Stockland · ASX:SGP
Stockland — Investor Day (May 2018)
72 slides from Stockland's investor day presentation, May 10, 2018
Slide 1: Stockland 2018 Investor Day Presentation
10 May 2018 133 Castlereagh Street T 02 9035 2000 Sydney NSW 2000 F 02 8988 2552 For personal use only www.stockland.com STOCKLAND 2018 INVESTOR DAY PRESENTATION Attached is the presentation to be given today at Stockland’s 2018 Investor Day. For media enquiries Larissa Webster Senior Manager The pr
Slide 2: Investor Day: Creating sustainable communities
Investor Day For personal use only May 2018 Creating sustainable communities Cloverton, Vic
Slide 3: Agenda
Agenda For personal use only Creating sustainable communities 05 Reshaping the portfolio 11 Strategic priorities 34 Workshops Asset tour Asset profiles Stockland 2018 Investor Day | Creating sustainable communities 2
Slide 4: Stockland Executive Committee
Stockland Executive Committee For personal use only Mark Steinert Stephen Bull Robyn Elliott Katherine Grace Tiernan O’Rourke CEO and Group Executive and CEO Chief Technology and General Counsel and Company Chief Financial Officer Managing Director Retirement Living Innovation Officer Secretary Darr
Slide 5: Presenters
Presenters For personal use only Tony D’Addona Scott Falvey Amanda Hayes Kirrily Lord Glenn Page General Manager - Logistics, National Development Manager, General Manager - Retail Asset Business Manager & Head of Centre Manager, Wetherill Park Business Parks and Office Logistics & Business Parks Ma
Slide 6: Creating sustainable communities
Creating For personal use only sustainable communities Mark Steinert Bells Reach, Qld
Slide 7: Community creation driving securityholder returns
Community creation driving securityholder returns For personal use only Leveraging our diverse business model GROW ASSET • Create liveable, affordable and sustainable communities RETURNS AND • Develop and manage resilient retail town centres CUSTOMER • Active asset management and portfolio optimisat
Slide 8: Community creation in action
For personal use only Community creation in action
Slide 9: How we create communities
How we create communities For personal use only Hierarchy of Connected Delivering land use drives Liveable amenities early profit Affordable The heart Customer Leading in focussed of our sustainability communities Stockland 2018 Investor Day | Creating sustainable communities 8
Slide 10: Community strategy delivering results
Community strategy delivering results For personal use only Target group outcomes FY13 to now WHAT WE SAID WHAT WE ACHIEVED Reliable profit growth above A-REIT sector 10% pa five year FFO per security CAGR1 Improved returns (ROE of >11% by FY18) 11.4% in FY17 23% gearing as at December 2017, at lowe
Slide 11: Community strategy delivering results: operating outcomes
Community strategy delivering results For personal use only Target operating business outcomes FY13 to now WHAT WE SAID OUR STRATEGY WHAT WE ACHIEVED Increase resilience of Retail rental Be the leader in regional areas and a • 89% of portfolio comprises leading centres base clear point of difference
Slide 12: Reshaping our portfolio
Reshaping For personal use only our portfolio Simon Shakesheff Stockland Point Cook, Melbourne 11
Slide 13: Creating market leading retail town centres
Retail Town Centres For personal use only Creating market leading retail town centres #1 in the Remixing Heart of the trade area portfolio community STOCKLAND GREEN HILLS, NSW STOCKLAND WETHERILL PARK, NSW STOCKLAND HARRISDALE, WA Redeveloping our productive assets, enhancing Evolving our retail mix
Slide 14: Retail Town Centres – Organic value creation
Retail Town Centres – Organic value creation For personal use only Creating resilient centres with significant development and capital expenditure Retail book value transition: Five years to December 2017 ($m) 8,000 Additional sales since December 2017: 7,000 888 • Highlands $43m • Wallsend $81m 6,0
Slide 15: Redeveloping and enhancing the portfolio
