Stockland · ASX:SGP
Stockland — Investor Day (November 2015)
48 slides from Stockland's investor day presentation, Nov 19, 2015
Slide 1: Stockland Investor Day: Creating Communities
For personal use only Stockland Investor Day Creating Communities November 19, 2015
Slide 2: Our Purpose: We believe there is a better way to live
Our Purpose: We believe there is a better way to live For personal use only Every day 415,000+ Stockland's business touches many Australians. Customers visit We add value across the hierarchy of real estate uses, and have a significant future development pipeline; including: a Stockland $1.1bn in
Slide 3: Creating sustainable, organic growth
Creating sustainable, organic growth For personal use only 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 Dri
Slide 4: Case study: Highlands
Creating communities For personal use only Case study: Highlands True masterplanned community Best Masterplanned Community in Australia UDIA 2013 & 2015 Largest masterplanned community in Victoria 35 minutes north of Melbourne CBD Fastest growing community in Australia Highlands consists o
Slide 5: Positioned for sustainable long term growth and value creation
Positioned for sustainable long term growth and value creation For personal use only 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 pa
Slide 6: Consumer Trends at Stockland
For personal use only Consumer Trends at Stockland Claire Macleod, National Research Manager – Customer Insights
Slide 7: How do we source our thinking around consumer trends?
How do we source our thinking around consumer trends? For personal use only Transactional Ipsos Mind & Data Mood reports Partners (e.g. retailers, Trendwatching builders) Internal Futurists & Stockland Social Exchange Knowledge Commentators Qualitative ABS, Industry Research reports & experts ACRS S
Slide 8: Trendwatching: Local Love application examples
Trendwatching For personal use only Ipsos Mind Transactional & Mood Data reports Partners (e.g. retailers, Trendwatching builders) Futurists & Stockland Exchange Internal Social Knowledge Commentators ABS, Industry Qualitative Research reports & experts ACRS Survey Monash Uni Research (Retail) Local
Slide 9: Ipsos Research – Key Global Trends
Ipsos Research– 10 Key Global Trends For personal use only 1. Dynamic populations: Ageing developed world, youthful developing world, growing middle class 2. Growing opportunity and growing inequality 3. Megacities: Urban superpowers or human disasters? 4. Increasing connectedness vs. decreasing p
Slide 10: Stockland's Key Consumer Trends
Stockland’s Key Consumer Trends For personal use only Australians love technology: Australians demand convenience: Australians want community connection: The continual development & uptake of technology Our busy lives and adoption of technology means we In an increasingly global world, local communi
Slide 11: NSW Update: Elara and Altrove
For personal use only NSW Update Elara and Altrove November 2015 Gavin Tonnet - National Head of Apartments & Mixed Use & General Manager, Residential Communities Jonathon Lawson - Senior Development Manager Mike Milligan - Senior Development Manager
Slide 12: NSW Greenfield Market Outlook
NSW Greenfield Market Outlook For personal use only Market Fundamentals – NSW outlook steady Metro Sydney – land release/rezoning continues by State Government NSW’s population is growing at 1.4% per annum1 and forecast to grow at 1.3% p.a. for the next half decade (~104,000 Supply side – 10 Pri
Slide 13: NSW Greenfield Market Outlook
NSW Greenfield Market Outlook For personal use only Strong Greenfield market 3500 Sydney Vacant Land Market – Quarterly Sales1 3000 2,592 sales September quarter, fall in 2500 volumes is purely a factor of no supply 2000 1500 Greater Sydney median lot price 1000 excluding Hunter and Illawarra 50
Slide 14: NSW Greenfield Market Outlook
NSW Greenfield Market Outlook For personal use only Strong population growth over the past 140 NSW Dwelling Supply-Demand1 Forecast decade has driven demand Number of dwellings ('000s) 120 Supply has not kept pace with population 100 growth Pent-up Demand Dwelling Completions 80 Dwelling compl
Slide 15: Major Infrastructure projects: Sydney-wide
Major Infrastructure projects: For personal use only Sydney-wide The Government is Investing in Infrastructure CBD and South East Light Rail Sydney Metro SW Rail Link (+extension) Bus Rapid Transit, and North west corridor specific projects The North West Infrastructure Plan WestConnex
Slide 16: The North West Growth Centre
The North West Growth Centre For personal use only Key Growth Corridor of Sydney 10,000 hectares across the three local government areas (The Hills, Blacktown and Hawkesbury) 16 precincts, including three dedicated employment precincts In total, will accommodate 70,000 new homes for around 200
