Stockland · ASX:SGP
Stockland — FY2005 Earnings Presentation
82 slides from Stockland's earnings presentation, Aug 10, 2005
Slide 1: FY05 Results Presentation
FY05 Results Presentation 10 August 2005
Slide 2: Agenda
Agenda • Highlights • FY05 Results • Divisional Performance • Finance and Capital Management • Governance and Management • Future Outlook and Strategy 1
Slide 3: Highlights
Highlights • Quality Operating Profit • Driven by strong performance from all Divisions • EPS growth in line with guidance • Strong Balance Sheet with diversity of debt and conservative gearing • Acquisition of Lensworth • Delivery of Unlisted Property Fund strategy • Harnessing diversity of the gro
Slide 4: 2005 Full Year Results
2005 Full Year Results Net Profit 13.5% $517.0m* Earnings per security 5.3% 39.8 cents* Distributions per security 5.1% 38.9 cents NTA per security 7.7% $4.05 Gearing (debt/total tangible assets) 27.5% * Net profit and EPS after income tax and before amortisation of goodwill on acquisition of ADP Tr
Slide 5: Key Achievements in FY05
Key Achievements in FY05 Enhanced Asset and Income Base Investment properties acquired and successfully integrated $172m Development Division acquisitions (including Lensworth) $1,009m Capex on investment properties $197m Unlisted product launched $370m Investment properties identified as non-core a
Slide 6: Revenue and Profit Growth
Revenue and Profit Growth REVENUE NET PROFIT AFTER TAX $m $m 2,000 600 1,762 517* 1,800 1,600 500 456* 1,371 1,400 400 1,200 867 285* 1,000 837 300 250 800 631 198 600 200 400 100 200 0 0 FY01 FY02 FY03 FY04 FY05 FY01 FY02 FY03 FY04 FY05 Full Year 30 June * Net profit after income tax and before amo
Slide 7: Securityholder Returns
Securityholder Returns EPS DPS 45 ¢ ¢ 45 39.8 40 37.8 40 38.9 37.0 35 33.5 35 30.8 32.1 29.2 29.7 30 5.3% 30 28.3 5.1% 12.8% 15.3% 25 8.8% 25 8.1% 5.5% 4.9% 20 20 15 15 10 10 FY01 FY02 FY03 FY04 FY05 FY01 FY02 FY03 FY04 FY05 Full Year 30 June * EPS before amortisation of goodwill on acquisition of A
Slide 8: Stockland's Business Model
Stockland’s Business Model EBIT FY05 Assets FY05 Strategic Strategic Actual Actual Weighting Weighting Property Development 31% 27% Hotel Management 1% <1% Subtotal 32% 20-40% 27% 20-30% Shopping Centres 34% 40% Commercial 25% 22% Industrial & Office Parks 9% 11% Subtotal 68% 60-80% 73% 70-80% 7
Slide 9: Shopping Centres
Shopping Centres 8
Slide 10: Shopping Centres Highlights
Shopping Centres Highlights Divisional operating profit $214.2m / +7.5% Comparable net income growth 4.6%* Revaluations in FY05 $242.3m Portfolio has delivered a total return of 16.4%pa over the past 4 years 3,000 25% 20.6% Asset Value $m 2,500 20% Total Return % 15.4% 16.3% 2,000 14.1% 15% 1,500 10
Slide 11: Shopping Centres Market Commentary
Shopping Centres Market Commentary • Outlook - moderating sales growth • Retail trade will realign towards long term averages supported by: – Continued strength in the labour market – GDP growth – Stable interest rate environment – Fiscal stimulus • Our Portfolio is defensive in nature and is shield
Slide 12: Shopping Centres Leasing & Management
Shopping Centres Leasing & Management • 570 total leasing transactions • 184 renewals, average rental increase 15.2% (on previous rental) No. of renewals % increase over prev. rent 120 25% 100 20% 80 15% 60 10% 40 20 5% - 0% Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 • Vacancy rate 0.3% of GLA • Arre
Slide 13: Shopping Centres Development Pipeline