Redeveloping and enhancing the portfolio For personal use only A significant proportion of our assets have been redeveloped Development expenditure by project ($m) 1 Proportion of our portfolio recently developed 1600 or in planning2 36 100% Other (<$30m) 1400 Not developed Kensington 1200 Birtinya
Slide 16: Increasing proportion of leading centres
Increasing proportion of leading centres For personal use only How the retail portfolio has been transformed Our Portfolio Portfolio weighting by centre category 1H13 3Q18 Benchmark $8b Occupancy cost Occupancy cost Occupancy cost2 (%) (%) (%) Regional 15.8 16.7 17.7 Sub-Regional 13.8 14.0 14.6 $6b
Slide 17: Retailer mix in our centres continues to evolve
Retailer mix in our centres continues to evolve For personal use only Disruption in fashion, DS & DDS, with growth in services, entertainment, health & food Supermarkets DS & DDS Non-Reporting Services Reporting Retail Services Growth impacted by new store rollout, DS and DDS only ~11% of our portfo
Slide 18: Making our assets more resilient
Retail Town Centres For personal use only Making our assets more resilient – growing food, services, entertainment and health Remixing and redeveloping focused on growth categories 1 Diversified rental income, non-discretionary focus2 Change in gross rent Low reliance on DDS and department store inc
Slide 19: Logistics and Business Parks, Office
Logistics and For personal use only Business Parks Office Macquarie Technology Business Park, Sydney Artist Impression
Slide 20: Logistics & Business Parks: Growth through development
Logistics & Business Parks For personal use only Growth through development Artist Impression Portfolio reshaped Development, 88% Sydney & Reinvesting including Melbourne in our assets higher & better use COOPERS PADDOCK, WARWICK FARM, SYDNEY OAKLEIGH INDUSTRIAL ESTATE, MELBOURNE MACQUARIE TECHNOLOG
Slide 21: Logistics & Business Parks: Portfolio expansion
Logistics & Business Parks For personal use only Portfolio expansion driven by well timed acquisitions and accretive development L&BP book value transition: Five years to December 2017 ($m) 3,000 2,500 2,000 168 (72) 177 2,091 500 1,500 1,318 1,000 31 December 2012 Acquisitions Disposals Dev/Capex R
Slide 22: Material portfolio expansion; Sydney & Melbourne focus
Logistics & Business Parks For personal use only Material portfolio expansion; Sydney & Melbourne focus maintained LBP book value shift ($m) Sydney Majority of portfolio 1H18 Melbourne in Sydney and Brisbane Melbourne Perth 1H13 Other 0 500 1,000 1,500 2,000 2,500 LBP portfolio GLA (m2) 1H18 We have
Slide 23: Growing towards 20% of total assets by unlocking development pipeline
Hendra Distribution Centre, Brisbane Logistics & Business Parks For personal use only Growing towards 20% of total assets by unlocking development pipeline Hendra Upgrading existing middle ring properties • Hendra Distribution Centre: refurbishing entire estate, Oakleigh Industrial Estate, Melbourne
Slide 24: Office: Optimising returns
Office For personal use only Optimising returns 135 KING ST, SYDNEY 77 PACIFIC HIGHWAY, NORTH SYDNEY PICCADILLY COMPLEX, SYDNEY 80% in strongest performing Sydney markets Releasing capital through sale of mature assets Pursuing development opportunities Stockland 2018 Investor Day | Creating sustain
Slide 25: Retirement Living
Retirement For personal use only Living Macarthur Gardens, Sydney
Slide 26: Retirement Living: Leading operator and developer
Retirement Living For personal use only Leading operator and developer Reshaping Active Customer portfolio development focus pipeline CARDINAL FREEMAN, SYDNEY BIRTINYA, SUNSHINE COAST WILLOWDALE, SYDNEY • Renewing and enhancing villages • Future pipeline over 3,000 units • Focus on health and wellbe
Slide 27: Active development driving value and return
