Stockland · ASX:SGP
Stockland — Bank of America Merrill Lynch Global Real Estate Conference 2009
24 slides from Stockland's conference presentation, Sep 30, 2009
Slide 1: Bank of America Merrill Lynch Global Real Estate Conference
For personal use only Bank of America Merrill Lynch Global Real Estate Conference September 2009 www.stockland.com
Slide 2: Stockland's position in the A-REIT sector
Stockland’s position in the A-REIT sector For personal use only • Stockland was formed in 1952 and pioneered the stapled security structure • Stockland’s current position*: • Top 2 A-REIT • Largest diversified A-REIT • Total assets of >A$14bn • 14% of the A-REIT 200 Index Stockland Balgowlah, NSW *
Slide 3: Stockland - Australia's largest diversified REIT
Stockland - Australia’s largest diversified REIT Australian Commercial assets1 – A$7.9b For personal use only Retail – $3.9b Office – $2.9b Industrial / Intermodal – $1.1b Australian Residential assets1 – A$3.6b Communities – $2.0b Apartments – $0.5b Retirement – $0.5b 1. As at 30 June 2009 2
Slide 4: Residential - Overview
Residential - Overview For personal use only FY09 recap - Communities Communities FY09 Lots settled 4,303 • Strong sales – market leading position Average retail price* $206k • Adjusted quickly to First Home Buyer opportunity Revenue $873m • Record level of contracts on hand @ June 30 (1,659 @ 31 Op
Slide 5: Australia is undersupplied with housing
Australia is undersupplied with housing For personal use only .. strong population growth is expected Major undersupply of housing has ..causing rental vacancies to fall to to continue, causing further supply / developed since 2006.. record low levels.. demand imbalance Underlying Demand & Supply of
Slide 6: Despite the very weak market, we achieved increased lot sales in FY09
Despite the very weak market, we achieved increased lot sales in FY09 For personal use only Vacant Lot Sales1 Across NSW, WA, VIC and QLD SGP Lot Sales and Market Share In Four Key States (# p.a.) (# p.a., %) 100,000 93,400 5,000 10% Eight Year 4, 303 Average = 4,500 4,281 9% 79,400 4, 188 77,000 4,
Slide 7: We are well prepared for the end of the First Home Owners Boost
We are well prepared for the end of the First Home Owners Boost For personal use only • During 2009 we have transitioned our products towards second home buyers and investors • Over the past 3 months we have seen second home buyers return to be the largest proportion of our leads • Investors are als
Slide 8: Goal to increase annual lot sales to 5,000+
Our goal is to increase annual lot sales to 5,000+ by growing market reach and market share in key population growth corridors For personal use only Market fragmentation provides opportunity to grow: Wyndham acquisition – Truganina We are underrepresented in several key growth corridors Many sma
Slide 9: Residential summary
Residential summary • Market conditions continue to improve, but all eyes on For personal use only end of FHOB • Residential Communities is a sustainable growth business • Clear strategy to grow market share and leverage our competitive advantage Stockland Caloundra Downs, QLD 8
Slide 10: Retirement Living - Overview
Retirement Living - Overview Retirement FY09 For personal use only FY09 recap Operating profit $43m New units settled 163 • Solid profit performance - Average price $313k • Delays at new projects impacted number Established units settled 217 of new units settled (profits now expected - Average price
Slide 11: Retirement Living combines two basic property businesses
Retirement Living combines two basic property businesses and plays to Stockland’s core strengths For personal use only Residential development • Acquire land, re-zone, masterplan a community, build a village • Development profit – Sales revenue less costs of development – Lower than pure residential
Slide 12: Stockland Retirement Living's strategy
Stockland Retirement Living’s strategy 1. Develop new villages to capture a growing share of the bulging Percentage of Australians aged 65 and over 65+ demographic For personal use only • Continuously improve design through close interaction with our residents 25% • Middle and upper-middle Australia
Slide 13: Commercial Property - Overview
Commercial Property - Overview FY09 recap Commercial Property operating profit ($m) For personal use only • Strong earnings performance across all asset classes – 24 17 (77) 600 comparable income growth +5.9% 11 500 • High portfolio occupancy 400 300 566 541 • Delivered on asset sales program - $592
Slide 14: Commercial Property - asset values
Commercial Property - asset values • Weighted average cap rate softened 130bps since Commercial Property – book values ($bn) For personal use only the peak of the cycle (20% decline) 10 0.5 (0.4)* 0.1 (1.1) 9 • 93% of assets independently valued at 30 June 09 (remaining 7% under development) 8 ($bn)
Slide 15: Retail performance
Retail performance • Portfolio is well placed with shopping centres weighted towards non-discretionary expenditure For personal use only • Comparable income growth of +6.8% achieved in FY09 • Solid MAT growth of 4.3%, comparable MAT growth of 2.4% • Vacancies remain low • Speciality occupancy costs
Slide 16: Office performance
Office performance • Comparable income growth of +5.7% achieved in FY09 For personal use only • No major expiry risk in FY10 – FY10 expiries occur mostly in 4Q10 • Office rent reviews due in FY10 – 84% subject to average 4% increase FY10 rent reviews Lease expiry profile* Vacant 1H10 100% 3% 4% 84%
Slide 17: Industrial performance
Industrial performance • Comparable income growth of +4.2% achieved in FY09 For personal use only • Vacancies stable at 4.4% • Minimal FY10 lease expiry risk FY10 rent reviews Lease expiry profile* 100% Vacant 4% 1H10 10% FY14+ 75% 80% 27% 2H10 4% 60% FY11 14% 40% 21% 20% FY13 4% 23% FY12 18% 0% Fix
Slide 18: Commercial Property - summary
Commercial Property - summary • Office and industrial markets: For personal use only Sydney and Melbourne stabilising, while downward pressure remains in Perth and Brisbane Stockland portfolio is in good shape with no major lease expiry risk in FY10 • Retail sales still growing – rents unlikely
Slide 19: Credit and debt maturity profile
Credit and debt maturity profile As at 30 June 2009 For personal use only S&P rating A- / Stable Gearing (net debt / total tangible assets) 16.0% Interest cover 2.8:1 Available undrawn committed facilities (in addition to cash on deposit) $1.3bn Weighted average debt maturity 6.6 years Weighted aver
Slide 20: Stockland - strategic weightings
Stockland - strategic weightings EBIT FY09 Assets 30 June 2009 For personal use only Actual Strategic weighting Actual Strategic weighting Recurring Retirement Living 5% 2% Commercial Property 75% 72% Net overheads and other (1%) 0% Total recurring 79% 60-80% 74% 70-80% Trading Residential 25% 23% R
Slide 21: Strategy - Business units
Strategy - Business units Residential For personal use only • Leverage Residential Communities’ competitive advantages • Target land investment opportunities in growth corridors to deliver short and medium-term profits • Review Apartments business in light of capital intensity / low returns Commerci
Slide 22: Strategic investments
Strategic investments GPT Strategic stakes For personal use only • Exposure is in efficient financing structure Cost Market value • Expires May 2010 and is effectively self-funding 24 September 09 % Price ($) Total Price ($) Total • GPT’s core assets fit with our strategy and our stake $m $m provide
Slide 23: Summary & outlook
Summary & outlook • Financially strong and well-placed to capitalise on the expected economic recovery: For personal use only low gearing streamlined operations in FY09 full benefits of cost and operational efficiencies to come through in FY10 focused on value accretive growth opportunities
Slide 24: 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
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