Slide 1: Stockland half year profit up 12%
© Stockland 30 January 2003 : Level 16 157 Liverpool Street SYDNEY NSW 2000 www. stockland.com.au Tel: 02 9321 1500 Fax: 02 9321 1599 STOCKLAND HALF YEAR PROFIT UP 12% Stockland has achieved a 12% increase in net profit to $135.7 million for the half year ended 31 December 2002. This compares with t
Slide 2: Press release (continued)
© Stockland * commencement of the $45 million development of the Batemans Bay sub regional shopping centre due for completion in April 2004 * masterplanning for the redevelopment of Totem Shopping Centre, Balgowlah, due for completion in 2005 including an $80 million new shopping centre and over 200
Slide 3: Appendix 4B
Appendix 4B Half yearly/preliminary final report Appendix 4B Half yearly report Introduced 3076/2002. Name of entity Rules 4.1, 4.3 Property Management Limited) (ACN 001 900 741) Stockland Trust Group comprising Stockland Corporation Limited (ACN 000 181 733) and Stockland [Trust (ARSN 092 897 348),
Slide 4: Condensed consolidated statement of financial performance
Appendix 4B Half yearly/preliminary final report Condensed consolidated statement of financial performance Current period - Previous corresponding $A'000 period - $A'000 inl Revenues from ordinary activities (see items 1.23 388,151 396,479 -1.25) 1.2 Expenses from ordinary activities (see items 1.26
Slide 5: Notes to statement of financial performance
Appendix 4B Half yearly/preliminary final report Notes to the condensed consolidated statement of financial performance Profit (loss) from ordinary activities attributable to members Current period —- | Previous $A'000 corresponding period - $A‘000 1.20 Profit (loss} from ordinary activities after t
Slide 6: Appendix 4B
Appendix 4B Half yearly/preliminary final report 1.29 Outlays capitalised in intangibles (unless arising from an ‘acquisition of a business) Consolidated retained profits Current period - Previous corresponding $A‘000 period - $A'000 1.30 Retained profits (accumulated losses) at the 64,873 57,179 be
Slide 7: Appendix 4B
Appendix 4B Half yearly/preliminary final report Comparison of half year profits Carrent year - $A'000 | Previous year - $A‘000 (Preliminary final report only} 3.1 : ~ . ° Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the /st half year (item 1.22
Slide 8: Condensed consolidated statement of financial position
Appendix 4B Half yearly/preliminary final report Condensed consolidated statement o At end of | As shown in last | As in last half : tgs current period | annual report yearly report financial position $7000 | $4'000 $A‘000 Current assets 4) Cash 24,505 34,567 38,082 42 Receivables 19,014 16,236 24,0
Slide 9: Statement of financial position continued
Appendix 4B Half yearly/preliminary final report Condensed consolidated statement of financial position continued 4.32 Total liabilities 1,026,952 684,465 830,136 4.33 Net assets 2,668,483 2,642,682 2,557,946 Equity 434 — Capital/contributed equity 2,253,493 2,242,400 2,174,348 435 Reserves 344,544
Slide 10: Statement of cash flows
Appendix 4B Half yearly/preliminary final report 63 Expenditure transferred from exploration and evaluation 64 — Expenditure written off during current period 6.5 Acquisitions, disposals, revaluation increments, etc. 66 — Expenditure transferred to mine properties 6.7 Closing balance as shown in the
Slide 11: Cash reconciliation
Appendix 4B Half yearly/preliminary final report Cash at beginning of period (see Reconciliation of cash) Exchange rate adjustments to item 7.25. Cash at end of period (see Reconciliation of cash) Non-cash financing and investing activities Details of financing and investing transactions which have
Slide 12: Earnings per security
Appendix 4B Half yearly/preliminary final report Earnings per security (EPS) 10. Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share are as follows. Current period $°000 Previous corresponding Earnings Reconciliation Period $°00
