Stockland · ASX:SGP
Stockland — Q1 FY2016 Earnings Presentation
23 slides from Stockland's earnings presentation, Oct 26, 2015
Slide 1: Stockland 1Q16 Market Update media release
26 October 2015 133 Castlereagh Street T 02 9035 2000 Sydney NSW 2000 F 02 8988 2552 www.stockland.com For media enquiries STOCKLAND 1Q16 MARKET UPDATE Greg Spears Senior Manager Media Relations Stockland Stockland has reported strong performance across all key business areas in the T +61 (0)2 9035
Slide 2: Retail, logistics, office and retirement living performance
Stockland’s Retail business, the single largest contributor to the Group’s earnings, also continued to perform well in the quarter with comparable specialty sales up 2.8% on the prior corresponding quarter, and comparable specialty moving annual turnover up 4.2%. Total MAT was up 4.8%. The strongest
Slide 3: FY16 outlook and distribution target
Mr Steinert said the outlook for FY16 remained positive and he reconfirmed Stockland is targeting a full year distribution of 24.5 cents, assuming no material changes in market conditions. “Our diversified portfolio continues to deliver growing returns for our investors, with a strong foundation of
Slide 4: 1Q16 Stockland Update: Delivering Sustainable Growth
1Q16 Stockland Update Delivering Sustainable Growth Aura, Caloundra South Artist impression
Slide 5: Agenda
Agenda Topic Page Group Update 03 Commercial Property 05 Residential 08 Retirement Living 09 Summary and Outlook 11 Annexure 12 Stockland 1Q16 update 2
Slide 6: Group Update
Group Update All businesses contributing to sustainable growth: Solid comparable specialty sales growth Maintaining high occupancy in commercial property portfolio Current retail developments on or ahead of schedule and feasibility Residential net deposits steady, after allowing for limited
Slide 7: Creating sustainable, organic growth
Creating sustainable, organic growth TRUST CORPORATION Logistics & Retail Business Parks Office Residential Retirement Living 50% of SGP portfolio1 13% of SGP portfolio1 8% of SGP portfolio1 20% of SGP portfolio1 9% of SGP portfolio1 Stockland Wetherill Park, NSW Wonderland Drive, NSW 135 King St/Gl
Slide 8: Retail
Retail Retail Sales: Total Sales MAT Comp 1Q16 1Q16 by Category1 Growth Annual Total Comp Steady 1Q16 sales performance to 30 September Growth Growth Growth 1Q16 comparable specialty sales growth up 2.8% reflecting (pcp) (pcp) moderation of growth relative to 1Q15 Specialties 7.4% 4.2% 6.9% 2.8%
Slide 9: Incorporating retail trends into our centres
Incorporating retail trends into our centres Online leakage is growing, but at markedly slower pace than levels of three years ago Entertainment focus: after hours offerings including cinemas, restaurants, fast casual dining, bars and bowling Globalisation of retailing and larger format specia
Slide 10: Logistics and Business Parks, Office
Logistics and Business Parks, Office Logistics & Business Parks: Logistics and Business Parks 1Q16 FY15 Over 176,000sqm of leasing activity for 1Q16, portfolio occupancy improved to 93.8% with a further 62,000 sqm Leases executed 93,200sqm 142,600sqm leasing since 1Q16 Acquisition of Wonderland
Slide 11: Residential Communities
Residential Communities Remain on target for settlements of around 6,000 lots in FY16 Residential net deposits NSW and Victorian market conditions remain robust; net deposits influenced by timing of project releases in the first quarter 1,652 1,712 Queensland market continues to show signs of
Slide 12: Retirement Living
Retirement Living Net reservations strongly ahead of 1Q15 due to successful Retirement Living net reservations sales campaign Development remains a key focus in improving returns 281 284 260 460 homes under construction or completed 214 183 Cardinal Freeman (NSW) on target to deliver first t
Slide 13: Operational achievements
Operational achievements Recipient of CIPS Australasia Award for best procurement process improvement Global leader in Sustainability: DJSI 2015 Real Estate Industry Group Leader LEADER IN SUSTAINABILITY Top ranking for a diversified property group within the #1 Globally region by GRESB Wi
Slide 14: Positioned for sustainable long term growth and value creation
Positioned for sustainable long term growth and value creation We anticipate revaluing the majority of the Commercial Property portfolio in 1H16 Pursuing capital partnering opportunities across our businesses including Retirement Living, with key criteria of high quality partners, maintaining al
Slide 15: Annexure - Economic overview
Annexure- Economic overview Shellharbour, NSW, Australia’s largest single rooftop solar system
Slide 16: Positive outlook for our businesses
Positive outlook for our businesses Moderate economic growth is expected to continue to underpin Large housing undersupply remains1 commercial property demand -40.0 Annual Rolling Sum ('000s) -20.0 Residential market fundamentals remain sound albeit individual 0.0 markets are variable 20.0 40.0
Slide 17: Contribution to Australia's GDP by industry
Contribution to Australia’s GDP by industry(%) No single industry represents more than 15% Industry contribution to GDP1 (%) Mining Financial services Ownership of dwellings Construction Health care Professional services Manufacturing Public admin Education Retail trade Wholesale trade Transportatio
Slide 18: Population growth remains the key driver of demand
Population growth remains the key driver of demand AUS Population Growth - Annual 2008: Increased number 2009: Cuts to General Migration Program, of places offered by 37k removals of Occupations eligible for migration 500,000 2.5% Mid-1980s: Immigration focused on economic outcomes Migration Plannin
Slide 19: Interstate migration reflected in building activity
Interstate migration reflected in building activity Dwelling commencements and population growth Interstate migration reflecting current economic strength1 converging since 20131 500 30 50,000 450 40,000 25 400 30,000 Annual Rolling Sum (‘000s) 350 Population (LHS) 20 20,000 300 Vic Thousands 10,000
Slide 20: Capital city house price growth
Capital city house price growth Supply has increased, but has been driven by apartments Annualised Building Approvals1 (no. thousands) 250 Total – Trend Total – Seasonally Adjusted 200 Houses – Trend 150 Houses – Seasonally Adjusted 100 Units - Trend Units – Seasonally 50 Adjusted 0 2000 2003 2006 2
Slide 21: With new detached dwelling supply close to historical averages
With new detached dwelling supply close to historical averages 4,000 NSW Detached Housing Approvals 4,000 Vic Detached Housing Approvals 3,000 3,000 +13.2% 2,000 2,000 +16% 1,000 1,000 Now seeing supply response Operating at after a decade of undersupply strong levels 0 0 1985 1990 1995 2000 2005 20
Slide 22: 2015 Calendar snapshot: Indicative investor event details
2015 Calendar snapshot: Indicative investor event details1 Upcoming Announcements Location Date 1Q16 Stockland Update Sydney 27 October 2015 Annual General Meeting Sydney 28 October 2015 Stockland Investor Day Sydney 19 November 2015 1H16 Results Sydney 10 February 2016 Investor Relations contact T:
Slide 23: Important Notice
Important Notice Stockland Corporation Limited ACN 000 181 733 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 presen