Slide 1: Stockland
nn 2 i i le ch {inna © Stockland
Slide 2: Introduction & Overview
Introduction & Overview FY03 Results Board & Management Summary of Group Assets Divisional Performance — Shopping Centre Division — Commercial & Industrial Division — Development Division — Saville Hotel Group Capital Management Future Direction & Strategy
Slide 3: Stockland's existing businesses performed well in FY03
Stockland’s existing businesses performed well in FY03 The ADP takeover has been successfully completed providing many strategic benefits, including: — Significant growth in asset base — Increased shopping centre weighting with a continued focus on sub regional centres — Improved quality of commerci
Slide 4: FY03 Results
cy © Stockland
Slide 5: Revenue and Net Profit After Tax
. REVENUE $m 1999 2000 2001 2002 2003 0 NET PROFIT AFTER TAX $m 1999 2000 2001 Year Ended 30 June Before write off of premium on acquisition of ADP $284.8m* 14% 4 2002 2003
Slide 6: EPS/U and DPS/U
EPS/U 34 33.5* 30.8 29.2 88%| | 28 26.9 5.5% t 25.4 26 8.6% t 24 t 5.9% a | 20 1999 2000 2001 2002 2003 22 DPS/U 29.7 3.1% 28.3 t 26.1 4.9% 25.1 8.4% t i t 1999 Year Ended 30 June * Before write off of premium on acquisition of ADP 2000 2001 2002 32.1 2003
Slide 7: Profit Reconciliation
PROFIT RECONCILIATION FY03 FY02 $m EPS/U $m EPS/U Net profit before asset sales 283.0 33.3¢ 249.0 30.7¢ Profit on asset sales 1.8 0.2c 0.8 O.1¢ Net profit including asset sales 284.8 33.5¢ 249.8 30.8¢ Write off of premium on acquisition of ADP (220.4) Reported statutory net profit $64.4m $249.8m
Slide 8: Distribution/Dividend Statement
DISTRIBUTION/ DIVIDEND STATEMENT Reported statutory net profit Transfer to reserves (profit on asset sales) Transfer from reserves (write off of premium on acquisition of ADP) Amount available for distribution Distribution/ Dividend - Trust Distribution (100% payout) - Corporation Dividend (83% payo
Slide 9: Board & Management
© Stockland
Slide 10: Strong corporate governance with a majority of independent non executive directors
« Strong corporate governance with a majority of independent non executive directors Nomination & Treasury Risk Main Audit Compliance’ Remuneration Management Board Committee Committee Committee Committee Non Executive Peter Daly: v v v Chairman C c Nick Greiner: Deputy Chairman v vec Bruce Corlett
Slide 11: Continued focus on adding value through internalised management structure
Continued focus on adding value for shareholders through Stockland’s internalised management structure Significant strengthening of management team over last year with a focus on recruitment, development and retention of high calibre executives All key management staff from ADP have joined Stockland
Slide 12: Management structure
CEO CEO CEO CEO Finance General Manager| || General Manager Shopping Comm & Development Hotels Director Investor Haman Centres Industrial Division Relations Resources Darren Steinberg Steve Mann Denis Hickey Greg Sear John Pettigrew Johanna Keating Lilian Clarke Acquisitions Acquisitions Acquisition
Slide 13: Summary of Group Assets
MARY OF GROUP ASSETS © Stockland
Slide 14: Asset Value June 2003
Asset Value 30 June 2003 (incl. ADP) Shopping Centres $2.3bn 34 centres in Australia & New Zealand 2,600 tenants 36 properties Commercial $1.9bn 422 tenants 7 24 properties Industrial & Office Parks $0.7b6n perenne ee een i 15 tenants Development Division $0.8bn 81 projects Hotel Group* 1,600 rooms
Slide 15: Asset Diversification
ASSET DIVERSIFICATION 30 Jun 03 31 Dec 02 (incl. ADP) 14% <1% 13% 31% F) Shopping Cent I industrial & Office Parks Oppin: enires Pping Hotels HE Commercial oo. a Development Division 45
