Stockland · ASX:SGP
Stockland — Non-Deal Roadshow (April 2007)
69 slides from Stockland's roadshow presentation, April 2007
Slide 1: Queensland Investor Tour – April / May 2007
QUEENSLAND INVESTOR TOUR – APRIL / MAY 2007 The Boardwalk 1
Slide 2: Queensland Challenges & Opportunities
Queensland Challenges & Opportunities Rob Ellis – General Manager, Group Research Theimpression ‘Allisee’ artist Boardwalk 2
Slide 3: The Gap Narrows Slightly
The Gap Narrows Slightly Resource Vs Non-Resource States Final Demand (%yoy) 6 4 2 0 -2 Qld & WA NSW & VIC -4 Mar 90 Mar 93 Mar 96 Mar 99 Mar 02 Mar 05 Source: ABS & Stockland • Non-resource states recovered in the December quarter • The growth rate gap remains at around 1% 3
Slide 4: Queensland's Embarking On A New Growth Trajectory
Queensland’s Embarking On A New Growth Trajectory New Home Approvals (nsa) Em ploym ent by State (sadj) %yo y Private Sector Houses, QLD WA QLD 9 VIC 3500 NSW 3000 7 2500 5 2000 1500 3 Houses - Original 1000 Houses - Trend 1 500 10yr Average 0 -1 Jan97 Jan99 Jan01 Jan03 Jan05 Jan07 Jan04 Jan05 Jan06
Slide 5: Labour Market Conditions are Tight
Labour Market Conditions are Tight Unem ploym ent/ Vacancy Ratio ( ns a ) 8.0 7.0 6.0 5.0 4.0 3.0 NSW Victoria 2.0 QLD WA 1.0 Jan04 Jul04 Jan05 Jul05 Jan06 Jul06 Source: ABS & Stockland • Rising Vacancies (demand) and falling unemployment (supply) equals a tight labour market • Strengthening activit
Slide 6: Population Growth is Slowing
Population Growth is Slowing Queensland Population (%yoy) Interstate contribution Total 3.0 overseas and natural contribution 2.5 2.0 1.5 1.0 0.5 0.0 Mar90 Mar93 Mar96 Mar99 Mar02 Mar05 Source: ABS & Stockland • Population growth in Queensland has moderated • Interstate migration has slowed 6
Slide 7: Net Interstate Migration
Net Interstate Migration Queensland Net Interstate Migration ('000) 30 NSW VIC WA Other 25 20 15 10 5 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -5 Source: ABS • The most significant change is reduced interstate migration from NSW 7
Slide 8: Affordability No Longer a Draw Card
Affordability No Longer a Draw Card 70 House Price Affordability (Index) NSW Victoria 60 WA Queensland 50 40 30 20 10 Mar90 Mar93 Mar96 Mar99 Mar02 Mar05 Source: REIA, ABS, RBA, Stockland RCOE • Housing affordability has converged reducing the incentive to move interstate 8
Slide 9: Net Migration and Employment
Net Migration and Employment QLD/NSW Net Migration and Employment Differentials Employment Growth Differential QLD less NSW (LHS) 1.5 30 Net Migration to QLD from NSW (RHS) 25 1.0 20 0.5 15 0.0 10 -0.5 5 -1.0 0 1992 1994 1996 1998 2000 2002 2004 2006 Source: ABS • Employment differential is increasi
Slide 10: Future Spending
Future Spending 481 Projects $92.6 bn Around 40% commenced Private Sector Public Sector $ 38.4 bn $ 54.2 bn Infrastructure (power stations toll roads shipping etc) $32.5 bn Mining $12.0 bn 10
Slide 11: Implications
Implications Population • A need to increase Queensland’s population growth, both in the short and long term • Interstate population movement for employment opportunities rather than lifestyle • Change in the composition of Queensland’s population Employment • Increasing needs away from the traditio
Slide 12: Overview Queensland Communities Business
Overview Queensland Communities Business Nick Perrignon – General Manager, QLD Kawana Island 12
Slide 13: Overview Queensland Communities Business
Overview Queensland Communities Business • Queensland regional markets • Stockland Queensland communities structure • Market leadership • Focus growth Highland Reserve 13
Slide 14: Queensland – key regions
Queensland – 4 key regions • 4 key regional markets in Queensland: – Gold Coast – population 497,568 up 2.8% – Greater Brisbane – population 1,780,603, up 1.6% – Sunshine Coast – population 290,201 up 2.3% – Far North Queensland – population 472,870, up 2.6% • Different demographics and property cyc
