Stockland · ASX:SGP
Stockland — FY2004 Earnings Presentation
73 slides from Stockland's earnings presentation, Aug 10, 2004
Slide 1: 04 Results Presentation 10 August 2004
Slide 2: Agenda
Shopping Centres _ _= Commercial & Industrial nt Division ~ Saville Hotel Group Finance and Capital Management . Future Direction & Strategy
Slide 3: Strong growth in shareholder returns
Strong growth in shai eholder returns - = Resulting from clear and consiste t strategies Diverse high quality sset bas - - Active management and alue add through acquisition, — _ Property management/leasing, development and disposal Focused | apital management _ Rigorous risk management _
Slide 4: Total assets increased by 21% to $7 billion
. Total assets ncreased by 21% to $7 2 billion Strong balance sheet — gearing 21.8%
Slide 5: Slide 5
Slide 6: Fyog FYO1 FYO2 | FYog vod” Ce Fvoo: Fon
Fyog FYO1 FYO2 | FYog vod” Ce Fvoo: Fon * Excluding ADP goodwill and unrealised interest rate hedging gains
Slide 7: * Excluding ADP goodwill and unrealised interest rate hedging gains
* Excluding ADP goodwill and unrealised interest rate hedging gains
Slide 8: Summary of FY04 Results
Summary y of FY04 Results Operating profit Capital profits | . Unrealised gain ‘mark to market” ofiinterest rate hedges | | Goodwill on acqui ition of ADP written back | 2 ion of goodwi I of ADP 069) Reported statutory netprofit = | 8747 Net transfers to Reserves ( ‘Amount available for distribution
Slide 9: EBIT
EBr 7 7 a Property Development Shopping Centres m Commercial _ industrial /Office Parks «| Hotel Mgmt
Slide 10: Property Asset Diversification
_ Property Asset Diversif a Property Development “Shopping Centres @ Commercial —_ Industrial /Office Parks
Slide 11: Asset Position
Asset Position: Shopping| | _ Centres Commercial & _Industrial | _ Development | __ Division 1 July 2003 _ _$753m CapexiDevelopment Acquisitions : Revaluation 350] 30 June 2004
Slide 12: Slide 12
Slide 13: Revaluation increment of $167 million
evaluation incre rel of $167 million an increase: of 8 5% book value |
Slide 14: Market Environment
MARKET EN : Retail environment remains Interest rates relatively stable Employment outlook positive - Bu ant consumer spending Property yields continue to
Slide 15: Disposals
Disposals = oo Centre Rockhampton
Slide 16: Portfolio
Ts FOLIO Number of Centres 40 Asset Value $2.7on NLA 878.216m__ Number of Tenancies 2,740 durnover $4 2bn Customer Traffic 128 im
Slide 17: Development Pipeline Status
Batemans Bay Bathurst Botany [own Centre Burleigh Bay Village Balgowlah ANTICIPATED YIELD (%) Centres STATUS Construction on program for 24 Aug 2004 opening Construction on program for Nov 2004 completion Construction on program for Dec 2004 completion Construction commenced. Completion late 2005 Co
Slide 18: Shopping Centre Turnover Comparison
iu mover! me (centes 15, 000m? to 40, 001?) - _ Stockland Centre _ Bay Village Merrylands Calounda _ Shellharbour Nowra | Source Shopping Centre News - : Cleveland : Green Hills
Slide 19: Sales Growth and Productivity
Actual % __ Growth | 21. 60 Mini Majors CinemasiOther_ . = Specialty: Sales productivity of $8. 500m? . Specialy oc a cost 0 2 9. 8% noludes CST / Excludes NZ
Slide 20: Shopping Centres Lease Expiry Profile
Slide 21: Future Direction
iH (URE DIRECTION | _ Focus on delivery of d velopment J Capitalise on economies of scale as asset base grows Focus on recruiting, traini and retaining the best peop
Slide 22: Commercial & Industrial
a =
Slide 23: Division operating profit highlights
Division ¢ op 3 ating profit $218. 4 ilies, v 6A _ Comparable net i income growth 2. 4% Leased 430, 000m: of commercial and ind istrial space nant. retention 92% Net: arrears e 5% of annual billings
Slide 24: Market Commentary
MARKE COMMEN’ _FY04Net | Supply Under Absorption _ Construction oy : / m? : : : m ‘SGP > Vacancy | Te commitment® SydneyCBD | 45% O% ® | 2 69518 | 230771 | 80y North Sydney | Suburban 285/74 | _ 318.604 Brisbane Perth CBD Adelaide CBD Source. Jones Lang LaSalle
Slide 25: Commercial Highlights
Commercial. COMMERCIAL HIGHLIGHTS, 92. 000m leased! renewed | Strong tenant retention 92% Jun 2003. = Jun 2004 Portfolio Vacancy . 2 3.9% ADP Vacancy - | -FY05 Lease Expiry _ _ADP FY05 Lease Expiry
Slide 26: Commercial
Commercial Preimum/A Grade. FYoz | FYoa- oo acquisition costs) 4 property dese totaling $1 39 million® (15% above 30 one 2003 peck value) ‘ Includes deferred settlements
Slide 27: Tenant retention and leasing strategy
ae tenant oe 8 and leasing strategy has achieved 11 400m? of new leasing i in FY04 FY05 Lease Expiry 9,300m? ¥ 6,096m?