Retirement Living For personal use only Active development driving value and return Development units as a proportion of our … lifting average development unit prices portfolio continues to grow and development margins 14000 600 20% 43% increase in 12000 average resale price 500 10000 19.1% 400 19%
Slide 28: Focus on customer choice to broaden reach
Retirement Living For personal use only Focus on customer choice to broaden reach Retirement Living settlement composition 5% 3% 8% Your Community Your Benefits 22% 48% Retire your way Your Financial Your Home 41% Security 73% Your Future Continuum of Care FY17 Established 5 YEAR TARGET New contract
Slide 29: Residential
Residential For personal use only Calleya, Perth
Slide 30: Maximising returns by creating thriving communities
Residential communities For personal use only Maximising returns by creating thriving communities Owner occupier Broadening customer Metro over locations reach 75% HIGHLANDS, VIC ARVE, VIC ALTONA NORTH , VIC Creating vibrant, masterplanned communities, Broadening customer reach in middle ring Acquir
Slide 31: Upweight to the deeper Sydney and Melbourne housing markets
Residential communities For personal use only Upweight to the deeper Sydney and Melbourne housing markets Book value of our Residential portfolio Acquisitions1 since FY13 1H13 1H18 Other 5% SEQ2 Other 12% 7% Perth 6% SEQ2 25% Sydney 40% 37% SEQ2 Perth 14% 79% of acquisitions since FY13 on capital ef
Slide 32: Disciplined investment / acquisition
Disciplined investment / acquisition For personal use only Masterplanned Rail access RL and/or L&BP Metro > 500 lots Capital efficient <2 yrs to market1 MD Retail amenity communities (5km radius) opportunity NSW Altrove Elara Willowdale Vic Edgebrook
Slide 33: Broadening customer reach
Broadening customer reach For personal use only Medium density to grow from our 3,000 dwelling pipeline 600 Medium density settlements Average price per settlement (1H18) $700,000 500 $610,000 $600,000 Profit per settlement 400 $80k3 $500,000 Long-term Profit per target of settlement 300 >15% total
Slide 34: Residential market land price growth
Residential market land price growth For personal use only Growth in land prices underpins our profit margins Price growth in the new land market¹ New South Wales Victoria 45% 35% 3.5% pa 25% growth assumption 15% 5% -5% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 20% Queensland Western Austra
Slide 35: Strategic Priorities
Strategic For personal use only Priorities Mark Steinert Aura, Sunshine Coast
Slide 36: Strategic priorities: Retail and Retirement Living
Strategic priorities For personal use only RETAIL TOWN CENTRES • Increase retail town centre resilience; food, services, entertainment and health focus • Complete $300m divestments Wendouree, Vic Artist Impression • $194m settled or unconditional contracts exchanged in FY18 Hendra, Brisbane Percepti
Slide 37: Strategic priorities: Logistics and Residential
Strategic priorities For personal use only L&BP portfolio FY13 1H18 LOGISTICS & BUSINESS PARKS Percent of SGP portfolio 11.6% 13.6% Target 20% • Grow L&BP towards 20% of our Development under construction portfolio over time and pipeline $125m through to FY19 $760m Community Residential creationunde
Slide 38: Our diversified model: Capital Allocation
Our diversified model For personal use only Capital Allocation Residential Maximise returns by creating better places to live 20-30% 21% Retirement Leading operator and developer 10% 5% 5-10%+ Office Optimise returns 14% 15-25% L&BP Grow and develop a quality portfolio 50% 40-50% Retail Create marke
Slide 39: Our Strategy for Success
Our Strategy for Success For personal use only Stockland 2018 Investor Day | Creating sustainable communities 38
Slide 40: Retail Town Centres
Retail Town For personal use only Centres Amanda Hayes Tony Tsekouras Stockland Burleigh Heads, Qld 1
Slide 41: Repositioning case study: Burleigh Heads Complex
Repositioning case study For personal use only Burleigh Heads Complex, Queensland Repositioning the centre to capture escape spend in the trade area, strong population and income growth, and increasing trade area undersupply Market fundamentals of Increased non-food mini low unemployment, higher maj
