Stockland · ASX:SGP
Stockland — FY2006 Earnings Presentation
80 slides from Stockland's earnings presentation, Aug 9, 2006
Slide 1: FY06 Results Presentation
FY06 RESULTS PRESENTATION 9 AUGUST 2006 INSERT COVER OF PROPERTY BOOK 1
Slide 2: Agenda
AGENDA • Highlights • FY06 Results • Finance and Capital Management • Divisional Performance • Future Outlook and Strategy 2
Slide 3: Highlights
HIGHLIGHTS • Record profits driven by excellent performance from all divisions • Demonstrates our ability to consistently deliver through market cycles • Strong balance sheet • Recognised as a quality leading brand in each of our businesses • Poised for the next phase of growth 3
Slide 4: Revenue and Profit Growth
REVENUE AND PROFIT GROWTH $m $m 2,500 600 $2,309.9m $553.7m $502.7m 500 2,000 34.9% 10.1% $1,712.9m 400 1,500 300 1,000 200 500 100 0 0 FY05 FY06 FY05 FY06 Gross Revenue Revaluations Net Profit * FY05 Comparison has been calculated under AIFRS * Net profit before certain significant items 4
Slide 5: FY06 Results in Summary
FY06 RESULTS IN SUMMARY Net Profit 10.1% $553.7m Earnings per Security 6.1% 41.5 cents Distributions per Security 6.4% 41.4 cents NTA per Security 13.5% $4.54 Gearing (debt/total tangible assets) 24.7% FY05 Comparison has been calculated under AIFRS Net profit and EPS before certain significant item
Slide 6: Excellent Security Holder Returns
EXCELLENT SECURITY HOLDER RETURNS Earnings per Security* Distribution per Security 16% 16% 14% 14% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% FY02 FY03 FY04 FY05 FY06 FY02 FY03 FY04 FY05 FY06 SGP LPT 200 Index ^ SGP LPT 200 Index^ ^ Source: UBS * FY02-FY04 is AGAAP, FY05-FY06 is AIFRS (Before cer
Slide 7: Consistent Delivery of Strategy
CONSISTENT DELIVERY OF STRATEGY EBIT FY06 Assets at 30 June 2006 Strategic Strategic Actual Actual Weighting Weighting Corporation Profits Property Development 34% 26% Hotel Management <1% <1% Unlisted Property Funds <1% <1% Subtotal 35% 20 - 40% 27% 20 - 30% Trust Income Shopping Centres 35% 39% Co
Slide 8: Finance and Capital Management
FINANCE AND CAPITAL MANAGEMENT Hugh Thorburn • Capital Management • AIFRS 8
Slide 9: Capital Management
CAPITAL MANAGEMENT FY06 FY05 S&P Rating A- / Stable A- / Stable Weighted Average Debt Maturity 7.4 years 5.2 years Debt Fixed / Hedged 61% 63% Weighted Average Cost of Debt* 6.1% 6.0% Gearing (debt/total tangible assets) 24.7% 27.9% * Including all costs, fees and margins 9
Slide 10: Capital Management: Debt Maturity Profile
CAPITAL MANAGEMENT Debt Maturity Profile 500 450 400 350 300 ($m) 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2036 Year Ending 30 June Commercial Paper Bank Debt Domestic Medium Term Notes US Senior Term Notes Asian Bond 10
Slide 11: AIFRS
AIFRS • Our reporting in this presentation is on a like-for-like basis: FY06 AIFRS compared to restated FY05 AIFRS (the latter was provided in the presentation last year) • Income statement volatility, due to: • Revaluation of investment property • Goodwill adjustments • Mark to market of financial
Slide 12: AIFRS
AIFRS • For FY06, we adopted the policy of adjusting distributions for the effect of amortisation of leasehold tenant incentives • Total payout still <100% of operating earnings • We will continue the policy for FY07 • There will be no adjustment for other items (straight lining of rental income, ac