Slide 28: Lease Expiry Profile
_ LEASE EXPIRY PROFILE | Average lease expiry 38 years. . Vacancies _ Underwood Site yaney - 90 Mount Street, Nth Sydney _Exchange Plaza, Perth 1 Macquarie F Place Sydney Total aoe _Total NLA Vacancy rate. a Pro-ata for 50% ownership :
Slide 29: Vacancy
SGP “Vacancy. __ Melbourne Brisbane Adelaide North Ryde (Office Parks) _
Slide 30: Industrial
Jun 2004 Te FYO5Lease Expiry 15% ADP FY05 Lease ol 4 Verne a5 year. lease to > Westgate Logis occa costs. 2 acquisitions $23m
Slide 31: Management assumed in Feb 2004
SGP assumed management in Feb 2004 Vacancy was. 5 28, 500m (22%) | in 3 : ne “0 now 6, 450m? (5%) eee 64,000m? in FY04 HAG = -28,900m2 — K&S = = 24, 000m?
Slide 32: Lease Expiry Profile
LEASE EXPIRY PROFILE Average lease expiry 4.1 years _ Vacancies Brooklyn, Vl Century Estate, Alexandria Centrecourt, Nth Ryde Khartoum, Nth Ryde Total vacancies _ _ Vacancy rate _ By NLA as at 30 June 2004 _
Slide 33: Commercial & Industrial
_Commercial & Industrial | : ss us on on tenant retention to maintain high occupancy Leverage | Stockland Service Centre ‘capability parade quality of overall portfolio through selected acquisitions _ pelver aoe through pre-commitments for the 250, o00me Sydney industrial and office parks developmen
Slide 34: wif
0 wif AMIN i HE an : “ an a 7M vi Fer ai a ie ci i ol
Slide 35: Highlights
| HIGHLIGHTS | : Division operatin profit of $167: millio up 17% : Development assets as % of grou ) assets: up from % to 17% in line with Stated strategy ret ADP es Residential E tates margin sustained: circa 30% Successfu acquisition strategy comprising 18 new project o Launched 7 new projects to.
Slide 36: Operating Profit and Gross Assets
2 ce co) ates: ss @ 2 (@) a _ _ _ _1 ol _ © Operating Profit ($m) Gross Assets ($m)
Slide 37: Key Performance Indicators
aoe LS i __ KEY PERFORMANCE INDICATORS _ _| Residential Estates | ‘Retail Aeatene | Projects _FY04 Performance . (Units/Lotssoid = = No =| 2.810] “Operating Profit. | Net Margin | yo - (82% “AssetiPipeline . _Gross Assets _ | a ls CC _NetAssets _ _ Re to. 750 | . Projects on hand No . 62 Units / Lot
Slide 38: Development Division
Development Division Land oa continues to tighten Complexity i in gaining approvals. ‘increasing Continued push i) high density development _ Sustainable development will be a focus — Coe ie stabilising .
