Stockland · ASX:SGP
Stockland — FY2019 Earnings Presentation
73 slides from Stockland's earnings presentation, Aug 21, 2019
Slide 1: FY19 Annexures
FY19 Annexures 21 August 2019 WILLOWDALE, SYDNEY
Slide 2: Annexure contents
About Stockland update Group A3 results Financial Group Finance A10 Communities Commercial Property A26 Property Commercial Residential A43 Summary and outlook Research A61 Figures are rounded to nearest million, unless otherwise stated. Percentages are calculated based on the figures rounded to one
Slide 3: Stockland quick facts
Stockland quick facts TRUST CORPORATION Stockland Shellharbour, NSW Warwick Farm, Sydney Piccadilly Complex, Sydney Highlands, VIC Mernda Retirement Village, VIC Retail Town Centre Logistics Workplace Residential Retirement Living Create market leading Grow and develop Optimise returns Maximise retu
Slide 4: Strategic mix
Strategic mix Recurring Target Assets 30 June 2019 Assets 30 June 2018 Operating profit FY19 Operating profit FY18 Commercial Property 68% 69% 60% 63% Retirement Living 7% 6% 5% 6% Other and unallocated corporate overheads - - (3)% (4)% Total recurring 70 – 80% 75% 75% 62% 65% Trading Target Assets
Slide 5: We are well positioned with a diverse portfolio
We are well positioned with a diverse portfolio1,2 All States CP RESI RL Total NSW CP RESI RL Total Number of Number of 72 56 68 196 33 11 21 65 properties/projects Properties/projects Book value $10.5bn $3.4bn $1.5bn $15.4bn Book value $6.6bn $0.9bn $0.5bn $8.0bn SGP portfolio3 68% 22% 10% 100% SGP
Slide 6: Key communities, located in connected, population growth corridors
Key communities, located in connected, population growth corridors1 SYDNEY Average annual growth 2016 – 2021 by LGA (per annum) Greater than 2% 1.5% - 2% 1% - 1.5% 0.5% - 1% Less than 0.5% 1. Source: Location IQ 6 Stockland FY19 Results Annexure
Slide 7: Key communities, located in connected, population growth corridors
Key communities, located in connected, population growth corridors1 MELBOURNE Average annual growth 2016 – 2021 by LGA (per annum) Greater than 2% 1.5% - 2% 1% - 1.5% 0.5% - 1% Less than 0.5% 1. Source: Location IQ 7 Stockland FY19 Results Annexure
Slide 8: Key communities, located in connected, population growth corridors
Key communities, located in connected, population growth corridors1 BRISBANE PERTH Greater than 2% 1.5% - 2% 1% - 1.5% 0.5% - 1% Less than 0.5% 1. Source: Location IQ 8 Stockland FY19 Results Annexure
Slide 9: Retirement Living: strong demand drivers
Retirement Living: strong demand drivers COMPELLING DEMAND FUNDAMENTALS Australian population aged 65+ growing at significantly faster pace than under 65 population 1 Over 65: 2.7% CAGR over next 15 years 3.5% 3.1% Under 65: 2.9% Growth rate 1.3% CAGR over 2.3% next 15 years 1.3% 1.4% 1.3% 1.1% 2011
Slide 10: Group Finance
Group Finance Annexure HENDRA INDUSTRIAL ESTATE, BRISBANE
Slide 11: Profit summary
Profit summary $m FY19 FY18 Residential Communities EBIT (before interest in COGS) 455 435 Commercial Property EBIT 607 607 Retirement Living EBIT 62 56 Consolidated segment EBIT 1,124 1,098 Amortisation of lease fees 16 14 Unallocated corporate overheads (61) (66) Group EBIT (before interest in COG
Slide 12: Statutory profit to FFO and AFFO reconciliation
Statutory profit to FFO and AFFO reconciliation The table below shows the reconciliation of statutory profit to FFO with reference to the definitions outlined in the Property Council of Australia (PCA) white paper “Voluntary best practice guidelines for disclosing FFO and AFFO” PCA Reference FY19 ($
Slide 13: Net interest gap
Net interest gap $m FY19 FY18 Deferred interest – Residential Interest Deferred Total Interest Deferred Total Interest expense Interest Interest Interest income (4) - (4) (3) - (3) Non-cash adjustments for unwinding of Interest expense 192 40 232 202 34 236 present value discount on land acquisition
