Stockland · ASX:SGP
Stockland — Corporate Update (December 2013)
49 slides from Stockland's corporate update, Dec 3, 2013
Slide 1: Investor Update & Sydney Asset Tour – 3 December 2013
Investor Update & Sydney Asset Tour – 3 December 2013 Willowdale, NSW
Slide 2: Contents
Stockland Investor Update 00 Contents 01 Group Update 03 04 Retirement Living 12 02 Commercial Property 05 05 Summary and Outlook 14 03 Residential 09 06 Asset Profiles 17 Stockland Investor Update December 2013 2
Slide 3: Group Update
Group Update 01 Group Update Stockland Investor Update December 2013 3
Slide 4: Key achievements FY14 to date
Group Update 01 Key achievements FY14 to date New management team in place, organisational structure changes completed Our Our purpose vision Reallocated $507m of capital from Trust to Corporation We believe there’s a To be a great better way to live Australian property Successfully divested 1
Slide 5: Commercial Property
Commercial Property 02 Commercial Property Stockland Investor Update December 2013 5
Slide 6: Retail sales growth flat, early signs of improvement
Commercial Property 02 Retail sales growth flat, early signs of improvement Total and comparable MAT growth Australian retail sales were relatively flat in 1Q14; October sales As at 31 October 2013 growth showing some improvement Comparable sales growth moderated by: 5.7% 6.0% Weak consumer se
Slide 7: Executing our Industrial strategy
Commercial Property 02 Executing our Industrial strategy Yatala, Qld Industrial team in place, reviewing pipeline and design and construction opportunities Executed leases on 88,300sqm 1 year to date, representing 9.2% of total lettable area Portfolio WALE1 maintained at 3.3yrs Further 77,20
Slide 8: Implementing tactical approach to our Office exposure
Commercial Property 02 Implementing tactical approach to our Office exposure Executed leases on 22,700sqm 1 year to date, representing Stockland Piccadilly, Sydney 6.7% of total lettable area Portfolio WALE1 increased from 4.6yrs to 4.9yrs Further 17,700 sqm of leases pending execution Dispo
Slide 9: Residential
Residential 03 Residential Stockland Investor Update December 2013 9
Slide 10: Strong quarter for Residential net deposits
Residential 03 Strong quarter for Residential net deposits Residential net deposits The September 2013 quarter produced our strongest net deposit result in three years 1,403 1,438 On track to settle around 5,000 lots in FY14. Settlement 1,378 volumes will be constrained by production timing 1,16
Slide 11: Clear evidence that the housing market is improving
Residential 03 Clear evidence that the housing market is improving Capital city house prices rising1 Established house prices are rising in all capital cities, but 50% market conditions for land sales are variable geographically Rolling Annual Growth(%) 40% 30% Sydney is the strongest market 20%
Slide 12: Retirement Living
Retirement Living 04 Retirement Living Stockland Investor Update December 2013 12
Slide 13: Seeing steady demand in Retirement Living
Retirement Living 04 Seeing steady demand in Retirement Living Retirement Living net reservations Established unit net reservations consistent with prior corresponding period 268 Development unit net reservations lower due to timing of 238 237 supply; expecting similar overall volumes to FY13 21
Slide 14: Summary and Outlook
Summary and Outlook 05 Summary and Outlook Calleya, WA Stockland Investor Update December 2013 14
Slide 15: Summary and Outlook
Summary and Outlook 05 Summary and Outlook Stockland Wetherill Park, NSW A clear executable strategy Remain on track with expectations Continue to forecast FY14 EPS growth of 4 - 6% on FY13 Distribution per security maintained at 24.0c Assumes no material decline in market conditions Exp
Slide 16: Disclaimer of liability
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 represent that the informa
Slide 17: Asset Profiles
Asset Profiles Stockland Investor Update December 2013 17
Slide 18: Contents
Stockland Investor Update 06 Contents 07 Stockland Merrylands 19 09 Willowdale 37 08 Stockland Wetherill Park 22 10 Marsden Park 46 Stockland Investor Update December 2013 18
Slide 19: Stockland Merrylands
Stockland Merrylands 07 Stockland Merrylands Stockland Investor Update December 2013 19
