Stockland · ASX:SGP
Stockland — Macquarie Australia Conference 2017
28 slides from Stockland's conference presentation, April 2017
Slide 1: Stockland Update
Stockland Update RESULTS BUILT ON SUSTAINABLE COMMUNITIES April 2017 Cardinal Freeman The Residences, Sydney 1
Slide 2: Agenda
Agenda Group Update 3 1H17 results and achievements 5 Commercial Property 9 Retirement Living 15 Residential Communities 18 Outlook 22 Annexure 24 Stockland update April 2017 2
Slide 3: Group Update
Group Update Continued solid performance in 3Q17: Retail sales growth relatively flat, continuing to grow specialty sales productivity per square metre Progressing our $548m Retail and L&BP developments on schedule and feasibility Good momentum in L&BP leasing activity Solid Residential net
Slide 4: Data as at December 2016
4 Data as at 31 December 2016 Stockland update April 2017
Slide 5: Strategy delivering sustainable, strong results in 1H17
Strategy delivering sustainable, strong results in 1H17 Community creation focus delivers growth across Elara Community, Sydney whole business Growth in FFO per security of 6.2% reflecting consistent implementation of our strategy Continued improvement across all business units ROE1 grows to 1
Slide 6: 1H17 Achievements
1H17 Achievements Grow Asset Returns and Customer Base Commercial Property Residential Communities Retirement Living 73% of SGP portfolio 18% of SGP portfolio 9% of SGP portfolio NSW NSW NSW Vic Vic Vic Qld 12% Qld Qld 48% 26% WA WA WA 60 21 27% 43% Other Other % % 12% 6%
Slide 7: 1H17 Achievements
1H17 Achievements Operational Excellence and Capital Strength Third consecutive year HR Global Sector Salesforce Success and Regional launched in Factors Sector Leader - Residential launched Retail/Office Maintained S&P #1 two years in a row, market leader for ten years credit rating DJSI Leading gl
Slide 8: Growth in FFO across all business units and good visibility of future cost of debt
Growth in FFO across all business units and good visibility of future cost of debt Funds from Operations Forward hedge rates1 positively impact Group WACD Billions($) Comp. Change Growth 4.5 4.5% 4.4% $m 1H17 1H16 % % Hedge Retail 207 197 5.2% 3.5% 4.0 Rate 1H17 Logistics & Business Parks 72 66 8.7
Slide 9: Commercial Property
Commercial Property Stockland Shellharbour, NSW 9
Slide 10: Retail
Retail Comp Retail Sales: Total Sales by MAT Annual 3Q17 Comp Category to 31 March2 Growth Growth Growth 3Q17 sales growth relatively flat, impacted by several issues Specialties excluding Dick Smith 3 1.8% 1.0% 0.9% Easter shifts from 3Q16 to 4Q this year Specialties 0.6% 0.0% -0.4% Variable
Slide 11: Retail: Productive centres and diverse income base
Retail: Productive centres and diverse income base Specialty MAT/sqm, centres with future development potential Strong diversity in rental income Gross rent: Total portfolio $14,000 Department Stores $12,000 1% Other DDS Retail $10,000 10% 15% $8,000 Supermarkets 13% $6,000 Apparel and 19% Jewellery
Slide 12: Retail trends/Leasing strategy
Retail trends/Leasing strategy Entertainment and Leisure Wetherill Park – an example of evolving design and retailer mix To act as a community hub and meeting place for family and friends Fast food and casual dining To cater to customer demand for diverse dining options Health and Services Before: A
Slide 13: Stockland Wetherill Park: A leading lifestyle, food, fashion and leisure centre
Stockland Wetherill Park: A leading lifestyle, food, fashion and leisure centre Three extensions since 1983 completion Stockland Wetherill Park, Sydney Customer demand for a redevelopment based on fresh food, cafes, restaurants, mini-majors, theatre, lifestyle, health and services 5 Star Green
Slide 14: Logistics and Business Parks, Office