Slide 39: sation
sation 2 — a = oO. = < 2 = © o (2 on — oC. O° 4 Source: ABS
Slide 40: Residential Estates Highlights
Development Division RESIDENTIAL ESTATES HIGHLIGHTS. Prof performance driven by. a combination of lo lot mix and margin. Launched 4 new projects to market ‘Success | in creating high quality owner occupier projects 0 ‘customer and oo : approach
Slide 41: Development Division
Develo 0 ment Divisio a Price a $217 8 $114| $125
Slide 42: Margin and Volume
Development Division _ MARGIN AND VOLUME o es) Cc a & é oO oO as oS (ea 7 o Cc. = = © 2. Lots Sold
Slide 43: on oC
on oC
Slide 44: Active Apartment Projects
_ Development Division. : _ ACTIVE APARTMENT PROJ ECTS ABODE . Completed April: 2004 | 81 % sold with 37 apartments remaining for sale SOUTHBANK - 88 residentia apartments release o ma rket — 81 sold (93%) Saville hotel apartments will be released to market in FY0S Final ee (54 residential apartment
Slide 45: Apartment Projects by State
STATE NSW/ACT Gordon : Balgowlah | Prince Henry, Little Bay Kingston Foreshore | Liverpool Street __ 148 260 | South Bank _ ‘West End. Norman Park _ Eagle Street Pier Tooronga _* Master planning underway
Slide 46: Retail Project Highlights
Slide 47: Development Division
eae ment Division Bath Home e Space - :
Slide 48: NSW & ACT
NSW & ACT 8800 _ NSW & ACT | $2.460m_ iii hii _TotalNumber =—=—__Estimated End Value a —=é“FERERNRNRRRCCCC OR
Slide 49: SGP Sales Turnover and Building Approvals
200,000 160,000 120,000 SGP Sales Turnover (no. = o 8 & a ao a a ss a o ea Dp & os 3 a e Building Approvals —- SGP. Sales Turmover
Slide 50: Contracts on Hand as at 30 June 2004
Slide 51: Future Direction
FUTURE DIRECTION Residen Al Estates remains our. c e activity. Measured growth f Apartment bus ness to meet demographics - New projects : con 19 to market will provide an opportun ty to gain market shar Maintain a high eel of contracts on hand from presales. ce ptalise eon strong pipeline f projes
Slide 52: Saville Hotel Group
7
Slide 53: Highlights
HIGHLIGHTS Occupancy. Average Room Rate High ROE - funds: nvested in hotel management business, | ey $20 million.
Slide 54: Market Overview
_ MARKET OVERVIEW International v itors expected to increase © by 10% in 1 20085 ae to yong global oe Expansion of low. cost ¢ carriers wil assist further growth i in 1 domestic oe of product in Melbourne and Adelaide - The: Federa coe ent has committed to Australian tourism: via the Tourism White P
Slide 55: Future Direction
Saville Hotel Groug FUTURE DIRECTION a “Access to new bee through Siockend Ss ecient : _ . et ae eg. Saville Southbank due for completion - a ofa new 3_ star brand in FY05. / Technology — centralised database and access to client Oe ee a a competitive advantage Saville’ Ss sales and marketing networ
Slide 56: Finance & Capital Management
Slide 57: Risk Management Strategies
-— Risk Management Strategies Accounts will be affected by: nvestm nt. property revaluations \ via the statement of financial performance - debt hedgin _ Transition process i in place No change to distributions expected
Slide 58: Debt and Gearing
$1 Ten debt (30 June 2004) Gearing 21 8% of Total : Assets ae of oe “Wephte averse cost of debt i is c 01% (including all costs, fees and ar _ of debt is hedged for average of 3.7 years
Slide 59: Capital Management
Capital Management i @ Domestic Mediu Term NotcsUS Senior Term Notes
Slide 60: Future Direction & Strategy
Slide 61: FY05 Operational Focus