Slide 16: Geographic Diversification
GEOGRAPHIC DIVERSIFICATION 30 Jun 03 (incl. ADP) 3% 3% 2% 16% | iy [Nsw Hap B vic Hwa © act [sa Nz 31 Dec 02 3% 3% 3% ~” 11% ) : S 18% | 62%
Slide 17: Shopping Centre Division
h Lis SHOPPINGCENTRE DIVISION © Stockland
Slide 18: Stockland Highlights
STOCKLAND HIGHLIGHTS « Divisional Operating Profit of $98.4 million, 12% above FY02 * Portfolio continues to perform well with comparable net income growth of 4.6% in FY03 * Management team continues to add value through acquisitions, development and leasing = High occupancy levels with vacancy rate
Slide 19: Market Commentary
MARKET COMMENTARY = Sales remain strong, but rate of growth continues to slow = Retailers continue to be attracted to sub regional centres due to lower occupancy costs and higher MAT growth. DDS based centres 11.1% - 13% vs 15.3% - 16.0% for the regionals Source JHD = Cap rates continue to firm due
Slide 20: Acquisitions
ACQUISITIONS = Strategy remains focused on acquiring sub regional, district and specialty centres with development/remix potential ® Since July 2002 Stockland has acquired: — Shin Yen Portfolio ($112m) — Forster Shopping Centre ($39m) — Glenrose Shopping Centre ($36m) -— Vincentia — development site
Slide 21: Growth
GROWTH Current June 2002 Number of Centres | 38* | | 16 | Asset Value $2.5bn $1.2bn | GLA 877 ,535m? 419,767m? 2,800 11 00 MAT $3.8bn $1.8bn Customer Traffic 127m 62m * Includes properties due to settle post 30 June (Shin Yen, Forster & Bridge Plaza)
Slide 22: Stockland Australian Centres
STOCKLAND AUSTRALIAN CENTRES © a S00 Kiometers Map 1: Australia © Stockland Contre | Stockland and ADP Centre Locations @ A0P ene Be
Slide 23: Development (over next two years)
DEVELOPMENT (over next 5 to 6 years) PROJECT . Under construction EST. CAPEX $ STATUS in planning/ negoti Botany Town Centre 5 _ __ Signed agreement for lease, DA preparation Bay Village . 42 - . Majors negotiations underway/ DA lodged July 2003 Bathurst City Ci nie 10 DA preparation — : “ Burleigh
Slide 24: Development — Wetherill Park
DEVELOPMENT — WETHERILL PARK Investment Performance Total Cost $26 million Return on Cost (Yr 1) 10.2% = Opened 1 month ahead of program = Leased above budget * Cost included existing centre improvements - signage/ branding - bus way - carpark
Slide 25: Leasing and Management
LEASING AND MANAGEMENT = 240 specialty shop renewals/ new leases completed in FY03 » Average rental increase of 9% on renewals « Additional $313,000 of unbudgeted income added to portfolio (kiosks, ATMs, etc.,) » § Stockland shopping centres now ranked in Top 10 centres nationally for specialty turn
Slide 26: MAT Growth by Category
MAT GROWTH BY CATEGORY Actual Actual % Comparable $m % Growth Growth Supermarkets 733.5 7.3 2.7 DDS 304.8 7.2 5.4 Specialties 590.2 15.0 8.0 Total 1,832.5* 12.3 45 « Refer to annexure for MAT and occupancy costs by centre * includes mini majors & cinemas
Slide 27: Lease Expiry Profile (including ADP)
LEASE EXPIRY PROFILE (including ADP) = Weighted average lease expiry of 7 years = Specialty expiries in FY04 to FYO7 provide opportunities for income growth FY04 9, % FY05 11% FY06 9% FYOR+, 63% FYO7 8%
Slide 28: The Future
THE FUTURE = Ensure efficiencies are obtained in our expanded portfolio * Focus on driving rental growth from high specialty sales ($7,944/m7?) and low specialty occupancy costs (average 10.6% of MAT) (including ADP, excluding NZ) = Focus on delivery of development pipeline = Continued focus on acqu
Slide 29: Commercial & Industrial Division
