Stockland · ASX:SGP
Stockland — Investor Presentation (November 2010)
11 slides from Stockland's investor presentation, November 2010
Slide 1: Commercial Property Strategy
Commercial Property Strategy John Schroder, CEO Commercial Property www.stockland.com
Slide 2: Commercial Property strategy: re-weight to retail and enhance asset quality
Commercial Property strategy: re-weight to retail and enhance asset quality Retail • Strategy to develop larger, higher quality retail assets • Develop assets with a history of strong trading and in areas of market growth • Leveraging Stockland’s diversified model and landbank Office • Own and manag
Slide 3: High quality retail provides better risk-adjusted returns through the cycle
High quality retail provides better risk-adjusted returns through the cycle Historical total returns by sector Retail Office Industrial 40 % % % Total Return (Rolling Annual %pa) Total 11.6 9.2 10.2 30 Last 10 Return years 20 Volatility 6.3 8.0 6.9 Total 10 Retail 10.9 5.8 9.5 Last 20 Return Office
Slide 4: Market environment and fundamentals underpin investment in retail
Market environment and fundamentals underpin investment in retail Consumer sentiment & retail sales still strong post-stimulus1 Strong population growth drives demand for retail2 8% 140 30 7% 130 28 6% 120 Consumer Sentiment Index Federal Retail Sales Trend 5% stimulus 110 (year-on-year) package 26
Slide 5: High quality retail is tightly held and rarely trades
High quality retail is tightly held and rarely trades Barriers to entry Commercial property asset sales over the last More demand for retail space with growing three years2 population Market size 2 sqm of retail required for every person in 18 Australia1 16 Planning regulations Availability of
Slide 6: Stockland's retail portfolio has inherent growth prospects through redevelopment
Stockland’s retail portfolio has inherent growth prospects through redevelopment Proposed sub-regional redevelopments largely outperform Urbis averages1 14,000 12,000 Urbis Sub-regional1 SGP comparable average: $7,562psm average: $8,976psm2 Specialty MAT $ psm 10,000 8,000 6,000 4,000 2,000 0 Spec M
Slide 7: Occupancy remains high and occupancy costs sustainable
Occupancy remains high and occupancy costs sustainable 1Q FY11 retail update • Occupancy 99.5% - 35 vacant specialty shops • Average occupancy cost of 13.8% of MAT (13.4% at 30 June 2010) 30 September 2010 Annual Total MAT ($m) % MAT Annual Growth % Annual Comparable Growth % 3mth Comparable Growth
Slide 8: Moving retail assets up the retail hierarchy
Moving retail assets up the retail hierarchy 1.2 Shellharbour Green Hills Major-Regional1 Townsville 0.8 (Stage 1) Merrylands Regional 0.6 0.4 Sub-Regional 0.2 Neighbourhood 0 50 150 250 350 450 550 650 Total Moving Annual Turnover ($m) - 14 - 1. Size of bubble is indicative of total GLA
Slide 9: Re-weighting the current portfolio into higher quality retail
Re-weighting the current portfolio into higher quality retail Book Value Weightings ($m) 5 – 7 years 2010 Approx. Major-Regional Approx. (>70,000sqm) 30 - 40% 20% ~10% ~15% Regional Office (45,000- 70-75% 10 - 20% 70,000sqm) Industrial ~50% 70% 15%-20% ~35% Sub-Regional Retail 30 - 40% (20,000 - 45,
Slide 10: Building the capability to deliver growth
Building the capability to deliver growth CEO John Schroder MANAGEMENT & LEASING DEVELOPMENT PROJECT BUSINESS FINANCE HUMAN MARKETING & DESIGN MANAGEMENT DEVELOPMENT RESOURCES Robyn Stubbs Stewart White Stephen Bull Dale Clark Wendy MacKay Matthew Knight Richard Laidlaw Asset management Retail proje
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