Stockland · ASX:SGP
Stockland — FY2013 Earnings Presentation
98 slides from Stockland's earnings presentation, Aug 13, 2013
Slide 1: FY13 Results Presentation
FY13 Results Presentation For personal use only A Clear Direction Stockland Merrylands, NSW
Slide 2: Agenda
For personal use only Agenda Topic Speaker Page Number Group Update Mark Steinert, Managing Director and CEO 03 Financial Update Tim Foster, CFO 05 Commercial Property John Schroder, Group Executive and CEO, 12 Commercial Property Residential Andrew Whitson, Group Executive and CEO, 22 Residential R
Slide 3: Results reflect soft operating environment and portfolio transition
For personal use only Results reflect soft operating environment and portfolio transition Trough year in Group earnings FY13 FY12 Underlying Profit down 27% to $495m and EPS down 24% to 22.4 cents per share Statutory Profit $104.6m $487.0m 79% Commercial Property – solid performance overall Statut
Slide 4: Reinvigorating the business for reliable growth and returns
For personal use only Reinvigorating the business for reliable growth and returns Stockland is well positioned with a diverse portfolio Clear direction established through strategic review Quality management team in place to execute strategy Key Retail Made tough decisions to establish a solid found
Slide 5: Financial Management
Financial Management 01 Financial Update - Tim Foster For personal use only
Slide 6: Underlying Profit reflects soft operating environment and portfolio transition
Underlying Profit For personal use only reflects soft operating environment and portfolio transition $m FY13 FY12 Change Commentary Retail 324 310 5% 2.6% comparable NOI growth (3.0% pre-IFRS); development completion of Townsville, Merrylands; sale of Bay Village (income impact of $11m) Office 119
Slide 7: Statutory Profit materially impacted by Residential impairments
Statutory Profit materially impacted For personal use only by previously announced Residential impairments $m FY13 FY12 Change Commentary Underlying Profit 495 676 27% Commercial Property revaluations 65 66 Income growth at Rockhampton, Gladstone and Durack Centre, offset by Glasshouse. Progressiv
Slide 8: Capitalised interest and disposals have impacted Residential margins
For personal use only Capitalised interest and disposals have impacted Residential margins Capitalised interest review Residential margins Requirement to capitalise interest introduced in 2005 25.0% Policy review completed in 1H13: to reduce capitalised interest EBIT margin balance over time and del
Slide 9: Strong balance sheet provides solid foundation for growth
For personal use only Strong balance sheet provides solid foundation for growth Capital management Key debt metrics Balance sheet ratios remain within A-/stable metrics; rating confirmed in June 2013; gearing maintained within target range S&P rating A-/Stable (20-30%) Drawn debt1 $2.8b $400m equity
Slide 10: Effective cash management in challenging Residential market
For personal use only Effective cash management in challenging Residential market FY13 cash inflows and outflows ($m) Net operating cash flows of $474m 1 (FY12:$310m) provided 87% coverage of FY13 distribution $2,595m $2,503m 50% reduction in Residential unsold finished goods Institutional 400 Net r
Slide 11: Continued focus on efficiency and cost management
For personal use only Continued focus on efficiency and cost management ~10% reduction in total overheads over two years Prudent cost management Partial centralisation of support functions into Group $m FY13 FY12 FY11 Business unit automation of processes Commercial Property1 26 27 35 Procurement sa
Slide 12: Commercial Property
Commercial Property 02 Commercial Property - John Schroder For personal use only Stockland Hervey Bay
Slide 13: Commercial Property delivered solid result
