Stockland · ASX:SGP
Stockland — Investor Day (November 2014)
77 slides from Stockland's investor day presentation, Nov 12, 2014
Slide 1: Stockland Investor Day – Western Australia in Focus
133 Castlereagh Street T 02 9035 2552 Sydney NSW 2000 F 02 8988 2552 www.stockland.com.au 12 November 2014 ASX Release For personal use only Stockland Investor Day – Western Australia in Focus Stockland provides the presentation that will be presented at our Investor Day event today. A webcast recor
Slide 2: Stockland Investor Day – Western Australia in focus
For personal use only Stockland Investor Day– Western Australia in focus 12 November 2014 Sienna Wood, WA
Slide 3: Investor Day Tour Agenda
Investor Day Tour Agenda 2 Time Activity Time Activity For personal use only 9:00am Arrival and registration 1:45pm Retirement Living Presentation Lunch 9:30am Welcome Introduction Speaker: Stephen Bull Speaker: Mark Steinert Anna Learmonth Location: Pan Pacific Hotel Perth Kelly Miller Location: Af
Slide 4: Management Profiles
Management Profiles 3 For personal use only Mark Steinert Tiernan O’Rourke Managing Director and CEO Chief Financial Officer Mark Steinert was appointed as Managing Director and CEO of Stockland in January 2013. Tiernan O'Rourke joined Stockland in October 2013. Tiernan has more than 20 years of He
Slide 5: Management Profiles
Management Profiles 4 For personal use only John Schroder Andrew Whitson Stephen Bull Group Executive and CEO – Commercial Property Group Executive and CEO - Residential Group Executive and CEO – Retirement Living John Schroder joined Stockland in October 2006. Prior Andrew was appointed as Group Ex
Slide 6: Management Profiles
Management Profiles 5 For personal use only Col Dutton Anna Learmonth Kelly Miller General Manager - Residential, WA General Manager Sales – Retirement Living General Manager - Development and Design - Retirement Living Col Dutton is the General Manager Residential for Anna Learmonth was appointed a
Slide 7: Management Profiles
Management Profiles 6 Damian Long Damian Shephard For personal use only Regional Manager Residential – WA Regional Manager Residential – WA Damian started at Stockland as Regional Manager in December 2012, bringing with Damian is Regional Manager within the Stockland WA business, responsible for him
Slide 8: Stockland Attendees
Stockland Attendees 7 Name Business Unit Name Business Unit For personal use only Mark Steinert Managing Director and CEO Anna Learmonth Retirement Living Tiernan O'Rourke Chief Financial Officer Kelly Miller Retirement Living Andrew Whitson Group Executive and CEO Residential Cheryl Petersen Retire
Slide 9: Stockland Investor Day – Western Australia in focus
For personal use only Stockland Investor Day– Western Australia in focus 12 November 2014 Sienna Wood, WA
Slide 10: Agenda
Agenda 2 For personal use only Welcome and Introduction Mark Steinert Strategy Overview Implementing our Strategy Mark Steinert Strategic Asset Mix Strategic Focus Areas Capital Strength Implementing our Strategy Tiernan O’Rourke Capital Partnering Green Bonds Residential Communities Implementing ou
Slide 11: Stockland – Strategy in Focus
For personal use only Artist’s impression Stockland – Strategy in Focus Mark Steinert Affinity, WA
Slide 12: Our strategy for success
Our strategy for success 4 For personal use only Stockland Investor Day November 2014
Slide 13: Implementing our Strategy – case study examples
Implementing our Strategy – case study examples 5 For personal use only Capital Strength Capital Partnering Green bonds Operational Excellence Leader in Sustainability Master Plan Process WA Focus Grow Assets and Customer Base Residential Communities: • Newhaven – success in acquiring consolidation
Slide 14: Creating sustainable, organic growth – WA in focus
Creating sustainable, organic growth – WA in focus 6 Retail Logistics and Office Residential Retirement Living For personal use only Business Parks 50% of SGP portfolio1 13% of SGP portfolio 8% of SGP portfolio 20% of SGP portfolio 9% of SGP portfolio Artist’s impression 22% of WA portfolio 6% of WA
Slide 15: Stockland – Capital Strength in Focus
For personal use only Artist’s impression Stockland – Capital Strength in Focus Tiernan O’Rourke Affinity, WA
Slide 16: Capital Strength