Slide 13: Shopping Centre Division
SHOPPING CENTRE DIVISION Darren Steinberg • Highlights • Market Commentary • Sales • Leasing and Management • Development Pipeline • Summary 13
Slide 14: Shopping Centre Division Highlights
SHOPPING CENTRE DIVISION Highlights Divisional operating profit $236.7m / + 6.6% Comparable net income growth 5.4%* Revaluations in FY06 $417.0m Increase on previous Book Value 11.5% Portfolio has delivered a total return of 17.5% pa over the past 5 years 4,000 25.0% 3,500 20.6% 19.9% 20.0% 3,000 As
Slide 15: Shopping Centre Division: Market Commentary
SHOPPING CENTRE DIVISION Market Commentary • Sales growth has moderated to long term sustainable levels • Positive outlook for retail sector: • Solid labour market • Stable planning regime • Tax cuts • Continued strong demand for retail assets 15
Slide 16: Sales and Occupancy Costs - Total Portfolio
SHOPPING CENTRE DIVISION Sales & Occupancy Costs - Total Portfolio $/m2 Occupancy Cost 10,000 High Productivity Rental Upside 15% 9,000 12.6% 12.1% * 13% $8,176 * 8,000 $7,164 11% 7,000 14.1% 3.7% 9% 6,000 above below JHD JHD 7% 5,000 4,000 5% SGP JHD SGP JHD Specialty Sales Occupancy Costs * Exclud
Slide 17: Leasing and Management
SHOPPING CENTRE DIVISION Leasing and Management • 370 total leasing transactions • 164 renewals, average rental increase 19.3% (on previous rental) 225 % Increase on Renewals Number of Renewals 25% 200 19.3% 175 20% 150 15.2% 12.6% 15% 125 100 9.0% 10% 75 50 5% 25 0 0% Jun-03 Jun-04 Jun-05 Jun-06 •
Slide 18: Development Pipeline
SHOPPING CENTRE DIVISION Development Pipeline No of Total Cost Actual Average Cap Project Status Projects ($m) Yield Rate Completed in FY06 5 103 11.0% 6.9% No of Total Cost Anticipated Average Cap Project Status Projects ($m) Yield Rate Commenced in FY06 3 120 8.2% 7.3% Expected FY07 Commencement 7
Slide 19: Value Enhancement from Development
SHOPPING CENTRE DIVISION Value Enhancement from Development $m 200 Burleigh Heads Glendale Bay Village 180 160 $37.5m $44.2m 140 $15.6m $18.3m 120 100 $33.9m $43.6m 80 60 $121.2m 40 $83.5m $81.7m 20 0 Book Value Prior to Development Development Cost Valuation Gain 19
Slide 20: Shopping Centre Division Summary
SHOPPING CENTRE DIVISION Summary • Strong and trusted brand within shopping centre industry • Experienced management team with proven track record • Well positioned for continued growth over next 5 years • $1 billion development pipeline • Organic rental growth 20
Slide 21: Commercial and Industrial
COMMERCIAL AND INDUSTRIAL Steven Mann • Divisional Highlights • Commercial • Industrial and Office Parks • Key Focus 21
Slide 22: Commercial and Industrial Highlights
COMMERCIAL AND INDUSTRIAL Highlights Divisional Operating Profit $210.7m Comparable Net Income Growth 1.6%* Record Portfolio Occupancy 99.6% Revaluations in FY06 $223.3m Completion of 2 Development Projects $52.0m 3 Acquisitions $101.0m * Excludes impact of acquisitions, disposals and development 22
Slide 23: Commercial Market Commentary
COMMERCIAL Market Commentary National Office Market Dynamics % p.a. emp. growth ‘000 m² / vacancy rate 1000 10% 800 8% 600 6% 400 4% 200 2% 0 0% 00 01 02 03 04 05 06 FY FY FY FY FY FY FY -200 -2% Net Additions to Stock Net Absorption Office Based Employment (RHS) Vacancy Rate (RHS) *Source: Access E