Slide 13: Control gained or lost over entities
Appendix 4B Half yearly/preliminary final report Control gained over entities having material effect 13.1 Name of entity (or group of entities) 13.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or $ group of entities} since the date
Slide 14: Dividends
Appendix 4B Half yearly/preliminary final report al io ‘Record date to determine entitlements to the dividend | 31 December 2002 (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if *securities are not ‘CHESS approved, or security holding balances established by
Slide 15: Dividend reinvestment and associates
Appendix 4B Half yearly/preliminary final report There is no dividend/distribution reinvestment plan in operation for this payment. The last date(s) for receipt of election notices for the *dividend or distribution plans Any other disclosures in relation to dividends (distributions). (For half yearl
Slide 16: Associates and joint venture entities
Appendix 4B Half yearly/preliminary final report Name of entity Percentage of ownership Contribution to net profit (loss) (item interest held at end of period or | /.9) date of disposal Current Previous Current period Previous V7.1 Eqaily a ccounted period corresponding | $A’000 corresponding | peri
Slide 17: Issued and quoted securities
Appendix 4B Half yearly/preliminary final report Issued and quoted securities at end of current period (Description must include rate of interest and any redemption or conversion rights together with prices and dates) Issue Amount Total number Number quoted price per | paid up security per (see note
Slide 18: Securities and segment reporting
Appendix 4B Half yearly/preliminary final report 18.13 Unsecured notes (description) 18.14 Changes during current period (a) Increases through issues (6) Decreases through securities matured, converted Segment reporting (Information on the business and geographical segments of the entity must be rep
Slide 19: Directors' comments and franking credits
Appendix 4B Half yearly/preliminary final report 19.4 Franking credits available and prospects for paying fully or partly franked dividends for at least the next year. Franking credits available or which will arise on the payment of income tax provided for in the financial statements, and after dedu
Slide 20: Additional disclosure for trusts
Appendix 4B Half yearly/preliminary final report Additional disclosure for trusts 20.1 Number of units held by the management | Nil. company or responsible entity or their related parties. 20.2 A statement of the fees and commissions | $1,510,565 responsible entity fees have been paid payable to the
Slide 21: Audit status and notes
Appendix 4B Half yearly/preliminary final report > Oo The “accounts have been oO The “accounts have been audited. subject to review. Vv The “accounts are in the The “accounts have wot yet process of being audited or been audited or reviewed. subject to review. If the audit report or review by the au
Slide 22: Notes
Appendix 4B Half yearly/preliminary final report 10. Item 1.6 This item refers to the total tax attributable to the amount shown in item 1.5. Tax includes income tax and capital gains tax (if any) but excludes taxes treated as expenses from ordinary activities (eg, fringe benefits tax). Income tax I
Slide 23: Notes
Appendix 4B Half yearly/preliminary final report Il. 12. 13. 14. oo vi) 16 the latest annual or half year report as appropriate. However, if an adjustment has been made in accordance with an accounting standard or other reason or if there is a lack of comparability, a note explaining the position sh
Slide 24: Notes
Appendix 4B Half yearly/preliminary final report 18. Discontinuing operations Half yearly report All entities must provide the information required in paragraph 12 for half years beginning on or after | July 2001. Preliminary final report Entities must either provide a description of any significant
