Stockland · ASX:SGP
Stockland — Debt Investor Presentation (March 2007)
14 slides from Stockland's debt investor presentation, March 2007
Slide 1: Debt Investor Presentation
Debt Investor Presentation March 2007 1 Agenda • Strategy • Finance and Capital Management • Divisional Performance • New Business Initiatives • Outlook • Debt Covenant Alignment and A-IFRS Amendments Allisee, QLD 2 1
Slide 2: Vision and Strategy
Vision and Strategy Vision • “To create a world class diversified property group” Strategy • Market leadership in each of our businesses • Active Capital Management to provide to lowest cost funding solutions for business growth – Equity, Debt, Managed Funds. • Collaborate across the businesses to c
Slide 3: 1H07 Results in Summary; Financial Performance
1H07 Results in Summary Net Profit* 7.2% $293.1m Earnings per Security* 3.9% 21.5 cents Distributions per Security 4.9% 21.5 cents NTA per Security 9.3% $4.96 * Net profit and EPS before certain significant items. 5 Financial Performance Net operating profit* Growth in earnings per Security* 600 554
Slide 4: Capital Management - Debt Maturity Profile
Capital Management 1H07 FY06 S&P Rating A-/Stable A-/Stable Weighted Average Debt Maturity 7.1 years 7.4 years Debt Fixed / Hedged 71% 61% Weighted Average Cost of Debt* 6.2% 6.1% Gearing (debt/total tangible assets) 26.7% 24.7% * Including all costs, fees and margins 7 Capital Management - Debt Mat
Slide 5: Retail Division
Retail Division PORTFOLIO SUMMARY* Number of Properties 39 Number of Tenants >3,000 Total Asset Value A$3.8bn Total sales per annum >A$5.0bn 1H07 Highlights Net operating profit A$126m NOI Comp 5.1% % of group EBIT 35% Major Tenants Coles, Woolworths Long term A$1.5bn development pipeline Stockland
Slide 6: Commercial & Industrial Division
Commercial & Industrial PORTFOLIO SUMMARY* Number of Properties 63 Number of Tenants >500 Total Asset Value A$3.5bn Occupancy Rate 98% 1H07 Highlights Net operating profit A$113m NOI Comp 4.2% % of group EBIT 25% Long term A$1.3bn development pipeline Optus HQ, NSW ** As As at at31 30December 2006 J
Slide 7: Development Division and Residential Market Overview
Development Division PORTFOLIO SUMMARY* Number of Properties >80 Book Value A$2.5bn (Historic Cost) Total End Value - Communities A$14.8bn - Apartments A$2.1bn No. of Future Lots 68,700 1H07 Highlights Net operating profit A$113m Profit increase 2% % of group EBIT 35% Kawana, QLD ** As As at at31 30
Slide 8: Stockland's UK Strategy
Australian Retirement Communities Acquisition (ARC) • Stockland has made a key strategic acquisition, accelerating our presence in the Retirement Living sector • Acquired 100% of Australian Retirement Communities (ARC) Retirement Living business (26 existing and proposed villages) • Stockland is a t
Slide 9: Halladale Business Model
Halladale Business Model “The creation of value through active and entrepreneurial management, risk controlled development co-investment in commercial property assets” • Asset Management (50%) Office and retail property: portfolio under management approaching £1 billion • Development (12%) Total dev
Slide 10: Outlook
Outlook • On track for 5% EPS growth in FY07 • Strong and respected platform and market positioning • Key strategic initiatives to drive future value • Clear strategy to drive TSR outperformance Stockland Wetherill Park, Sydney NSW 19 Debt Covenant Alignment and A-IFRS Amendments Prince Henry, Sydne
Slide 11: Proposed Amendments
Proposed Amendments Covenant alignment • To ensure percentages are in line with all Stockland’s other debt facilities, change: • Gearing Ratio (TL : TTA) from 42% to 45% • Increase other Permitted Security Interests from 5% to 15% (of Trust Assets) A-IFRS amendments • Although still subject to revie
Slide 12: Accounting for Retirement Living
Accounting for Retirement Living Balance Sheet Event Pre A-IFRS / A-IFRS 1 A-IFRS 2 Initial sale of a unit Cash received, inventory sold. Cash received, inventory revalued and classified as investment property. A liability recognised in respect of a resident’s future exit (equal in value to cash rec
Slide 13: Accounting for Retirement Living - Worked Examples
Accounting for Retirement Living Worked Examples A-IFRS Impacts Pre A-IFRS / A-IFRS 1 A-IFRS 2 Initial sale of a unit for Cash increases by $100 Cash increases by $100 $100 (build cost of $70) Property Inventory reduces by $70 Investment Property increases by $100 (ie Transfer of Inventory of $70 +
Slide 14: 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