Stockland · ASX:SGP
Stockland — 2019 Macquarie Australia Conference
22 slides from Stockland's conference presentation, Apr 30, 2019
Slide 1: 3Q19 Update
30 April 2019 133 Castlereagh Street T 02 9035 2000 Sydney NSW 2000 F 02 8988 2552 For personal use only www.stockland.com 3Q19 UPDATE Stockland today releases the attached presentation which provides the 3Q19 update and presentation to be used as a basis for discussion at the 2019 Macquarie Austral
Slide 2: 3Q19 Update: Creating Sustainable Communities
For personal use only 3Q19 update Creating Sustainable Communities 30 April 2019 1 Stockland 3Q19 Update YENNORA DISTRIBUTION CENTRE, SYDNEY
Slide 3: Contents
Contents For personal use only Section Page 3Q19 highlights 3 Commercial Property: Retail Town Centres 4 Commercial Property: Workplace and Logistics 5 Communities: Residential 8 Communities: Retirement Living 9 Group strategy 10 Research annexure 14 2 Stockland 3Q19 Update
Slide 4: 3Q19 in line with expectations
WETHERILL PARK, SYDNEY 3Q19 in line with expectations For personal use only Group Priorities Update Continuing improvement in Completed $284.5m of non-core Retail Town Centre the quality of our portfolio divestments, on track to achieve $400m target within 12 months 3.8% growth in comparable special
Slide 5: Continued improvement in retail sales
Continued improvement in retail sales Retail Town Centres For personal use only By category Total Sales Comparable centre sales1 to 31 March 2019 Retail Sales MAT MAT 3Q19 growth Growth2 Growth • Comparable1 specialty retail sales +3.8% to $9,253 per square metre for Specialties +7.5% +1.3% +2.4% th
Slide 6: Continuing to deliver good performance: Workplace and Logistics
Continuing to deliver good performance Workplace and Logistics For personal use only FY19 year to Workplace 1H19 March Workplace Leases executed 11,500 sqm 10,300 sqm • Sydney CBD and North Sydney markets remain strong Leasing activity under HOA 19,300 sqm 22,700 sqm • $1b of future development oppo
Slide 7: Accretive development pipeline, repositioning assets
HENDRA DISTRIBUTION CENTRE, BRISBANE Accretive development pipeline, repositioning assets Logistics For personal use only • Joint Venture with Mount Atkinson Holdings to develop first 87 hectares of potential 260 hectares business park in the fastest growing logistics precinct in Melbourne, planning
Slide 8: Growing our portfolio: Logistics
Growing our portfolio Logistics For personal use only Progressing our $740m current and future pipeline to deliver 6%+ FFO yields and 9%+ IRRs1 YENNORA DISTRIBUTION CENTRE, SYDNEY INGLEBURN LOGISTICS PARK, SYDNEY MACQUARIE TECHNOLOGY PARK, SYDNEY HENDRA DISTRIBUTION CENTRE, BRISBANE Artist impressio
Slide 9: Challenging market conditions: Communities Residential
Challenging market conditions Communities: Residential For personal use only • Expect 4Q19 sales around current levels, although the risk is to the Residential net deposits - quarterly downside given current challenging market conditions • Moderate increase in cancellation rates over the quarter, de
Slide 10: Repositioning the business to improve returns: Retirement Living
Repositioning the business to improve returns Communities: Retirement Living For personal use only Retirement Living net reservations - quarterly • Improved development sales reflecting product quality and repricing strategy Established Development • Marginal reduction in established sales reflects
Slide 11: Group Strategy
For personal use only Group Strategy 1 STOCKLAND BIRTINYA, QLD 0
Slide 12: Group Strategy
Group Strategy For personal use only Our strategy is to deliver sustainable and growing returns by: • Owning and managing leading retail town centres • Growing our workplace and logistics asset base in Sydney, Melbourne and Brisbane • Developing sustainable communities Strategic priorities Accelerat
Slide 13: Stockland quick facts
Stockland quick facts For personal use only Trust Corporation Retail Town Centres Workplace Logistics Residential Retirement living STOCKLAND SHELLHARBOUR NSW PICCADILLY COMPLEX SYDNEY WARWICK FARM SYDNEY HIGHLANDS MELBOURNE MERNDA MELBOURNE Create market leading Optimise returns Grow and develop Ma
Slide 14: Group Strategy: What investors can expect
Group Strategy What investors can expect For personal use only Commercial Property Communities Group • Increased focus on improving • Continued focus on creating liveable, • Sustainable growth retail operational performance affordable and connected communities • Concentrated exposure • • Counter cyc
Slide 15: Research: Economic overview
For personal use only Research Economic overview 14 Stockland 3Q19 Update CLOVERTON, MELBOURNE
Slide 16: Population growth continues to underpin dwelling demand
Population growth continues to underpin dwelling demand For personal use only AUS population growth – Annual1,2 QLD and VIC - strong positive interstate migration1 Annual Rolling Sum (‘000s) 500,000 2.5% Annual Growth Rate Forecast 45,000 450,000 30,000 Qld 15,000 Vic 400,000 2.0% 0 -15,000 WA 350,0
Slide 17: New supply is slowing
New supply is slowing National building approvals1 For personal use only NSW house approvals trending down; unit approvals rebounding Vic unit approvals down heavily while house approvals moderate 4,000 4,000 3,000 Apartment: +66% 3,000 House: +23% above long term above long term average average 2,0
Slide 18: Prices continue to moderate, new land supply slowing
Prices continue to moderate, new land supply slowing National house and land prices For personal use only Land Price per sqm1 Capital City House Prices – Rolling Annual Change2 Sydney Brisbane Melbourne 40% $1,400 Melbourne Perth Sydney SEQ 30% $1,000 Perth 20% 10% $600 0% $200 -10% 2009 2010 2011 2
Slide 19: Residential vacancy rates falling, better time to buy
Residential vacancy rates falling, better time to buy For personal use only Residential vacancy rates1 trending up in Sydney and Melbourne Sentiment2, now is a good time to buy 6% Time to buy a dwelling index Sydney Perth 5% 160 Brisbane Melbourne 140 4% 120 3% 100 80 2% 60 40 1% 20 0% 0 2013 2014 2
Slide 20: Lending to households
Lending to households First home buyers proportion remains elevated, owner-occupied housing finance easing For personal use only First Home Buyer lending percentage close to six year highs1 Total value of residential loans slowing $m 35% 18 Investor Owner Occupier 16 30% 14 25% 12 20% 10 15% 8 6 10%
Slide 21: Housing affordability improving
Housing affordability improving For personal use only Household Debt-to-Asset ratio stable, Debt-to-Income rising1 Affordability improving in all Stockland markets as house prices continue to ease, rates remain low and wage growth remains modest2 200% Debt to Income Ratio 30% 60% Sydney (LHS) Melbou
Slide 22: Important Notice
For personal use only Important Notice 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 intended use. This presentation contains forward-