Slide 25: Annexure A: Segment reporting
ANNEXURE A STOCKLAND TRUST GROUP SEGMENT REPORTING Business segments Property Development Property Investment Hotel Management Other Industries Eliminations Consolidated and Management and Finance 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 #039;000 $000 $000 #039;000 000 000 #039;000 000 s'0
Slide 26: Annexure B: Distributions/dividends
ANNEXURE B STOCKLAND TRUST GROUP HALF YEARLY STATEMENT AND DISTRIBUTION/DIVIDEND ANNOUNCEMENT DISTRIBUTIONS/DIVIDENDS Ordinary {b) Interim distribution/dividend Trust Distribution Corporation Dividend New (SGPAI) Trust Distribution Corporation Dividend Trust Distribution Corporation Dividend 2002 13
Slide 27: Stockland
© Stockland
Slide 28: Highlights
2 Wy es Highlights Group Financial Performance Management Summary of Group Assets Review of Performance - Shopping Centres - Commercial - Industrial - Office Parks - Development Division - Hotel Management Capital Management The Future Detailed Financial Statements
Slide 29: Stockland
© Stockland
Slide 30: Strong financial performance
= Strong financial performance — Profit growth — Increase in shareholder returns — Strong Balance Sheet * Shopping Centres — Acquisition of several centres — Solid leasing performance — Redevelopment projects progressing well = Commercial & Industrial — Strong leasing/ renewal performance Continued
Slide 31: Development Division highlights
IG =» Development Division — Strong growth in profits from Residential Estates business — Acquisition of a further eight Residential Estate projects — Apartment projects progressing on target — Growth of Retail Projects business into consistent profit stream = Management — Continued strengthening of
Slide 32: Group financial performance
yy ee iG © Stockland
Slide 33: Substantial profit growth
_ GROUP FINANCIAL PERF Substantial profit growth ... Revenue Net Profit $m $m $135.7m 400 - $388.2m 4AD - 350 - 420 300 400 250 80 200 - 60 | 450 400 46 6O 20 0 0 4999 2000 2001* 2002 1999 2000 2004 2002 Half Year Ended 31 December * Revenue in Dec 01 half year included $13m of investment property a
Slide 34: Strong growth in shareholder returns
_ GROUP FINANCIAL PERF Strong growth in shareholder returns ... 31 Dec 02 31 Dec 01 % Half Year Half Year Growt Earnings per security 16.3c 15.2c +7.2% Distribution/ Dividend 15.6c 44.5c +7.6% per security Distribution/ Dividend per security grossed up 16.7¢c 15.3¢ +9.2% for franking credits
Slide 35: Consistent growth in EPS/U and DPS/U
Consistent growth in EPS/U and DPS/U ... ¢ ¢ 48 48 w 16.3 7 18. 16 48.2 18 56 45 14.6 72% 18 a9 145 7 6m 44 123.6 t 44 - 43 4.4% yg. 128 4.3% f 2 7.4% t 42 7.8% t 41 t 4 t 40 40 1999 2000 2004 2002 4999 2000 2004 2002 Half Year Ended 31 December
Slide 36: Low proportion of profits from Corporation
_ GROUP FINANCIAL PERFORMANC Low proportion of profits from Corporation provides opportunity for further growth in the Development Division without impacting on quality of earnings ... 31 Dec 02 EPS/U % of Total Trust 13.2c 81 Corporation 3.1¢ 19 Total 16.3c 100% 10
Slide 37: Low gearing
_ GROUP FINANCIAL PERF Low gearing provides substantial source of funding for acquisitions and development ... Gearing (Debt*/ Total Assets) 30% 25% 24% 20% 18% 16% 8, 15% 42% 416% 5% O% 4999 2000 2001 2062 31 December * Debt less cash on deposit 11
Slide 38: Management
© Stockland
Slide 39: Strong corporate governance
Strong corporate governance with a majority of independent Non-Executive Directors Significant strengthening of management team over last two years — key senior positions now complete Flat reporting structure with clear bottom line accountability for senior executives Continued focus on adding value
Slide 40: Management structure