Shopping Centres Development Pipeline Project Status No. of Total Cost Actual Yield projects ($m) Completed in FY05 3 78.5 8.1% No. of Total Cost Anticipated Project Status projects ($m) Yield Commenced in FY05 6 148.5 9.4% DA Preparation / 15 641.9 8.0% Masterplanning Total 21 790.4 8.0%+ • 4 retai
Slide 14: Shopping Centres Sales
Shopping Centres Sales • Speciality sales $8,817/m_ * • Occupancy cost ratio of 10.0% * Actual Actual % % Comparable $m Growth Growth Supermarkets 1,511 5.1 2.5 DDS 819 6.4 3.3 Specialties 1,423 10.0 6.3 Mini Majors/Cinemas/Other 311 5.5 4.5 TOTAL 4,064 7.0 4.1 13 * Including Commercial Sales
Slide 15: Shopping Centres Key Focus
Shopping Centres Key Focus • Delivery of development pipeline on time and on budget • Focus on maximising investment returns from existing portfolio – High sales productivity – Low occupancy costs • Opportunistic acquisition opportunities 14
Slide 16: Commercial & Industrial
Commercial & Industrial 15
Slide 17: Commercial & Industrial Highlights
Commercial & Industrial Commercial & Industrial Highlights Division operating profit $220.1m Comparable net income growth 3.5%* High portfolio occupancy 99% Revaluation increase at 30 June $37.1m 84,000m_ Optus prelease at Macquarie Park * Excludes impact of acquisitions, disposals and development 1
Slide 18: Commercial Market Commentary
Commercial Commercial Market Commentary SGP SGP Market FY05 Net Supply Under Portfolio Vacancy Vacancy Absorption Construction Jun ‘05 m_ m_ Sydney CBD 42% 5.7% 10.6% 99,030 205,751 North Sydney 14% 7.7% 11.4% 14,154 23,500 Suburban Sydney 10% 1.1% 10.2% 23,151 11,797 Melbourne CBD 9% 0.0% 8.3% 209,
Slide 19: Commercial Highlights
Commercial Commercial Highlights • Comparable net income growth of 2.2%* • 95,000m2 leased/ renewed • Vacancy remains low at 2.9% • Continued repositioning to prime grade assets with 7 properties sold during FY05, $5.8m over book value • Prime assets now 72% of commercial portfolio • Focus on custom
Slide 20: Commercial De-risking Lease Expiry
Commercial De-risking Lease Expiry June 2004 June 2005 Vacant Vacant 2% FY06 FY05 3% 7% 10% FY09+ FY10+ 36% FY06 38% 17% FY07 26% FY07 FY08 FY08 FY09 22% 13% 13% 13% Average lease term 3.8 years Average lease term 4.3 years Excludes properties contracted for sale (367 George St, Sydney) 19 Expiry by
Slide 21: Industrial & Office Park Market Commentary
Industrial & Office Parks Industrial & Office Park Market Commentary SGP Tenant Supply Land Values Rents Yields Portfolio Demand Sydney 52% Melbourne 12% Steady tenant Above Strong land Rent pressure demand. 5 year value growth, driven by average. particularly construction & Western Brisbane 8% Majo
Slide 22: Industrial & Office Park Highlights
Industrial & Office Parks Industrial & Office Park Highlights • Strong comparable net income growth of 7.1%* • 318,000m2 leased/ renewed • Record occupancy with only 255m2 vacant • Two Sydney industrial acquisitions $37m • Four development projects under construction (over $350m) • Commenced Industr
Slide 23: Industrial & Office Parks Development Pipeline
Industrial & Office Parks Development Pipeline Forecast Total Project Target Building Property Commencement Cost ($m) Yield Area (m_) Centre Court (NSW) Under construction 282 7.4% 84,000 Yennora (East/West Land) 60% Under construction 35 8.6% 33,000 Greystanes (NSW) Commenced 39 8.3% 36,000 Sydney
Slide 24: Industrial & Office Parks De-risking Lease Expiry
Industrial & Office Parks De-risking Lease Expiry June 2004 June 2005 Vacant Vacant FY06 2% <1% FY05 10% 15% FY09+ 38% FY10+ FY07 FY06 48% 25% 17% FY08 FY08 FY07 FY09 10% 9% 19% 7% Average lease term 4.1 years Average lease term 4.3 years 23 Expiry by GLA/ pro-rata for Moorebank 25% ownership