© Stockland
Slide 30: Highlights
HIGHLIGHTS * Division Operating Profit of $133.5 million, 2% below FY02 due to $56 million of asset sales = Net income growth of 1% above FY02 adjusted for asset sales and acquisitions " 70% asset growth from June 02 (including ADP) Properties Area Asset Value P m? $bn Commercial 36 478,000 $1.9 Ind
Slide 31: Market Commentary
MARKET COMMENTARY % of Market* FY03 Net* Supply Under* Stockland Vacancy Stockland Absorption Construction Portfolio Jun 03 y m? m? Sydney CBD 47% 8.6% A 4.5% -71,400 292,262 North Sydney 16% 11.3% v 6.0% -20,933 9,500 Melbourne 10% 8.7% 0.0% -19,942 273,672 Canberra 6% 5ADY 1.2% 19,600 69,600 Perth
Slide 32: Commercial Highlights (excluding ADP)
COMMERCIAL HIGHLIGHTS (excluding ADP) * Proactive leasing strategy with 110,000m? leased/renewed in FY03 (34% of the portfolio) = Portfolio vacancy reduced from 7.2% Dec 02 to 3.6% as at June 2003 = Solid tenant retention of 70% in FY03 = Lease expiry risk reduced from Dec 02 position ~ FY04 from 10
Slide 33: Lease Expiry Profile (including ADP)
LEASE EXPIRY PROFILE (including ADP) Vacancies 000m? Vacant Northpoint, Nth Sydney 3.4 4% FYO4 504 Pacific H’way, St Leonards 3.0 FY08+ » Exchange Plaza, Perth (50%) 1.5 31% 7 Macquarie Place, Sydney (50%) 14 ee Underwood House, Sydney 1.3 135 King Street, Sydney (50%) 1.2 Others 7.2 Total vacancies
Slide 34: Industrial & Office Parks
INDUSTRIAL & OFFICE PARKS © Stockland
Slide 35: Market Commentary
MARKET COMMENTARY Sydney (Stockland 48%) Vacancy remains in check due to limited speculative development and steady take-up activity Rental growth improving in Sydney’s west Yields continue to firm and land prices have risen due to lack of stock and keen investor demand North Ryde (Stockland 25%) Le
Slide 36: Industrial & Office Park Highlights (excluding ADP)
INDUSTRIAL & OFFICE PARK HIGHLIGHTS (excluding ADP) * Proactive leasing strategy with 191,000m? leased/renewed FY03 (28% of the portfolio) = Industrial vacancy improved from 3.2% in Dec 02 to 3.0% in Jun 03 * Acquisition of 5 industrial buildings ($76 million) in Sydney's West * Yennora - developmen
Slide 37: Lease Expiry Profile (including ADP)
LEASE EXPIRY PROFILE (including ADP) Vacancies ‘000m? Vacant Brooklyn 28.5 6% FY04 Centrecourt 6.4 13% FY08+ Khartoum Rd, North Ryde 4.7 35% Yennora* 4.2 Century 3.5 FY05 Others 6.3 20% tac ** Total vacancies 53.6 Total NLA 898.6 FYO7 FY06 Vacancy rate 6.0% 17% 10% * Excludes Yennora Building 1 unde
Slide 38: The Future
THE FUTURE = ADP property management to be brought inhouse by the end of the year (excluding co-owned assets) = Review integrated portfolio and dispose of non-core assets = Continued focus on de-risking the lease expiry profile = Acquisition of industrial assets in growth areas = Launch new tenancy
Slide 39: Development Division
© Stockland
Slide 40: Core Activities
CORE ACTIVITIES DEVELOPMENT DIVISION Residential Apartments Retail Estates Projects
Slide 41: Gross Inventory $753 Million
GROSS INVENTORY $753 MILLION BUSINESS UNITS GEOGRAPHIC UNITS Retail Projects $71m NSW $260m Apartments 4 Residential Estates $567m QLD $223m As at 30 June 2003
Slide 42: Highlights
HIGHLIGHTS * Divisional Operating Profit of $94.8 million (increase of 52% on FY02) = Residential Estate margins increased to 25% = Successful acquisitions strategy comprising: ~ 20 new projects secured (8,500 lots — 14 secured off market)* = Launched 8 new projects to market = Continued strengtheni
Slide 43: Asset & Profit Growth
Gross Assets ASSET & PROFIT GROWTH $m 900 800 700 600 500 400 300 | 200 100 1998 1999 2000 2001 2002 Ml Assets ($m) — Net Operating Profit ($m) Year Ended 30 June 2003 100 Net Operating Profit $m