For personal use only Commercial Property delivered solid result Retail Office Industrial Redevelopments driving scale and market Higher occupancy and improved weighted Lease expiries and asset sales impacted headline share average lease expiry (WALE) through focused result leasing and refurbishment
Slide 14: Success in delivering value and growth
For personal use only Success in delivering value and growth Total moving annual turnover (MAT) sales approaching $6b $900m of major Retail development at Merrylands, Townsville and Shellharbour $5.7b $5.9b $4.9b $5.5b $4.7b Commenced $116m development at Hervey Bay and secured five new development
Slide 15: Retail: sales growth positive in challenging market
For personal use only Retail: sales growth positive in challenging market Moving annual turnover (MAT) growth2 Maintained high occupancy of 99.4% (FY12: 99.4%) WALE increased to 6.4 yrs (FY12: 5.9 yrs) 6.0% Stable tenant retention at 75% (FY12: 76%) Executed 688 retail leasing deals including projec
Slide 16: Retail: diverse and resilient portfolio
For personal use only Retail: diverse and resilient portfolio Sales growth driven by comparable MAT psm Strong diversity in rental income growth in most categories: Gross rent – total portfolio Supermarkets up 5.3% Food Catering up 1.7% Discount Department Apparel and Jewellery 15% 12% Stores up 0.6
Slide 17: Retail strategy: market leader or clearly differentiated in trade area
For personal use only Retail strategy: market leader or clearly differentiated in trade area Highly productive centres well positioned for growth Develop our most productive retail assets to maximise trade area Specialty MAT psm, sub-regional centres share $13,731 Continue to focus on the deep, mass
Slide 18: Retail: significant development pipeline driving growth and returns
For personal use only Retail: significant development pipeline driving growth and returns Neighbourhood Sub regional Regional Major regional Merrylands Completed Townsville Stage 1 Target returns Shellharbour 12-14% incremental IRR1 Under construction Hervey Bay 7-8% incremental yield (pre-IFRS & st
Slide 19: Office: actively managing the portfolio
For personal use only Office: actively managing the portfolio Office strategy Occupancy1 increased to 96.0% (FY12: 94.5%) Tactical exposure to office WALE1 increased to 4.6 yrs (FY12: 4.1 yrs) Optimise income in short to medium term with a focus on active management, refurbishment and leasing Execut
Slide 20: Industrial: significant re-letting in FY13 will drive growth into FY14
For personal use only Industrial: significant re-letting in FY13 will drive growth into FY14 Industrial strategy Occupancy of 89.1% (97.3% in FY12) Targeting assets of $1.2 - $1.5b in five years WALE increased to 3.3 yrs (2.7 yrs in FY12) Actively leasing, upgrading and developing the existing portf
Slide 21: Commercial Property well placed for continued growth
For personal use only Commercial Property well placed for continued growth Market trends Outlook Retail Retail Sales growth remains subdued; more so in discretionary $1.5b forward Retail development pipeline at cost – where there are strong trade area fundamentals Online sales market share 6.4%1; gr
Slide 22: Residential
Residential 03 Residential - Andrew Whitson For personal use only
Slide 23: Low point in earnings
For personal use only Low point in earnings FY13 performance Residential Communities FY13 FY12 Lower volumes reflect soft market conditions Lots settled 4,641 5,388 14% Decline in Vic and Qld, combined with increase in settlements Revenue - Retail $849m $1,016m 16% - Superlots1 $65m $64m 2% of
Slide 24: Market, mix and conservative approach impacted result
For personal use only Market, mix and conservative approach impacted result Settlement volumes declined 14% Margins impacted by mix and market More conservative approach Vic down 44% - weak market Lower settlements from high margin Victorian Adopted a more conservative view of future projects price,
