Stockland · ASX:SGP
Stockland — Investor Day (April 2023)
30 slides from Stockland's investor day presentation, Apr 27, 2023
Slide 1: Land Lease Communities Investor Update
Land Lease Communities Investor Update 27 April 2023 Artist impression, Stockland Halcyon Promenade, QLD
Slide 2: Agenda
Agenda Our Land Lease Communities Andrew Whitson (LLC) business and strategy CEO, Communities Structural drivers Richard Rhydderch Executive General Manager, Land Lease Communities Differentiated platform Richard Rhydderch Executive General Manager, Land Lease Communities Scaling and broadening Rich
Slide 3: Acknowledgement of Traditional Custodians
Stockland acknowledges the Traditional Custodians and knowledge-holders of the land on which we live, work and play and pay our respects to their Elders past, present and emerging. We acknowledge and thank all Aboriginal and Torres Strait Islander People for enriching our nation with their historica
Slide 4: Land Lease Communities (LLC) business and strategy
Land Lease Communities (LLC) business and strategy Andrew Whitson Stockland Halcyon Nirimba, QLD
Slide 5: Group strategic priorities
Group strategic priorities LLC is a key part of our Group strategy Reshape portfolio Accelerate pipeline Scale partnerships Sustainable growth • Redeployed capital from Retirement • ~$5.2bn development pipeline end • Established high-quality capital • Delivering on our purpose “a better way Living i
Slide 6: Positioned to be a key growth driver for Stockland
Positioned to be a key growth driver for Stockland Secured pipeline expected to drive rapid growth Incremental growth opportunities No. of homesites Positioned for sector leadership • 14 longer-dated LLC development sites already identified on Stockland’s existing landbank Rapid growth over the near
Slide 7: Attractive development margins and high quality recurring income
Attractive development margins and high quality recurring income Generic Return Profile from an LLC community Attractive returns 0.08 ✓ Development operating profit ~22-27% 12 margins1 Planning Development Stable and Growing Rental Income Stream 0.06 ✓ High quality recurring income ~4-5% stabilised
Slide 8: LLC platform strategy
LLC platform strategy How we deliver on our growth ambitions 1 Taking advantage of structural drivers 2 How we deliver: MPC synergies and dual-delivery model 3 Scaling and broadening platform reach 8 Land Lease Communities Investor Update Artist impression, Stockland Halcyon Greens, QLD
Slide 9: Structural drivers
Structural drivers Richard Rhydderch Stockland Halcyon Nirimba, QLD
Slide 10: Structural drivers
Structural drivers Growing demographic with lifestyle aspirations • Australia has a rapidly ageing population Australia’s population over 50 (1980-2065)1 Population over 50 (LHS) Proportion of Population over 50 (RHS) • Age cohort of 50+ is growing at a significantly faster rate than the broader pop
Slide 11: Addressing customers' wants and needs
Addressing customers’ wants and needs Delivering a compelling functional and emotional value proposition Functional values drive consideration of LLC Emotional values drive selection of LLC Key benefits addressing customer needs for the next stage in life Key benefits addressing customer aspirations
Slide 12: Attractive business model
Attractive business model Strong financial value proposition for operators and home owners Home Owners Land Lease Operator ✓ Strong value proposition due to relative affordability Development Phase ✓ Resilient demand underpinned by equity and lifestyle purchasers ✓ Maintains home ownership while rel
Slide 13: How we deliver
How we deliver Richard Rhydderch Artist impression, Stockland Halcyon Glades, QLD
Slide 14: Leveraging MPC competitive strengths
Leveraging MPC competitive strengths Leading MPC business provides differentiated capabilities • Strong synergies between our MPC and LLC platform across the lifecycle of an LLC community – from origination and development phases to stabilised asset operations • The breadth of our platform provides
Slide 15: Dual-delivery model provides flexibility and scalability
Dual-delivery model provides flexibility and scalability Leveraging builder partners and in-house construction capability Builder partners In-house construction in South East Queensland • MPC business provides us with strength and depth of relationships with builder partners • Market-leading interna