Slide 14: Return on assets, return on equity
Return on assets, return on equity Key metrics FY19 FY18 Change Cash Avg. Cash Cash Avg. Cash Return Return Commentary profit ($m) invested ($bn) profit ($m) invested ($bn) Retail Town Centres 421 5.5 7.7% 416 5.4 7.8% Logistics 159 2.1 7.8% 151 1.9 7.9% Improvement in ROA due to disposal of 40 Came
Slide 15: Reconciliation between return on equity table values and accounting results
Reconciliation between return on equity table values and accounting results Reconciliation of Group return in ROE calculation to FFO Reconciliation of capital employed in ROE statutory net assets Average for Average for FY19 ($m) FY18 ($m) FY19 ($m) FY18 ($m) Cash return 876 839 Group capital employ
Slide 16: Stockland return on equity methodology
Stockland return on equity methodology Numerator (cash return) Denominator (average cash invested) Residential Net funds employed (NFE) (excluding accrued capitalised interest EBIT (including cash loss realised on impaired projects) (incl. Townhomes & Apartments) and impairment provision) average fo
Slide 17: Strong operating cash flows
Strong operating cash flows CASH FLOW SUMMARY 1,600 $m FY19 FY18 Operating CF before land acquisitions 970 1,224 1,400 Includes residential cash flows as follows2 1,200 457 (439) Sales and other revenue 1,829 1,838 Current year stage costs 305 389 1,000 (653) Future stage infrastructure costs 669 52
Slide 18: Cost management
Cost management $m FY19 FY18 • Diligent approach to managing cost remains embedded across the Group Residential 199 193 • Communities increase represents additional direct project costs to drive sales in Retirement Living 42 38 challenging market conditions and timing of projects Commercial Property
Slide 19: Long dated, diverse debt
Long dated, diverse debt LONG-DATED DRAWN DEBT MATURITY PROFILE COMMITTED FACILITIES OF $5bn DRAWN DEBT OF $4.3bn (WADM 5.8 YEARS)1 1,000 900 BANK DEBT 800 BANK DEBT DMTN $175m, 4% $920m $760m DMTN 18% 15% $760m, 18% 700 AUD 9% Bank Debt 600 DMTNs USPP HKD 6% 500 AUD 7% EMTN EMTNs HKD 6% $1,179m 400
Slide 20: Cost of debt and hedge profile
Cost of debt and hedge profile COST OF DEBT FOR FY19 Debt1 Total debt2 Interest Rate $bn Forecast Hedge Rate³ 4.0 4.4% Hedged debt $3,837m 79% 2.6% 3.5 Floating debt $453m 21% 0.4% 4.2% Total debt $4,290m 3.0% 3.0 Margin 1.2% 4.0% Fees 0.2% 2.5 Hedged All-in cost of funds for FY19 4.4% 3.8% Debt 2.0
Slide 21: Debt summary
Debt summary Facility Facility limit ($m)1 Amount drawn ($m)1,2 Bank Debt 920 175 Debt capital markets Domestic Medium Term Notes 760 760 • A$269m USPP repaid in October 18 USPP 2,176 2,176 • A$351m USPP (10-15 year terms) executed and issued in Euro Medium Term Notes 1,179 1,179 April 2019 Total De
Slide 22: Debt summary (continued)
Debt summary (continued) Facility Issued debt ($m)1 Facility maturity Facility Issued debt ($m)1 Facility maturity Domestic medium term note - USPP 71 Jul 2019 FACILITY (MTN) - USPP 90 Jul 2020 - MTN 150 Sep 2019 - USPP 176 Sep 2021 - MTN 160 Nov 2020 - USPP 28 Jun 2022 - MTN 250 Nov 2022 - USPP 105
Slide 23: Covenant calculations
Covenant calculations Statutory Gearing Covenant At 30 June 2019 Adjustments $m Balance Sheet $m Balance Sheet $m All lenders have consistent covenants Assets • Financial Indebtedness/Total Tangible assets (FI/TTA): less than 50% Cash 140 - 140 • Interest cover: more than 2:1 (write-downs and provis
Slide 24: Balance sheet summary
Balance sheet summary $m FY19 FY18 Cash 140 333 Real estate related assets - Commercial Property 10,323 10,562 - Residential 3,411 3,432 - Retirement Living 1,452 1,443 - Other 36 37 Retirement Living gross-up 2,585 2,724 Intangible assets1 193 194 Other financial assets 534 294 Other assets 325 272
Slide 25: Stockland corporation income tax reconciliation