Slide 25: Progress despite challenging residential market conditions
For personal use only Progress despite challenging residential market conditions Contracts on hand leading into FY14 up 25% on FY13 levels Rebased the business to create a solid foundation Restructured to improve efficiency and reduce costs – de-layered state structure and centralised support functi
Slide 26: Strategic initiatives to improve performance
For personal use only Strategic initiatives to improve performance Residential Communities Operating Profit margins to improve Targeting improved operating margins Operating Profit margins Near term EBIT margin will be impacted by asset disposals Reshaping the portfolio Accelerate launch of new proj
Slide 27: Core ROA expected to improve from FY14/15
For personal use only Core ROA expected to improve from FY14/15 Capital Core projects employed1 Residential Communities FY13 Delivering 28 Active projects2 current $1.2b earnings ~25,200 Lots Core Workout Total FY13 Active Lots settled 3,774 867 4,641 ROA 12.2% Bring to 5 New Launch projects Revenue
Slide 28: Residential earnings improving from FY14
For personal use only Residential earnings improving from FY14 Housing market improving but uneven across states Outlook NSW Activity levels continue to trend up across both Contracts on hand up 25% leading into FY14 established and new dwelling markets in metro Continued benefits from progress on e
Slide 29: Retirement Living
Retirement Living 04 Retirement Living - Stephen Bull For personal use only Macarthur Gardens
Slide 30: Stronger Retirement Living result
For personal use only Stronger Retirement Living result Established portfolio FY13 FY12 547 units turned over and 31 units removed for redevelopment Established unit turnover 547 519 5% (7.4% p.a. turnover rate; 7.0% p.a. in FY12) New unit settlement 304 268 13% Turnover cash margin impacted by
Slide 31: Increased volumes in line with strategy
For personal use only Increased volumes in line with strategy Established portfolio Net reservations 830 851 FY13 FY12 Established unit turnover 547 519 5% 269 304 Units removed for redevelopment 31 - - Development Established Average re-sale price $310k $324k 4% Turnover cash per unit $78k $87k
Slide 32: Continued growth in scale and returns
For personal use only Continued growth in scale and returns Record settlements, continue to be one of the top three Macarthur Gardens, NSW developers and operators in the sector Successfully completed developments at five villages and construction underway at eight villages Builder partner program w
Slide 33: High occupancy, happy residents and greater scale
For personal use only High occupancy, happy residents and greater scale Strategy Focus on improving returns Organic growth with strong development pipeline Managing costs – centralise and streamline Targeting middle market with affordable and customer focused Differentiated customer experience – rel
Slide 34: Flexible development pipeline of over 4,000 units
For personal use only Flexible development pipeline of over 4,000 units Construction Future Anticipated settlement timing timeframe settlements FY14 FY15 FY16 From FY17+ Completed Gowanbrae, Vic 1 (FY13) Tarneit Skies, Vic 22 Waratah Highlands, NSW 10 The Willows, NSW 18 Farrington Grove, Qld 13 Sub
Slide 35: Strong market fundamentals support continued growth in scale and returns
Strong market fundamentals For personal use only support continued growth in scale and returns Market trends Outlook Strong underlying population demographics – Increased volumes in both our established villages and our Over-65s now 14% of the population, will be 20% by 2030 developments At 5% conti
Slide 36: Summary and Outlook
Retirement Living 04 Summary and Outlook - Mark Steinert For personal use only Willowdale
Slide 37: Progress on business priorities