Slide 42: Introducing new retailers
Introducing new retailers For personal use only Stockland 2018 Investor Day | Creating sustainable communities W3
Slide 43: Pre and post development
Pre and post development For personal use only Food court conversion to JB HI-FI (June 2017 ) Dick Smith & Amcal to Chempro and Medical Centre (August 2017) Pre development Pre development Post development Pre development Post development Stockland 2018 Investor Day | Creating sustainable communitie
Slide 44: Burleigh Heads Complex
Burleigh Heads Complex 220 6.0 For personal use only Chempro MyHealth Aug17 5.5 JB Hi-Fi Jun17 210 5.0 4.5 200 GYG & Sportsgirl Dec17 Traffic Millions 4.0 Turnover $m Aldi Burleigh opens Apr14 190 Pacific Fair opens outdoor ‘Resort’ 3.5 plus 2-level DJs + international mini majors H&M and Uniqlo 3.0
Slide 45: Retail Town Centres: Optimising the mix
Retail Town Centres: Optimising the mix For personal use only We’ve made progress in remixing our assets to growth categories Enhanced fast casual dining precincts at Shellharbour Stockland 2018 Investor Day | Creating sustainable communities W6
Slide 46: Our solar investment
Our solar For personal use only investment Shellharbour, NSW
Slide 47: Solar roll-out
solar For personal use only Over aStockland roll-out2018 timeInvestor frameDay | Creating sustainable communities 8
Slide 48: Retirement Living
Retirement For personal use only Living Michael Wappett Kirrily Lord Patterson Lakes, Vic
Slide 49: Retirement Living: Transforming the Portfolio
Retirement Living: Transforming the Portfolio For personal use only PATTERSON LAKES, MELBOURNE BIRTINYA, SUNSHINE COAST MERNDA, MELBOURNE WILLOWDALE, SYDNEY Customer Reshape Development & resident Industry portfolio focus • Acquisitions • Creating communities • Maintaining high resident • 8 point pl
Slide 50: Reshaping Our Established Portfolio
Reshaping Our Established Portfolio For personal use only Patterson Lakes (Victoria) Long Island (Victoria) BEFORE BEFORE BEFORE AFTER AFTER AFTER Stockland 2018 Investor Day | Creating sustainable communities W 11
Slide 51: Enhancing Our Customer Experience
Enhancing Our Customer Experience For personal use only Stockland Care Partners and Expos Aspire Age Exclusive Villages Contract Choice New contract options: • Capital Share: offering residents a 50% share in capital gain or loss with Stockland, DMF of 5% pa capped at seven years (35%) • Peace of Mi
Slide 52: Stockland Investor Day: Creating sustainable communities
Stockland For personal use only Investor Day Creating sustainable communities Triniti Business Campus, Sydney Stockland 2018 Investor Day | Creating sustainable communities A1
Slide 53: Tour Agenda
Tour Agenda For personal use only 10:00 Depart Sydney CBD 11:00 Coopers Paddock, Warwick 2 Farm, 200 Governor, Macquarie Drive 3 12:00 Stockland Wetherill Park, Polding Street 4 13:00 Elara Community 1 Elara Boulevard 5 15:15 Macquarie Technology Business Park 11-17 Khartoum Road & 33-39 Talavera Ro
Slide 54: Coopers Paddock
Coopers For personal use only Paddock Coopers Paddock, Warwick Farm Sydney
Slide 55: Introduction
Introduction For personal use only Situated in the heart of South West Sydney, Warwick Farm offers a prime location for a logistics Coopers Paddock comprises over 51,000 square metres of office and and distribution hub, providing ease of access to warehouse accommodation, in an metropolitan Sydney a
Slide 56: Coopers Paddock, Warwick Farm
Coopers Paddock, Warwick Farm For personal use only Stockland 2018 Investor Day | Creating sustainable communities A5
Slide 57: Location
Location For personal use only Distance from key locations Liverpool CBD 4 kilometres M5/M7 Junction 9.5 kilometres Sydney Airport 25 kilometres Port Botany 36 kilometres Parramatta CBD 16 kilometres Coopers Paddock, Warwick Farm is in a central location in South Western Sydney’s industrial precinct
