Stockland · ASX:SGP
Stockland — Investor Day (June 2019)
51 slides from Stockland's investor day presentation, Jun 13, 2019
Slide 1: Stockland 2019 Investor Day
13 June 2019 133 Castlereagh Street T 02 9035 2000 Sydney NSW 2000 F 02 8988 2552 www.stockland.com For personal use only STOCKLAND 2019 INVESTOR DAY For media enquiries Larissa Webster Senior Manager Media Relations & Internal Communications Stockland is hosting an Investor Day in Melbourne today f
Slide 2: 2019 Investor Day: Stockland assets in SW Melbourne
Melbourne CBD For personal use only Orion Brooklyn KeyWest Melbourne Airport Mount Melbourne Atkinson Business Park Grandview 2019 Investor Day 13 June 2019 Creating Sustainable STOCKLAND ASSETS IN SW MELBOURNE Communities 1
Slide 3: Today's agenda
Today’s agenda For personal use only Mark Steinert, Louise Mason, Tony D’Addona Managing Director Group Exec & CEO, General Manager, and CEO Commercial Property Workplace and Logistics Welcome & overview Commercial Property Logistics Communities Retail Tour Andrew Whitson, Michelle Abbey, Sarah Neil
Slide 4: Our strategy
STOCKLAND MERRYLANDS, SYDNEY Our strategy For personal use only Deliver sustainable and growing returns by: Developing sustainable Owning and managing Growing our workplace and logistics asset communities leading retail town centres base in Sydney, Melbourne and Brisbane Accelerate improvement in th
Slide 5: Update on priorities
Update on priorities For personal use only OUR GOALS OUR NEAR TERM PRIORITIES OUR PROGRESS Accelerate improvement in the quality of On track to achieve $400m divestment Grow asset returns our Retail Town Centre portfolio $284.5m1 target within next 12 months Rebalance our portfolio Significant logis
Slide 6: Repositioning for growth
Repositioning for growth To build new growth opportunities and scale our expertise For personal use only TRANSFORM BUILD GROW • Accelerating portfolio reshaping – divesting • Leveraging partnerships to enhance • Developing large scale community assets non-core Retail Town Centre and RL capability an
Slide 7: Capital management
Capital management Disciplined capital allocation framework For personal use only Portfolio allocation Diversified portfolio Capital allocation is Medium term target Over 90% of our portfolio located on eastern seaboard as at December 2018 capital allocation NSW Vic Qld WA COMMUNITIES 33% 20-30% Cap
Slide 8: Group Outlook
Group Outlook Targeting FFO per security growth of ~5% 1 for FY19 For personal use only Key assumptions for FY19: Residential Retirement Living Commercial Property FY19 distribution • Profit maintained in line with • Improved development and • Commercial Property comparable • Growth of 4%, 27.6 cent
Slide 9: Communities
For personal use only Communities Andrew Whitson 8 ORION, MELBOURNE
Slide 10: Outlook for balance of FY19
Outlook for balance of FY19 Residential settlements For personal use only FY19 settlements HIGHLANDS, MELBOURNE • Expect settlements of ~5,900 for FY19 due to production delays at Mt Atkinson (Melbourne), deferred to FY20, and extended settlement timeframes • FY19 residential profit maintained in li
Slide 11: Market update: Residential
Market update Residential For personal use only Recent catalysts • Re-election of Coalition Government, removing uncertainty on Weekly enquiries from leading projects changes to negative gearing and capital gains tax, Federal in each state First Home Loan Deposit Scheme • Proposed APRA changes to le
Slide 12: Our competitive advantages: Residential
Our competitive advantages For personal use only Residential OUR BRAND OUR SCALE OUR LANDBANK VALE, PERTH 11 2019 Investor Day
Slide 13: Our competitive advantages: Our brand
Our competitive advantages Residential For personal use only National Annual Vacant Land Sales by Project1 OUR BRAND Stockland • Our brand is built on consistently creating highly liveable and 10 of the top 25 best sustainable communities and providing great customer experience • Flight to quality,
Slide 14: Our competitive advantages: Our scale
Our competitive advantages Residential For personal use only CLOVERTON, MELBOURNE OUR SCALE • Deep understanding of our customers’ needs • Strong relationships with stakeholders • Enables us to deliver at a lower cost and with greater certainty • Allows us to attract and retain talent • Ensures we a
Slide 15: Our competitive advantages: Our landbank
Our competitive advantages Residential For personal use only 0 10 20km OUR LANDBANK • Skewed toward high population, rail serviced growth corridors in Sydney, Melbourne and South East Queensland • Largest residential developer in Australia with over 81,000 lots under control, over 58 communities • O
Slide 16: Built form strategy: strong momentum