Slide 44: Key Performance Indicators
KEY PERFORMANCE INDICATORS Residential Apartments Retail Estates Projects FY03 Performance ee Operating $92.1m $1.6m $1.0m Units / Lots sold 3,076* 119 3 Key Statistics Gross Assets $567m $115m $71m Projects 65 7 9 Units/ Lots controlled 29,500 960 nla $ End Value of Projects $4,200m $570m $205m * R
Slide 45: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Market have generally softened over the past year Strong demand remains in the owner occupier detached housing and apartments markets — but price growth is easing Pockets of oversupply in the inner city apartment market (especially product targeted to investors) Fundament
Slide 46: Residential Building Approvals
RESIDENTIAL BUILDING APPROVALS $14,000 FHOG Reduced $14,000 FHOG Introduced 20,000 ~ 17,500 Introduction of GST 15,000 J 12,500 ~ 10,000 : 7,500 — 5,000 ~ 2,500 Building Approvals, Monthly (No.) +~+ FTF w ) © OO R BHR © BOB DM DO OD @& rN MN Ow PP ORF EPG FFF SF FFF F F > > > PF > FF > FF RP PF RP F
Slide 47: Stockland Lot Sales vs. Building Approvals
STOCKLAND LOT SALES Vs. BUILDING APPROVALS 180,000 » 160,000 | 140,000 | 120,000 | 100,000 - Building Approvals (no.) 80,000 ~ 2 HE. 1994 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year Ended 30 June 3 Private Approvals - Total —— SGP Lot Sales SGP Lot Sales
Slide 48: Outlook for FY04
OUTLOOK FOR FY04 Contracts on hand as at 30 June 2003 Business Unit Units/ Lots Contract Value $m Residential Estates 1,248 $192.5m Apartments 203 $89.5m Retail Projects 2 $35.0m Total 1,453 $317.0m 19 new projects to be launched to market in FY04
Slide 49: Outlook for FY05 and Beyond
OUTLOOK FOR FY05 AND BEYOND = We have a solid book of development projects to enable us to deliver consistent growth in profits = 20 projects to be released to the market from FY05 onwards
Slide 50: Future Direction
FUTURE DIRECTION = We aim to grow the Division over the next three years by strategic acquisitions (max. 20-25% of group assets) = Focus remains on growing our Residential Estates business = Apartments and Retail Projects are achieving critical mass and will contribute increased profits from FY04 on
Slide 51: Saville Hotel Group
SALLE O HOTEL GROUP Stockland
Slide 52: Summary of Results
SUMMARY OF RESULTS FY03 FY02 Occupancy % 73 72 Average Room Rate $140 $139 Net Profit $3.0m $2.2m (Refer Annexure for breakdown of occupancy and room rates by hotel) = Funds invested in hotel management business, approximately $20 million as at 30 June 2003
Slide 53: Market Overview
MARKET OVERVIEW = Key wholesale international markets have been affected by world events such as SARS & lraq War = Reduced seat availability for domestic leisure travel = Corporate market recovering but at reduced yield
Slide 54: Saville's Performance
SAVILLE’S PERFORMANCE = Overall Saville has remained resilient due to our hotels’ broad market mix (85% booked through domestic market) = Maintained strong relationships with international partners & key domestic wholesalers = Continual sales focus on building strong corporate relationships = Contin
Slide 55: Strong Market Position
STRONG MARKET POSITION = Well recognised brand & respected product in market place = Airline & credit card loyalty programs = Marketing partnership with Avis =» Wide brand exposure on major partner sites and internet booking systems = Club Saville — internal loyalty program * Service culture of Savi
Slide 56: Capital Management
PITAL MANAGEMENT Stockland
Slide 57: A-/Positive Watch credit rating from Standard & Poor's
