1H08 Results Presentation

Transcription

1 1H08 Results Presentation 6 February

2 Agenda Review & Commentary 1H08 Financial Results Capital Management Business Unit Commentary Growth Strategy Summary & Outlook Optus HQ, Macquarie Park, NSW -2-1H08 Results Presentation

3 Review & Commentary Unprecedented volatility in debt and equity markets Key market themes are emerging: Risk was mispriced Financial engineering with excessive debt has had its day Businesses with strong fundamental property skills and solid balance sheets will prevail Tooronga, Glen Iris, VIC Artist s impression Our business model and skill set are well placed to perform in these conditions We are in a very strong position -3-1H08 Results Presentation

4 Group Results in Summary Quality earnings growth 1H08 1H07 Quality Earnings Growth Transparent Reporting Operating Profit* $324.6m 10.7% $293.1m Earnings per security* 22.4 cents 4.2% 21.5 cents Distributions per security 22.6 cents 5.1% 21.5 cents NTA per security $ % ** Strong Balance Sheet Gearing 28.5% -4-1H08 Results Presentation * Operating profit and EPS before certain significant items ** Increase since June 2007

5 Business Unit Financial Results RETAIL Retail Operating Profit: Recurring (rent) $127m Trading Profits $1.2m Comparable rental income growth 5.5% Integrated Platform Revaluation Gain:* $174m Income Growth 56% Yield Change 44% Portfolio Summary Total Portfolio (45 centres) $4.6bn Total MAT** $5.0bn MAT Growth*** 6.9% Specialty Occupancy Costs 12.8% Vacancy (11 shops) 0.1% Average cap rate 6.2% -5-1H08 Results Presentation * Excluding NZ & Karrinyup assets held for sale at 31 December 2007 ** Moving Annual Turnover, excl NZ *** Comparable

6 Business Unit Financial Results Operating Profit: OFFICE & INDUSTRIAL Retail Recurring (rent) Trading Profits $146.2m $11.5m Integrated Platform Office Industrial Comparable rental income growth 4.9% Revaluation Gain: $239m Income Growth 70% Yield Change 30% Portfolio Summary Office Total Portfolio (39 properties) $3.3bn Average Cap Rate 6.4% Vacancy 1.0% Industrial Total Portfolio (29 properties) $1.4bn Average Cap Rate 7.3% Vacancy 2.9% -6-1H08 Results Presentation

7 Business Unit Financial Results RESIDENTIAL COMMUNITIES Revenue $497m Retail Operating Profit 7% $124.6m Net Margin % 25% Integrated Platform Residential Communities Office Industrial Portfolio Summary Gross Assets $2,179m No of Projects 65 Lots Controlled 67,000 End Value of Projects $15.7bn -7-1H08 Results Presentation

8 Business Unit Financial Results Divisional Key Financial Results APARTMENTS Revenue $129m Retail Operating Profit $13.3m Net Margin % 10% Integrated Platform Office Portfolio Summary Gross Assets $670m No of Projects 13 Apartments Industrial Units Controlled 2,300 End Value of Projects $3.2bn Residential Communities -8-1H08 Results Presentation

9 Business Unit Financial Results RETIREMENT LIVING Operating Profit $13.6m Retail New units sold* 125 Turnover of existing units 8% Retirement Living Integrated Platform Office Portfolio Summary Existing units (20 villages) 3,400 Occupancy 99% Apartments Industrial Development pipeline (22 villages) 3,800 Residential Communities -9-1H08 Results Presentation * Leased for accounting purposes

10 Business Unit Financial Results Stockland Halladale Retail STOCKLAND HALLADALE Operating Profit $6.5m Gross Assets* Investments $94m Inventory cost $358m Development Pipeline $1.0bn Retirement Living Integrated Platform Office Australia CAPITAL PARTNERS/JV s Over $900m of wholesale and retail assets under management Apartments Industrial 6 funds all in line with or above PDS forecasts Residential Communities Moorebank JV - $120m of new capital UK / Europe Over $2.5bn under management** Rynda performing well -10-1H08 Results Presentation * On balance sheet ** Including Rynda funds