Slide 25: Commercial & Industrial Key Focus
Commercial & Industrial Key Focus • Early lease renewal and development strategies for major FY07 commercial expiries • Continue innovation for Stockland Service Centre – web based tenant portal • Seeking further lease pre-commitment for Macquarie Park development projects • Expand the Industrial de
Slide 26: Development Division
Development Division
Slide 27: Development Division Highlights
Development Division Highlights • Operating profit up 25.3% to $197 million • Residential Communities margin 35% (excluding Lensworth) • Successful acquisition and integration of Lensworth • A further 9 acquisitions that will yield 3,600 lots (excluding Lensworth) • Launched 7 new projects to market
Slide 28: Lensworth
Development Division Lensworth Purchased • 17 development projects • 31,600 residential lots @ an average of $24,700/lot (compares to $30,200/lot for SGP’s existing inventory) • 230 hectares of retail, commercial and employment land Status • Formal handover December 2004 – Fully integrated March 200
Slide 29: Development Net Profit Growth
Development Division Net Profit Growth $m 250 $197m 200 $157m 150 25% 100 $94m $63m $48m 67% 50 49% 31% 0 FY01 FY02 FY03 FY04 FY05* 28 * Includes Lensworth from 10 December 2004
Slide 30: Development Results Summary
Development Division Results Summary Stockland Total Total Lensworth Stockland Residential Portfolio Apartments FY05 FY04 Communities FY05 Performance Units / Lots sold No. 2,963 461 265 3,689 3,182 Revenue $m $523m $115m $121m $759m $573m Operating Profit $m $182m $3m $12m $197m $157m Net Margin %
Slide 31: Lots Sold – Residential Communities
Development Division Lots Sold – Residential Communities (excluding Lensworth) FY05 FY04 Movement No. Lots Avg Price No. Lots Avg Price No. Lots Avg Price Sold $(000)* Sold $(000)* Sold $(000) New South 266 $409 460 $319 194 90 Wales Victoria 587 $165 498 $130 89 35 Queensland 1,342 $187 1,149 $170
Slide 32: Development Division Strategy
Development Division Development Division Strategy • Maintain core focus on Residential Community development • Diverse platform of projects and capabilities • Strong pipeline with clear ability to create “value add” opportunities • Create and retain strong Intellectual Property with a low overhead
Slide 33: Consistent Strategy
Development Division Consistent Strategy 30 June 2002 30 June 2005 Apartments Apartments 16% 11% Residential Residential Communities Communities 84% 89% Gross Assets $516 m Gross Assets $2,184 m • Retained focus on Residential Community Development • Enhanced core skills and expertise 32 • Not expos
Slide 34: Diversity – Geographic
Development Division Diversity – Geographic National Queensland WA 4,750 Gold Coast Caloundra 5,710 VIC & SA 13,000 Downs 12,000 QLD 35,550 Brisbane 7,640 Sunshine NSW & ACT Coast 4,755 11,700 North QLD 5,445 Total Units / Lots 65,000 33
Slide 35: Diversity – Product
Development Division Diversity – Product Inventory by Product Type* Rural Courtyard Family Large C&I & Retail Conventional Townhouses Apartments Small Lots *See annexure for definitions 34
Slide 36: Risk Management & Value Add
Development Division Risk Management & Value Add “Stockland Wave” • Unique “Stockland Way” of managing our business • Clearly defined operating platform and process • Focussed training and development programmes to maximise performance • Efficient mix of “in-house” and “external” resources 35
Slide 37: Low Overhead Structure