Slide 24: Commercial Highlights
COMMERCIAL Highlights Leased / Renewed 106,000m2 Strong Tenant Retention 82% Record Occupancy 99.4% Revaluation of 17 Properties $147.4m Increase on Previous Book Value 9.9% 2 Brisbane Acquisitions $70.8m 24
Slide 25: Commercial Lease Expiry Profile
COMMERCIAL Lease Expiry Profile June 2005 June 2006 Vacant Vacant FY06 3% <1% FY07 7% 16% FY10+ FY11+ 38% FY07 39% FY08 26% 12% FY09 14% FY09 FY08 13% FY10 13% 18% Average Lease Term – 4.3yrs Average Lease Term – 4.2yrs * Excludes property contracted for sale [FY05 – 367 George Street] property unde
Slide 26: Industrial and Office Parks Market Commentary
INDUSTRIAL AND OFFICE PARKS Market Commentary National Industrial Sector Output % p.a. growth 8% Forecast 6% 4% 2% 0% FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 -2% Manufacturing Wholesale & Retail Trade Transport & Storage Source: Access Economics 26
Slide 27: Industrial and Office Parks Highlights
INDUSTRIAL AND OFFICE PARKS Highlights Leased / Renewed 155,000m2 Strong Retention 84% High Portfolio Occupancy 99.7% Revaluation of 15 Properties $75.9m Increase on Previous Book Value 11.5% Brisbane Industrial Acquisition $30.2m Melbourne Industrial Portfolio Acquisition July 06 $120m / 7.5% yield
Slide 28: Industrial and Office Parks Development Pipeline
INDUSTRIAL AND OFFICE PARKS Development Pipeline Total Cost Building Area Project Status Yield ($m) m2 FY06 Completions Yennora Eastern Land 100% leased 14 8.5% 17,000 M4 Greystanes Industrial Park 100% leased 38 7.1% 38,555 Pipeline – Under Construction Optus HQ 100% Pre lease 282 7.4% 84,000 66 Wa
Slide 29: Industrial and Office Parks Lease Expiry Profile
INDUSTRIAL AND OFFICE PARKS Lease Expiry Profile June 2005 June 2006 Vacant FY06 Vacant 0% 10% <1% FY07 23% FY11+ FY07 FY10+ 41% 25% 48% FY08 10% FY08 FY09 FY09 10% 9% FY10 7% 16% Average Lease Term – 4.3yrs Average Lease Term – 4.2yrs * Excludes property contracted for sale [FY05 – 18 Rodborough Ro
Slide 30: Commercial and Industrial Key Focus
COMMERCIAL AND INDUSTRIAL Key Focus • Pursue rental growth as office markets strengthen • Acquisitions in growth markets and UPF partnership opportunities • Deliver development projects and extend pipeline • Continue innovation for Stockland Service Centre and sustainability initiatives 30
Slide 31: Development Division
DEVELOPMENT DIVISION Denis Hickey • FY06 Performance • Market Outlook • Strength of Stockland’s Business Model • Strategic Focus Moving Forward • FY07 Outlook 31
Slide 32: Development Division Highlights
DEVELOPMENT DIVISION Highlights • Continued demonstration of successfully managing through cycles • Record operating profit - up 30%* to $239 million • Increased market share in our Residential Communities business • Commencement of our Retirement Living business • Several industry/peer awards recog
Slide 33: Highlights - Net Profit Growth
DEVELOPMENT DIVISION Highlights – Net Profit Growth $m 250 $239m 200 Apartments Residential Communities $184m $157m 150 30% 100 $94m 17% $63m 67% $48m 50 $36m 49% 31% 33% 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 Note: FY00-FY04 is AGAAP, FY05-FY06 is AIFRS 33
Slide 34: Highlights - Results Summary
