Stockland · ASX:SGP
Stockland — Non-Deal Roadshow (September 2010)
28 slides from Stockland's roadshow presentation, Sep 27, 2010
Slide 1: Asian Investor Roadshow
133 Castlereagh Street T 02 9035 2000 Sydney NSW 2000 F 02 8988 2000 www.stockland.com.au 27 September 2010 For personal use only ASX Release ASIAN INVESTOR ROADSHOW The attached presentation will be provided to investors at a roadshow in Asia this week. For media enquiries contact For investor enqu
Slide 2: Asia Roadshow September 2010
For personal use only Settlers Hills, WA Asia Roadshow September 2010 www.stockland.com
Slide 3: Focus on 3-R growth strategy
Focus on 3-R growth strategy Diversified model drives competitive advantage For personal use only Retail Retirement Living Residential Communities Strategy Strategy Strategy Extensive $2.5b retail Increase market share and Grow market share through development pipeline, returns through development o
Slide 4: Delivered solid FY10 performance
Delivered solid FY10 performance Earnings in line with guidance For personal use only • Underlying Profit $692m, EPS 29.1 cents • Residential Communities - record FY10 settlements and record contracts on hand for FY11 • Solid Commercial Property result with marginal comparable NOI growth and stabili
Slide 5: Residential
For personal use only North Lakes, QLD Residential
Slide 6: The threat of more interest rate rises is dampening sentiment
The threat of more interest rate rises is dampening sentiment Private Detached House Approvals1 For personal use only National • Interest rate rises have dampened the positive sentiment generated by 4,000 historically low interest rates and the First Home Owners Boost • Activity declining as afforda
Slide 7: Market fundamentals driven by housing undersupply in Australia
Market fundamentals driven by housing undersupply in Australia For personal use only • Housing undersupply due to population growth: Population growth well above housing starts1 Low rental vacancy levels „000 pa „000 pa 375 500 Marginal increase in average household sizes 450 325 • Household starts
Slide 8: Mortgage debt sustainability, bank mortgage lending is responsible
Mortgage debt sustainability, bank mortgage lending is responsible Sustainable repayments - growth in line with incomes Sustainable debt - buyers are taking on less debt For personal use only Households growth in incomes and repayments1 Average Loan-To-Value ratio2 80% $10,000 (Australia, 1981-2009)
Slide 9: Affordability is a challenge - Product innovation creates opportunities
Affordability is a challenge - Product innovation creates opportunities For personal use only Affordability moving towards top end of benchmark Mortgage repayments as % of household income 1 • Will come under further pressure if variable 50% mortgage rate rises outpace income growth Masterplanned co
Slide 10: Stockland home and land packages versus local market
Stockland home and land packages versus local market Package Median House Mortgage Rental Gap to Home For personal use only & Price1 Price2 Repayments3 Equivalent4 Own vs Rent 3 Bed, 2 Bath Highlands, $343,000 $383pw $346pw +$37pw Craigieburn $299,900 VIC 3 Bed, 2 Bath Glenmore Ridge, $445,125 $480p
Slide 11: Record FY10 Residential Communities sales performance and contracts on hand
Record FY10 Residential Communities sales performance and contracts on hand • Record lot settlements: Residential Communities FY10 FY09 For personal use only Increased volumes in all states Lots settled1 5,236 4,303 22% Lower proportion of superlot settlements as Revenue - Retail $917m $768m 19%
Slide 12: Focus on faster speed to market and improved return on NFE
Focus on faster speed to market and improved return on NFE For personal use only Large and diverse land bank - 65,700 lots; $1.8b net Land bank comprises mostly active projects 1 funds employed (NFE)1 • Provides 90% coverage of revenue targets for next Active projects (live or commencing within 2 yr
Slide 13: Residential Communities - Market leader with strong growth strategy
Residential Communities - Market leader with strong growth strategy Strategy to increase sales by lifting market share For personal use only • Extend market-leading position into new growth Market share in active corridors1 corridors • Disciplined acquisition assessment filters: project Stockland 24
Slide 14: Residential Communities is well placed for further growth in FY11
Residential Communities is well placed for further growth in FY11 Market leader For personal use only • 24% market share in active corridors Enter FY11 with record contracts on hand • Good Upgrader and Investor demand • Strong momentum from first home buyers in Victoria, but likely to taper during F
Slide 15: Retirement Living
For personal use only Gowanbrae, VIC Retirement Living
Slide 16: Good result from Retirement Living and strong platform for growth
Good result from Retirement Living and strong platform for growth For personal use only Good profit performance Retirement Living FY10 FY09 • Operating Profit up 13%, includes AASB 140 Operating Profit1 $36m $32m 13% accounting change1 Cash coverage ratio2 38% 34% 4% • Operating Profit up 20% excl
Slide 17: Retirement Living - Key growth business as the population ages
Retirement Living - Key growth business as the population ages For personal use only Strategy to grow and diversify the village portfolio Growth of >65 year old demographic is an opportunity Population aged 65+ years • Develop new industry-leading villages (m) millions 8 25% • Drive operational effi
Slide 18: Stockland's strategy is to create a national Retirement Living platform
Stockland’s strategy is to create a national Retirement Living platform For personal use only 6 projects under construction in 3 states Development pipeline (% of units) • Approx. 900 units to complete WA 21% • $230m cost to complete ($380m total cost) • Development margin range 15% - 20% QLD 39% (p
Slide 19: Commercial Property
For personal use only Rockhampton, QLD Commercial Property
Slide 20: Commercial property markets are stabilising
Commercial property markets are stabilising For personal use only Rents National retail demand outstrips supply1 • Retail: 24 700 23 Population growth drives retail sales, in turn 600 Supply „000 sqm Population (m) driving tenant demand for new space 500 22 400 21 Consumers spending less, but still
Slide 21: Commercial Property delivered solid performance
Commercial Property delivered solid performance For personal use only • FY10 NOI $534m: Commercial Property Commercial ($m) Operating Property FY10 FY092 Profit ($m) Net operating income: Headline NOI down 1.4% due to reduction in - Retail 266 255 income from non-core assets sales ($177m1 in FY10 an
Slide 22: Commercial Property strategy to re-weight to Retail and enhance asset quality
Commercial Property strategy to re-weight to Retail and enhance asset quality For personal use only • Retail development underpins growth strategy • Strategy to develop larger, higher quality retail assets • Drive returns through internal asset management, leasing and development capability • Recycl
Slide 23: Good progress with Retail development pipeline
Good progress with Retail development pipeline For personal use only Projects completed in FY10 Estimated Estimated % Estimated cost to fully specialty • Balgowlah and Riverton completed total complete leased year one shops cost ($m) ($m) yield leased1 Projects underway Regional2 retail redevelopmen
Slide 24: Capital Management
For personal use only Triniti Business Campus, NSW Capital Management www.stockland.com
Slide 25: Distribution policy simplified
Distribution policy simplified For personal use only Distribution policy • Board policy is to have a high payout ratio reflecting the predictability of earnings, while maintaining some retained earnings to fund growth • Payout ratio changed for FY09 to greater of 80% of AFFO or Trust Taxable Income
Slide 26: Outlook
For personal use only Highlands, VIC Outlook www.stockland.com
Slide 27: In summary, strong growth opportunities in FY11 and beyond
In summary, strong growth opportunities in FY11 and beyond For personal use only All businesses enter FY11 in good shape • Residential Communities - record contracts on hand • Retail - low vacancy and good rental growth • Office and Industrial - lease expiries largely de-risked • Retirement Living -
Slide 28: 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