Stockland corporation income tax reconciliation Statutory profit $m FY19 FY18 Net profit before tax 358 966 Less: Trust profit and Intergroup eliminations (229) (703) Corporation profit/(loss) before tax B 129 263 Prima facie tax expense @ 30% (39) (79) Tax effect of permanent differences: Non-deduc
Slide 26: Commercial Property
Commercial Property Annexure STOCKLAND BIRTINYA, QLD
Slide 27: Portfolio weightings and valuation movements
Portfolio weightings and valuation movements Commercial Property Commercial Property assets: $10.2bn1 Retail Town Centres: Logistics: Workplace: $6.9b | 35 properties | 1,025,813 sqm $2.5b | 29 properties | 1,442,899 sqm $0.8b | 5 properties | 111,407 sqm gross lettable area2 gross lettable area2,3
Slide 28: Funds from operations
Funds from operations Commercial Property Retail Logistics Workplace Trading profit Net overhead costs Total $m FY19 FY18 FY19 FY18 FY19 FY18 FY191 FY18 FY19 FY18 FY19 FY18 Operating EBIT 382 387 144 136 36 40 - 1 (21) (21) 541 543 Adjust for: Amortisation of fit out incentives 53 44 7 6 5 7 - - - -
Slide 29: Average weighted cap rates over time
Average weighted cap rates over time Commercial Property RETAIL 9% 8% 7% 7.3% 7.4% 7.2% 6% 7.1% 7.0% 6.8% 6.5% 6.1% 5.8% 5.9% 5.9% 5% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 LOGISTICS 9% 8% 7% 8.4% 8.4% 8.3% 8.4% 8.5% 8.3% 8.0% 6% 7.3% 7.0% 6.7% 6.2% 5% FY09 FY10 FY11 FY12 FY13 FY14 F
Slide 30: Portfolio capitalisation rates
Portfolio capitalisation rates Retail Town Centres At 30 Jun 2007 % Allocation At 30 Jun 2019 % Allocation Regional 12% Regional 57% Sub-Regional 79% Sub-Regional 34% Neighbourhood and Other 9% Neighbourhood and Other 9% 8.0% 8.0% Retail Portfolio Neighbourhood and Other 7.5% Sub-Regional 7.5% Regio
Slide 31: Revaluation and book value
Revaluation and book value Commercial Property Commercial Property book values: ($b) $10.2bn1 11 0.3 (0.3) 98% of all properties by value 10 (0.2) were independently valued during FY19 9 10.4 10.2 8 7 30 June 2018 Dev/Capex Revaluations Disposals 30 June 2019 Net revaluation breakdown Retail ($m) Lo
Slide 32: Performance: Retail Town Centres
Performance Retail Town Centres Retail FFO movements between FY18 and FY19 ($m) Key metrics (stable FY19 FY18 portfolio) 18 (16) 2 Occupancy 99.3% 99.4% Specialty occupancy costs1 15.1% 15.1% 432 - Regional 16.0% 16.3% 428 - Sub-regional 14.0% 13.8% - Neighbourhood centres 15.4% 15.3% FY18 FFO Incom
Slide 33: Sales growth for stable basket continues
Sales growth for stable basket continues Retail Town Centres Stable centres represent 83% of book value for this period Total MAT Growth Comparable MAT Growth 6 Month Comparable Growth 5.1% 3.8% 2.8% 2.3% 2.0% 1.6% FY18 FY19 12 month 6 month Total MAT ($m) SGP total MAT growth comparable centres gro
Slide 34: Strong sales performance and diversified rental income
Strong sales performance and diversified rental income Retail Town Centres Specialty Sales/sqm1 $13,253 $12,316 $11,700 $11,034 $9,914 $9,887 $9,857 $9,854 $9,728 $9,605 $9,461 Nowra Caloundra Bundaberg Gladstone Tooronga Village Rockhampton Townsville Wetherill Pk Cairns Merrylands Bull Creek Diver
Slide 35: Downsized redevelopment pipeline
Downsized redevelopment pipeline Retail Town Centres Community Town Sub-Regional Regional Major Regional Centres Under Construction Baringa Growth Target returns • 9%+ incremental IRR1 • 7%+ incremental yield (FFO & stabilised) DA approvals received • Whiteman Edge Aura • Rockhampton Next Wave • Her
Slide 36: Development pipeline
Development pipeline Retail Town Centres Est. Total Est. Cost to Cost spent to Est. Completion Est. Fully leased Total Specialty Est. Incremental Est. Total return4 Incremental cost complete date ($m) date year one yield1 Income leased Income leased2 return3 (%) (%) ($m) ($m) Completed Birtinya ~88
Slide 37: Performance: Workplace
Performance Workplace FFO movements between Occupancy and lease expiry by income1 Assets by location2 FY18 and FY19 $m FY19 FY18 4 Sydney Occupancy 94.7% 88.3% 86.4% (10) WALE 3.7 yrs 3.5 yrs Lease expiry profile1 40% 54 35% 48 30% 25% 20% 15% 10% 5% Perth 0% 13.6% Vacant FY20 FY21 FY22 FY23 FY24+ F