DEVELOPMENT DIVISION Highlights – Results Summary FY06 Variance on FY05 Residential Total Residential Total Apartments Apartments Communities FY06 Communities Variance Performance Units / Lots Sold No. 4,281 260 4,541 857 148 1,005 Revenue $m $828m $101m $928m $190m $58m $248m Operating Profit $m $2
Slide 35: Key Achievements - Residential Communities
DEVELOPMENT DIVISION Key Achievements – Residential Communities • Strong performance from our entire portfolio FY06 Lots Sold Acquisition Date of Lots Sold – FY06 NSW 60% 372 lots WA 50% 883 lots 40% VIC 936 lots 30% 20% 10% 0% QLD 2,090 lots 1 - 3 years 4 - 6 years 6 + years 35
Slide 36: Key Achievements - Apartments
DEVELOPMENT DIVISION Key Achievements – Apartments • Successful delivery of South Bank Apartments and Saville Hotel (settled in 2H06) • Successful launch of Waterfront (Canberra), Allisee (Gold Coast) & Prince Henry Little Bay (NSW) • Strong sales across all projects under construction Product Relea
Slide 37: Key Achievements - Apartments
DEVELOPMENT DIVISION Key Achievements - Apartments • Successfully achieved DA on 4 Projects Total Project End Project Value 157 Liverpool St (Stage 1) - NSW $204 m Norman Reach - QLD $63 m Prince Henry - NSW $440 m Balgowlah (Stage 1) - NSW $296 m $1,003 m • Received Awards for: • The Abode - “Best
Slide 38: Key Achievements - New Business
DEVELOPMENT DIVISION Key Achievements – New Business • Commenced operations in our Retirement Living Business • Successfully acquired 8 new projects (2,863 lots) • Continued to develop strategic relationships with our builder partners • Market leading research and acquisition capabilities 38
Slide 39: Development Market Outlook
DEVELOPMENT DIVISION Market Outlook • Whilst rising interest rates pose some challenges, we expect the Key Macro drivers to continue to remain stable in the short to medium term • Strong employment conditions • Bi-partisan political support for immigration levels of 120,000+ p.a. • Land constraints
Slide 40: Market Outlook FY07 - NSW
DEVELOPMENT DIVISION Market Outlook FY07 - NSW Building Approvals Home Loan Affordability Parity Private Sector Houses, NSW Sydney against All Capital Cities 3,500 1.5 3,000 1.4 2,500 1.3 No. of Dwellings AVERAGE 2,000 1.2 Ratio 1,500 1.1 1,000 1.0 Houses - Trend 500 Houses - Original 0.9 10-Yr Aver
Slide 41: Market Outlook FY07 - VIC
DEVELOPMENT DIVISION Market Outlook FY07 - VIC Building Approvals Auction Clearance Rates vs. RBA Cash Rate Private Sector Houses, VIC Melbourne (4-mth Rolling average) 4,000 90% 12% MAY-06 NOV-03 OCT-03 MAR-05 80% 11% 3,500 10% 70% RBA Cash Rate Target 3,000 9% Clearance Rate 60% No. of Dwellings 2
Slide 42: Market Outlook FY07 - QLD
DEVELOPMENT DIVISION Market Outlook FY07 - QLD Building Approvals Comparison of Historical Troughs - QLD Private Sector Houses, QLD Approvals, Rolling 3-Month Ave, by Number, Private Sector 3000 0% Percentage Fall (cumulative from peak) 2500 -10% May-06 Number of Dwellings 2000 -20% 1500 -30% -40% 1
Slide 43: Market Outlook FY07 - WA
DEVELOPMENT DIVISION Market Outlook FY07 - WA Building Approvals Private Capital Expenditure - WA Private Sector Houses, WA Selected Industries, Quarterly, ($Billion) 2,500 4.5 4.0 Mining 2,000 Manufacturing 3.5 Total Other Selected Total All Industries No. of Dwellings 3.0 1,500 $Billion 2.5 1,000
Slide 44: Key Strengths of Stockland Business Model