A-/ Positive Watch credit rating from Standard & Poor’s Preferred gearing range 20% to 30% funded debt to total tangible assets (24.9% as at 30 June 2003) Hedging policy — minimum 50% of total debt fixed Weighted average cost of debt including fees and margins is 5.6% Weighted average length of debt
Slide 58: Outstanding Debt as at June (including ADP)
OUTSTANDING DEBT AS AT 30 JUNE (including ADP)’ Interest Rate* + Margin $m Bank Bills Drawn unhedged 5.30% 120 Drawn hedged 6.53% 75 Medium Term Notes | Fixed 03 5.98% 150 Floating 04 5.28% 150 Fixed 06 5.73% 150 Fixed 07 5.48% 175 Fixed 07 5.42% 64 Floating 07 5.28% 101 Fixed 05 5.10% 100 Floating
Slide 59: Debt Maturity Profile (as at June 2003)
DEBT MATURITY PROFILE (as at 30 June 2003) 150 245 350 340 250 150 2004 2005 2006 2007 2008 2009 2010 2011 Year Ending June 2012 2013
Slide 60: Future Direction & Strategy
© Stockland
Slide 61: Short Term Strategy
SHORT TERM STRATEGY Finalise ADP integration - people - systems - property management and development Ensure optimal performance of enlarged businesses to achieve FY04 forecasts Strong focus on capital management
Slide 62: Future Direction
FUTURE DIRECTION = Continue to grow Shopping Centre business through development of existing assets and acquisitions = Prudent growth of Development Division = Disposal of assets that do not meet our income and growth criteria = Maintain strong focus on financial, capital and risk management = Inves
Slide 63: Examples of Stockland's Mixed Use Projects
EXAMPLES OF STOCKLAND’S MIXED USE PROJECTS Components Timing Southbank Apartments/ Hotel 2005 Vincentia Residential Estate/ Shopping Centre 2005 + Pacific Pines Residential Estate/ Shopping Centre Current Baigowlah Apartments/ Shopping Centre 2006 CSIRO Industrial/ Residential Estate 2004 + Subiaco
Slide 64: Corporation/Responsible Entity
Corporation/ Responsible Entity Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741 16'" Floor 157 Liverpool Street SYDNEY NSW 2000 All care has been taken in the preparation of this document but no responsibility is taken for any errors or omissions
Slide 65: Annexures
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Slide 66: Reconciliation of Property Investment & Management
RECONCILIATION OF PROPERTY INVESTMENT & MANAGEMENT TO 4E STATEMENT SEGMENT REPORT 2003 2002 $m $m Divisional Operating Profit - Shopping Centres 98.4 87.9 - Commercial & Industrial 133.5 136.7 Income from ADP units equity accounted 64 9 Rent from owned hotels 25 56 (down due to asset sales during ye
Slide 67: MAT & Occupancy Costs by Centre
MAT & OCCUPANCY COSTS BY CENTRE Total MAT Specialty Shop Av. _Sales Sim? (GST Incl, ) SGP Portfoli Specialty Shop Av. Occupancy Cost % of MAT (GST Incl, ) _SHB Benchm x 114 33 City Centre, Rockhampton 503 -1.2 10.1 4 4 Cleveland — 115. 27° 7.0 10.3 Glendale _ 108.1 23. 2 —_ 7 7,928 6,120 7.9 ; 14.4
Slide 68: Shopping Centres
SHOPPING CENTRES Valuation Variance Previous Valuation Book Value eat 30 June 2003 to Book Value Property $m eae Date Revatuation $m cap $m % Baulkham Hills 48.3 9.50% 04/01 51.7 57.0 8.00% 5.3 10.2% Jesmond 64.0 9.50% 12/00 64.4 72.0 8.25% 78 11.8% Merrylands 91.0 9.13% 12/01 91.2 110.0 8.00% 18.8
Slide 69: Commercial & Office Parks
COMMERCIAL & OFFICE PARKS | a Book Value Independent Valuation Valuation Variance Previous Valuation Prior to as at 30 June 2003 to Book Value Cap Revaluation Cap + Property $m Rate Date $m $m Rate $m % Commerical 157 Liverpool St 52.4 8.25% 03/00 56.3 51.0 8.50% 5.3 -9.3% 110 Walker St 22.8 8.25% 0
Slide 70: Strong performance from each state ...