Slide 20: Stockland Merrylands centre map
Stockland Investor Update December 2013 20 Stockland Merrylands. Neil Street Entrance Via P1 M104 Carpark Entry To P2 Pitt Street M101 Multi Deck Car Park Loading Level P2 Dock No.2 Carpark 1 Mall Entry 2 Mall Entry 3 Mall Entry B01 Entry To P1 Vehicle 1008 Access 1031 1051 To B1 1048 /49 1041 6 Tre
Slide 21: Merrylands trade area demographics
Stockland Investor Update December 2013 21 Centre TRADE AREA MAP demographics. Trade area Stockland Merrylands services a main trade area of 117,970 people which is forecast to grow by 1.5 per cent to 127,020 in 2016. The average age is 35 years and 45.1 per cent of residents are born outside of Aus
Slide 22: Stockland Wetherill Park
Stockland Wetherill Park 08 Stockland Wetherill Park Stockland Investor Update December 2013 22
Slide 23: History of Stockland Wetherill Park
Stockland Wetherill Park 08 History of Stockland Wetherill Park 1983 Developed Stockland Wetherill Park 1999 Centre expanded adding around 2010 Identified for redevelopment, 2013 Commenced $222m comprising: two majors; 5,600sqm, supported by council redevelopment 50 specialities and pad including th
Slide 24: Stockland Wetherill Park today
Stockland Wetherill Park 08 Stockland Wetherill Park today A diverse Summary information as at: June 2013 and convenient Acquisition date August 1983 customer offering Ownership title 100% Freehold 130+ specialty stores Cost including additions $116.9 million Located 35km south west of the Sydney
Slide 25: Wetherill Park trade area
Stockland Wetherill Park 08 Wetherill Park trade area Stockland Wetherill Park: Total Trade Area, August 2012 The Secondary West and Tertiary South West sectors encompass parts of the Sydney South West Growth Centre and are forecast to achieve substantial population growth Approximate total trade ar
Slide 26: Trade area metrics
Stockland Wetherill Park 08 Trade area metrics Main trade area Escape expenditure Enclosed retail floor space retail expenditure from main trade area undersupply estimated at capacity expected to estimated at 50,000sqm, growing to grow from $1.7b to $2.3b $600m 54,000 by 2021 And over sqm1 $1.5b fro
Slide 27: Competition in the trade area
Stockland Wetherill Park 08 Competition in the trade area Stockland Wetherill Park: Total Trade Area, August 2012 Currently no single comprehensive retail offer Regional SC exists in the trade area. Sub-regional SC Competitive retail centres in Myer the trade area include three David Jones sub-r
Slide 28: Investment thesis
Stockland Wetherill Park 08 Investment thesis Stockland Wetherill Park outperforms double DDS and regional centres for fresh food, apparel and overall specialty sales. The total centre sales also outperform regional and sub-regional benchmarks Stockland Wetherill Park Double DDS Regional Centre Mark
Slide 29: Key metrics
Stockland Wetherill Park 08 Key metrics On completion (FY16) Artist impression. Est. total incremental cost $222 million Est. valuation ~$640 - $660 million Est. fully leased year 1 yield1 7.25% Est. incremental return2 ~13.5% Est. total return3 ~12% 1. Pre IFRS stabilised incremental yield 2. Unlev
Slide 30: Development overview
Stockland Wetherill Park 08 Development overview Repositioning the centre to capture On completion (FY16) spend leakage, strong population Gross lettable area 70,000sqm and income growth, and increasing Full line supermarkets Coles; Woolworths trade area undersupply Full line DDS Big W; Target 10 (i
Slide 31: Proposed centre floor plan
Stockland Wetherill Park 08 Proposed centre floor plan We will add 15,000sqm, a full line Coles, 70 specialty stores and an expanded and enhanced leisure and entertainment precinct. This will transform the centre into an even more vibrant and thriving community hub. Major Mini major Specialty Food &
Slide 32: Masterplan – Stage one
Stockland Wetherill Park 08 Masterplan – Stage one 40 specialty stores Hoyts refurbished Stockland Investor Update December 2013 32
Slide 33: Masterplan – Stage two
Stockland Wetherill Park 08 Masterplan – Stage two Food court relocated and expanded Stockland Investor Update December 2013 33
Slide 34: Masterplan – Stage three
