" Floor 157 Liverpool Street SYDNEY NSW 2000 While every effort is made to provide accurate and complete information, Stockland does not warrant or represent that the i