Stockland · ASX:SGP
Stockland — Debt Investor Presentation (June 2003)
27 slides from Stockland's debt investor presentation, Jun 25, 2003
Slide 1: June 2003
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Slide 2: Agenda
» Stockland’s Performance and Profit Forecasts «" The ADP Transaction " Strategic Benefits of the Merger = Debt Maturity Profile
Slide 3: Stockland's Performance and Profit Forecasts
STOCKLAND’S PERFORMANCE AND ) He I ae es Bon o oe we Le ya ;
Slide 4: Total focus on delivering sustainable and consistent growth in returns
* Total focus on delivering sustainable and consistent growth in returns to security holders through: — Diversity of property income streams ~ Strong financial and capital management — Maintenance of S&P credit rating — Proven management capability
Slide 5: Stockland has delivered outstanding performance for its security holders
Stockland has delivered outstanding performance for its security holders through substantial growth in profit 450 7 EB Reported profit 400 4 || Forecast profit 350 7 300 5 § 250 | E 200 4 150 7 100 5 » | a 0 T 1 T ; 1 1999 2000 2001 2002 2003F 2004F 2004F (1) (1) (2) Profit = Operating profit after
Slide 6: Low Gearing underpins A- credit rating
* Low Gearing underpins A- credit rating Gearing Interest Cover (Debt*/Total Assets) (EBIT/Interest) 20% 5 10 4 0, 0.9% 3 12% 15% 7 64 10% + 18.0% 44 5% 4 2 4 0% 1 1 0 1 1 FY02 FYO3F FY02 FYO3F * Debt less cash on deposit Year ending 30 June (based on 17.3% ownership of ADP) 6
Slide 7: Financials
Financials Total Assets H1 FY03 Revenue Forecast FY04 Net Profit Forecast FY04 Gearing Forecast FY03 Interest Cover Forecast FY04 * Based on assumptioris set out in Stockland’s Bidders Statement Stockland A$3.695 bil A$1.062 bil A$327 mil 19% 1.84 Merged Entity A$5.573 bil A$1.241 bil A$418 mil 27%
Slide 8: Specialist management teams for retail, commercial and industrial
Specialist management teams for retail, commercial and industrial properties, with the current portfolio of over $3 billion of investment assets increasing to $4.4 billion on completion of the ADP takeover. Stockland has the management expertise to successfully expand the portfolio of investment ass
Slide 9: Board and Management Team
= Board — Strong and experienced corporate governance with majority of independent non-executive directors. » Management Team Matthew Quinn John Pettigrew Denis Hickey Steve Mann Darren Steinberg Managing Director Finance Director CEO Development Division CEO Commercial & Industrial Division CEO Sho
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Slide 11: Stockland is offering $0.80 cash plus Stockland security
* Stockland is offering $0.80 cash plus 1 Stockland security (ex-distribution) for every 1.9 ADP units * Offer is equivalent to $3.07* per ADP unit « Offer is totally unconditional and capable of immediate acceptance * Offer is recommended by the Responsible Entity of ADP » Unitholders will be paid
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Slide 13: Stockland's existing business is performing very well
Stockland’s existing business is performing very well with strong growth in shareholder returns The proposed transaction will provide a strategic enhancement of Stockland’s asset base and will lift growth prospects even further The transaction provides a win / win value adding solution for both Stoc
Slide 14: Market Capitalisation comparison
Westfield Property Trust |. Westfield America Trust |. General Property Trust Enlarged Stockland Incl ADP /; Existing Stockland Mirvac |. ADP Market Capitalisation* 0 4,000 2,000 3,000 4,000 5,000 6,000 7,000 * Based on market capitalisation as at 27 May 2003 8,000 9,000 14
Slide 15: Stronger business profile
Stronger business profile Increased diversification in number of properties and income generated Increased geographic diversification Enhanced operating stability Increase in overall asset quality 15
Slide 16: Proforma asset allocation by sector
Proforma asset allocation by sector* Stockland ADP Stockland + ADP {Book Value $3.7b) (Book Value $1.9b) (Book Value $5.6b) 9% 149 20% 42% 29% 33% “= Shopping Centres @ Commercial Offices Office Parks % \ndustrial Z Hotels =) Development * Based on assumptioris set out in Stockland’s Bidders Stateme
Slide 17: Investment Property and Development Assets weightings
* Investment Property - The acquisition of ADP is consistent with Stockland’s targeted investment property weightings * Development Assets - Weighting falls below target levels providing opportunities for growth Sector Stockland Target Stockland Stockland Plus Weighting (FY2003)* ADP* Shopping Centr
Slide 18: Proforma asset allocation by Geographic Region
Proforma asset allocation by Geographic Region* Stockland ADP Stockland + ADP (Book Value §3.7b) {Book Value $1.9b) {Book Value $5.6b) 10% <1% 9% <1N%3% 9% 3% 18% 64% 16% NSW @ aD YEA act J] NT NZ * Based on assumptioris set out in Stockland’s Bidders Statement 418
Slide 19: Shopping Centre Division will increase
Shopping Centre Division will increase ~ from 20 to 35 centres (with a total value of over $2 billion) ~ from 1,500 to 2,600 tenancies Confirms Stockland’s position as a market leading sub regional shopping centre owner in Australia (10% market share) Stockland’s existing substantial retail developm
Slide 20: Benefits — Shopping Centre Division
BENEFITS — SHOPPING CENTRE DIVISION (@ Sto ADP Centre OF Lunemall ) Town Centre ‘ jGnawicos Sup: ‘Stocklandimparial Are DP Shellharboun
Slide 21: Commercial Offices
COMMERCIAL OFFICES Good strategic fit in terms of geographic location and asset quality Value of office portfolio will increase to $1.9 billion (37 properties) Exposure to NSW increases to over 75% of total office portfolio Average lease expiry increases from 3.8 to 4.0 years Average cap rate firms
Slide 22: Industrial & Office Parks
INDUSTRIAL & OFFICE PARKS * Value of industrial & office park portfolio will increase to $700 million (23 properties) — deliberate overweight exposure to NSW maintained » Enhanced diversification of assets « Weighting consistent with Stockland’s long term strategy 22
Slide 23: Reduced Development weighting creates potential for further growth
Reduced Development weighting creates potential for further growth of the Development Division without increasing the relative risk profile for Stockland security holders To generate Stockland’s preferred sector weighting for Development Division of 20-25% of total assets, itis planned that the Divi
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Slide 25: A-/Watch Pos/A-2 rating from S&P; Debt Maturity at June 2003
s A-/ Watch Pos / A-2 rating from S&P Debt Maturity at June 2003 400 ADP 300 | lf Stockland $M 200 100 Within 1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 25
Slide 26: Matthew Quinn, John Pettigrew
Matthew Quinn John Pettigrew Managing Director Finance Director Stockland Stockland Tel: (02) 9321 1502 Tel: (02) 9321 1506 Fax: (02) 9321 1595 Fax: (02) 9321 1582 matthew.quinn@stockland.com.au john.pettigrew@stockland.com.au Or visit Stockland’s website: www.stockland.com.au Detailed information o
Slide 27: Corporation / Responsible Entity
Corporation/ Responsible Entity Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 744 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. 27