Slide 38: Performance: Logistics
Performance Logistics FFO movements between Occupancy and lease expiry by income1 Assets by book value4 FY18 and FY19 $m FY19 FY18 Business Parks Logistics 7 $0.8bn $1.7bn Occupancy 96.5% 98.7% 5 WALE 5.2 yrs 4.1 yrs Lease expiry profile1 50% 164 40% 152 $2.5bn 30% 20% 10% 0% Vacant FY20 FY21 FY22 F
Slide 39: Growing and activating the development pipeline
Growing and activating the development pipeline Workplace & Logistics Completed Active development Planning underway Future wave Ingleburn Ingleburn Gregory Hills (Stage 2) (Stage 3) Target returns Yennora M_Park1 M_Park2 (Bldg 3 & 11) (Stage 1) (Stage 2-4) • 9%+ IRR3 (Greenfield) NSW • 7%+ incremen
Slide 40: Development pipeline
Development pipeline Workplace & Logistics Est. Total Est. Est. Fully Development Gross lettable Cost spent to Est. Cost to Est. Total Incremental Completion leased year Est. Return3 type area (sqm) date ($m) complete ($m) return4 cost ($m) date one yield2 Completed1 Yennora (Bldg 3 & 11) (NSW) Brow
Slide 41: Top tenants by income
Top 10 tenants by income Commercial Property Retail Portfolio Logistics Portfolio Workplace Portfolio Rank Tenant % Portfolio Tenant % Portfolio Tenant % Portfolio 1 Woolworths Limited 9.6% OPTUS Administration Pty Ltd 8.8% IBM Australia Ltd 13.4% 2 Wesfarmers Ltd 5.8% ACI Operations 6.9% Jacobs Gro
Slide 42: Disposals
Disposals¹ Commercial Property Property disposed Asset class Settlement date Disposal value3 $m Bathurst NSW Retail Dec 2018 $113.1 Caloundra South QLD Retail Jan 2019 Jephson and High St Toowong QLD Retail Jun 2019 $40.0 Cleveland QLD Retail May 2019 $103.0 Kensington Coles QLD2 Retail Apr 2019 $28
Slide 43: Communities
Communities Annexure 43 CALLEYA, PERTH
Slide 44: Margins driven by Sydney and Melbourne projects
Margins driven by Sydney and Melbourne projects Residential Communities OPERATING PROFIT MARGIN 22% Key metrics FY19 FY18 Change (0.2)% 20% (0.7)% 2.8% (0.3)% Total lots settled 5,8781 6,438 (8.7)% 18% Total revenue $1,819m $1,830m (0.6)% $146m $58m 153.8% 16% - Includes super lot revenue 19.9% Oper
Slide 45: Development pipeline - Major active projects
Development pipeline - Major active projects Residential Communities Anticipated settlements Approximate lot State Project State percentage Approx. Remaining project lots FY20 FY21 FY22 FY23 FY24+ sales per annum1 North Shore 80 3,560 Aura 470 17,890# QLD Newport 230 1,120 Pallara 100 190 All Other
Slide 46: Eight projects with first settlements in next two years
Eight projects with first settlements in next two years Residential Communities Approximate total Approximate life of Project Timing of first settlements lots in project1 projects ACT Red Hill Townhomes FY21 110 3 yrs NSW West Dapto FY21 620 5 yrs QLD Hope Island FY21 92 4 yrs Paradise Waters FY21 2
Slide 47: Projects completing prior to FY22
Projects completing prior to FY22 Residential Communities Approximate total Lots1 remaining (as Project Timing of first settlements lots in project1 at 30 Jun 2019) NSW McKeachie’s Run FY20 1,060 65 QLD Augustine Heights FY20 1,050 53 Brightwater FY20 1,675 40 Brisbane Casino Towers FY20 380 9 Highl
Slide 48: Retail sales price
Retail sales price1 Residential Communities FY19 settlements FY18 settlements State No. Lots Av. Size per lot sqm Av. Price per lot $k $/sqm No. Lots Av. Size per lot sqm Av. Price per lot $k $/sqm NSW 1,185 370 431 1,164 1,337 400 401 1,003 QLD 1,582 381 284 746 1,971 393 266 676 VIC 1,437 404 295
Slide 49: Lots settled by location
Lots settled by location Residential Communities 6,604 6,438 6,135 5,876 5,878 1,371 1,035 1,557 5,219 771 1,459 NSW 531 1,104 1,620 1,497 976 779 WA 1,768 2,018 1,704 2,144 2,079 QLD 1,894 1,812 1,899 2,111 1,591 1,761 1,561 VIC 1,108 FY14 FY15 FY16 FY17 FY18 FY19 49 Stockland FY19 Results Annexure