Built form strategy: strong momentum Broadening customer reach and profit growth For personal use only Arve (Ivanhoe) Waterlea (Rowville) 81 townhomes 160 townhomes and Nominated for PCA 30 apartments design excellence 5% affordable housing awards Orion (Braybrook) Altona North 400 townhomes over 27
Slide 17: Commercial Property
For personal use only Commercial Property Louise Mason STOCKLAND WENDOUREE, MELBOURNE
Slide 18: Delivering the strategy
STOCKLAND PICCADILLY, SYDNEY Delivering the strategy Capabilities, opportunities and assets For personal use only Accelerate improvement in the quality of our Retail Increase Workplace Broaden capital Town Centre portfolio & Logistics partnering weighting initiatives across all Operational improveme
Slide 19: Market update: Retail Town Centres
Market update For personal use only STOCKLAND WETHERILL PARK, SYDNEY Retail Town Centres • Continued comparable specialty sales growth driven by services, leisure and homewares • Comparable1 specialty sales per square metre +3.3% for year to April • Solid growth in food retail and catering, modest g
Slide 20: Market update: Workplace and Logistics
Market update For personal use only HENDRA DISTRIBUTION CENTRE, BRISBANE Workplace • Continued strong demand in Sydney CBD and North Sydney and supply constraints support continued rental growth • W&L • Limited core CBD development opportunities in Sydney • 21% of the portfolio1 Logistics • Continue
Slide 21: Accelerating improvement in portfolio quality: Retail Town Centres
Accelerating improvement in the quality of our portfolio For personal use only Retail Town Centres • Divesting non-core assets, $284.5m1 over last 12 months • Strengthening core portfolio of leading town centres, with a good example being the opportunity to drive Queensland assets with renewed gover
Slide 22: Accelerating improvement in portfolio quality: Workplace and Logistics
Accelerating improvement in the quality of our portfolio For personal use only Workplace • Advance development opportunities on current portfolio - $1b+ • Creating optionality for further growth and capital partnering, providing sought after opportunities Logistics • Leveraging relationships to acqu
Slide 23: What you can expect over next two years
driving digital innovation, placemaking and connections with our customers’ etc STOCKLAND PICCADILLY, SYDNEY What you can expect over next two years Concentrated exposure across higher quality assets For personal use only Accelerate improvement in the quality of our Retail Broaden capital Increase W
Slide 24: Retail Town Centres
Retail Town For personal use only Centres Michelle Abbey STOCKLAND WETHERILL PARK, SYDNEY
Slide 25: Delivering on our customer value proposition
Delivering on our customer value proposition For personal use only Community: Deep consumer insights forming the unique strategy to meaningfully connect to our existing Community customers whilst driving new visitation, through “relevant” a diverse range of strategies which may include events, class
Slide 26: Connecting with the community
Connecting with the community For personal use only Festival of Flowers Achieved Achieved Achieved +610% +41% +10% Target: Target: increase increase Target: increase Facebook website foot traffic engagement visitation by minimum 10% 100% by 20% Fit kids festival Achieved Achieved Achieved +110% +24%
Slide 27: Convenience – shopping made easy
Convenience – shopping made easy Retail Town Centres For personal use only STOCKLAND GREEN HILLS, NSW STOCKLAND HERVEY BAY, QLD Upgrading well located assets and enhancing customer experience driving sales productivity Remixing retail offer Customer journey Customer Collect • Remixing to create new
Slide 28: Curation – Creating true town centres
STOCKLAND HARRISDALE, PERTH Curation – Creating true town centres For personal use only Placemaking drives portfolio strengthening and resilience Holistic and integrated strategy to reposition our Retail Town Centres Aligns the presentation of the centre and retailer mix to reflect the values and pr
Slide 29: Placemaking
For personal use only Placemaking Sarah Neilsen STOCKLAND POINT COOK, MELBOURNE
Slide 30: Our approach to Placemaking
Our approach to Placemaking The customer is at the heart of all decision making For personal use only Customer Unique Integrated Optimise & Constant Aligned & Defined Value Story Strategy innovate curation empowered teams Deep dives and constant Define what is the unique Individualised strategies, O
Slide 31: Night Quarter, curating customer experience
Night Quarter, curating customer experience Leisure and entertainment For personal use only Potential for Birtinya, Qld 5 Events per night Image to be updated 500 Curated acts per annum 32 Market stall and food operators 3000 - 4000 Patronage every Friday and Saturday Night 30 2019 Investor Day