Slide 17: Stockland in the North West
Stockland in the North West For personal use only Milestone Date Acquired Marsden Park 2011 Land rezoned October 2013 Commenced construction May 2014 First sales release Elara May 2014 Entered exclusive due diligence on Schofields December 2014 Unconditional contracts exchanged on Schofields Februar
Slide 18: Altrove Overview
For personal use only Altrove Overview
Slide 19: Altrove: The centre of Schofields
Altrove For personal use only The centre of Schofields Quick Facts Centrally located within the Schofields 1166 Dwellings, 50 hectare site Precinct 1.6 hectare Central park Benefits from a range of densities that align to Stockland’s growth businesses – Directly adjacent to Schofields Resi
Slide 20: Elara Overview
For personal use only Artist’s impression Elara Overview
Slide 21: National survey on community attitudes for our residents
Creating communities For personal use only National survey on community attitudes for our residents Importance of key drivers Community wants Community Family needs perceptions 47% Strong identity Road safety Community design Landscaping Built homes quality elements 26% Parks and open Street lightin
Slide 22: Elara Masterplan
Elara Masterplan For personal use only Master-planned community Stage 1 Marsden Park Precinct 2,400 lots 7,500+ residents K-12 Private School and government primary school Neighbourhood Retail Centre Childcare facilities Retirement living Two sporting fields and two local parks 15
Slide 23: Customer Profile – North West precinct
Customer Profile – North West precinct For personal use only Elara Altrove Very strong demand with Customer profile likely to over 12,000 leads on the evolve with the product of the project database to date from House & Land, Townhomes and Apartments High proportion of FHB enquiry- 40% Stron
Slide 24: Logistics and Business Parks
For personal use only Logistics and Business Parks Tony D’Addona - General Manager Logistics and Business Parks Craig Lenarduzzi - National Asset Manager, Logistics and Business Parks
Slide 25: Logistics and Business Parks
Logistics and Business Parks For personal use only Disciplined acquisition strategy Wonderland Drive, Sydney: 4.3 hectare site for $34m, 8% initial yield, first asset at Eastern Creek Two recent NSW acquisitions at Botany and Warwick Farm, with yields of over 7.6%1 and development opportunity De
Slide 26: Wonderland Drive, Eastern Creek NSW
Wonderland Drive, Eastern Creek NSW For personal use only Property Description Location Market The Property is located within the The property is located in Sydney’s premier Supply of new industrial space in Sydney is established industrial precinct of Eastern industrial location, and benefits fro
Slide 27: L&BP: Growing & activating the development pipeline
L&BP: Growing & activating the development pipeline For personal use only Development type Greenfield Brownfield Active Development Planning Underway Future Wave Target returns Ingleburn (Stage 1) Ingleburn (Stage 2 & 3) 11% - 14% IRR (Greenfield) Yennora (Bld 3 & 8A) 7% - 8% incremental yield Yenno
Slide 28: Maximising Asset Returns: active asset management driving performance
Maximising Asset Returns: active asset management driving For personal use only performance 100% Occupancy by Income - Business Parks 78% 80% 60% 500,000sqm of leasing completed in FY14 & FY15 Occupancy increased from ~92% to ~94% 40% WALE increased from 3.9 years to 4.7 years 20% 11% 4% 5% 1%
Slide 29: Stockland Wetherill Park
For personal use only Stockland Wetherill Park Justin Travlos - Regional Development Manager Tim Beattie - General Manager - Development & Design Tony Tsekouras - General Manager - Retail Leasing, Leasing Operations
Slide 30: History of Stockland Wetherill Park
History of Stockland Wetherill Park For personal use only 1983 Developed Stockland Wetherill Park 1999 Centre expanded adding around 2010 Identified for redevelopment, 2013 Commenced $228m comprising: two majors; 5,600sqm, supported by council redevelopment 50 specialities and pad including the Hoyt
Slide 31: Stockland Wetherill Park today
Stockland Wetherill Park today Summary information as at: September 2015 For personal use only Acquisition date August 1983 Ownership title 100% Freehold A diverse and convenient Cost including additions $268.5million customer offering Book value $521.6 million Last independent valuation date Decemb
Slide 32: Wetherill Park trade area
