Stockland · ASX:SGP
Stockland — Merger or Acquisition (July 2021)
15 slides from Stockland's merger presentation, Jul 19, 2021
Slide 1: Acquisition of Halcyon
For personal use only Acquisition of Halcyon Expansion of Stockland’s land lease communities business 19 July 2021 Halcyon Greens
Slide 2: Executive summary
Executive summary Strategic acquisition of a leading land lease community operator and manager For personal use only • The Group has entered into binding agreements with the vendors after being selected the preferred party in a sale process (“the Transaction”) Transaction Overview • The Transaction
Slide 3: Strategic rationale
Strategic rationale For personal use only 1 2 3 Why Land Lease? Why Halcyon? Integration Benefits Capitalising on sector growth Leading market operator & brand in Qld Accelerate business growth & drive returns Over 50s is the fastest growing demographic Access to the leading Qld market operator Sign
Slide 4: Why Land Lease? Over 50's population to grow at 2.4% p.a.
Why Land Lease? 1 Over 50’s population to grow at 2.4% p.a. over the next ten years Land lease leverages demographic tailwinds and delivers on lifestyle aspirations For personal use only Australia has a rapidly ageing population Australia’s population over 50 (1980 – 2065)1 • One in three Australian
Slide 5: Why Land Lease? Attractive model to service lifestyle demands of retirees
Why Land Lease? 1 Attractive model to service lifestyle demands of retirees Provide exceptional customer experience and generate attractive returns For personal use only Land Lease Business Model Land Lease Home Operator Owners Buys and owns the Sells new relocatable HIGH QUALITY relocatable home an
Slide 6: Why Land Lease? Strong development returns with growing annuity stream
Why Land Lease? 1 Strong development returns with growing annuity stream High Quality Recurring Income For For personal use only Generic Return Profile Occupied Portfolio Planning Development Stable and Growing Rental Income Stream Operating Margin Medium Term Rental 9 35 % Growth 8 30 % ~65% ~3.0-3
Slide 7: Why Land Lease? Leveraging competitive advantages in MPC
Why Land Lease? 1 Leveraging competitive advantages in MPC Extends market reach further into over 50s market For personal use only Leveraging our competitive strengths in MPC into land lease Brand Scale Landbank Stockland brand built on the quality of Large scale MPC benefits land lease Size and qua
Slide 8: Why Halcyon? Halcyon has a market leading business model
Why Halcyon? 2 Halcyon has a market leading business model Industry award-winning operator and developer with a strong brand, loyal home owners and a track For personal use only record of successful delivery 6 established communities 1,500 occupied sites 4 communities in development More than 2,500
Slide 9: Why Halcyon? Strong customer satisfaction and referral network
Why Halcyon? 2 Strong customer satisfaction and referral network Deep understanding of customer segments For personal use only Referral rates Home owner customer journey • Referrals comprise up to 50% of new sales • Strong brand equity the driving force behind awareness of Halcyon product Focus on c
Slide 10: Why Halcyon? Operating performance above sector averages
Why Halcyon? 2 Operating performance above sector averages Superior Halcyon operating performance achieved through unique customer experience For personal use only Sales Rates Sales Prices Community Size 6.0 per 10-15% ~280 +33% +16% to 35% premium month +56% Higher difference larger 4.5 per Median
Slide 11: Benefits of Integration: Combined platform with eastern seaboard focus
Benefits of Integration 3 Combined platform with eastern seaboard focus Strong presence across multiple lifestyle markets For personal use only South East Queensland Greater Melbourne New South Wales Occupied sites 1,500 sites In Development 1,600 sites In Planning 4,700 sites Total Halcyon 1,500¹ S
Slide 12: Halcyon Acquisition: Value enhancing and accretive to FFO
Benefits of Integration 3 Halcyon Acquisition: Value enhancing and accretive to FFO For personal use only Occupied Portfolio Development Portfolio Total Business Acquisition In Development & In Planning ~4.5% yield¹ ~10-15% Margin² FFO accretive⁴ • 1,500 sites • 2,300 sites • 3,800 sites • Strong yi
Slide 13: Appendix: Portfolio Summary
For personal use only Appendix: Portfolio Summary 13
Slide 14: Substantial Qld portfolio and development pipeline
Substantial Qld portfolio and development pipeline Total of 3,805 home sites within one of Australia’s premier retirement locations For personal use only Occupied In Development In Planning Total Community Location Sites Sites Sites Sites Halcyon Parks Caloundra 171 - - 171 Halcyon Waters Hope Islan
Slide 15: Important Notice
Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741; AFSL 241190 For personal use only As responsible entity for Stockland Trust ARSN 092 897 348 LEVEL 25 133 Castlereagh Street SYDNEY NSW 2000 Important Notice While every effort is made to provide accura