Capital Strength 8 Strong balance sheet remains a priority For personal use only Consistency of debt management Commitment to A- credit rating Debt maintained within 20-30% target gearing1 range over past ten years Allows access to a broad range of debt providers Generally lower borrowing cost
Slide 17: Diverse funding extended with green bond
Diverse funding extended with green bond 9 For personal use only Australia’s first green bond Diverse Debt Sources- Committed Facilities As at November 2014 Sustainability makes good business sense Generates positive returns for security holders and positive customer outcomes Stockland - leade
Slide 18: Operational excellence: Leader in Sustainability
Operational excellence: Leader in Sustainability 10 For personal use only Stockland has been leading in sustainability for over 10 years We currently have the highest number of Green Star rated shopping centres in Australia We require all our shopping centre developments to achieve a minimum of 4 st
Slide 19: Our awards and credentials
Our awards and credentials 11 For personal use only RobecoSAM, Global Real Estate Industry Leader 2013-2014 Industry Leader is awarded to the top performing company within each industry RobecoSAM Sustainability Award, Gold Class 2013-2014 Gold Class is awarded to companies whose score is wit
Slide 20: Stockland Investor Day – Residential Communities WA
For personal use only Stockland Investor Day– Residential Communities WA 12 November 2014 Sienna Wood, WA
Slide 21: Residential - WA
Residential -WA 2 For personal use only Creating Better Places to Live Residential Communities Strategy Andrew Whitson WA market update Col Dutton WA assets Master Planning Process Col Dutton Stockland Investor Day November 2014 Residential Communities
Slide 22: Residential Communities
For personal use only Residential Communities Andrew Whitson Caloundra South – Master Plan overlay Stage 1
Slide 23: Implementing our strategy – residential communities
Implementing our strategy – residential communities 4 For personal use only Key drivers of growth strategy Highlands – Artist’s Impression New launch projects from existing pipeline and work through impaired projects Acquisition of consolidation sites and restocking in target corridors Broaden
Slide 24: The Grove, Victoria Master Plan overlay
For personal use only The Grove, Victoria Master Plan overlay
Slide 25: Residential Communities – State of WA
Artist’s impression For personal use only Residential Communities – State of WA Col Dutton Calleya, WA
Slide 26: WA Economy - Breakdown of Gross State Product Forecasts
WA Economy - Breakdown of Gross State Product Forecasts 7 For personal use only WA Contribution to GSP by Sector 12% 10% Private consumption 8% Private housing investment 6% Private construction investment 4% Private equipment investment 2% Public Sector Net Exports 0% Interstate Trade + Inventory -
Slide 27: WA unemployment remains the lowest of all the states
WA unemployment remains the lowest of all the states 8 For personal use only WA unemployment fairly steady over the year …with Stockland East corridor performing better than the other corridors Unemployment Rate (Trend – Monthly) WA Regional Unemployment Rates 8% 7% 7% 6% VIC QLD 6% AUS NSW 5% 5% WA
Slide 28: WA population growth moderating but remains higher than other states
WA population growth moderating but remains higher than other states 9 For personal use only WA’s population growth has moderated but remains above long …and has the highest growth rate out of all Stockland markets by a term averages large margin WA Population Growth - Annual Annual Population Growt
Slide 29: Established housing market - Perth
Established housing market -Perth 10 Perth established market moderated over the year Perth Days on Market rose in July, but remains below highs reached in For personal use only but prices are still rising1 February2 Capital City House Prices – Rolling Annual Change Days on Market – Perth Houses 50%
Slide 30: Housing affordability steady in Perth
Housing affordability steady in Perth, both consumer and dwelling sentiment are above national averages 11 Housing affordability index, WA1 Time to Buy a Dwelling Index For personal use only 90 180 80 Perth 160 WA Dwelling 70 Index 60 Rest of WA 140 50 120 40 30 100 AUS Dwelling M09 J09 S09 D09 M10
Slide 31: WA housing finance trending flat, private housing approvals moderating