For personal use only Progress on business priorities Achieved Ongoing Priority Progress Improve Residential profitability Land bank defined into core and workout projects Impaired asset sales progressing Selective capital reinvestment Medium density / built form progress Improve Retirement Living r
Slide 38: Modest growth expected in global and domestic markets
For personal use only Modest growth expected in global and domestic markets Global Outlook Domestic Outlook U.S. housing activity, consumer confidence and employment Interest rates remain supportive and expected to trend growth improving lower Consensus for Chinese growth to remain above 7.0% p.a. o
Slide 39: Market trends and outlook
For personal use only Market trends and outlook Market trends Outlook Retail: consumers remain cautious; moderate sales improvement New projects and re-letting activity support earnings improvement from FY14 Office: incentives and vacancies are high and increasing Full year effect of cost initiative
Slide 40: We are committed to executing our strategic plan
For personal use only We are committed to executing our strategic plan Strategic plan Focus on core competencies in property and asset management and development to drive value creation Focus on cost and efficiency while maintaining a desirable work environment Agile capital allocation within a disc
Slide 41: 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
Slide 42: FY13 Results Annexure
FY13 Results Annexure For personal use only
Slide 43: FY13 Results Annexure Contents
FY13 Results Annexure 00 Contents For personal use only Section Page number Financial Management 44 Commercial Property 62 Residential 78 Retirement Living 94 Stockland FY13 Results 43
Slide 44: Financial Management
Financial Management 01 Financial Management For personal use only
Slide 45: Profit summary
Financial Management 01 Profit summary For personal use only FY13 $m FY12 $m Residential Communities EBIT (before interest in COGS) 181.5 270.4 Apartments EBIT (before interest in COGS) (0.9) 8.6 Commercial Property EBIT (before interest in COGS) 482.2 510.8 Retirement Living EBIT 44.6 40.9 UK EBIT
Slide 46: Underlying Profit reconciliation
Financial Management 01 Underlying Profit reconciliation For personal use only FY13 $m FY12 $m Underlying Profit1,2 494.8 676.1 Non-cash adjustment to inventories and development profits Write-down of inventory – Australia (354.8) (48.9) Write-down of inventory – UK (12.3) (14.2) Development profit
Slide 47: Segment Note to Underlying Profit reconciliation
Financial Management 01 Segment Note to Underlying Profit reconciliation For personal use only $m Residential1 Retirement Commercial UK Total Living Property Total external segment revenue 956 78 682 9 1,7252 Segment result before interest 181 45 482 2 710 Unallocated corporate overheads (60)3 Inter
Slide 48: Net interest gap closed following changes to capitalised interest
Financial Management 01 Net interest gap closed following changes to capitalised interest For personal use only Interest expense - $m FY13 FY12 Gap between interest paid and expense Interest paid 216.9 210.1 decreased Less: capitalised interest - Commercial Property development projects (7.0) (17.4)
Slide 49: Cash flow
Financial Management 01 Cash flow For personal use only Net operating cash flow movement FY12 to FY13 Efficient Residential capital management Lower Residential settlements and impact of O&I 33 17 6 disposals (45) 186 (45) 542 474 (241) 253 Higher Residential acquisitions 310 in FY12 due to Brookfie
Slide 50: Prudent capital management strategy underpinned by long dated diverse debt sources
Financial Management 01 Prudent capital management strategy underpinned by long dated diverse debt sources For personal use only Long-dated drawn debt maturity profile (WADM 5.4 yrs)1 Diverse debt sources – Committed Facilities $m 600 EMTNs EMTNs DMTNs $362m, 9% USPP 500 Bank debt2 400 US Private Ba
Slide 51: Gearing maintained within target range