DEVELOPMENT DIVISION Key Strengths of Stockland Business Model • Scale and diversity of projects • No exposure to direct construction activities • Market leading status for both Brand and product quality • Maintain a strong pipeline that underpins future performance ¾ Leads to an ability to successf
Slide 45: Managing Through the Cycles
DEVELOPMENT DIVISION Managing Through the Cycles Housing Approval Volatility & SGP Sales Turnover Australia 190,000 4,500 Total Private Building Approvals SGP Sales Turnover 180,000 4,000 Annual Building Approvals (No.) SGP Sales Turnover p.a. (No.) 170,000 3,500 160,000 3,000 150,000 2,500 140,000
Slide 46: Well Positioned for FY07
DEVELOPMENT DIVISION Well Positioned for FY07 • Record levels of contracts on hand $m $450 $400 Apartments $350 Residential Communities $300 $250 $200 $150 $100 $50 $0 FY02 FY03 FY04 FY05 FY06 • Several projects approaching the next phase of the development lifecycle • 10 new projects to be released
Slide 47: Strategic Focus
DEVELOPMENT DIVISION Strategic Focus • Continue to grow our share of the Residential Communities market • Generate greater profit from our Apartments business as production pipeline is delivered • Remain consistent to strategy of Residential Communities / Apartment mix • Build momentum in our Retire
Slide 48: Development Division Summary
DEVELOPMENT DIVISION Summary • It has been another outstanding year • Enter FY07 in a stronger position than last year, in terms of pipeline, project quality and Brand • Feet on the ground in terms of market outlook for the year ahead • Clear strategy for delivering sustainable performance 48
Slide 49: Unlisted Property Funds
UNLISTED PROPERTY FUNDS Robb Macnicol • Highlights • Wholesale Funds • Key Focus 49
Slide 50: Unlisted Property Funds Highlights
UNLISTED PROPERTY FUNDS Highlights • $470m of retail and wholesale assets under management • SDOT1 and SDOT2 outperformance to forecast • Launched SREEF1 • Continued to strengthen the UPF team with senior resources in: • Funds management • Fund origination 50
Slide 51: SREEF1
UNLISTED PROPERTY FUNDS SREEF1 • First residential development fund launched February 2006 • Target raising $60m • Strategic capital partners • Closing shortly 51
Slide 52: Unlisted Property Funds Key Focus
UNLISTED PROPERTY FUNDS Key Focus • Further grow in-house capital distribution capability • Acquisition of quality assets in partnership with Stockland balance sheet • Target launch of new retail investor product with a shopping centre offer and a follow on SDOT offer • Leverage wholesale relationsh
Slide 53: Future Outlook & Strategy
FUTURE OUTLOOK & STRATEGY Matthew Quinn • Saville Hotel Group • Group Strategy • Future Outlook • Questions 53
Slide 54: Saville Hotel Group
SAVILLE HOTEL GROUP • Saville performing exceptionally well – record profits • Strategic review identified Saville as a non core business • Strong interest in sale of Saville from Australian and international operators • Information Memorandum to be issued in August, expect to close sale by end of 2
Slide 55: Group Strategy
GROUP STRATEGY • One integrated platform across the group • Culture • Systems • Capability • Leverage the synergies from diversity to enhance returns • To extend our market leading position in Australia • And create a world class diversified property group 55
Slide 56: Future Outlook