Strong performance from each state ... FY02 FY03 No Lots Av. Price No. Av. Price Sold. $000 Lots Sold $000 NSW 663 149 613 203 VIC 518 74 628 91 QLD 1,161 85 1,051 112 WA 706 76 784 87 Total 3,048 95 3,076 119
Slide 71: Restocking in FY03 — Residential Estates
RESTOCKING IN FY03 — RESIDENTIAL ESTATES No. Future Off Deferred Location State Lots Acquired Market Purchase Terms Keysborough Victoria 240 v Hillside Victoria 350 v v Mernda Township Victoria 1,890 v Point Lonsdale Victoria 710 v vo Maidstone Victoria $0 Ormeau, Gold Coast Queensland 1,010 v Macka
Slide 72: Restocking in FY03 — Apartments & Retail Projects
RESTOCKING IN FY03 —- APARTMENTS & RETAIL PROJECTS APARTMENTS No. Off Deferred Location State Units Market Purchase Terms West End Queensland 116 v Southbank Queensland 241 v Total 357 RETAIL PROJECTS Location State NLA Off Deferred m? Market Purchase Terms Beenleigh Queensland 12,230 v Jindalee Que
Slide 73: Hotel portfolio performance
Hotel Location Star No. FY03 FY03 Av. FY03 Av. Operating Rating Rooms Occupancy Room Rate | Room Yield , Agreement 2 Bond St Sydney NSW 4% 169 77% $185 $143 Leased Oxford St Sydney NSW 4 134 70% $170 $118 Managed Chatswood NSW 4 165 73% $156 $114 Leased Canberra ACT 4 176 68% $108 $74 Leased Russell
Slide 74: Stockland Trust Statement of Financial Performance
Stockland Trust and controlled entities Statement of Financial Performance Revenue from ordinary activities Prom operating activities Rent from investment properties Interest income Distributions - other p: Other revenue From outside operating activities ross proceeds from sale of non current assets
Slide 75: Stockland Trust Statement of Financial Position
Stockland Trust and controiled entities Statement of Financial Position Current assets Cash assets Receivables Loan to Stockland Corporation Other assets Total current assets Non-current assets Receivables Investment properties Other financial assets Investments accounted for using the equity method
Slide 76: Stockland Corporation Statement of Financial Performance
Stockland Corporation and controlled entities Statement of Financial Performance 30 Jane 2003 30 June 2002 $000 #039;000 Revenue from ordinary activities From operating activities Rent from investment. properties 3,041 3,693 Property development sales 409,503 388,402 Revenue from Trust capital works 97
Slide 77: Stockland Corporation Statement of Financial Position
Stockland Corporation and controlled entities Statement of Financial Position Current assets Cash assets Receivables Capital works for Stockland Trust Inventories Other assets Total current assets Non-current assets Receivables Inventories Investment properties Other financial assets Property, plant
Slide 78: Statement of Financial Performance - Group Consolidated
Stockland Statement of Financial Performance - Group Consolidated Revenue from ordinary activities From operating detivities Reni from investment properties Property development sales Hotel operation revenue Management and agency fee income interest income Distributions / dividends - other parties O
Slide 79: Statement of Financial Position - Group Consolidated
Stockland Statement of Financial Position - Group Consolidated Current assets Cash assets Receivables Capital works for Stockland Trust Inventories Other assets Total current assets Non-current assets Receivables Inventories Investment properties Other financial assets Property, plant and equipment