11 Capital Management Hugh Thorburn Finance Director No material impact from credit crunch Solid balance sheet Debt maturity profile Capacity Business as usual No change to policies Allisee, Gold Coast, QLD -11-1H08 Results Presentation

12 Capital Management 1H08 S&P Rating Weighted Average Debt Maturity Debt Fixed / Hedged Weighted Average Cost of Debt* Gearing (debt/total tangible assets) Interest Cover A-/Stable 6.2 years 61% 6.6% 28.5% 3.2: $billion FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY27 FY36 Bank Facilities Domestic MTNs EMTNs USPPs -12-1H08 Results Presentation * Including all costs, fees and margins

13 Retail John Schroder - CEO Quality portfolio operating upside Disposal of non core assets Development pipeline progressed Mixed use focus capitalises on Stockland s diversified model Stockland Baulkham Hills, NSW -13-1H08 Results Presentation

14 Market Outlook - Retail Retail outlook positive due to: Steady consumer demand Strong labour market and growth in real incomes Sales growth is solid, but may moderate if interest rates rise Real Wage Growth by State (% yoy) Retail Turnover (% yoy, sa.) 4 3 NSW Victoria Queensland WA 15 NSW Victoria Queensland WA Sep 05 M ar 06 Sep 06 M ar 07 Sep 07-5 Sep 05 M ar 06 Sep 06 M ar 07 Sep H08 Results Presentation Source: ABS; Stockland *Weighted 3-Month Average

15 Strategy for Growth - Operations Strong rental growth supported by healthy sales growth Further upside from low occupancy costs 35% 30% 25% 20% 15% 13% % Inc on Renewals % Inc on New Leases 296 Leases 19% 176 Leases 20% 21% 29% 267 Leases 19% 236 Leases 33% 18% $/m 2 10,000 9,000 8,000 7,000 High Specialty Sales $8,600 $7,500 Upside from low Occupancy Costs 13% 14%+ 15% 13% 11% 9% 10% 6,000 7% 5% 5,000 5% 0% Dec-04 1H05 Dec-05 1H06 Dec-06 1H07 Dec-07 1H08 4,000 SGP JHD Dec 07 Actual Potential 0% -15-1H08 Results Presentation

16 Strategy for Growth Development Pipeline Completed 3 projects: - Total cost $120m - Average IRR 12.5% - Average project yield 8.3% Increased pipeline 4 DA s approved, 7 DA s submitted Project Status* No of Projects Estimated Total Cost (A$bn) Forecast Yield on Cost Current Average Cap Rate 10 year Forecast IRR Under Construction % 6.5% 13.3% DA Approved % 6.5% 11.4% DA Preparation / Master Planning % 6.0% 13.6% TOTAL % 6.2% 13.3% -16-1H08 Results Presentation * Project details and timing see Annexure pgs 47 & 48

17 Case Study Sub Regional to Regional Conversion Stockland Shellharbour GLA from 40,000m 2 to 70,000m 2 Estimated total cost $220m Estimated value on completion circa $700m DA submitted in October 2007 Estimated completion 2011 Est. yield on cost 7.8% Key major tenants:- Department Store Kmart Target Woolworths Coles Harris Scarfe Over 100 new specialties Artist s impression -17-1H08 Results Presentation

18 Outlook - Retail Market outlook favourable High productivity driving strong income growth Further upside from development pipeline Experienced management team to deliver strategy Stockland Baldivis, WA -18-1H08 Results Presentation

19 Office & Industrial Steve Mann - CEO Very favourable office market conditions Strategic focus on resource rich states is paying off Well positioned to deliver rental growth Strategic acquisitions 9 Castlereagh Street, Sydney -19-1H08 Results Presentation

20 Office Market Outlook Office market vacancies at record lows Rental growth in Perth & Brisbane likely to moderate in 2009 Sydney poised for strong rental growth Credit crunch could dampen supply $1,000 CBD Market Rental Growth Canberra, 6% SGP Portfolio Adelaide, 3% Prime Gross Effective Rent $/m2 $800 $600 $400 $200 $0 Dec-06 Dec-07 Dec-08 (Forecast) Sydney Melbourne Brisbane Perth Canberra Adelaide Perth, 17% Brisbane, 16% Melbourne, 6% Sydney, 33% Sydney North Shore, 19% -20-1H08 Results Presentation Source: Stockland, CBRE Research