by buddy Non Executive Directors Peter Daly Chairman Nick Greiner Deputy Chairman Bruce Corlett Director David Fairfull Director Barry Thornton Director CEO CEO CEO CEO Shopping Comm & Development Hotels Centres industrial Division Finance General Manager Group Manager Director Research & Human Anal
Slide 41: Summary of group assets
© Stockland
Slide 42: Asset diversification
OR OE ORE Asset Diversification 31 Dec 02 31 Dec 01 15% 3% 33% 1% 14% 13% 31% 35% @ Industrial/ Office Parks Hotels Development Division — Shopping Centres By Book Value . ti: Coramercial 16
Slide 43: Geographic diversification
i ea: Geographic Diversification 31 Dec 02 31 Dec 01 41% 3% 4% 10% e 61% 62% VIC B NSW SA w@ QLD mw NT WA By Book Value 17
Slide 44: Review of performance
pote © Stockland
Slide 45: Shopping centres
© Stockland
Slide 46: Shopping centres revenue and EBIT
Revenue EBIT $m $m 480 > 420 $413.0m $153.4m 1605 400 140 - 420 50 OO | 60 60 - 40 so | i 20 0 1 6 4999 2000 2001* 2002 1999 2000 2004 2002 Half Year Ended 31 December * Revenue in Dec 2001 half year included $13m of asset sales 20
Slide 47: Property revaluations
ROPERTIES Increase (Decrease) from Book Value Cap Rate Valuation $m Property % $m Townsville Shopping Centre, Qid 8.25 150.0 2.3 Greenhills Shopping Centre, NSW 8.00 120.0 8.9 504 Pacific H’way, St Leonards 9.75 32.0 4.0 37-49 Pitt St, Sydney 8.25 48.0 0.5 Cox & Drakeford, Canberra 10.50 14.0 1.1 Al
Slide 48: Shopping centres
oi, © Stockland
Slide 49: Market Commentary
o ie os Market Commentary = Strong sales growth in 2002, but signs of a slowdown in rate of growth in 2003 » MAT growth from sub regionals is higher than regionals as the shift by consumers to convenience and value continues = Retailers continue to be attracted to sub regional centres due to lower o
Slide 50: Stockland Highlights
ie @ 2 @ a oss Stoc kland Highlights » Management team continues to add value through acquisitions, development and leasing * Portfolio continues to perform well with comparable net income growth of 4.3% for the December 2002 half year » High occupancy levels with vacancy rate remaining below 1% » A
Slide 51: Acquisitions
n E i) o © os Acquisitions « Strategy remains focused on acquiring sub regional, district and specialty centres with expansion potential * Two new centres acquired - Cleveland ($59.8m) and Glenrose ($36.7m) with combined GLA of 48,000m2 » New assets provide exposure to catchments with strong demogra
Slide 52: Development
evelopment = Green Hills — Trading above expectations — Valued at $120m against a cost of $111.41m = Wetherill Park Stage 3 — On track for completion in April 2003 — Leasing completed and net income ahead of budget = Batemans Bay — Work has commenced and completion expected in April 2004 — Leasing c
Slide 53: Development projects
ates ©e@ ey y Ys Development Location Scope Est. Est. Est. Cost Completion Yield Greenhills Big W, Woolworths, Coles, $111.1m Completed 8.5% specialties Wetherill Park Target, specialties $25.0m April 2003 9.0%+ Batemans Bay Kmart, Coles, Aldi, $45.0m April 2004 8.4% specialties Balgowlah 2 supermar
Slide 54: Leasing and management
Zz a. ©e@ (Ty = A) L easing and Management 116 specialty shop renewals/ new leases completed in Dec 02 half year Average rental increase of 7.0% on renewals Marketing being revamped across portfolio 4 Stockland shopping centres now ranked in Top 10 centres nationally for specialty turnover/ m2 (Cent
Slide 55: Average lease expiry 8.5 years
aan os Average lease expiry 8.5 years ... FY03 FY04 Vacant 3% 5% 1% FY05 5% FY06 7% FYO7+ 79% By NLA as at 31 Dec 02 Vacancies “000m? Ex Piccadilly Food Court 0.8 19 specialty shops 1.9 Total vacancies 2.7 Total NLA 337.9 Vacancy rate 0.8% 29
Slide 56: MAT and rent by centre
