Stockland · ASX:SGP
Stockland — Macquarie Bank Securities Conference 2007
21 slides from Stockland's conference presentation, September 2007
Slide 1: Macquarie Bank Securities Conference – September 07
Macquarie Bank Securities Conference – September 07 Nick Perrignon 1 1 www.stockland.com.au
Slide 2: Agenda
Agenda 1. Residential Market Overview 2. New Housing Market 3. Stockland Track Record 4. Positive Outlook Boardwalk, QLD 2 2
Slide 3: Market Overview - Residential
1. Market Overview - Residential Low unemployment is supporting strong immigration growth Positive Outlook 12% Unemployment rate % [LHS] Immigration p.a. [RHS] A$’000 170 9 11% • Strongest population growth for 15 years 10% 145 9% Changing demographics fuelling demand 9 120 • 8% 7% 95 • Unemployment
Slide 4: Market Environment
Market Environment What is the Structure of the Residential Market? • Total population 21 million people • Highly urbanised • Annual new dwellings FY07 – 156,000 (A$30.2 billion) pa 200,000 Building Approvals 180,000 160,000 Total 140,000 120,000 Houses 100,000 80,000 60,000 Other 40,000 20,000 0 Ju
Slide 5: Annualised detached housing approvals
5 5 Annualised detached housing approvals Source: ABS/RBA 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Sep-1980 Sep-1981 Sep-1982 Sep-1983 Sep-1984 Sep-1985 Sep-1986 Sep-1987 Sep-1988 Sep-1989 Sep-1990 Sep-1991 Sep-1992 Sep-1993 Sep-1994 Sep-1995 Sep-1996 Sep-1997 Interest Rates (RHS) Sep-1
Slide 6: Queensland Property Clock
Queensland Property Clock Late Upturn Early Downturn Key Drivers • Abundant employment Far North and population growth Queensland • Far North Queensland Gold Coast resource projects (fly in/fly out), military growth Greater Brisbane • Affordability still remains Sunshine Coast reasonable Early Uptur
Slide 7: Victoria Property Clock
Victoria Property Clock Late Upturn Early Downturn Key Drivers • Affordability is good • Enhanced population growth • Inner city established housing 20-30% price growth over 18 months Melbourne Houses Melbourne Apartments Early Upturn Late Downturn • Population growth and consumer sentiment beginnin
Slide 8: New South Wales Property Clock
New South Wales Property Clock Late Upturn Early Downturn Key Drivers • Change in consumer sentiment will be a key factor • Ability to sell fringe established housing gradually returning • Government infrastructure Greater Sydney Houses policies must be revamped Early Upturn Late Downturn • The Sydn
Slide 9: Western Australia Property Clock
Western Australia Property Clock Late Upturn Early Downturn Key Drivers Perth Houses • Resource boom will continue to drive demand • Significant strength in established owners equity, downsizing to new trendy affordable product will continue Early Upturn Late Downturn • The Perth market has shown si
Slide 10: 2. New Housing Market
2. New Housing Market • Market size • Partnering • Housing product trends • Brand segments Wallarah, NSW 10 10
Slide 11: Market Size - Value of Detached Housing Commencements
Market Size - Value of Detached Housing Commencements Dwelling Commencements 1993 Dwelling commencements 2006-7 ACT, 2% ACT, 1% NT, 1% NT, 1% TAS, 2% TAS, 2% NSW, 15% WA, 14% NSW, 23% WA, 19% SA, 8% SA, 8% VIC, 28% VIC, 22% QLD, 28% QLD, 27% Total $10.6 billion Total $30.2 billion Source: ABS 11 11
Slide 12: Leveraging Contract Builders into the Stockland Business Model
Leveraging Contract Builders into the Stockland Business Model • Significantly different housing industry structures in each state metro State Mainstream Houses pa Builders QLD 39 22,000 WA 6 18,000 NSW 25 12,000 VIC 14 15,000 • Balance in apartments, replacements and regional markets • Strong partn
Slide 13: Floor Areas Booming vs Occupancy Shrinking
Floor Areas Booming vs Occupancy Shrinking m2 Average House Size Average Occupancy 350 6 300 5 number of people 250 4 200 3 150 2 100 50 1 0 0 1900 1950 1990 2006 1900 1950 1990 2006 • Open plan drives bigger spaces, causes extra parent retreat • Traditional real estate advice still prevails (dining
Slide 14: Leveraging Brand Synergies
Leveraging Brand Synergies Traditional Land Estate Masterplanned Community 500 to 1500 lots 2000 to 5000 lots 14 14
Slide 15: Driving Strong Margins From All Buyer Segments
Driving Strong Margins From All Buyer Segments Honda CRV Mazda CX7 Landrover Discovery BMW X5 $31,990 $39,910 $63,990 $86,800 15 15
Slide 16: 3. Sound Track Record
3. Sound Track Record • Consistent profit growth through market cycles • Increased geographic diversity and product leadership • Strong outlook across diversity of business to capitalise on product leadership Mernda, VIC 16 16
Slide 17: Divisional Key Financial Results
Divisional Key Financial Results DEVELOPMENT DIVISION Gross Assets $3bn 30 June 2007 Record Operating Profit Performance Retirement 300 $273m Living 10% $239m 250 Apartments O p e ra tin g P ro fit $ m 20% $184m 200 14% $157m 30% 150 $94m 17% 100 $63m 67% Residential 49% 50 Communities 70% 0 FY02 FY
Slide 18: Divisional Key Financial Results – Residential Communities
Divisional Key Financial Results Portfolio Summary RESIDENTIAL COMMUNITIES Projects launched in FY07 4 Performance Projects completed in FY07 6 Revenue 18% $977m Acquired in FY07: EBIT $278m Projects 8 EBIT Margin % 28% No of Lots 7,700 Interest released in COGS $28m Operating Profit 8% $250m Total
Slide 19: Divisional Key Financial Results – Apartments
Divisional Key Financial Results Portfolio Summary APARTMENTS Projects Sold Settled Completed Performance % No. %* Revenue 78% $180m Allisee 71 58 50 (Stage 1) EBIT $30m Koko 83 90 81 EBIT Margin % 17% Waterfront 98 51 49 Interest released in COGS $12m Prince Henry 52 4 2 Operating Profit 157% $18m
Slide 20: 4. Positive Outlook – Development Division
4. Positive Outlook – Development Division A$m Value of contracts on hand at 30 June 700 • Record contracts on hand entering Retirement Living Apartments 600 FY08 Residential Communities 500 400 300 • Clear platform for growth from our 200 existing business 100 0 2002 2003 2004 2005 2006 2007 • Incr
Slide 21: Disclaimer
Disclaimer Corporation/ Responsible Entity Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741 25th Floor 133 Castlereagh Street SYDNEY NSW 2000 DISCLAIMER OF LIABILITY While every effort is made to provide accurate and complete information, Stockland doe
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