Development Division Low Overhead Structure • Focus on “in house” core disciplines • Avoid “production” based resources • No internal construction exposure • Strong financial performance per employee: – Employees 295* – Revenue per employee $2.2m – Profit per employee $0.65m 36 * Stockland business
Slide 38: Strong Pipeline Coverage
Development Division Strong Pipeline Coverage • Development land is a scarce commodity • Stockland controls over 65,000 lots • Already control 100% of stock to achieve our next 3 year internal revenue targets • 70% of inventory to be brought to market FY09 onwards • Focus on “adding value” through t
Slide 39: Long Term Market Supply vs Demand
Development Division Long Term Market Supply V’s Demand Consumption of Developable Zoned Residential Land Sydney Supply Melbourne Supply SE QLD Supply Perth Supply 200,000 SYDNEY MELBOURNE SEQLD PERTH (3 - 4) Yrs) (5 - 6 Yrs) (10 - 11 Yrs) (15 - 16 Yrs) 180,000 Developable Zoned Greenfield Land 160,
Slide 40: Australian Residential Market Analysis
Development Division Australian Residential Market Analysis Building Approvals New Home Sales Patterns Original Series, Private Sector, Australia Selected States Market Peak 12,500 300 Index NSW Index VIC Index QLD Index WA 10,000 250 Index: Feb-00 = 100 No. of Dwellings 200 7,500 150 5,000 100 2,50
Slide 41: Queensland Residential Market Outlook
Development Division Queensland Residential Market Outlook Building Approvals EQUIVALENT UPTURN 1994 CYCLE Employment Growth Original Series, Private Sector, QLD QLD vs Australia, Annualised 3600 9.0% 8.0% 3000 7.0% QLD Australia Number of Dwellings 6.0% Annualised Growth 2400 5.0% 1800 4.0% 3.0% 12
Slide 42: NSW Residential Market Outlook
Development Division NSW Residential Market Outlook Building Approvals Population Growth Original Series, Private Sector, NSW NSW vs Australia, Annualised Change 3,500 1.6% 1.4% 3,000 1.2% Annualised Growth 2,500 No. of Dwellings 1.0% 2,000 0.8% 1,500 0.6% 1,000 0.4% 500 Houses 10 Year Average - Hou
Slide 43: VIC Residential Market Outlook
Development Division VIC Residential Market Outlook Building Approvals Purchaser Sentiment Victoria Original Series, Private Sector, VIC 80 4,000 60 3,500 3,000 40 No. of Dwellings 2,500 20 2,000 0 1,500 -20 1,000 Houses 10 Year Average - Houses 500 -40 0 -60 May-95 May-96 May-97 May-98 May-99 May-0
Slide 44: WA Residential Market Outlook
Development Division WA Residential Market Outlook Building Approvals Employment Growth Original Series, Private Sector, WA WA vs Australia, Annualised 2,400 7.0% 6.0% 2,000 WA Australia 5.0% Annualised Growth 1,600 No. of Dwellings 4.0% 1,200 3.0% 800 2.0% 1.0% 400 Houses 10 year average - Houses 0
Slide 45: Strong Contracts on Hand
Development Division Strong Contracts on Hand 30 June 2005 30 June 2004 FY05 v FY04 Units/ Contract Contract Contract Value Units/ Lots Lots Value Value Change Residential 887 $192m 756 $132m 45% Communities Apartments 312 $129m 148 $53m 143% TOTAL 1,199 $321m 904 $185m 73% 44
Slide 46: Key Future Initiatives
Development Division Key Future Initiatives • Repositioning and adding value to the Lensworth portfolio • Increased market share from 17 new projects to be launched in FY06 • Potential Unlisted Residential Development Fund opportunities • Innovative retail marketing campaigns • Build on market leade
Slide 47: Development Division Summary
Development Division Summary • Delivered strong performance in FY05 • Clear business strategy to deliver consistent growth • We understand the market dynamics and have taken these into account in our forecasts • Well positioned to deliver our objectives for FY06 and beyond 46