FUTURE OUTLOOK • Delivery of development pipeline on track • Strong residential presales carried forward into FY07 • Low vacancies and solid lease expiry profiles • Strong balance sheet • Well positioned to deliver consistent growth in returns for our shareholders 56
Slide 57: FY06 Results Presentation
FY06 RESULTS PRESENTATION 9 AUGUST 2006 INSERT COVER OF PROPERTY BOOK 57
Slide 58: Annexures
ANNEXURES 58
Slide 59: Summary of Results
SUMMARY OF RESULTS Summary of June 2006 Full Year Results Cents $m per security Operating Profit 553.7 41.5 Net gain from fair value adjustment of investment properties 640.3 Net unrealised gain on financial instruments 15.6 Net loss on sale of investment properties (3.6) Security holders' finance c
Slide 60: Total P&L Effect of Interest
TOTAL P&L EFFECT OF INTEREST Total P&L Effect of Interest Profit and Loss Effect FY06 $m Interest paid 156.6 Interest capitalised: Development assets 112.7 Investment assets 15.8 128.5 Finance costs 28.1 Capitalised interest expensed via COS 23.9 Total P&L effect 52.0 60
Slide 61: Retail Portfolio Sales
SHOPPING CENTRE DIVISION Retail Portfolio Sales MAT % MAT % Comparable ($m) Growth Growth Supermarkets 1,565.8 5.3 1.9 DDS 861.5 5.9 2.1 Specialties 1,371.4 7.9 3.0 Mini Majors/Cinemas/Other 532.0 9.3 6.1 TOTAL 4,330.7 7.0 2.8 Year to 30 June 2006 61
Slide 62: NZ Portfolio Summary - Retail Sales
SHOPPING CENTRE DIVISION NZ Portfolio Summary – Retail Sales Total MAT % Comp. Specialities % Occupancy ($m) Growth ($/m2) Cost Lynnmall Shopping (NZ) 211.5 +0.9 (NZ) 8,354 13.3 Centre Botany Town Centre (NZ) 300.0 7.7 (NZ) 8,589 13.3 Manukau Supa N/A N/A N/A N/A Centre TOTAL (NZ) 511.5 Inclusive of
Slide 63: Portfolio Summary - Retail Sales
SHOPPING CENTRE DIVISION Portfolio Summary – Retail Sales Centre Total MAT ($m) Comp Growth (%) Specialties MAT ($/m²) Occupancy Cost (%) Stockland Bay Village 163.6 N/A N/A N/A Stockland Bathurst 117.5 N/A 8,481 10.9 Stockland Baulkham Hills 85.3 N/A N/A N/A Benowa Gardens Shopping 36.9 8.3 5,762 1
Slide 64: Portfolio Summary - Retail Sales (cont'd)
SHOPPING CENTRE DIVISION Portfolio Summary – Retail Sales (cont’d) Centre Total MAT ($m) Comp Growth (%) Specialties MAT ($/m²) Occupancy Cost (%) Stockland Merrylands 168.0 0.8 9,952 N/A Stockland Nowra 119.5 1.3 9,098 11.0 Stockland Parabanks 140.7 -2.5 6,233 12.5 Piccadilly, Sydney 18.9 7.1 6,752
Slide 65: Shopping Centre Development Pipeline
SHOPPING CENTRE DIVISION Development Pipeline PROJECT Project ACTUAL Actual Capex CAPEX ($m) ($m) ACTUAL Actual Yield YIELD (%) (%) STATUS Status Burleigh 34.0 33.9 9.0 Completed September 2005 Bay Village 43.6 43.7 11.3 Completed October 2005 Glendale 18.3 13.6 Completed December 2005 Bridge plaza
Slide 66: Revaluations
SHOPPING CENTRE DIVISION Revaluations Previous Current Valuation Increment/ Independent Valuations Book Value Valuation Date Cap Rate % Decrement ($m) ($m) ($m) Wetherill Park 231.1 278.0 Jun-06 6.25% 46.9 Shellharbour 183.3 227.4 Dec-05 6.50% 44.1 Townsville 177.9 198.4 Dec-05 7.00% 20.6 Glendale 1
Slide 67: Revaluations (cont'd)
SHOPPING CENTRE DIVISION Revaluations (cont’d) Previous Current Valuation Increment/ Independent Valuations Book Value Valuation Date Cap Rate % Decrement ($m) ($m) ($m) Bathurst 63.4 77.1 Dec-05 7.00% 13.7 Bull Creek 63.0 72.5 Jun-06 6.75% 9.5 Cleveland 66.5 71.3 Dec-05 7.00% 4.8 Wendouree 65.2 69.