Logistics and Business Parks, Office Logistics & Business Parks: Nine months to Logistics and Business Parks 31 March 2017 1H17 Strong leasing momentum with 345,000 sqm, 28% of the portfolio, executed or under heads of agreement Leases executed 291,500 sqm 160,000 sqm Continuing progress with ~$
Slide 15: Retirement Living
Retirement Living Cardinal Freeman The Residences, Sydney 15
Slide 16: Retirement Living
Retirement Living Retirement Living net reservations - quarterly Resale values benefitting from strength of Eastern seaboard Residential market 264 255 259 244 210 Reservations impacted by units withheld for future development (Oak Grange, Melbourne 159 209 195 188 Established and Castle Ridge,
Slide 17: Retirement Living: Building on success
Retirement Living: Building on success Broadening customer reach Artist’s Impression - Oceanside, Sunshine Coast, Qld Developing Seniors apartments, Cardinal Freeman, Sydney, Oceanside, Qld Progressing repositioning of middle ring villages including Oak Grange, Melbourne Customising DMF, non D
Slide 18: Residential
Residential Minta Farm, Melbourne 18
Slide 19: Residential Communities
Residential Communities Affordability focus differentiates our business Residential net deposits - quarterly 2,301 2,116 77% of buyers were owner occupiers in the 1,891 1,706 692 1,792 March quarter, 54% first home buyers 648 521 NSW 405 442 280 Solid quarter for net deposits: 245 214 278 WA 2
Slide 20: Residential: Growing assets and customers
Residential: Growing assets and customers Core Capital projects employed Maintaining over 90% of funds employed in projects actively Delivering selling 31 Active Projects current $1.7b earnings ~57,900 Lots1 Strong customer demand for our new launch projects Newport, Brisbane Bring to 6 New La
Slide 21: Leading in Housing Affordability
Leading in Housing Affordability Examples of entry house and land packages Pallara (Qld) 50 per cent1 of Stockland’s customers are first home buyers Stockland Brisbane LGA Median Price2 Price3 $454,870 $655,000 75 per cent1 of customers are owner- occupiers Highlands (Vic) Launched “100 homes in 100
Slide 22: Outlook
Outlook Willowdale Regional Park, Sydney 22
Slide 23: Summary & Outlook
Summary & Outlook Remain on track to achieve FFO per security growth Our Purpose: We believe there is a better way to live of 6–7% in FY17 with DPS targeted at 25.5 cents, assuming no material change in market conditions. Underpinned by: Full year Residential settlements above 6,000 lots and ope
Slide 24: Annexures
Annexures Ingleburn Distribution Centre 24
Slide 25: Population growth continues to underpin dwelling demand
Population growth continues to underpin dwelling demand AUS population growth – Annual1 Vic and Qld seeing strong positive interstate migration2 Annual Rolling Sum (‘000s) 500,000 2.5% 50,000 450,000 40,000 400,000 2.0% 30,000 Total Growth (%) Forecast 350,000 20,000 Vic 300,000 1.5% 10,000 Qld 250,
Slide 26: Dwelling commencements have responded to accumulated undersupply
Dwelling commencements have responded to accumulated undersupply Dwelling commencements are elevated but close to long-term averages on a per capita basis. Both are moderating from peaks 1 Thousands 250 30 25 200 20 150 15 Dwelling Dwelling Commencements Commencements per 100 (LHS) 1000 people (RHS)
Slide 27: National building approvals
National building approvals1 NSW house approvals around average; unit approvals remain high Vic house approvals moderating; unit approvals remain high 4,000 Apartment: 4,000 House: +113.3% +18.9% above long above 3,000 term average 3,000 long term average House: 2,000 +12.2% 2,000 Apartment: above +
Slide 28: Stockland Corporation Limited
Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741; AFSL 241190 Asa responsible entity for Stockland Trust ARSN 092 897 348 25th Floor 133 Castlereagh Street SYDNEY NSW 2000 Important Notice ckland does not warrant or represe' mation in this presentation