Ws Wd 7 NY Tr Tr 2 R 2 Ld, Ld, MAT &R ent by Ce ntre Speciality Shop Av. Total MAT h Speciality Shop Av. Occupancy Cost $m Change Net Rent - $/m? % of MAT Baulkham Hills 91.1 46 592 13.0 Bay Village 139.8 7.0 668 84 Cairns 173.4 3.7 502 13.9 City Centre, Rockhampton 51.3 47 548 10.3 Cleveland 108.6
Slide 57: MAT growth by category
>PING ©e@ ey ms MAT Growth by Category MAT % % Comparable $m Growth Growth Supermarkets 686.5 7.0 3.7 DDS 294.2 4.2 3.9 Mini Majors 68.8 51.5 1.7 Specialties 608.6 14.3 5.1 Cinemas & other 26.7 20.9 2.9 Total 1,684.8 10.4% 4.2% 31
Slide 58: High specialty shop productivity
R oss Srna ir, High specialty shop productivity provides platform for future rental growth MAT vs Occupancy Costs (Single DDS Centres) 10,000 4 ® Bay Village 9,000 | @ Wetherill Park Se Specialty 8,000 | Merrylands $MAT/ m e 7,000 Jesmond ® Rockhampt ° | ockhampton Kin K 6,000 City Centre in Nora |
Slide 59: The Future
enone The Future * Focus on driving rental growth from high specialty sales ($7,400 per m?- excluding CBD & Elizabeth) and low specialty occupancy costs (average 11.8% of MAT) = Continued focus on acquiring new centres = Several expansion opportunities - development masterplanning underway on: ~ Mer
Slide 60: Commercial
a y a Se © Stockland
Slide 61: Market Commentary
Market Commentary * Sydney CBD — Vacancy levels have increased to 7.7% from 6.7% in Jun 02 — Net absorption negative 43,000m? in Dec 02 half year — Lease incentives are increasing — Tenants focused on lowering costs, putting pressure on prime space and creating supply in “fringe” locations * North S
Slide 62: Market Commentary
arket Commentary =» Melbourne CBD — Vacancy at 6.2% (down from 7.8% in Jun 02) — 244,000m2 under construction — 80% due to be completed in 2003 — Rents expected to fall = Canberra — Vacancy rate 6.8% (up from 6.3% in Jun 02) — Rents at relatively low levels (below replacement cost) — Weak tenant dem
Slide 63: Stockland Highlights
_ Stockland Highlights Proactive leasing strategy with 54,500m? (61 tenants) leased/ renewed in Dec 02 half year Lease expiries in balance of FY03 reduced to 5% of NLA Portfolio comparable net income growth of 2.5% for half year Arrears only 0.4% of annual billings 77 Pacific Highway development - C
Slide 64: Major lease renewals
UV Stockland Highlights = Major lease renewals in December 2002 half year: Rent Increase on Renewal Area m? Expiry % NSW State Govt 175 Castlereagh St, 4,800 Dec 08 5% (Dept Fair Trading) Sydney Commonwealth Govt Drakeford, Canberra 3,800 Sep 05 10% (Dept of Transport) Commonwealth Govt 33 Herbert S
Slide 65: Major new leases
UV Stockland Highlights = Major new leases in December 2002 half year: Commencement Lease Area m2 Date Term NSW State Govt Amory Gardens, Ashfield 5,600 Mar 03 10 yrs (DoCs) NSW State Govt Amory Gardens, Ashfield 2,300 Aug 02 6 yrs (Dept of Education) Commonwealth Govt Trace Building, Canberra 3,200
Slide 66: Average lease expiry 3.6 years
Average lease expiry 3.6 years ... Vacant Th FYO3 5% FY04 FYO7+ 10% 42 ‘ho ann FYOS 24% FYO6 12% By NLA as at 31 Dec 02 Vacancies “000m? 77 Pacific Hway Nth Sydney 6.7 504 Pacific H'way, St Leonards 3.4 Underwood House, Sydney 2.4 33 Herbert St, St Leonards 2.2 Piccadilly Tower 2.1 Others 5.7 Total
Slide 67: Potential medium term development/refurbishment
Potential Medium Term Development/ : Refurbishment Project Scope Status Underwood House, Sydney = Adjoining building (6-8 Underwood St) acquired for $11.35m in August 2002 = DA lodged with Council = Development will not commence without major precommitment and until market conditions significantly i
Slide 68: Industrial
© Stockland
Slide 69: Market Commentary
arket Commentary « Leasing markets are generally soft, but signs of improvement in Sydney’s west « Vacancy rates are in check due to limited speculative development « Yields have continued to firm and land prices have risen due to lack of stock and keen investor demand « Areas of growth continue to
Slide 70: Stockland Highlights