WA housing finance trending flat, private housing approvals moderating from peak 12 For personal use only Owner Occupied Housing Finance (monthly) WA Building Approvals 20,000 2,500 18,000 WA Private Detached Housing Approvals 16,000 2,000 NSW 14,000 VIC 12,000 1,500 10,000 QLD 8,000 1,000 WA WA Pri
Slide 32: WA new house and land sales moderate from peak levels
WA new house and land sales moderate from peak levels 13 New House Sales moderating from peak in April 2014 For personal use only WA New House Sales 2,000 1,500 1,000 500 0 Jan 2010 Apr 2010 Jul 2010 Oct 2010 Jan 2011 Apr 2011 Jul 2011 Oct 2011 Jan 2012 Apr 2012 Jul 2012 Oct 2012 Jan 2013 Apr 2013 J
Slide 33: WA dwelling commencements have improved but do not match population growth
WA dwelling commencements have improved but do not match population growth 14 For personal use only 100,000 90,000 80,000 WA Annualised Dwelling Commencements 70,000 WA Annualised Population growth 60,000 50,000 40,000 30,000 20,000 10,000 0 1984 1985 1987 1988 1989 1990 1992 1993 1994 1995 1997 199
Slide 34: Master Planned Communities
Artist’s impression For personal use only Master Planned Communities Col Dutton Calleya, WA
Slide 35: Key Residential projects – significant scale, located in key population growth areas
Key Residential projects – significant scale, located in key population growth areas 16 For personal use only Perth contributing to national strategy PERTH Well positioned Good geographic spread in fastest growing growth corridors Leading communities: Settlers Hills Community( Baldivis) UDIA
Slide 36: Master Planned Communities – Calleya case study
Master Planned Communities – Calleya case study 17 For personal use only Master Plan purpose – to define next layer of planning, facilitate progressive and orderly development Certainty – to further define development entitlements, allow for flexibility Vision – to provide Stockland’s detailed
Slide 37: Stockland Investor Day – Commercial Property WA
For personal use only Stockland Investor Day– Commercial Property WA 12 November 2014 Sienna Wood, WA
Slide 38: Commercial Property - WA
Commercial Property -WA 2 For personal use only Create market leading or differentiated shopping centres Grow and develop a quality Logistics and Business Parks portfolio Optimise returns in office- tactical allocation Commercial Property Strategy John Schroder WA Development and Leasing activity Ti
Slide 39: Commercial Property
For personal use only Artist’s impression Commercial Property John Schroder Harrisdale, WA
Slide 40: Implementing our Strategy – Commercial Property
Implementing our Strategy – Commercial Property 4 For personal use only Sustainable Growth Leading owner and manager of quality retail properties Hold the leading and /or differentiated shopping centres in our trade areas Continuing successful retail mix with focus on food, convenience and ser
Slide 41: Portfolio evolution - strong growth through active developments
Portfolio evolution - strong growth through active developments and portfolio management 5 For personal use only June 2006 Disposal Acquisitions Capital Expenditure June 2014 Next Wave Book value $0.9b $0.5b $1.9b Book Value 5 major developments underway $3.5b $5.5b Baldivis Point Cook (stage one) H
Slide 42: Commercial Property – Retail Development in WA
For personal use only Artist’s impression Commercial Property – Retail Development in WA Tim Beattie and Tony Tsekouras Harrisdale, WA
Slide 43: WA Commercial Property - Market fundamentals
WA Commercial Property- Market fundamentals 7 Perth Population Growth and Forecasts1 For personal use only (Annual growth) 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 WA Nominal Retail Sales Growth a
Slide 44: Commercial Property – retail assets located in growth corridors
Commercial Property – retail assets located in growth corridors 8 For personal use only Stockland Bull Creek Located 15km south of Perth CBD GLA 16,702m2 Annual Sales $115.5million Specialty MAT PSM $9,472 Stockland Riverton Located 11km south east of Perth CBD GLA 19,794m2 Annual Sale
Slide 45: Commercial Property – Baldivis Case study
For personal use only Artist’s impression Commercial Property – Baldivis Case study Baldivis, WA
Slide 46: It started like this…
It started like this… 10 For personal use only Stockland Investor Day November 2014 Commercial Property
Slide 47: ….and went to this…
….and went to this….. 11 For personal use only 20,000 18,000 Baldivis 16,000 MAT/m2 14,000 Urbis Average MAT/m2 (Single 12,000 Supermarket Centre) 10,000 8,000 6,000 4,000 2,000 0 FY13 FY14 Stockland Investor Day November 2014 Commercial Property