Slide 16: Deep customer insights underpin our delivery process
Deep customer insights underpin our delivery process Scale provides deep understanding of customer segments, journey and experience LLC sector value proposition Emotional value drivers Safety & Security Freedom Consider LLC Accessibility Functional value drivers Legacy Ease & Effort Achievement Func
Slide 17: Capabilities drive operational outperformance
Capabilities drive operational outperformance Leveraging integrated platform, scale and customer insights to drive superior operating metrics Current home value of ~300 6-8 per month 10-15% typical purchaser +67% premium larger 4.5 per Median House Price ~180 month 5-15% discount Sector Average Stoc
Slide 18: Scaling the platform
Scaling the platform Richard Rhydderch Stockland B by Halcyon, QLD
Slide 19: Scaling and broadening platform reach
Scaling and broadening platform reach Accelerating development and expanding the LLC business • Seven new communities expected to launch by the end of FY241 2 5 13 - More than doubling the number of active communities to 13 new LLC Communities Development approvals Expected active trading communitie
Slide 20: Case Study – Stockland Halcyon Berwick, VIC
Case Study – Stockland Halcyon Berwick, VIC LLC community within larger MPC community Attractive location ✓ • Stockland’s first LLC community in VIC, situated within Stockland Minta (MPC, ~1,600 lots) • 48 kilometres south-east of Melbourne CBD with proximity to Princes Freeway • Within a nature res
Slide 21: Case Study – Stockland Halcyon Horizon 1, VIC
Case Study – Stockland Halcyon Horizon1, VIC New community expected to launch in 4Q23 Attractive location ✓ • 15 kilometres from Geelong CBD, close proximity to the Surf Coast, Torquay Beach, and multiple leisure locations Masterplanning advantage ✓ • Ability to leverage existing relationships with
Slide 22: Our LLC platform strategy
Our LLC platform strategy How we deliver on our growth ambitions Stockland Halcyon Lakeside, QLD Artist impression, Stockland Halcyon Horizon, VIC Stockland Halcyon Nirimba, QLD Structural Structural tailwinds tailwinds Differentiated platform Differentiated platform Scaling rapidly Scaling rapidly
Slide 23: Summary
Summary Andrew Whitson Artist impression, Stockland Halcyon Lakeside, QLD
Slide 24: Our LLC business
Our LLC business Delivering on Group strategic priorities 1 LLC business performing strongly and demonstrating the value of the integrated Stockland platform Platform now positioned for significant growth via 2 realisation of organic pipeline and exploration of inorganic opportunities LLC execution
Slide 25: Annexure
Annexure Land Lease Communities Investor Update Artist impression, Stockland Halcyon Promenade, QLD
Slide 26: Land Lease Communities business model
Land Lease Communities business model Home Owners Planning and Land Lease Operator Development Phase • Acquires land, undertakes planning, design and • Buys and owns the relocatable home Development development • Responsible for maintenance of the home Return • Sells new relocatable housing to a hom
Slide 27: Structural drivers
Structural drivers LLC penetration rate vs established Retirement Village (RV) penetration rate Household composition for 50+ age cohort Majority are empty nesters or 3.0% lone person households with 2.8% 2.8% 2.8% 2.7% 2.7% 2.7% increasing demand for social connectivity and amenity 40% 2.5% 35% 2.0
Slide 28: Well located portfolio and pipeline
Well located portfolio and pipeline New South Wales Queensland Total NSW QLD 20 19 Total communities 33 3 18 9/6 1 13 4 Established 6 - 6 In Development 6 - 5 8 16 In Planning 21 3 7 14 ~9,200 total sites 21 18 2 17 12 11 ~2,000 5/7 3 occupied sites 28 Land Lease Communities Investor Update
Slide 29: Well located portfolio and pipeline
Well located portfolio and pipeline Victoria Western Australia Total VIC WA Total communities 33 7 5 24 26 Established 6 - - 30 33 31 In Development 6 1 - In Planning 21 5 5 22 29 27 25 28 32 23 29 Land Lease Communities Investor Update
Slide 30: Important Notice
Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741; AFSL 241190 As a responsible entity for Stockland Trust ARSN 092 897 348 Important Notice This Presentation and its accompanying Annexures (“Presentation”) has been prepared and issued by Stockland Corp