Stockland Wetherill Park 08 Masterplan – Stage three Coles added and mini major tenants in existing centre Stockland Investor Update December 2013 34
Slide 35: Sustainability at the centre
Stockland Wetherill Park 08 Sustainability at the centre Ongoing Targeting 5 Star Green Star ‘design’ and ‘as built’ Incorporation of mixed mode ventilation to minimise energy community environmental ratings consumption in malls and external tenancies stakeholder engagement and collaboration in the
Slide 36: Leasing Strategy: Wetherill Park
Stockland Wetherill Park 01 08 Leasing Strategy: Wetherill Park Brands Brands agreed targeted Stockland Investor Update December 2013 36
Slide 37: Willowdale
Willowdale 09 Willowdale Stockland Investor Update December 2013 37
Slide 38: Willowdale timeline
Willowdale 09 Willowdale timeline Mar Jul Sep 2011 Acquired Leppington 2013 Rezoning 2013 commenced 2013 Camden 2H14 First Construction Valley Way gazettal opened settlements Jul Aug Dec 2011 Precinct released Plan 2013 Leppington ‘Willowdale’ named 2013 First sales release: ‘Sell-out’ 2013 240 lots
Slide 39: Willowdale overview
Willowdale 09 Willowdale overview Creating a community Public Transport and Roads 5 mins to future Leppington train station 14 mins to Glenfield train station 16 mins to Liverpool train station 10 mins to M7 Motorway 3,000+ lot community 15 mins to Liverpool 30 lot Display Village (Opening 2014) 20
Slide 40: Willowdale competitive advantage
Willowdale 09 Willowdale competitive advantage Located at the Willowdale aerial beginning of the southwest Growth Centre Proximity to future Leppington station and established markets of Liverpool and Fairfield Connectivity to Sydney orbital network of M5 and M7 motorways Extensive proposed op
Slide 41: Buyer Profile at Willowdale
Willowdale 09 Buyer Profile at Willowdale 240 lots sold since launch in August 2013 What our buyers are saying 4 releases ‘They are going to have a shopping centre there, I also like where the sold out within the first day project is located, we can go down towards the M5 and M7’ Over 2000 leads ‘Ju
Slide 42: Pricing and product at Willowdale
Willowdale 09 Pricing and product at Willowdale Example product Lot sizes ranging from 255sqm to 600sqm Land currently from $220,000 House and land from $429,000 30 Lot Display Village opening Spring 2014 Tier 1 Builders Partners participating Variety of housing options Housing Code compliant
Slide 43: Competitor landscape
Willowdale 09 Competitor landscape Competitor map Competitor pricing 375sqm lot 450sqm lot Willowdale $261,000 $302,000 Stockland Gregory Hills $237,000 $265,000 Dartwest Oran Park Greenfields / Urban $240,000 $275,000 Growth Edmondson Park $280,000 $310,000 Urban Growth The Hermitage $235,000 $265,
Slide 44: Transport and connectivity
Willowdale 09 Transport and connectivity Well connected and integrated with established amenity Walking distance to future Leppington train station and Leppington town centre Leppington train station South West Rail Link (opening 2015) will have 800 car spaces available is currently $100m below
Slide 45: Press on Willowdale
Willowdale 09 Press on Willowdale Stockland Investor Update December 2013 45
Slide 46: Marsden Park overview
Marsden Park 10 Marsden Park overview Marsden Park residential community will comprise over 2,200 residential lots, schools, a neighbourhood centre, a retirement village, multiple playgrounds, sports fields and green open spaces 2011 Acquired Marsden Park 3Q14 Construction commence to settlements 2H
Slide 47: Marsden Park location map
Marsden Park 10 Marsden Park location map [aerial] Located in the Blacktown Local Government Area Serviced by Richmond Road Minutes to the recently upgraded Schofields Train Station 30-minute commute from the major employment precincts of Norwest Business Park, Macquarie Park and the Parrama
Slide 48: Marsden Park location map
Marsden Park 10 Marsden Park location map In 2011, Stockland [corridor map] purchased two large parcels in Sydney’s growth areas, Willowdale (3,000 lots) and Marsden Park (2,245 lots). These were Stockland’s first residential land acquisitions in Sydney Metro since 2004 Stockland and Winten Property
Slide 49: Disclaimer of liability
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 represent that the informa