Slide 15: Gold Coast
Gold Coast Market • Strong land market, stable prices • Population growth strong • Tight employment market • Market supported by holiday apartment and tourist sectors • Slowdown in supply versus demand growth. Long term supply shortfall of about 20% Stockland outlook • Supply constraints will allow
Slide 16: Gold Coast
Gold Coast 2006 Sales Volume Average price* Price growth Outlook 3,105 -1% Land $260,000 (14% above 5 yr average) (5 yr average16.9%) 9,064 1% House $490,000 (11% below 5 yr average) (5 yr average 14%) Source: Dept of Natural Resources & Water Late Early The Observatory Upturn Downturn Residential C
Slide 17: Greater Brisbane
Greater Brisbane Market • Land sales below average but strong pick up in 2006 in sales volume and values • Slowing population growth, 1.6% • Job market at capacity with limited recent job growth • Infrastructure focus on road and rail. Significant employment generators in western corridor • After br
Slide 18: Greater Brisbane
Greater Brisbane 2006 Sales Volume Average price* Price growth Outlook 2,626 13.4% Land $181,500 (12% below 5 yr average) (5 yr average 18.7%) 8,800 3.7% House $298,000 (11% below 5 yr average) (5 yr average 17.5%) Source: Dept of Natural Resources & Water Late Early The Observatory Upturn Downturn
Slide 19: Sunshine Coast
Sunshine Coast Market • Land sales volumes remain below average • Population growth rate 2.3% • Strong employment performance, dynamic job creation • Transport and social infrastructure plan (road, rail, hospital) Stockland outlook • Volumes improving, gradual return to 2003 activity • Diversity and
Slide 20: Sunshine Coast
Sunshine Coast 2006 Sales Volume Average price* Price growth Outlook 1,450 4% Land $245,000 (35% below 5 yr average) (5 yr average 19%) 5,270 -3% House $422,250 (18% below 5 yr average) (5 yr average 15%) Source: Dept of Natural Resources & Water Late Early The Upturn Downturn TheObservatory Boardwa
Slide 21: North Queensland
North Queensland Market • Price growth and strong sales activity • Strong population growth at 2.6% • Buoyant employment market, increased military personnel • Large infrastructure programme to exploit resources boom • Most markets in undersupply, generating strong price and rental growth Stockland
Slide 22: North Queensland
North Queensland 2006 Sales Volume Average price* Price growth Outlook 398 20% Land $245,000 (40% below 5 yr average) (5 yr average 29%) 1,075 11% House $165,000 (18% below 5 yr average) (5 yr average 22%) Source: Dept of Natural Resources & Water Late Early The Observatory Upturn Downturn Apartment
Slide 23: Growth track record
Growth track record 2,500 45,000 2,250 40,000 2,090 2,000 35,000 1,750 1,611 30,000 1,500 Total Lots 25,000 Lot Sales 1,250 1,165 1,149 1,051 30% 20,000 1,000 15,000 750 40% 10,000 500 9% 250 -10% 5,000 - - FY02 FY03 FY04 FY05 FY06 Lot Sales Total Lots People 26………………………………………………………..……130 Projects
Slide 24: Queensland structure
Queensland structure General Manager Nick Perrignon Regional Manager Regional Manager Regional Manager Regional Manager North Qld Sunshine Coast Greater Brisbane Gold Coast Kingsley Andrew Mark Hunter Kingsley Andrew Col Dutton State Finance & Admin Manager Troy Wainwright State Acquisitions & Bus D
Slide 25: Market leadership
Market leadership • Largest developer in Queensland • Strong brand • Strong mixed used capability 25
Slide 26: Market leadership
Market leadership • Largest developer in Queensland • Strong brand • Strong mixed used capability 26
Slide 27: Overall brand position
Overall brand position Total Brand Awareness MARCH 06 FEB 07 BRISBANE 55% 77% (North Lakes Catchment Area) GOLD COAST 67% 92% (Pacific Pines Catchment Area) SUNSHINE COAST 67% 81% (Kawana Waters Catchment Area • Brand awareness increasing to dominate market • Stockland seen as professional, trustwor