Slide 50: Net deposits by quarter
Net deposits by quarter Residential Communities Net deposits by buyer 86.1% 86.5% 86.3% 83.9% 83.8% % Owner 79.1% Occupier 78.3% 75.6% 1,672 1,561 Retail 1,535 408 338 1,337 213 1,293 1,295 Investors 280 175 178 963 Upgraders 464 464 567 447 156 846 414 505 136 289 243 First Home 800 759 643 755 613
Slide 51: Leads and enquiry levels
Leads and enquiry levels Residential Communities Lead volumes Majority of our customers are owner occupiers 8,000 Average Monthly Leads 75% Composition of Stockland new leads First Home Buyers Upgraders Retail Investors 6,000 51% 51% 47% 50% 43% 43% 41% 4,000 36% 32% 25% 32% 24% 25% 19% 2,000 27% 25
Slide 52: Market overview
Market overview Residential Communities FY19 settlement Vacant land Vacant volumes sales land prices (% change over Comments on volumes State FY18) our settlements in FY19 Comments Decrease in volumes primarily driven by lower sales rates at Volumes rise from current quarterly levels imply FY20
Slide 53: Providing affordable product
Providing affordable product Residential Communities Stockland pricing relative to local median house and unit price Stockland H&L entry price1 Median house price3 775k 765k 750k 750k 716k 575k 563k 550k 560k 497k 506k 525k 467k 471k 496k 455k 427k 429k 393k 355k Elara Willowdale Aura Pallara Highla
Slide 54: Composition of residential landbank
Composition of residential landbank1 Net funds employed: $2.3bn Book value: $3.4bn Apartments 5% Aura 7% Aura 11% QLD 19% QLD 21% 56% ~53,000 lots WA 14% Active Residential WA 19% communities 77% VIC 32% Active within 14% two years ~7,000 lots VIC 30% Active beyond 25% two years ~12,500 lots NSW2 28
Slide 55: Acquisitions
Acquisitions Residential Communities Property acquired Type Acquisition date Acquisition value ($m) Approximate number of lots First settlements expected Wellard Farm, WA Masterplanned Community Sep-18 Not disclosed 1,100 FY26 Merrifield North, VIC Masterplanned Community Jun-19 PDA Not disclosed No
Slide 56: Workout contribution and impairment provision balance
Workout contribution and impairment provision balance Residential Communities Workout contribution to residential Residential impairment provision utilisation as at 30 June 2019 ($m) Residential Core Workout1 Total Net decrease in impairment (1) Lots settled 5,675 203 5,878 Utilisation of provision
Slide 57: Profit driven by development settlements and village disposals
Profit driven by development settlements and village disposals Retirement Living Key metrics FY19 FY18 Change NET RESERVATIONS Retirement Living 1,200 Development FFO $56m $53m 5.7% 853 (801) Established Occupancy 93.3% 95.0% 1,000 Cash ROA 4.5% 4.6% 287 250 Established portfolio 800 Established set
Slide 58: Established portfolio
Established portfolio Retirement Living Portfolio statistics FY19 FY18 Net funds employed Established villages 62 65 $1,509m $1,525m Established units 9,167 9,609 38 76 Goodwill Established units settlements 551 618 172 178 Revaluation Units removed for 29 73 redevelopment/alternate use 372 Developm
Slide 59: Development pipeline
Development pipeline Retirement Living Geographically diverse development pipeline Development pipeline breakup Development Pipeline FY19 Development villages 20 Total development pipeline units 3,540 SA - Greenfield pipeline units 870 WA 1% 12% - Village renewal pipeline units 630 - Land lease unit
Slide 60: Retirement Living pipeline
Retirement Living pipeline Construction timeframe Future settlements FY20 FY21 FY22 FY23 FY24+ Completed projects FY19 completed projects Sub-total 220 Elara Aspire, NSW Willowdale, NSW Newport, QLD Current Calleya Aspire, WA Somerton Park, SA Affinity, WA Sub-total 550 Pine Lake, QLD Future Epping,
Slide 61: Research
Research Annexure NEWPORT, QLD 61
Slide 62: Retail trade environment