Financial Management 01 Gearing maintained within target range For personal use only Gearing movement FY12 to FY13 0.8% (2.7%) 1.6% (3.3%) (3.2%) 0.5% 25.8% 22.7% June 2012 Gearing Residential Commercial property asset Investment in Retail Institutional equity Other 1 June 2013 Gearing impairment di
Slide 52: Debt summary
Financial Management 01 Debt summary For personal use only Facility Facility limit Amount drawn Debt Capital Markets ($m)1 ($m)1,2 Bank Debt 1,120 - A$75.5m DMTN were repaid in May 2013 Commercial Paper - - Other3 175 175 12 year HKD470m EMTN (A$61.8m) were issued 30 May 2013 Domestic Medium Term No
Slide 53: Debt summary (continued)
Financial Management 01 Debt summary (continued) For personal use only Facility Issued debt Facility maturity Facility Issued debt Facility maturity ($m)1 ($m)1 Domestic Medium Term Note Facility (MTN) USPP - MTN 300 Feb 2015 - USPP 51 Jul 20133 - MTN 150 Jul 2016 - USPP 28 Jul 2014 - MTN 160 Nov 20
Slide 54: Fixed debt / hedge profile
Financial Management 01 Fixed debt / hedge profile For personal use only Current high fixed hedge ratio due to lower than expected debt levels post the GFC $b 2.5 2.0 6.2% 1.5 6.5% 6.8% 7.0% 1.0 Hedged debt 7.3% 0.5 8.1% 8.0% 7.8% 7.9% Current fixed 7.9% rate debt1 0.0 FY14 FY15 FY16 FY17 FY18 1. Hi
Slide 55: Balance sheet summary
Financial Management 01 Balance sheet summary For personal use only $m 30 June 2013 30 June 2012 Cash 227.1 135.6 Real estate related assets - Commercial Property 7,866.0 8,134.4 - Residential 2,310.5 2,554.8 - Retirement Living (including Aged Care) 1,110.9 1,134.8 - UK 72.2 93.4 Retirement Living
Slide 56: Significant headroom to covenant requirements
Financial Management 01 Significant headroom to covenant requirements For personal use only As at 30 June 2013 Statutory Adjustments Gearing All lenders have consistent covenants $m Balance Covenant Sheet Balance Total liabilities/total tangible assets (TL/TTA): 45% Sheet No adjustment made for cash
Slide 57: Strategic asset weightings
Financial Management 01 Strategic asset weightings to deliver reliable EPS growth over time For personal use only Real estate asset mix Assets Operating 30 June 2013 Profit FY13 1% UK Recurring Retirement 10% Residential and Living 20-30% Retirement Living Retirement Living 8% 6% 20% overall: Commer
Slide 58: Stockland Corporation statutory income tax reconciliation
Financial Management 01 Stockland Corporation statutory income tax reconciliation For personal use only $m FY13 FY12 Statutory Group profit before tax 33 457 Less: Trust profit (647) (606) Add: Intergroup eliminations - 11 Corporation loss before tax (614) (138) B Add / (Less): Non-deductible / (ass
Slide 59: Decline in ROE due to ongoing soft Residential market conditions
Financial Management 01 Decline in ROE due to ongoing soft Residential market conditions For personal use only FY13 FY12 Commentary Cash Avg. Cash Return on Cash Avg. Cash Return on Return Invested Investment Return Invested Investment ($m) ($b) ($m) ($b) Retail 330 4.1 8.1% 310 3.9 8.0% Completion
Slide 60: Simple, cash focused approach in assessing capital management
Financial Management 01 Simple, cash focused approach in assessing capital management For personal use only Stockland Return on Assets and Return on Equity methodology Numerator Denominator Residential EBIT (including EBIT from impaired Net Funds Employed (NFE) (excluding capitalised interest and ad
Slide 61: Reconciliation between ROE table values and accounting results
Financial Management 01 Reconciliation between ROE table values and accounting results For personal use only Reconciliation of group return in ROE calculation to Reconciliation of capital employed in ROE calculation to Underlying Profit statutory net assets $m FY13 FY12 $b Average Average for FY13 f
Slide 62: Commercial Property
Commercial Property 02 Commercial Property For personal use only Stockland Hervey Bay
Slide 63: Retail performance