_ Stockland Highlights = Yennora - Redevelopment of part Building 1 (65,000m2 plus hardstand) due for completion in June 2003 - Capex $40 million - expected return circa 9% - 10,000m? pre leased to blue chip tenant with option for a further 20,000m?2 - Good leasing enquiry on the balance of space =
Slide 71: Average lease expiry 3.3 years
Average lease expiry 3.3 years ... Vacant 3% FYO3 FYO4 13% FY06 18% 8% By NLA 31 Dec 02 Vacancies ‘000m? Spearwood* 10.5 Hendra 7.2 Total vacancies 17.7 Total NLA** 547.7 Vacancy rate 3.2% Vacancy rate 1.3% excl. Spearwood precommitment * Precommited from May 2004 ** Excludes Yennora Building 1B und
Slide 72: Office Parks
© Stockland
Slide 73: Market Commentary
Market Commentary « North Ryde - Leasing market very weak - Vacancies are increasing - Market will rebound in medium term due to strong fundamentals - location, transport, infrastructure 47
Slide 74: Average lease expiry 4.3 years
Average lease expiry 4.3 years ... Vacant 6% Vacancies ‘000m? Centrecourt 2.2 FYO7+| Others 2.0 , 50% | FYO04 Total vacancies 4.2 13% Total NLA 72.7 Vacancy rate 5.8% Fyog 10% 6% By NLA 31 Dec 02 48
Slide 75: Development Opportunities
a = a _ Development Opportunities « We will only develop in North Ryde with a substantial precommitment « Several major development opportunities exist when the market rebounds: Potential Property New NLA Status Centrecourt (redevelopment) 67 ,000m2 DA received Lot 21 Riverside (vacant land) 28,000m
Slide 76: Development Division
© Stockland
Slide 77: Overview of Development Division Business: Residential Estates
Overview of Development Division Business RESIDENTIAL ESTATES = Medium to large scale master planned communities and integrated housing projects, comprising: — Conventional lots (350m2 to 71,000m2) « Stockland sells the lots as vacant land to either home builder or direct to end customer — Integrate
Slide 78: Overview of Development Division Business: Apartments and Retail
Overview of Development Division Business APARTMENTS Medium to large scale residential and mixed use high density projects Strong focus on high quality, owner occupier product Stockland engages major building groups to construct the projects on fixed price, fixed time contracts We aim for a minimum
Slide 79: Financial Performance
‘Financial Performance = Development Division EBIT up by 34% to $41.1 million for December 2002 half year « Majority of EBIT was from the Residential Estates business = Profits from Apartments and Retail Projects businesses will emerge in FY04 onwards as projects currently underway are completed and
Slide 80: Summary of Inventories
MENT DIVI Summary of Inventories As at 31 December 2002 No. Projects Book Value $m Residential Estates 76 538 Apartments 5 112 Retail Projects 8 60 $710m* * Includes $126 million of land acquired on deferred payment terms, corresponding amount included in creditors 54
Slide 81: Residential Estates
Slide 82: Market Commentary
Slide 83: Australian Monthly Private Sector Dwelling Approvals
Slide 84: Stockland Highlights
Slide 85: Strong growth in Revenue and Profit
Slide 86: Strong performance from each state
Slide 87: Substantial restocking in Dec 02 half year
Slide 88: Good spread of inventories across the states
Slide 89: Settlements and contracts on hand
Slide 90: Apartments
Slide 91: Market Commentary
Slide 92: Stockland Highlights
Slide 93: Project Status – 31 December 2002
Slide 94: Retail Projects
Slide 95: Market Commentary
Slide 96: Stockland Highlights
Slide 97: Hotel Management
Slide 98: Market Commentary
Slide 99: Hotel Management revenue and EBIT
Slide 100: Good spread of properties under the Saville banner
Slide 101: Sale of owned hotels on long term leaseback
Slide 102: Capital Management
Slide 103: Capital Management
Slide 104: The Future
Slide 105: The Future
Slide 106: The Future: contacts
Slide 107: Disclaimer