Slide 28: Brand image
Brand image Q2c. Could you please rate Stockland on a number of key attributes. Could you please indicate on a scale of 1 to 10 how much you agree with the following statements, where 1 is strongly disagree and 10 is strongly agree. Base: Residents Aware of Stockland (Minimum n=135) excluding those
Slide 29: Market leadership
Market leadership • Largest developer in Queensland • Strong brand • Strong mixed used capability 29
Slide 30: Kawana Town Centre
Kawana Town Centre Bellvista • Opportunity 1 • Opportunity 2 KAWANA FOREST ISLAND POINT VILLAS KAWANA TOWN CENTRE LAKE KAWANA KAWANA STOCKLAND CALOUNDRA ISLAND SHOPPING CENTRE KAWANA BEACH 30
Slide 31: Kawana Town Centre Structure
Kawana Town Centre Structure Total GFA – 39,500 m2: • 20,000 m2 (Retail) • 15,000 m2 (Commercial) • 4,000 m2 (Other) Regional Sports Facility Kawana Beach 31
Slide 32: North Lakes
North Lakes Total GFA – 39,500 m2: • 20,000 m2 (Retail) • 15,000 m2 (Commercial) • 4,000 m2 (Other) Regional Sports Facility Kawana Beach 32
Slide 33: Caloundra Downs
Caloundra Downs • Opportunity 1 • Opportunity 2 33
Slide 34: Focus for growth
Focus for growth • Drive sales as projects mature • Bring new projects to market • Continue to unlock opportunities on existing projects • Continue acquisition focus in: – Greater Brisbane – Gold Coast, Northern NSW – Far North Queensland 34
Slide 35: Summary
Summary • Queensland market outlook is strong • Fundamentals for residential development are sound • Stockland well placed, extensive land holding, high capability • Focussed on driving future growth Kawana Island 35
Slide 36: Financial Services Strategy – Mortgage Broking Business
Financial Services Strategy – Mortgage Broking Business Kevin Decker – National Residential Lending Manager 36
Slide 37: Initial objectives of establishing a Stockland mortgage broking business
The initial objectives of establishing a Stockland mortgage broking business are to increase land sales conversion rate and to help improve the customer experience Chance of Failure Scenario Planning Extend services to other products 5 and divisions 6 Diversify financial services offering Emerging B
Slide 38: Proposed Business Model
Stockland mortgage business will partner with an aggregator that provides the infrastructure and will work with land sales representatives who will refer customers Illustrative Proposed Business Model Lender Aggregator Stockland Stockland Stockland Broker Land Sales Customer Contract and Examples re
Slide 39: Pilot product offering focuses on standard products
Our pilot product offering will focus on standard products (underwritten by lenders) and the product offering will be refined and potentially expanded over time Illustrative •Standard variable and fixed rate loans, low doc loans, non conforming loans, honeymoon or introductory rates, line of credit,
Slide 40: Pilot projects in Greater Brisbane, Gold Coast and Victoria
Projects in Greater Brisbane, Gold Coast and Victoria have been selected for a pilot based on size, location, customer segments, regulation and market conditions Greater Brisbane ¾One broker will be piloted in Greater Brisbane: •One broker in North Lakes Pilot will enable market viability ¾Broker wi
Slide 41: Overview Commercial & Industrial Business
Overview Commercial & Industrial Business Steven Mann – CEO, Commercial & Industrial 41
Slide 42: Agenda
Agenda • Strategic Direction • Commercial & Industrial Queensland Market Commentary • Queensland C&I Portfolio Overview Highland Reserve 11-25 Toll Drive Altona, VIC 42
Slide 43: Commercial & Industrial Mission
