Stockland · ASX:SGP
Stockland — Investor Presentation (September 2009)
13 slides from Stockland's investor presentation, Sep 24, 2009
Slide 1: Investor Briefing
For personal use only Investor Briefing Mark Hunter, CEO Residential 24 September 2009 www.stockland.com
Slide 2: Overview: FY09 recap and market outlook
Overview For personal use only FY09 recap - Communities Communities FY09 Lots settled 4,303 • Strong sales – market leading position Average retail price* $206k • Adjusted quickly to First Home Buyer opportunity Revenue $873m • Record level of contracts on hand @ June 30 (1,659 @ 31 Operating profit
Slide 3: Australia is undersupplied with housing
Australia is undersupplied with housing For personal use only .. strong population growth is expected Major undersupply of housing has ..causing rental vacancies to fall to to continue, causing further supply / developed since 2006.. record low levels.. demand imbalance Underlying Demand & Supply of
Slide 4: Residential market still dominated by single detached housing
Despite urban consolidation rhetoric, Australian residential market is still dominated by single detached housing Infill medium Vacant lot sales New dwellings Apartments For personal use only density • Separately contracted • Knock down and rebuild • 2 & 3 storey domestic • 3 storey+ developments De
Slide 5: Significant growth potential in traditional greenfield development
Despite state government urban consolidation targets, there is significant growth potential in traditional greenfield development Estimated Brownfield / Greenfield Composition For personal use only (%) 29% 33% 42% 70% 2031 State Govt. urban infill target 47% 2031 State Govt. urban infill target 50%
Slide 6: Increased lot sales in FY09 despite weak market
Despite the very weak market, we achieved increased lot sales in FY09 For personal use only Vacant Lot Sales1 Across NSW, WA, VIC and QLD SGP Lot Sales and Market Share In Four Key States (# p.a.) (# p.a., %) 100,000 93,400 5,000 10% Eight Year 4, 303 Average = 4,500 4,281 9% 79,400 4, 188 77,000 4,
Slide 7: Increased market share by delivering product diversity
We increased market share by delivering product diversity, meeting all key buyer segments For personal use only Product Diversity 1. Catering to all market segments 2. Flexible House & Land packages 3. Optimising Product Mix “Village Positioning” “Different house, same lot size” “Align lot size and
Slide 8: Capitalised on the FHOB but not solely dependent on it
We capitalised on the FHOB – but we are not solely dependent on it Over the long term, FHBs have averaged FHBs are driven by a range of factors: For personal use only 20% - 25% of the owner occupier market • Cost of owning – housing affordability is 30% FHBs as % of Owner Occupier Finance (%) improv
Slide 9: Well prepared for the end of the FHOB
We are well prepared for the end of the FHOB For personal use only • During 2009 we have transitioned our products towards second home buyers and investors • Over the past 3 months we have seen second home buyers return to be the largest proportion of our leads • Investors are also gaining momentum
Slide 10: Goal to increase annual lot sales to 5,000+
Our goal is to increase annual lot sales to 5,000+ by growing market reach and market share in key population growth corridors For personal use only Market fragmentation provides opportunity to grow: Wyndham acquisition – Truganina We are underrepresented in several key growth corridors Many sma
Slide 11: Management structure streamlined and simplified
Management structure has been streamlined and simplified to deliver strategy For personal use only Residential organisational structure New Business Unit CEO Residential Retirement Living Mark Hunter David Pitman Finance GM – QLD GM – NSW GM – VIC GM – WA Steven Dransfield Kingsley Andrew Barry Mann
Slide 12: In summary
In summary For personal use only • Market conditions continue to improve, but all eyes on end of FHOB • February 2010 a key ‘check-in’ point for us • Residential Communities is a sustainable growth business • Clear strategy to grow market share and leverage our competitive advantage 11
Slide 13: Stockland contact details and disclaimer
For personal use only Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741 25th Floor 133 Castlereagh Street SYDNEY NSW 2000 DISCLAIMER OF LIABILITY While every effort is made to provide accurate and complete information, Stockland does not warrant or repr