Slide 68: Commercial Market Commentary
COMMERCIAL Market Commentary SGP SGP Market Net Under Portfolio Vacancy Vacancy* Absorption* Construction* Sydney CBD 38% 1.1% 10.4% Ð 191,100m2 54,800m2 North Sydney 14% 2.0% 8.1% Ð 22,600m2 50,400m2 Suburban Sydney 10% 0.0% 10.5% Ð 23,500m2 51,800m2 Brisbane 12% 0.0% 2.5% Ð 37,500m2 78,600m2 Melbo
Slide 69: Industrial and Office Parks Market Commentary
INDUSTRIAL AND OFFICE PARKS Market Commentary SGP SGP Under Pre- Land Rental Portfolio Vacancy Construction* committed* Values* Growth* Sydney 51% 0.1% 573,500m2 45% Ï Moderate Brisbane 12% 0.0% 323,000m2 76% Ï Strong Melbourne 11% 1.4% 504,600m2 70% Ï Improving Adelaide 6% 0.0% 118,400m2 100% Ï Ste
Slide 70: Commercial and Industrial Revaluations
COMMERCIAL AND INDUSTRIAL Revaluations Previous Current Valuation Increment/ Independent Valuations Book Value Valuation Cap Rate Date Decrement ($m) ($m) ($m) % Commercial 11.00 %– Cox & Drakeford Buildings 14.4 17.9 Dec 05 3.5 12.00% 135 King St (50%) 88.5 86.8 Dec 05 6.90% (1.8) 110 Walker Street
Slide 71: Revaluations (cont'd)
COMMERCIAL AND INDUSTRIAL Revaluations (cont’d) Previous Current Valuation Increment/ Independent Valuations Book Value Valuation Cap Rate Date Decrement ($m) ($m) ($m) % 68 Northbourne Avenue 21.7 29.0 Jun 06 9.85% 7.3 234 Sussex Street 44.8 50.0 Jun 06 7.00% 5.2 Colonial Centre (50%) 174.7 182.5 J
Slide 72: Revaluations (cont'd)
COMMERCIAL AND INDUSTRIAL Revaluations (cont’d) Previous Current Valuation Increment/ Independent Valuations Book Value Valuation Cap Rate Date Decrement ($m) ($m) ($m) % 3 Byfield Street 8.2 9.1 Dec 05 7.50% 0.9 7.75%- Macquarie Technology Centre 39.4 40.5 Dec 05 1.1 8.00% 18 Rodborough Road 8.0 7.
Slide 73: Residential Communities - Projects Launched in FY06
DEVELOPMENT DIVISION Residential Communities – Projects Launched in FY06 State Project Launch Date NSW / ACT Lakewood 1H06 Macarthur Gardens 1H06 Wallarah 2H06 Waterside 2H06 QLD Highland Reserve 1H06 Augustine Heights 1H06 Lake Kawana 2H06 VIC Mernda Villages 1H06 Hawkstowe 1H06 essence 1H06 WA Ver
Slide 74: Residential Communities - Restocking
DEVELOPMENT DIVISION Residential Communities - Restocking No. Future Deferred Off Location State Lots Purchase Market Acquired Terms Residential Communities Maitland (Gillieston) NSW 210 Y Y Ocean Drive, Pacific Paradise QLD 307 Y Y Augustine Heights (additional land acquisition) QLD 373 Y Y Pallara
Slide 75: Apartments Pipeline
DEVELOPMENT DIVISION Apartments Pipeline Expected State Project End Value Release NSW / ACT Elysium 2H08 $113m Balgowlah 2H07 $296m 157 Liverpool Street 1H07 $204m Prince Henry Little Bay (Staged Project) * from 1H07 $373m * QLD Norman Reach (Bethany) 1H07 $63m Eagle Street Pier 2H09 $300m Allisee (
Slide 76: Consistent Strategy
DEVELOPMENT DIVISION Consistent Strategy Gross Assets $516m Gross Assets $2,332m 30 June 2002 30 June 2006 Apartments Apartments 11% 17% Residential Residential Communities Communities 89% 83% 76
Slide 77: Geographic Diversity
DEVELOPMENT DIVISION Geographic Diversity National Queensland WA 9% Gold Coast Brisbane 19% 32% VIC & SA QLD 25% 43%* Sunshine 23%* North QLD 26% NSW & ACT 23% * Excluding Caloundra Downs 77
Slide 78: Product Diversity
DEVELOPMENT DIVISION Product Diversity Rural Retirement Living C&I Retail Courtyard Family Apartments Townhouses Small Lots Conventional Large 78
Slide 79: Residential Communities - Lots Sold
DEVELOPMENT DIVISION Residential Communities – Lots sold Movement FY06 FY05 FY06 vs FY05 No. Lots Avg Price No. Lots Avg Price No. Lots Avg Price Sold $(000) Sold $(000) Sold $(000) New South Wales 372 $346 280 $454 92 ($108) Victoria 936 $165 765 $153 171 $12 Queensland 2,090 $220 1,611 $209 479 $1
Slide 80: 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