Slide 48: Unlisted Property Funds
Unlisted Prope tyne ~ =| a Stockland
Slide 49: Core Strategic Objectives
Unlisted Property Funds Core Strategic Objectives • Originate and manage innovative investment funds that deliver on investor expectations • Establish new sources of capital for Stockland • Facilitate asset growth & new opportunities across Stockland • Extend the Stockland brand into new markets • G
Slide 50: Unlisted Property Funds Highlights
Unlisted Property Funds Highlights • Established SFML Board, governance and risk management framework • Successful close of SDOT1 • Completed Saville Private Syndicate • SDOT2 offer launched late July, fully underwritten 49
Slide 51: Unlisted Property Funds Key Focus
Unlisted Property Funds Key Focus • Continue to build on the $370m assets under management post SDOT2 • Complete new product initiatives currently under development – Potential wholesale Residential Development Fund • Manage existing funds for performance 50
Slide 52: Finance and Capital Management
Finance and Capital Management
Slide 53: Capital Management
Capital Management S&P Rating A- 30 June 2005 – Weighted average length of debt 5.2 years – Debt fixed/hedged 63% – Weighted average cost of debt 6.0% * – Gearing (debt/total tangible assets) 27.5% July 2005: US Private Placement US$325m * including all costs, fees & margins 52
Slide 54: Debt Maturity Profile
Capital Management Debt maturity profile (post USPP issue) New weighted average term: 6.7 years Bank Debt 500 US Senior Term Notes 450 Domestic Medium Term Notes 400 350 300 ($m) 250 200 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 53 As at 30 June
Slide 55: Interest Capitalisation
Interest Capitalisation • Interest capitalised in accordance with accounting standard – Qualifying assets – Long Term – Active – Net realisable value above book value – Ceases when property ready for use/sale • Interest incorporated in all – Acquisition assessments – Regular project reviews 54
Slide 56: Interest Capitalisation
Interest Capitalisation • Capitalised interest is expensed via Cost of Sales (COS) – See Annexures for FY05 effect • 70% of residential land is not scheduled for sale within 3 years – Higher due to large acquisition in December 2004 (Lensworth) • Total P&L effect of interest (Borrowing cost + COS) w
Slide 57: AIFRS
AIFRS • No effect on – Business operations – Cash flows – Distributions – Debt covenants • Potential income statement volatility, due to – Revaluation of investment property – Goodwill adjustments – Mark to market of financial instruments that do not qualify for hedge accounting – UIG53 profit recog
Slide 58: AIFRS
AIFRS • “Headline” net profit effect will be volatile – FY05 restatement – significant increase (89%) • Minor effect on restated FY05 underlying operating profit: Reverse UIG53 $ (12.3) m Straightline rental income 3.9 Amortise leasehold fitout incentives (3.4) Other (1.4) (13.2) Effect on income ta
Slide 59: Saville Hotel Group
_' Saville bh Stockland
Slide 60: Saville Hotel Group Highlights
Saville Hotel Group Highlights FY04 FY05 Occupancy 75% 76% Average Room Rate $146 $144 Operating Profit $4.8m $5.3m • Focus on the opening of Saville Southbank, Brisbane in December 2005 • High ROE – funds invested in hotel management business, approximately $20 million 59
Slide 61: Governance & Management
Governance & Management • Smooth transition of Chairman from Peter Daly to Graham Bradley • Continued strengthening of Board – Appointment of Peter Scott • Succession management in place for top 3 levels • High employee engagement • Strong commitment to corporate responsibility and sustainability as