Slide 48: Look at us now…
Look at us now… 12 For personal use only Stockland Investor Day November 2014 Commercial Property
Slide 49: Baldivis trade area and competition
Baldivis trade area and competition 13 For personal use only Stockland Baldivis is located within one Stockland Baldivis: Total Trade Area, August 2013 of the fastest growing suburbs in Australia. Population growth is predicted to continue at over 5% pa through until 2021. Opportunity to provide a
Slide 50: Trade area metrics
Trade area metrics 14 For personal use only Main trade area Population Main trade area Retail floor space retail expenditure in the main trade area household income undersupply estimated at capacity expected to grow estimated to grow from 57,000sqm on completion, from $467M in 2014 to growing to 34,
Slide 51: Dining Precinct
Dining Precinct 15 For personal use only Our aim has been to create a one stop dining precinct catering to the young families in the area and providing a viable alternative to our major competitor, Rockingham City Shopping Centre. Deals completed with: Stockland Investor Day November 2014 Commer
Slide 52: Fashion Precinct
Fashion Precinct 16 For personal use only The other key category to capture the escape spending for the area is fashion and this has been a major focus with the following deals already completed. Stockland Investor Day November 2014 Commercial Property
Slide 53: Leasing Plan – Ground Floor
Leasing Plan – Ground Floor 17 For personal use only Stockland Investor Day November 2014 Commercial Property
Slide 54: Leasing Plan – First Floor
Leasing Plan – First Floor 18 For personal use only Stockland Investor Day November 2014 Commercial Property
Slide 55: Stockland Harrisdale: Why develop here?
Stockland Harrisdale: Why develop here? 19 For personal use only Newhaven Stockland Investor Day November 2014 Commercial Property
Slide 56: Harrisdale opportunity
Harrisdale opportunity 20 For personal use only Plans for a full line supermarket and 30 specialty stores with surrounding land for future growth. An emerging and affluent trade area serviced by a convenience based retail offering 30+ specialty stores Located 20km south of the Perth CBD. Woolwor
Slide 57: Stockland Investor Day – Retirement Living WA
For personal use only Stockland Investor Day– Retirement Living WA 12 November 2014 Sienna Wood, WA
Slide 58: Retirement Living - WA
Retirement Living - WA 2 For personal use only Retirement Living – Leading operator and developer Retirement Living Strategy Stephen Bull Business model and development Anna Learmonth and Kelly Miller Affinity tour Stockland Investor Day November 2014 Retirement Living
Slide 59: Retirement Living – Implementing our Strategy
Artist’s impression For personal use only Retirement Living – Implementing our Strategy Stephen Bull Cardinal Freeman, NSW
Slide 60: Implementing our Strategy – Retirement Living
Implementing our Strategy – Retirement Living 4 For personal use only Growing operating profit Completed developments 800 units to date Across 12 villages Increasing development volumes Now positioning to provide continuum of care Medium term 10 villages Over 1,000 units development pipeline
Slide 61: Retirement Living – Strong demand drivers
Retirement Living – Strong demand drivers 5 For personal use only Compelling demand fundamentals Australian population aged 65+1 Millions of people 2.7% pa CAGR 65+ population expected to more than double in next 6.7 30 years 5.6 4.2 3 2010 2020 2030 2040 Implied demand for units Thousands of units
Slide 62: Competitive landscape in Australia
Competitive landscape in Australia 6 For personal use only The Australian market remains highly fragmented with high levels of competition from not-for-profit players Units Under Management Total Lend Lease Primelife ~10,700 Stockland ~8,200 Aveo (FKP Group) ~6,300 RVG ~3,400 Southern Cross ~3,300 R
Slide 63: Retirement Living – Business Model and Development
Artist’s impression For personal use only Retirement Living – Business Model and Development Anna Learmonth and Kelly Miller Cardinal Freeman, NSW
Slide 64: Our business model: Developing and Managing
Our business model: Developing and Managing 8 For personal use only Developing new retirement villages Managing established retirement villages 1 2 3 4 5 6 7 Choose Acquire Master Build Initial Resident makes ingoing corridors land Plan ‘sale’ contribution and moves in and Resident enjoys design lif