Retail trade environment Retail Spend Growth by State FY19 (trend) 1 Consumer Sentiment easing but moving within tight band2 12% 130 NSW VIC QLD WA Aus 10% 120 8% 110 6% 100 4% 90 2% 0% 80 -2% 70 2010 2012 2014 2016 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Employment gro
Slide 63: Online retail growth
Online retail growth1 Growth in Domestic Online Retail vs Total Retail Turnover PurePlay Online Spend v. MultiChannel Online Spend Growth 100% 40% 1yr 2yr 3yr 90% 35% 80% 30% 70% 25% 60% 50% 20% 40% 15% 30% 10% 20% PurePlay MultiChannel 5% 10% 0% 0% 2017 2018 2019 ABS Online Domestic Retail ABS Reta
Slide 64: State and retail category analysis
State and retail category analysis1 Australian Retail Spend by Category Change 2011, 2016 & 2019 State Level Retail Spend Categorical analysis Food Catering and NSW Food Catering Spend as proportion of Total 45% 20% NSW Retail Spend Food Retail spend are 41% 40% the two predominant 16% 40% categorie
Slide 65: Population growth forecast to remain historically high
Population growth forecast to remain historically high AUS population growth – Annual1,2 QLD and VIC - strong positive interstate migration 1 Annual Rolling Sum (‘000s) 45,000 30,000 500,000 Annual Forecast 2.5% Growth Rate 15,000 450,000 (RHS) 0 400,000 2.0% -15,000 -30,000 350,000 NSW Vic Qld WA -
Slide 66: Dwelling commencements maintained at high level
Dwelling commencements maintained at high level Dwelling commencements are elevated, but reverting to long term averages and past their peak1 Dwelling undersupply forecast to grow2 250 30 Dwelling 25 200 commencements (LHS) 20 150 15 100 Dwelling commencements per 1000 people (RHS) 10 50 5 0 0 1987
Slide 67: National building approvals
National building approvals1 NSW dwelling approvals falling though 2019 VIC unit approvals at 6-year low 4,000 4,000 Apartment: 3,000 +47% above 3,000 long term average House: +17% above 2,000 House: 2,000 long term average -5% below Apartment: long term average +76% above long 1,000 1,000 term aver
Slide 68: National house and land prices
National house and land prices Early signs of price recovery in Sydney and Melbourne established markets Land Price per sqm1 Capital City House Prices – Rolling Annual Change2 1400 NSW VIC QLD WA Metro Sydney SEQ 25% 900 Perth Melbourne 5% 400 -15% -100 2009 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 69: Residential vacancy rates
Residential vacancy rates Rental vacancy rates1 trending up in Sydney, Melbourne and Perth, steady in Brisbane 6% 5% 4% Sydney Perth 3% Brisbane 2% Melbourne 1% 0% 2012 2013 2014 2015 2016 2017 2018 2019 1. SQM Research June 2019 69 Stockland FY19 Results Annexure
Slide 70: Vacant land market historically weak in Sydney and Melbourne
Vacant land market historically weak in Sydney and Melbourne1 NSW vacant land sales approaching GFC territory VIC vacant land sales down to 6 year lows Quarterly Sales Quarterly Sales 4,000 7,000 3,500 6,000 3,000 5,000 2,500 4,000 2,000 3,000 1,500 1,000 2,000 500 1,000 0 0 Jun-09 Jun-10 Jun-11 Jun
Slide 71: Housing finance
Housing finance First home buyer activity historically strong. Recent signs of recovery in household lending First Home Buyer lending percentage at six year highs1,2 Residential Loan Approvals, weakness concentrated in investor lending 1 45 16 Investor Owner Occupier (ex-refi) 40 14 35 12 30 10 25 8
Slide 72: Household affordability trends
Household affordability trends Household Debt-to-Asset and Debt-to-Income ratios both rising1 Affordability improving across the country as house prices ease, rates fall and wage growth remains weak2 Debt-to-Income Ratio (LHS) Debt-to-Assets Ratio (RHS) 200% 30% 60% Sydney Melbourne Brisbane Perth 5
Slide 73: Stockland Corporation Limited Important Notice
Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741; AFSL 241190 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 accurate and complete inform