Commercial & Industrial Mission Managing and developing world class Engaging Environments which bring together building design, tenancy services and enduring relationships so our clients value Stockland’s contribution to their business success. Highland Reserve Piccadilly, NSW 43
Slide 44: Strategic Direction
Strategic Direction • Market leading asset services business delivering economies of scale and leadership in CR&S • CRM Seibel platform (LASER) to provide the platform to drive client value management • Continue momentum of the development pipeline and build sustainable C&I projects profit • Acquisi
Slide 45: C&I Development Pipeline – QLD Focus
C&I Development Pipeline – QLD Focus Status/ Total Cost Forecast Area Project Category Completion ($m) Yield m2 Under Construction $337 Optus HQ, Macquarie Park, NSW 100% Leased / 2H07 $282 7.5% 84,000 Office Park 66 Waterloo Rd, Macquarie Park, NSW 93% Leased / 2H07 $34 8.7% 10,127 Office Park Yenn
Slide 46: Agenda
Agenda • Strategic Direction • Commercial & Industrial Queensland Market Commentary • Queensland C&I Portfolio Overview Highland Reserve Hendra Distribution Centre, QLD 46
Slide 47: Commercial – Market Indicators
Commercial – Market Indicators • Sustainable growth in “resource” states • Vacancy is at record lows in Brisbane / Perth • Short-term supply side constraints in Brisbane / Perth • Supply to pick up again from 2009/10 6% Base Office Demand Demand Office Supply 2005-06 2005-06 2007-08 2007-08 300 2009
Slide 48: Commercial – Brisbane CBD
Commercial – Brisbane CBD Supply & Demand Prime Gross Effective CBD Rents 100 F’cast 20% 900 $/sqm Net new supply Melbourne Net Absorption 80 16% 800 Vacancy rate Brisbane 700 Sydney 60 12% 600 Perth % vacancy '000 sqm 40 8% Canberra 500 20 4% 400 0 0% 300 -20 -4% 200 -40 -8% 100 1992 1994 1996 1998
Slide 49: Industrial - Brisbane
Industrial - Brisbane Supply / Demand • Demand continues to improve • Shortage of new/prime grade stock driving demand for secondary grade stock • New supply supported by demand from distribution users modernising their facilities • Tenant focussing on Southern regions as rents increase in other mar
Slide 50: Agenda
Agenda • Strategic Direction • Commercial & Industrial Queensland Market Commentary • Queensland C&I Portfolio Overview Richlands, Highland QLD Reserve 50
Slide 51: C&I Queensland Portfolio Growth
C&I Queensland Portfolio Growth Jan 06 Jan 07 Growth Properties 8 14 75% Value $535m $850m 60% Staff 11 23 109% Development Book (end value) $165m $645m 290% *Excluding Eagle Street Pier Wacol, QLD 51
Slide 52: MIA
MIA BOUNDARY ROAD WEST WATERFRONT PLACE + EAGLE STREET PIER 300 ANN STREET — ORACLE HOUSE 180 CHARLOTTE STREET ENEAGEX 60-80 JEPHSON STREET 427-29 HIGH STREET HEND! OISTHIBUTIO tS BOUNDARY ROAD 514 BOUNDARY ROAD 726 BOUNDARY ROAD 60 FULCRUM STREET GARDEN SQUARE VICTORIA POINT @ 3676 IPSWICH ROAD — D
Slide 53: 300 Ann Street (Oracle House)
300 ANN STREET (ORACLE HOUSE) ASSET INFORMATION Location Brisbane CBD Acquisition Date December 2006 Ownership / Title 100% Freehold Independent Valuation $40.4 million ($5,646m²) Capitalisation Rate 7.0% Net Lettable Area 7,155m² Car Parking Spaces 94 Major Tenants Oracle, Services Essentials, Bech
Slide 54: Garden Square, Mt Gravatt
GARDEN SQUARE, MT GRAVATT ACQUISITION & LEASING DEVELOPMENT Lease Expiry Profile as at 31 December 2006 Vacant FY07 FY08 FY09 FY10 FY11+ ASSET INFORMATION Location Mt Gravatt QLD Asset acquired in December 2006 – Acquisition Date February 2007 development potential up to 26,000m2, Ownership / Titl
Slide 55: Toowong – Jephson & 27-29 High Street
TOOWONG – 88 Jephson & 27-29 High Street Lease Expiry Profile as at 31 December 2006 Vacant FY07 FY08 FY09 FY10 FY11+ ASSET INFORMATION Location Toowong, QLD Acquisition Date June 2006 Ownership / Title 100% Freehold Mixed use development incorporating retail, apartments Independent Valuation $27.