Slide 65: Master Plan and Design
Master Plan and Design 9 For personal use only Master plan and Choose corridors Acquire land Build Initial ‘sale’ design Master planned villages Club House style facilities Beautiful streetscapes Contemporary designed for the community to enjoy at the heart of the village and outdoor space to share
Slide 66: Ongoing Product development – evolution to enhance Retirement Living
Ongoing Product development – evolution to enhance Retirement Living 10 What Why How For personal use only Customers need to preserve capital Reduce land m2 per Home and maintain costs Reduce building size Increase customer pool Increase services provision outside Improve Increase access
Slide 67: Current WA projects
Current WA projects 11 For personal use only Murray River Village (Mandurah) River Parks Village (Wilson) 1990 1997 37 Homes 33 Homes Halls Head Village (Halls Head) River Pines Village (Wilson) 1982 1992 46 Homes 34 Homes Leschenault Village (Bunbury) Affinity Village (Baldivis) 1
Slide 68: Case Study: Affinity Village Project Status
Case Study: Affinity Village Project Status 12 For personal use only $94 million development of 250 homes and clubhouse within the Baldivis Community; Since opening in February 2012, 110 homes have been completed and 136 residents have moved in; Village completion is due early 2018. Stockland
Slide 69: Affinity Village Competitors
Affinity Village Competitors 13 For personal use only Affinity Bethanie Springfields Latitude Vibe Village Waters Retirement Lakelands Village Suburb/ Baldivis Port Kennedy Rockingham Mandurah Baldivis Location Established Developing Established Established Developing Developing or Developing 10 Yea
Slide 70: Disclaimer Of Liability
For personal use only Stockland Corporation Limited Disclaimer Of Liability While every effort is made to provide accurate and complete information, Stockland does not warrant ACN 000 181 733 or represent that the information in this presentation is free from errors or omissions or is suitable for S
Slide 71: Newhaven (WA)
Newhaven (WA) 1 For personal use only Project Description Target Market Product Newhaven is an award winning estate that will ultimately The primary target market comprises Pre-families and Young Newhaven’s two original villages, Heart and Trails, have now comprise around 2,600 homes, educational an
Slide 72: Newhaven (WA)
Newhaven (WA) 2 For personal use only Summary information as at: June 2014 Total project value $657m (incl. Lot 13 acquisition) Total number of lots Approximately 2,600 Primary target market First home buyers, upgraders, down-graders, investors Price point $180,000 - $341,000 Typical product mix 22%
Slide 73: Calleya (WA)
Calleya (WA) 3 For personal use only Project Description Development update Product Calleya is master planned community that will feature quality Development commenced at Calleya at the end Lots are priced in the range of $212,000 - $411,000, with land homes, primary education and child care, conven
Slide 74: Calleya (WA)
Calleya (WA) 4 For personal use only Summary information as at: June 2014 Total project value (total net revenue) $575m Total number of lots Approx. 1,800 Primary target market First and Second Home Buyers & Investors Price point $212,000 - $411,000 (land) Typical product mix 9% <299 sqm, 16% 300-34
Slide 75: Affinity Village
Affinity Village 5 For personal use only Project Description Key Asset Information Village Affinity Village comprises 250 homes and Clubhouse set over 9.6 hectares. The village forms part of the broader Stockland master Homes: 98 of 250 planned community of Settlers Hills Residential Community in Oc
Slide 76: Affinity Village
Affinity Village 6 For personal use only Summary price Development information: Independent Living Units Unit Configuration Price Range for Available Stock 2 2 Bedroom, 1 bath, Single $325,000 - $376,000 Garage/Carport 2+ 2 bed, 2 bath, Double / Tandem $394,000 - $404,000 Garage 3 3 Bed, 2 bath, Dou
Slide 77: Disclaimer Of Liability
For personal use only Stockland Corporation Limited Disclaimer Of Liability While every effort is made to provide accurate and complete information, Stockland does not warrant ACN 000 181 733 or represent that the information in this presentation is free from errors or omissions or is suitable for S