Stockland · ASX:SGP
Stockland — Macquarie Australia Conference 2010
18 slides from Stockland's conference presentation, May 6, 2010
Slide 1: Macquarie Australia Conference 2010
For personal use only Macquarie Australia Conference 2010 5 - 7 May 2010 www.stockland.com
Slide 2: Stockland's vision is to be a world class diversified property group
Stockland’s vision is to be a world class diversified property group Purely domestic Australian focus For personal use only Commercial Property Retirement Living Residential $7.9b $0.5b $2.5b Mix of development profit Market-leading Residential Quality portfolio producing and recurring earnings Comm
Slide 3: Significant, attractive and fully funded growth opportunities
Significant, attractive and fully funded growth opportunities Residential For personal use only • Grow market share and enhance market leading position of Residential Communities Retirement Living • Increase market share and returns through development of new villages Commercial Property • Extensive
Slide 4: Residential
For personal use only Residential
Slide 5: Residential market conditions - recovery underway in all states
Residential market conditions - recovery underway in all states For personal use only National Private detached house approvals • Major undersupply of housing continues to drive price growth 4,000 (2007-2010, trend) • End of First Home Owner Boost was orderly – upgraders now the Approvals per month
Slide 6: Residential housing market – what's driving supply and demand?
Residential housing market – what’s driving supply and demand? For personal use only • Two major factors drive underlying demand – population growth and the change in persons per household (household size) • Australia is seeing record levels of population growth • Household sizes have risen as suppl
Slide 7: Despite deteriorating affordability, the consumer remains confident
Despite deteriorating affordability, the consumer remains confident For personal use only • Generally, affordability is deteriorating after six rate rises since Oct-09 • Key focus is on innovative product and affordable price points in new housing product • Despite the interest rate rises, finance f
Slide 8: Using product innovation to address housing affordability challenge
Using product innovation to address housing affordability challenge More efficient, smaller product How far can we go? For personal use only Average new dwelling size per person 600 83m² 78m² 50m² Down 5% 500 Average 400 lot size 33m² 32m² 29m² 300 Average new dwelling price per square metre 200 100
Slide 9: Residential Communities - focussed on growing market share
Residential Communities - focussed on growing market share • Strategy to grow market share through increased lot Lot settlements and market share in four key states 1 For personal use only sales: Stockland lot settlements (LHS) SGP market share in 4 States (RHS) – Extend market-leading position into
Slide 10: Retirement Living
For personal use only Retirement Living
Slide 11: Retirement Living - remains a key growth platform
Retirement Living - remains a key growth platform Strategy: For personal use only Development pipeline (% of units) • Growth and diversification of the village portfolio: WA 22% – Drive operational efficiencies in established villages – Develop new industry-leading villages Q LD 40% Total of circa –
Slide 12: Commercial Property
For personal use only Commercial Property
Slide 13: Commercial Property strategy to enhance asset quality and financial returns
Commercial Property strategy to enhance asset quality and financial returns • Continue to re-weight portfolio towards higher quality retail For personal use only • Undertake retail developments that: – Create value through development of new centres from existing land bank – Add value through additi
Slide 14: Retail development pipeline set to be reactivated in 2010
Retail development pipeline set to be reactivated in 2010 • Several projects already under construction: For personal use only – 4 projects due for completion by FY12, including Merrylands, Rockhampton and Tooronga – total estimated cost to complete $275m1 • Progress with future projects: – 12 DAs i
Slide 15: Capital Management
For personal use only Capital Management
Slide 16: Strong balance sheet
Strong balance sheet Key Metrics – 1H10 For personal use only S&P rating A- / Stable • Target gearing range 25% - 35% of tangible Gearing (net debt / total tangible assets) 18% assets: Interest cover 4.0 : 1 – Currently below but will progressively move Available undrawn committed facilities $1.1b (
Slide 17: In summary, well placed for FY10 & strong growth opportunities for FY11+
In summary, well placed for FY10 & strong growth opportunities for FY11+ • All businesses enter 2H10 in good shape: For personal use only – Expect record Residential Communities lot sales in FY10 – Retail – low vacancy and modest rental growth – Office and industrial – lease expiries largely de-risk
Slide 18: Stockland contact details and disclaimer of liability
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