Commercial Property 02 Retail performance For personal use only Retail NOI movements between FY12 and FY13 ($m) Key metrics FY13 FY12 3 6 Acquisitions (11) Occupancy 99.4% 99.4% (5) Developments 21 Specialty occupancy costs 14.0% 14.1% Retail up 5% 324 Specialty store leases: - Fixed annual increase
Slide 64: Stockland retail sales growth
Commercial Property 02 Stockland retail sales growth For personal use only 7.0% 6.0% 6.0% 3.5% 2.9% 5.0% 4.7% 3.0% 2.7% 2.5% 2.5% 2.5% 4.0% 3.3% 2.0% 3.0% 1.6% 1.6% 1.5% 1.3% 2.0% 0.8% 1.0% 1.0% 0.4% FY12 1H13 FY13 0.5% 0.0% 0.0% Total Moving Annual Turnover (MAT) 12 Month Comparable Growth 6 Month
Slide 65: Stockland retail sales growth per square metre
Commercial Property 02 Stockland retail sales growth per square metre For personal use only 4.5% 4.0% 4.0% 3.5% 3.2% 3.0% 3.0% 2.8% 2.7% 2.5% 2.5% 2.2% 2.0% 1.5% 1.3% 0.9% 1.0% 0.5% FY12 1H13 FY13 0.0% 12 Month Comparable Growth $psm 6 Month Comparable Growth $psm 3 Month Comparable Growth $psm 12 m
Slide 66: Retail development pipeline
Commercial Property 02 Retail development pipeline For personal use only Est. total Cost spent Est. cost to Completion Est. fully % Total % Specialty Est. Est. total incremental to date complete leased year income income incremental return4 (%) cost ($m) ($m) Date Est. value 1 yield1 (%) leased leas
Slide 67: Office performance
Commercial Property 02 Office performance For personal use only Office NOI movements between FY12 and FY13 Portfolio concentrated in large quality assets ($m) Office assets by book value Occupancy and lease FY13 FY12 4 10% expiry ~$1.6b Occupancy 96.0% 94.5% 142 (30) Premium, A grade 90% 3 B-Grade W
Slide 68: Industrial performance
Commercial Property 02 Industrial performance For personal use only Industrial NOI movements between FY12 and FY13 Portfolio concentrated in large quality assets ($m) Industrial assets by book value Occupancy and lease FY13 FY12 (7) expiry ~$0.8b $0.2b $0.6b Occupancy 89.1% 97.3% (10) 3 77 Top five
Slide 69: Office and Industrial tenancy retention and new leasing metrics
Commercial Property 02 Office and Industrial tenancy retention and new leasing metrics For personal use only Total leased Retention New leases Office1 GLA leased Weighted Weighted Retention Increase on Weighted New leases Increase on Weighted (sqm)2 average base average (sqm)2 base rents average (sq
Slide 70: Commercial Property revaluation and book value update
Commercial Property 02 Commercial Property revaluation and book value update For personal use only 9.0 Commercial Property book values $7.8b1 ($b) 0.01 8.0 0.5 (0.5) 0.1 22% of all investment property assets were independently valued at 30 June 2013 7.0 34% independently valued at 31 December 7.7 7.
Slide 71: Portfolio weightings and valuation movements
Commercial Property 02 Portfolio weightings and valuation movements For personal use only Commercial Property assets - $7.7b1 Retail - $5.3b Office - $1.6b Industrial - $0.8b 41 properties 16 properties 13 properties 953,088sqm gross lettable area2 385,342sqm net lettable area2 963,047sqm gross lett
Slide 72: Asset values – Retail
Commercial Property 02 Asset values – Retail For personal use only Retail Portfolio Book Value FY13 Val. Change Cap Rate FY13 Retail Portfolio Book Value FY13 Val. Change Cap Rate FY13 ($m) Incr/ Decr IFRS NOI ($m) Incr/ Decr IFRS NOI ($m)1 ($m)2 ($m)1 ($m)2 Stockland Shellharbour3 634.8 53.1 8.4% 7
Slide 73: Asset values – Office
Commercial Property 02 Asset values – Office For personal use only Office Portfolio Book Value FY13 Val. Change Cap Rate FY13 Office Portfolio Book Value FY13 Val. Change Cap Rate FY13 ($m) Incr/ Decr IFRS NOI ($m) Incr/ Decr IFRS NOI ($m) ($m)1 ($m) ($m)1 Piccadilly Tower2 271.9 7.25% 16.7 Macquari
Slide 74: Asset values – Industrial
Commercial Property 02 Asset values – Industrial For personal use only Industrial Portfolio Book Value ($m) FY13 Val. Change Cap Rate FY13 Incr/ Decr IFRS NOI ($m) ($m)1 Yennora Distribution Centre 347.6 8.00% 23.8 Port Adelaide Distribution Centre 81.9 (5.0) (6.1%) 10.00% 7.4 Hendra Distribution Ce