Slide 56: Waterfront Place & Eagle Street Pier
WATERFRONT PLACE & EAGLE STREET PIER Lease Expiry Profile as at 31 December 2006 Vacant FY07 FY08 FY09 FY10 FY11+ ASSET INFORMATION Location Brisbane CBD Acquisition Date February 2004 Ownership / Title 50% Freehold / Leasehold Mixed use development incorporating retail, apartments Independent Val
Slide 57: 150 Charlotte St (Energex)
150 CHARLOTTE ST (ENERGEX) ASSET INFORMATION Location Brisbane CBD Acquisition Date January 2006 Ownership / Title 100% Freehold Independent Valuation $57 million ($5,064/m ²) Capitalisation Rate 7.5% Net Lettable Area 11,255m² Car Parking Spaces 100 Major Tenant Energex Lease Expiry Profile as at 3
Slide 58: 3676 Ipswich Rd, Wacol
3676 IPSWICH RD, WACOL ACQUISITION & LEASING DEVELOPMENT ASSET INFORMATION Location South Brisbane, QLD Acquisition Date August 2006 Ownership / Title 100% Freehold Independent Valuation $23.1 million Capitalisation Rate 7.0% - 7.5% Site Area 10 hectares Lettable Area Circa 53,000m² JV with De Luc
Slide 59: Darlington Dve, Yatala
DARLINGTON DVE, YATALA DEVELOPMENT Trust & Trading Development Project JV with Walker to develop 12 industrial lots & 40,000m2 built form Site Area: 164,000m2 DA: July 2007 Settlements: October 2008 Total Revenue: $95m 59
Slide 60: MIBA, North Lakes
MIBA, NORTH LAKES DEVELOPMENT Trust & Trading Development Project Industrial land subdivision & built form Site Area: 850,000m2 Construction: September 2007-April 2008 (Stage 1) Total Revenue: $165m 60
Slide 61: 509 Boundary Rd, Richlands
509 BOUNDARY RD, RICHLANDS ACQUISITION & LEASING DEVELOPMENT Lease Expiry Profile as at 31 December 2006 Vacant FY07 FY08 FY09 FY10 FY11+ ASSET INFORMATION Development of 7,165m2 industrial building Location South Brisbane, QLD alongside an existing facility Acquisition Date June 2003 Constructi
Slide 62: Hendra Distribution Centre
HENDRA DISTRIBUTION CENTRE ACQUISITION & LEASING ASSET INFORMATION Location North Brisbane Acquisition Date July 2000 Ownership / Title 100% Freehold Independent Valuation $68.5 million ($821/m²) Capitalisation Rate 8.75% Site Area 16.7 hectares Lettable Area 83,402m² Hardstand 26,641m² Major Tenant
Slide 63: 514 Boundary Rd, Richlands
514 BOUNDARY RD, RICHLANDS ACQUISITION & LEASING ASSET INFORMATION Location South Brisbane, QLD Acquisition Date October 2005 Ownership / Title 100% Freehold Independent Valuation $19.5 million ($1,337/m²) Capitalisation Rate 7.75% Site Area 58,100 Lettable Area 14,585m² Hardstand 16,863m² Major Ten
Slide 64: 735 Boundary Rd, Richlands
735 BOUNDARY RD, RICHLANDS ACQUISITION & LEASING ASSET INFORMATION Location South Brisbane, QLD Acquisition Date October 2005 Ownership / Title 100% Freehold Independent Valuation $14.7 million ($1,487/m²) Capitalisation Rate 7.25% Site Area 17,320m ² Lettable Area 9,884m² Major Tenant Corporate Exp
Slide 65: 60 Fulcrum St, Richlands
60 FULCRUM ST, RICHLANDS ACQUISITION & LEASING ASSET INFORMATION Location South Brisbane, QLD Acquisition Date June 2003 Ownership / Title 100% Freehold Independent Valuation $9.6 million ($1,228/m²) Capitalisation Rate 8.00% Site Area 2.2 hectares Lettable Area 7,819m² Major Tenant Electrolux Lease
Slide 66: Eagle Street Pier Redevelopment
Eagle Street Pier Redevelopment 66
Slide 67: Site Details
Site Details Acquisition Date: Purchased in February 2004 as part of Waterfront Place acquisition. Current Use: Two level restaurant and retail precinct over car parking Planning Submission: 1H08 (estimated) Proposed Construction Commencement: 2H09 Site Area: 4,206m2 Freehold 6,525m2 Leasehold (Seab
Slide 68: Concept Design
CONCEPT DESIGN Current Proposed Development Stage 1: 40,000m2 Commercial 5,400m2 Retail Approx. 250 Apartments Parking Stage 2*: 30,000m2 Commercial 300 room Hotel/Serviced Apartments Approx 150 -200 Apartments End Value: $1.1bn * Subject to market conditions 68
Slide 69: Disclaimer
Disclaimer Corporation/ Responsible Entity 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 doe