Slide 32: Logistics
For personal use only Logistics Tony D’Addona 31 ARTIST IMPRESSION. KEYWEST MELBOURNE
Slide 33: Growth of logistics portfolio
Future Pipeline Growth of logistics portfolio Dec 18 For personal use only Completed $118m $950m Developments1 $19m $94m $101m $2.5b Book Value 5.2 Yrs Pipeline $125m $350m $440m $750m $700m WALE 6.1% WACR Acquisitions $275m $67m $140m $57m 26 Assets 98.0% Dec 13 FY14 FY15 FY16 FY17 FY18 Occupancy F
Slide 34: Our competitive advantage
WARWICK FARM, SYDNEY Our competitive advantage Concentrated exposure across higher quality assets For personal use only Our Our Our Our growth capabilities Brand assets pipeline • Fully integrated team across all disciplines • Strong tenant relationships with • Large scale portfolio; 26 logistics as
Slide 35: Our Melbourne assets within infrastructure and population growth corridors
Our Melbourne assets, within infrastructure and For personal use only population growth corridors Stockland Assets Existing Infrastructure Major Roads Rail Lines Airport Future Infrastructure Major Roads Rail Lines Average Growth 2016-2021 1.5% - 2% Greater than 2%
Slide 36: Our Sydney assets within infrastructure and population growth corridors
Our Sydney assets, within infrastructure and For personal use only population growth corridors Stockland Assets Existing Infrastructure Major Roads Rail Lines Airport Future Infrastructure Major Roads Rail Lines Average Growth 2016-2021 1.5% - 2% Greater than 2%
Slide 37: Conclusion
For personal use only Conclusion 36 ARVE, MELBOURNE
Slide 38: Asset tour
For personal use only Asset tour OAKLEIGH INDUSTRIAL ESTATE, MELBOURNE
Slide 39: Tour Agenda
6 Melbourne For personal use only Airport Melbourne Tour Agenda 5 Depart 1 11:30 Melbourne CBD Mt. Atkinson 2 & Melbourne Business Park Orion 2 12:00 Orion 1 3 12:50 Brooklyn 7 4 3 Melbourne CBD 4 13:50 KeyWest KeyWest Brooklyn Mt. Atkinson 5 14:15 & Melbourne Business Park Melbourne 6 16:00 Airport
Slide 40: Orion
For personal use only 39 Orion
Slide 41: Orion Residential Community
Orion Residential Residential Community For personal use only Product mix Development update Orion is a masterplanned residential townhome community set on The homes are offered at affordable • Stage 1, 2 and 3 civil construction is complete 11.5 hectares in Braybrook in the City of Maribyrnong. pri
Slide 42: Brooklyn Distribution Centre
For personal use only Brooklyn Distribution Centre
Slide 43: Brooklyn Logistics Distribution Centre
Brooklyn Logistics Distribution Centre For personal use only Repositioning opportunities Summary information1 Brooklyn Distribution Centre comprises 10 separate • Building A and B to be $110.0 million BV warehouses over 22 hectares repositioned to attract higher quality tenants, increase rent $845/s
Slide 44: KeyWest Distribution Centre
For personal use only KeyWest Distribution Centre KeyWest
Slide 45: KeyWest Logistics Distribution Centre
KeyWest Logistics Distribution Centre For personal use only New high-clearance facility Strategic site KeyWest Distribution Centre • Flexible warehouse layouts • Convenient access to comprises a 5.1ha land and office space design Western Freeway, Princes holding which has a flexible options of ~30,5
Slide 46: Mt Atkinson and Melbourne Business Park
For personal use only Mount Melbourne Atkinson Business Park Mt Atkinson Grandview
Slide 47: Mt Atkinson Residential Masterplan Community
Mt Atkinson Residential Masterplan Community For personal use only Summary information Competitive advantage Total Project Value1 • $862 million • Adjacent to transport links including a proposed future train station off the Ballarat rail line Price Point • Three future schools Mt Atkinson is a 315
Slide 48: Melbourne Business Park Logistics
Melbourne Business Park Logistics Logistics For personal use only Key site facts This 260 hectare logistics and • Melbourne Business Park lies directly south of business park in Truganina is our existing Mt Atkinson community, 25km to be developed in JV with Mt west of the Melbourne CBD Atkinson Hol
Slide 49: Grandview Masterplan community
For personal use only Grandview Masterplan community
Slide 50: Grandview Residential Masterplan Community
Grandview Residential Masterplan Community For personal use only Summary information Competitive advantage Total Project Value1 • Location in relation to Melbourne CBD $529 million • Excellent access to key transport links Grandview is a masterplanned community, approximately 138 Price Point • Three
Slide 51: Important Notice
For personal use only Important Notice While every effort is made to provide accurate and complete information, Stockland does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. This presentation contains forward-