Slide 75: Commercial Property asset disposals
Commercial Property 02 Commercial Property asset disposals For personal use only Property Disposed Asset Class Exchange Date Settlement Date Disposal Value ($m) 255 St Georges Terrace, WA Office Jul 2012 Jul 2012 6.3 267 St Georges Terrace, WA Office Jul 2012 Jul 2012 21.4 Bay Village, NSW Retail Ju
Slide 76: Top tenants by income
Commercial Property 02 Top 20 tenants by income For personal use only 1 Retail Portfolio Office Portfolio Industrial Portfolio Rank Tenant % Portfolio Tenant % Portfolio Tenant % Portfolio 1 Woolworths 12.9% Optus 6.1% Toll Holdings Limited 11.8% 2 Wesfarmers 11.9% Sinclair Knight Merz 5.8% O-I (ACI
Slide 77: Top tenants by area
Commercial Property 02 Top 20 tenants by area For personal use only 1 Retail Portfolio Office Portfolio Industrial Portfolio Rank Tenant % Portfolio Tenant % Portfolio Tenant % Portfolio 1 Wesfarmers 26.3% Optus 9.7% O-I (ACI) 14.2% 2 Woolworths 22.4% IBM Global Services 4.4% Toll Holdings Limited 1
Slide 78: Residential Communities
Residential Residential Communities 03 Residential Communities For personal use only
Slide 79: Increased leads due to strong market conditions in WA
Residential 03 Increased leads due to strong market conditions in WA, successful marketing campaign and new project launch For personal use only Customer lead volumes increased in 2H13 mainly out of WA First Home Buyers remain active Average Monthly Leads First Home Buyers 3500 75% Upgraders 64% Ret
Slide 80: Deposit volumes strengthening
Residential 03 Deposit volumes strengthening supported by geographic diversity, FHB surge and increased retail investor activity For personal use only Net deposits continue to be driven by first home buyers and re-emergence of retail investors 1,403 1,378 1,174 1,163 275 Retail 1,092 1,125 1,127 1,0
Slide 81: Price per sqm
Residential 03 Price per sqm For personal use only Retail sales price1 FY13 Settlements FY12 Settlements State No. lots Av. size per Av. Price per $/sqm No. lots Av. size per Av. Price per $/sqm lot sqm lot $k lot sqm lot $k NSW 609 560 229 410 844 512 233 455 Qld 1,375 475 200 420 1,538 497 203 409
Slide 82: Continued focus on affordable product for our customers
Residential 03 Continued focus on affordable product for our customers For personal use only Stockland projects providing more affordable product 1 Proportion of sub $200k lots sold Smallest lot in each state settled in FY13 2H13 Market Lot size Stockland average lot size: 453sqm 57% 2H13 Stockland
Slide 83: Geographically diverse portfolio underpinned by large projects
Residential 03 Geographically diverse portfolio underpinned by large projects For personal use only Major projects over next 3 years Total Pipeline of 84,4003 lots State Project Approximate lot Approximate sales per annum1 remaining project lots Vic Qld North Shore 310 4,082 26% Qld North Lakes 220
Slide 84: Five projects with first settlements in next two years
Residential 03 Five projects with first settlements in next two years For personal use only Summary of new projects Project Timing of first settlements Approximate total Approximate life lots in project of project NSW Willowdale (East Leppington), SW Sydney FY14 3,112 10 yrs Marsden Park, NW Sydney
Slide 85: Eight projects completing prior to FY16
Residential 03 Eight projects completing prior to FY16 For personal use only Summary of completing projects Project Timing of final settlements Approximate total Lots Lots remaining to sell (as at 30 June 2013) NSW McCauleys Beach FY14 299 18 Glenmore Ridge FY14 525 18 Brooks Reach FY15 598 388 Qld
Slide 86: Established market improving with rental markets remaining tight