Slide 58: Estate Plan
Estate Plan For personal use only Warehouse 1 Warehouse 3B • Warehouse 5,296sqm • Warehouse 7,991sqm • Office Ground 597sqm • Office & Amenities 230sqm • Office First Floor 693sqm • TOTAL 8,221sqm Warehouse 2 Warehouse 4 • Warehouse 2,831sqm • Warehouse 21,775sqm • Office Ground 199sqm • Office & Am
Slide 59: Stockland Wetherill Park
Stockland For personal use only Wetherill Park Wetherill Park, Sydney Stockland 2018 Investor Day | Creating sustainable communities A8
Slide 60: Wetherill Park Retail Town Centre
Wetherill Park Retail Town Centre For personal use only $228 million redevelopment, completed in September 2016 • Three extensions since 1983 Centre Information • Customer demand for a redevelopment based on fresh food, cafes, restaurants, mini-majors, GLA CAR SPECIALTY MAT MAT SPECIALTY AVERAGE the
Slide 61: Trade Area Demographic
Trade Area Demographic For personal use only Trade Area Map1 POPULATION • Located 35km south west of the Sydney 174,740 • CBD The centre offers a variety of food and in main trade area automotive service pad sites and AVERAGE AGE community facilities • Convenient access to the centre via the T- 37.3
Slide 62: Elara Community
Elara For personal use only Community Elara, Sydney Stockland 2018 Investor Day | Creating sustainable communities A 11
Slide 63: About Elara
About Elara Location Elara will feature tree-lined streets, parks and Elara is located within the over 20 hectares of green open spaces in a suburb of Marsden Park, 50km For personal use only picturesque setting with views to the Blue north west of Sydney CBD and Mountains. Elara will eventually inc
Slide 64: For personal use only
For personal use only Stockland 2018 Investor Day | Creating sustainable communities A 13
Slide 65: Elara summary information
SUMMARY INFORMATION (as at 31 Dec 2017) Marsden Park North recent acquisition In 2017 we announced an agreement to acquire approximately Total project value1 $2,786 million 184 hectares of land in Marsden Park, the heart of Sydney’s For personal use only strong north west growth centre, for $398 mil
Slide 66: Macquarie Technology Business Park
Macquarie For personal use only Technology Business Park Macquarie Technology Business Park, Sydney Stockland 2018 Investor Day | Creating sustainable communities A 15
Slide 67: Macquarie Technology Business Park
Macquarie Technology Business Park For personal use only Asset attributes ASSET INFORMATION (as at December 2017) • Well located: Acquisition Date October 2000 • One kilometre to the Macquarie Shopping Centre Ownership/title 100%/Freehold • Approximately one kilometre to Macquarie University Train s
Slide 68: Site Location
Site Location For personal use only Stockland assets Stockland 2018 Investor Day Creating | Creatingsustainable sustainablecommunities communities A 17
Slide 69: Current Masterplan
Current Masterplan1 For personal use only Site Area 3.003 Ha GFA 60,070sqm • Stage 1 17,750sqm GFA Existing Buildings 2 buildings of office and • Stage 2 12,600sqm GFA warehouse • Stage 3 10,910sqm GFA • Stage 4 18,810sqm GFA 16,217sqm GLA 1. Subject to change Stockland 2018 Investor Day | Creating
Slide 70: Macquarie Technology Business Park artist impression
Artist impression Macquarie Technology Business Park For personal use only Stockland 2018 Investor Day | Creating sustainable communities A 19
Slide 71: Annexure - Stockland quick facts
Annexure - Stockland quick facts For personal use only Trust ~70% of assets Corporation ~30% Retail Logistics & Residential Retirement Office Communities Living Town Centres Business Parks Communities Create market leading Grow and develop a Optimise returns Maximise returns by creating Leading oper
Slide 72: Important Notice
For personal use only Important Notice While every effort is made to provide accurate and complete information, Stockland does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. This presentation contains forward-