21 Office Market Outlook Growth Drivers Strong 1H08 performance driven by Brisbane and Perth Office portfolio average 10% under rented Reversions available on 55% of the portfolio over the next 2.5 years Stockland Lease Expiries + Market Rent Reviews % of portfolio 35% 30% 25% 20% 15% 10% 5% NSW QLD VIC/SA WA ACT 1H08 0% 2H08 FY09 FY H08 Results Presentation Source: Stockland, Jones Lang LaSalle Research

22 Case Study Intermodal Growth Strategy Defence Distribution Centre, Moorebank $301m purchase price Existing Estate Land Area: 83Ha low site coverage 40% sold down to strategic equity partners P&O and Queensland Rail Intermodal Development Vision Direct freight rail link to Port Botany & the main interstate line Memorandum of Understanding with P&O and Qld Rail to create a national multiuser intermodal network M5 Motorway East Hills Railway 6,000 5,000 Total Container Throughput Five Major Ports 000' TEU's 4,000 3,000 2,000 1, H08 Results Presentation

23 Strategy for Growth Development Pipeline Development pipeline increased with acquisition and development scope 4 projects commenced $140m Project Status* No of Projects Estimated Total Cost (A$bn) Forecast Yield on Cost Current Average Cap Rate 10 Year Forecast IRR Under Construction % 6.5% 11.7% DA Approved % 6.7% 11.7% DA Preparation / Master Planning % 6.2% 11.3% TOTAL % 6.4% 11.5% O&I Projects trading business gaining momentum total end value $150m -23-1H08 Results Presentation * Project details and timing see Annexure pgs 59 & 60

24 Outlook Office & Industrial Office markets are in very good shape Strong growth from rent reversions Further upside from development pipeline Strategic position in the emerging intermodal market Durack Centre proposed development Artist s impression -24-1H08 Results Presentation

25 Residential Denis Hickey - CEO Residential markets in good shape No oversupply Steady demand Solid operating performance High level of contracts on hand The Islands, South Beach, WA Artist s impression -25-1H08 Results Presentation

26 Market Overview Positives: Residential markets are still performing well GDP Growth Low Unemployment 20,000 Monthly Dwelling Approvals Houses and Units, private, monthly % 1.7 Population Growth 15, Supply remains constrained 10, Challenges: Issues that hover over the market Affordability concerns Cost and availability of consumer debt 5,000 0 M oving 12-month ave 10-year ave Popn. growth (RHS) Nov 92 Nov 97 Nov 02 Nov Negative commentary could dampen consumer confidence Summary: The market remains very sound -26-1H08 Results Presentation Source: ABS

27 Market Outlook Residential Sector Each market has its own characteristics Last 6 months Next 12 months NSW VIC WA QLD Trading conditions remained soft Demand strengthened Volumes slowed and price growth moderated Strong population increase continued to strengthen demand Tight supply and population growth could trigger improvement in late 2008 Sound market due to favourable conditions (affordability and population growth) Further easing in volumes. Prices to stabilise Demand robust due to population growth and supply constraints -27-1H08 Results Presentation

28 Residential Strong Business Model Scale and reach as Australia s largest residential developer Diversity underpins business growth Geography Product Proven track record of managing through market cycles Gross Assets ($3bn) Operating Profit $m $31m Retirement Living Apartments Residential Communities $41m $84m $97m $110m $113m $152m Residential Communities 69% Apartments 21% Re tire m ent Living 10% H02* 1H03* 1H04* 1H05* 1H06* 1H07* 1H08* -28-1H08 Results Presentation * 1H02-1H04 is AGAAP, 1H05-1H08 is AIFRS

29 Strategy for Growth Residential Communities Growth through wider product choice Continue to unlock future pipeline 8 projects to launch in next 12 months Broaden distribution channels Strategic focus on affordable solutions Essence, VIC -29-1H08 Results Presentation