Slide 62: Future Outlook & Strategy
Future Outlook & Strategy • FY06 – Strong momentum carried forward from FY05 – Distribution policy – no disadvantage from AIFRS transition • Goal of market leadership in each of our businesses • Focus on growing UPF capability and platform • Current EBIT mix to continue in line with strategy • Explo
Slide 63: Annexures
Annexures Stockland
Slide 64: Summary of June 2005 Full Year Results
Summary of June 2005 Full Year Results Cents per $m Security Operating profit 517.0 39.8 Capital profits on sale of investment properties 15.4 Unrealised loss on “mark to market” of interest rate hedges (19.8) Amortisation of goodwill on acquisition of ADP (106.9) Reported Statutory Net Profit 405.7
Slide 65: Investment Property & Development Asset Position
Investment Property & Development Asset Position Shopping Commercial & Development Total Centres ($m) Industrial ($m) Division ($m) Group ($m) 1 July 2004 2,758 2,735 1,022 6,515 Capex/Development 155 102 614 871 Acquisitions 123 49 1,009 1,181 Sales (149) (220) (450) (819) Revaluations 243 37 - 280
Slide 66: Total P&L Effect of Interest
Total P&L Effect of Interest Profit and Loss Effect FY05 $m Interest paid 122.7 Interest capitalised: Development assets 81.7 Investment assets 10.8 Total 92.5 Borrowing cost expense 30.2 Capitalised interest expensed via COS 12.9 TOTAL P&L effect 43.1 65
Slide 67: AGAAP FY05 profit restated to AIFRS
AGAAP FY05 profit restated to AIFRS Summary Pro Forma Income Statement Year to 30 June 2005 AIFRS AGAAP FY 05 reconciliation to IFRS FY 05 Note AGAAP Adjustment AIFRS $m $m $m Net operating profit after tax attached 517.0 (8.7) 508.3 EPS Cents 39.8 (0.7) 39.1 Significant items: Revaluation of invest
Slide 68: AGAAP FY05 operating profit restated to AIFRS – adjustments
AGAAP FY05 operating profit restated to AIFRS – adjustments IFRS AGAAP FY 05 reconciliation to IFRS FY 05 Note Adjustments $m IFRS adjustments to net operating profit after tax Category 1 :Timing Reverse UIG 53 (Apartments) 5 (12.3) Reverse UIG 53- Share of equity accounted profits 5 (0.7) Straight
Slide 69: AIFRS – restated June 2005 Balance Sheet
AIFRS – restated 30 June 2005 Balance Sheet Summary Pro Forma Balance Sheet As at 30 June 2005 AGAAP AIFRS ADJUSTMENTS AIFRS Goodwill Goodwill UIG 53 Amortisation Reclassification Other Net amortisation allocation sales own use Adjustments Adjustments change $ millions reversed to disposals reversed
Slide 70: AIFRS Explanatory Notes
AIFRS Explanatory Notes 1 Investment property revaluations under IFRS are required to be taken to profit instead of direct to asset revaluation reserve. 2 Ineffective hedges are required to be taken to profit under IFRS and AGAAP. 3 Goodwill amortisation is prohibited under IFRS and instead goodwill
Slide 71: Shopping Centres – Development Pipeline
Shopping Centres – Development Pipeline Development Anticipated Project Status Cost ($'m) Yield Stage 1 opened Feb'05, Stage 2 opened Apr'05, final completion Bay Village 44.1 > 11.0% by Oct'05 Glendale 19.6 11.7% Completion Dec’05 Burleigh Mktplace 32.3 8.5% Stage 1 opened Mar'05, with final comple
Slide 72: Shopping Centres – Retail Sales
Shopping Centres – Retail Sales Portfolio Summary - Sales Centre Total MAT ($m) Comp Growth (%) Specialties MAT Occupancy Cost (%) ($/m_) Stockland Bay Village 131.2 NA NA NA Stockland Bathurst 116.4 NA 8,816 9.9 Stockland Baulkham Hills 95.7 -1.1 8,071 11.1 Benowa Gardens Shopping 35.3 1.9 7,757 8.