Residential 03 Established market improving with rental markets remaining tight For personal use only Capital city house prices rising1 Rental vacancy still low with exception of Victoria 2 50% 5.0% Rolling Annual Growth(%) 40% 4.0% 30% Balanced Market 3.0% 20% Melbourne WA 10% NSW 2.0% Brisbane Vic
Slide 87: National housing approvals improving
Residential 03 National housing approvals improving but still around 10% below long term average For personal use only Qld market failing to respond to FHB boost Vic market rising again but still 33% below Dec 2009 peak 4,000 4,000 3,000 3,000 -33% 2,000 2,000 -30% 1,000 1,000 0 0 1985 1989 1993 199
Slide 88: NSW recovery underway while WA close to peak
Residential 03 NSW recovery underway while WA close to peak For personal use only NSW vacant land sales strong in 2H13 as supply comes online 1 Metropolitan NSW continues to improve 3000 Quarterly Sales Auction activity and established house prices rising 2500 Rental markets softening but remain tig
Slide 89: Qld and Vic markets remain challenging
Residential 03 Qld and Vic markets remain challenging For personal use only Annual SEQld vacant land sales up 22%1 Qld new house market yet to see recovery 1800 Vacant land sales have been rising for 12 months Quarterly Sales 1600 and saw significant increases in 2H13 1400 1200 Not flowing through t
Slide 90: Market fundamentals driven by population growth and undersupply
Residential 03 Market fundamentals driven by population growth and undersupply For personal use only Population growth continues to diverge from dwelling Net overseas migration rising in all states2 starts1 375,000 500,000 120 Annual Rolling Sum (‘000s) 325,000 450,000 100 400,000 275,000 80 Dwellin
Slide 91: Affordability improving as household income rises
Residential 03 Affordability improving as household income rises For personal use only Household incomes still rising1 Mortgage repayments as % of household income 2 20% 60% Disposable Income Growth (%) 15% 50% 40% 10% Sydney WA 30% Melbourne 5% NSW Brisbane Vic 20% Perth Qld 0% 10% -5% 0% 2008 2009
Slide 92: Trade out of Apartments on track
Residential 03 Trade out of Apartments on track For personal use only Apartments FY13 FY12 Apartments settled 22 92 Revenue $43m $86m Operating Profit (incl. interest in COGS) 1,2 ($5m) $0m Operating Profit margin (incl. interest in COGS) (10%) 0% Apartment contracts on hand – no. 1 14 -$ $1m $23m N
Slide 93: ~90% of our impairment provision is utilised in next two years
Residential 03 ~90% of our impairment provision is utilised in next two years For personal use only Projects reviewed regularly to assess recoverability. We recently Impairment Final settlement undertook a rigorous review of our residential portfolio applying provision balance more conservative assu
Slide 94: Retirement Living
Retirement Living 04 Retirement Living For personal use only Macarthur Gardens
Slide 95: Solid portfolio comprised of mature villages and development pipeline
Retirement Living 04 Solid portfolio comprised of mature villages and development pipeline For personal use only Portfolio Statistics FY13 FY12 Net Funds Employed Established villages 62 62 $1,251m $1,185m 30 Established units 8,0821 7,807 27 Aged care 117 117 Goodwill National ranking #3 #3 225 189
Slide 96: Growth is supported by strong development pipeline
Retirement Living 04 Growth is supported by strong development pipeline For personal use only Geographically diverse development pipeline Development pipeline FY14 Development villages1 24 Total development pipeline units 4,050 WA - Greenfield pipeline units 3,495 11% Qld 16% - Village extension pip
Slide 97: Key valuation metrics
Retirement Living 04 Key valuation metrics For personal use only Key valuation assumptions FY13 FY12 DMF Asset Valuation Discount rate 12.8% 12.8% Directors’ valuations are performed every six months with independent valuations commissioned at least once every two years on a rolling basis Average 20
Slide 98: 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