Wetherill Park trade area For personal use only Retail Expenditure and Demographics Stockland Wetherill Park: Total Trade Area Main trade area retail expenditure capacity is projected to grow at an annual average rate of 4.0%, increasing from $1.8 billion currently to $2.6 billion by 2024 Averag
Slide 33: Trade area metrics
Trade area metrics For personal use only Main trade area Escape expenditure Enclosed retail floor space retail expenditure from main trade area undersupply estimated at capacity expected to estimated at 50,000sqm, growing to grow from $1.8b to $2.6b $600m 54,000 by 2024 And over $1.5b sqm1 in 2016 f
Slide 34: Competition in the trade area
Competition in the trade area For personal use only Stockland Wetherill Park: Total Trade Area, November 2015 Currently no single comprehensive retail offer exists in the trade area, competition is fragmented Competitive retail centres in the trade area include three sub-regional shopping centre
Slide 35: High Performing Asset
High Performing Asset For personal use only Productivity of the Centre is high with Stockland Wetherill Park outperforms double DDS and regional centres for fresh food, specialty MAT per sqm ranked as 10th apparel and overall specialty sales. The total centre sales also outperform regional and in 20
Slide 36: Development overview
Development overview For personal use only Repositioning the centre to capture spend leakage, On completion (FY16) strong population and income growth, and increasing trade area undersupply Gross lettable area ~70,000sqm Full line supermarkets Coles; Woolworths Full line DDS Big W; Target Constructi
Slide 37: Sustainability at the centre
Sustainability at the centre For personal use only Achieved 5 Star Green Star Incorporation of mixed mode ‘Design’ rating in July 2015 ventilation to minimise energy Ongoing Integration of Public Art into the Centre spaces ‘4 Star NABERS Energy and consumption in malls and external tenancies communi
Slide 38: Leasing Strategy: Wetherill Park
Leasing Strategy: Wetherill Park For personal use only Selection of brands delivered Stockland Investor Day November 2015 38
Slide 39: Leasing Strategy: Wetherill Park
Leasing Strategy: Wetherill Park For personal use only 97% of project income has been secured to date Stockland Investor Day November 2015 39
Slide 40: Marketing Strategy: Wetherill Park
Marketing Strategy: Wetherill Park For personal use only 29% sales Grand Opening January Activity February Activity March Activity Strong media mix for Strong media mix Community activation Fresh Food activation uplift since precise reach and Summer Festival – with local high schools in-li
Slide 41: Delivery: Wetherill Park
Delivery: Wetherill Park For personal use only “A vibrant, connected and dynamic place for all generations.” “A place I can be proud to take my friends and have a coffee when they visit.” “A place that maximises my sales and minimises my cost of business.” First Jamie’s Ministry of Food in NSW Achie
Slide 42: Stockland Glasshouse
For personal use only Stockland Glasshouse November 2015 Huw Evans - Development Manager
Slide 43: Development update - Glasshouse
Development update - Glasshouse For personal use only Successful opening by H&M flagship store in October, four weeks ahead of schedule Flagship Zara Home to open in early December 2015 Development well ahead of feasibility estimates, achieved savings of close to 20% Development metrics Foreca
Slide 44: Retirement Living
For personal use only Retirement Living Cardinal Freeman, NSW Artist’s impression Alison McDonagh - Senior Development Manager Kelly Miller - General Manager - Development & Design
Slide 45: Creating Communities: Resident's Voice Survey 2015
Creating Communities: Resident’s Voice Survey 2015 For personal use only Drivers of Overall Happiness Importance National Survey on community attitudes for the residents of our Social Life in Village 30% Retirement Living communities The Home 29% Overall Happiness with the Village Stockland as an 13
Slide 46: Cardinal Freeman
Cardinal Freeman For personal use only 240 apartments in 7 buildings plus club house and aged care $160m redevelopment in three stages Stage 1 & 2 underway Stage 1 completion April 2016 Stage 2 completion early 2017 Stage 3 completion early 2019 DMF Structure 30% DMF over 5 years and 1
Slide 47: Retirement Living: Creating Communities
Retirement Living: Creating Communities For personal use only Your Community Your Benefits Services A connected community Household assistance Professional village staff In home health & care services 8.5 average resident satisfaction rating Discount travel, groceries & dining Technology service Ret
Slide 48: Important Notice
For personal use only Stockland Corporation Limited Important Notice 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 int