Future Di rection & Strategy - _FY05 OPERATIONAL FOCUS — ‘Commercial - _ Continue to de- risk lease expiry profile | Tenant retention and customer service Industrial & Office F arks / | Un lock developme at potential ‘Shopping Centres _ Delivery of devel opment pipeline _ | Drive specialty shop Fe r
Slide 62: Future Direction
_ FUTURE DIRECTION EPS growth and t tal shareholder return remain: our key measures | Cap alse 0 ey and synergies across our busi Diversify into new income : treams. tae compliment our core Develop a performance based culture across the | : Group wit total focus on driving shar hold r ae Strong corp
Slide 63: Appendix
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Slide 64: Portfolio Summary - Sales
Total MAT @) Comp Growth (4) | : Specialties MAT _). Occupancy Cost : (4) | a Bay Village : 1357 3.8% 10,135 83% _ Stockland Bathurs! 4074 38% | Stock! id Baulkham Hills 11% : Benowa Gardens Shopping Coe 11% Stockland Bull C : Stockland Burleigh Heads __ Stockland Cairns : Stockland Corrimal _ Stock
Slide 65: Portfolio Summary - Sales
PORTFOLIO SUMMARY - Sales : Centre Total MAT (8) Comp Growth eo) | Specialties MAT | __ Gin) | Stockland Jesmond _ 1258 20% 8714 1% 0034 _ Stockland Merrylands Stockland Nowa __ 9.751 Stockland Parabanks 7a Piccadilly, Sydney Stockland Rockhampton Stockland Shellharbour Stockland Townsville : Stockl
Slide 66: Portfolio Summary - Sales
Comp Growth _ Occupancy Cost — & : to © | aL ba 788 Lynnmall Shopping Cente oe Botany Town Centre Manukau Supa Centra TOTAL nelusive of GST. __ NZ Centres in NZ. Dollars
Slide 67: Investment Property Revaluations
nvestment Prope rty Reval uations Revaluation Incre' _ Decrement $m INDEPENDENT REVALUATIONS _ __ Shopping Centres _ Auckland Creek i Batemans Bay _ Bathurst | Benowa Gardens _ : Bridge Plaza Burleigh Heads Burleigh Town Central Bull Creek : Cains Cleveland | Corrimal Court _ Gladstone Glendale _ Gr
Slide 68: Investment Property Revaluations
_ Previous Book Value _ Cap Rate h _ Revaluation _ _Incrementi Decrement _ INDEPENDENT REVALUATIONS Shopping. Centres | Shellharbour Shellharbour Super Genie Townsville : : Traralgon Wendores Shopping Contre Subtotal ffice Parks 25 Paul Street, me 38 Paul Street, North Ryde 4-7 Lyon Park Rd, North R
Slide 69: Investment Property Revaluations
Investment Property Revaluations: _ Previous Book Value | sm Current __ Valuation | Revaluation | _Increment/ | Decrement _ _ $m. : : INDEPENDENT REVALUATIONS Commercial. 475 Castlereagh St Sydney 157 Liverpool St, ‘Sydney | 50 Pit St Sydney : 50 Miller St, North Sydney _ 72 Christie St, St Leonards
Slide 70: Residential Estates
eae = Deferred — _ Purchase Residential Estates Upper Coomera __ | Augustine Heights. : Heathwood Dicky Beach Kleinschmidt _ Settlers Hills _ Forrestdale _ Hunter. llawarra Ermington 425) S)x] <]><] sp>]><) ><) <1 8] Woodville 5,319 lots APIS] AIST S| ADE STS
Slide 71: Apartments and Retail Projects
No. Future |. | Deferred Units a Apartments _—§s Brisbane _ — Norn Park Gordon _ Prince Henry, Little Bay | Kingston Foreshore. os Retail Projects | Burleigh __ ee
Slide 72: Hotel Locations
Location FYO4 | Occupancy |_FY04 Room | Yield Operating | Agreement | 2 Bond St, Sydney _ $160. Leased _ Chatswood 76% _ Leased Canberra. 713% $121 $86 _ Leased Russell St, __ Melbourne 75% oe Leased - Exhibition St,_ Melbourne Peth Darwin _ Adelaide. | Managed Directors, Adelaide Managed _
Slide 73: Stockland Corporation Limited
Stockland Corporation Limited ACN 000 181 739 _ Stockland Trus Management Limited. ACN ( 001 900 741 16! Floor 167 Liverpool Street __ SYDNEY Nsw 2000 Disclaimer of Liability Q : : While every effort is made to provide accurate and conipiete information, Stockland Goes not warrant or represent that