Slide 73: Shopping Centres – Retail Sales
Shopping Centres – Retail Sales Centre Total MAT ($m) Comp Growth (%) Specialties MAT Occupancy Cost (%) ($/m_) Stockland Merrylands 167.2 -0.3 10,507 10.4 Stockland Nowra 118.4 0.8 9,973 9.1 Stockland Parabanks 144.9 0.0 7,694 9.6 Piccadilly, Sydney 17.7 3.9 6,044 19.2 Stockland Rockhampton 209.0 6
Slide 74: Shopping Centres – Retail Sales
Shopping Centres – Retail Sales NZ Portfolio Summary - Sales Centre Total MAT Comp Growth Specialties MAT Occupancy Cost ($m) (%) ($/m_) (%) Lynnmall Shopping Centre (NZ) 213.9 -1.9 (NZ) 9,158 12.0 Botany Town Centre (NZ) 278.3 8.4 (NZ) 8,442 12.8 Manukau Supa Centa N/A N/A N/A N/A TOTAL (NZ) 492.2
Slide 75: Shopping Centres – Retail Projects
Shopping Centres – Retail Projects Retail Projects • Incorporated into Shopping Centre Division during the past 12 months • 10 future projects identified in our current portfolio Projects developed and sold in FY05* Value ($m) Burleigh Homespace 31.3 Rockhampton Homemaker Centre 26.4 ShopSmart Mt Dr
Slide 76: Shopping Centres Revaluations
Shopping Centres Revaluations Revaluation Previous Book Current Valuation Cap Rate Increment/ Value ($m) Valuation ($m) Date % Decrement ($m) INDEPENDENT VALUATIONS Shopping Centres Stockland Baulkham Hills 57.3 69.5 Dec 04 7.25% 12.2 Stockland Batemans Bay 62.5 65.0 Dec 04 7.25% 2.5 Stockland Bathu
Slide 77: Shopping Centres Revaluations
Shopping Centres Revaluations Revaluation Previous Book Current Valuation Cap Rate Increment/ Value ($m) Valuation ($m) Date % Decrement ($m) INDEPENDENT VALUATIONS Shopping Centres (continued) Shellharbour Super Centre 40.0 42.0 Dec 04 7.50% 2.0 Stockland Townsville 160.4 174.5 Dec 04 7.50% 14.1 St
Slide 78: Commercial & Industrial Revaluations
Commercial & Industrial Revaluations Revaluation Previous Book Current Valuation Valuation Cap Rate Increment/ Value $m $m Date % Decrement $m INDEPENDENT REVALUATIONS Industrial Port Adelaide Distribution Park 49.7 51.5 Dec-04 10.75% 1.8 Altona 18.7 24.9 Jun-05 9.50% 6.2 Brooklyn 58.9 70.0 Jun-05 9
Slide 79: Commercial & Industrial Revaluations
Commercial & Industrial Revaluations Previous Current Revaluation Valuation Cap Rate Book Valuation Increment/ Date % Value $m $m Decrement $m INDEPENDENT REVALUATIONS Commercial (continued) Chesser House 24.1 28.0 Jun-05 8.00% 3.9 75 George street 31.3 27.5 Jun-05 8.25% (3.8) 333 Kent Street 32.8 3
Slide 80: Lot Diversity Definitions
Development Division Lot Diversity Definitions (Slide 34) Townhouse <250m_ Small 251 - 400m_ Courtyard 401 - 550m_ Conventional 551 - 650m_ Family 651 - 800m_ Large 801 - 1000m_ Rural 1,000m_+ Commercial, Industrial and Retail Defined as number of equivalent lots Apartments Number of units 79
Slide 81: Fair Value Accounting
Development Division Fair Value Accounting This is below normal margins as most of the Lensworth land sold during the period had been acquired in a condition which was available for sale, or close to that condition. Accordingly, there was little margin between net selling price and purchase price as
Slide 82: Disclaimer
Disclaimer Corporation/ Responsible Entity Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741 16th Floor 157 Liverpool Street SYDNEY NSW 2000 Disclaimer of Liability: While every effort is made to provide accurate and complete information, Stockland does