30 Strategy for Growth - Apartments Deliver pipeline of projects under construction and new projects Projects ** No. Est. Value ($bn) Under construction 6 $0.9bn % Sold* 59% Yet to commence 7 $1.9bn N/A Continue to generate mixed use opportunities New acquisition opportunities Unlock from existing inventory The Hyde, Sydney, NSW Artist s impression -30-1H08 Results Presentation * Units released to market ** Project details and timing see Annexures Pg 67

31 Strategy for Growth Retirement Living Drive Platform price growth for in existing Growth villages Retirement Living Roll out development pipeline: 22 projects on hand 3,800 units $1.6bn end value Continue to assess new acquisitions as the industry consolidates Cameron Close, VIC -31-1H08 Results Presentation

32 Residential Outlook Market conditions generally positive Strong pipeline from apartments and retirement living will broaden our market reach Solid position with contracts on hand Contracts on hand - 31 December Apartments Residential Communities ($m) H08 Results Presentation

33 Stockland Halladale Integration completed successfully Strong team and platform Market conditions very tough, expected to bottom in mid-late 2008 Downside Pre-sales of several of our projects have been deferred We will carry them on balance sheet until completion They remain profitable Tudor Street, London Artist s impression Upside Buying opportunities from forced sales could accelerate growth -33-1H08 Results Presentation

34 Stockland Halladale Strategy for Growth Sound strategy of allocating 5% of SGP total value to initial market entry Strategic target - 10% by 2010 Upscale existing business Larger scale projects More profit share potential Broaden JV s / Capital partnerships Expand operating platform Shaftesbury House, Glasgow Artist s impression Develop residential capability Grow mixed use capability -34-1H08 Results Presentation

35 Case Study Mixed Use Redevelopment St Andrew Square, Edinburgh Premium location Planning consent Grade A office accommodation 8,500m 2 Prime retail space 6,000m 2 6 penthouse apartments Acquisition price 21.25m Est. total value - 100m Estimated completion Dec 2010 Artist s impression -35-1H08 Results Presentation

36 Stockland s Strategy Further leverage and extend existing businesses Capital partnering New business initiatives that are a logical fit High performing people & culture -36-1H08 Results Presentation

37 Summary & Outlook Excellent result in 1H08 Strong property and capital management skills Solid financial position Our strategy is sound and well proven On track for 5% EPS growth in FY08 The Village, Balgowlah, NSW Artist s impression -37-1H08 Results Presentation

38 Annexures Annexures -38-1H08 Results Presentation

39 Consistent Delivery of Strategy EBIT 1H08 Asset 31 December 2007 Actual Strategic Weighting Actual Strategic Weighting Recurring Income Retirement Living Retail Office & Industrial Stockland Halladale 3% 29% 33% 3% 2% 35% 37% 0% Subtotal 68% 60-80% 74% 70-80% Trading Property Development Stockland Halladale Other Subtotal 31% 0% 1% 32% 20-40% 23% 3% 0% 26% 20-30% -39-1H08 Results Presentation

40 Summary of Results 1H08 $m Operating Profit Net gain from fair value adjustment of investment properties Retirement living resident obligation fair value movement (24.1) Net gain from sale of other investments 10.9 Net gain from financial instruments treated as fair value hedges 1.9 Net realised gain on other financial instruments 1.9 Net unrealised loss on financial instruments (131.1) Net realised foreign exchange gain 0.1 Net unrealised foreign exchange loss (1.3) Net gain on sale of investment properties and plant and equipment 0.4 Reported Statutory Net Profit Net transfers to reserves Amount available for distribution Total Dividend/distribution Net increase in corporation retained profits H08 Results Presentation

41 Total P&L Effect of Interest 1H08 Profit and Loss Effect 1H08 $m Interest paid Interest capitalised: Development assets (79.5) Investment assets (6.0) (85.5) Finance costs 54.9 Capitalised interest expensed via COS 23.7 Total P&L effect H08 Results Presentation

42 FY22 FY27 FY36 Capital Management 4.5 DEBT & HEDGING PROFILE H08 Results Presentation - Hedging $billion HY08 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Bank Facilities Domestic MTNs EMTNs USPPs

43 Financial Instruments: Movement in Mark-to-Market Ineffective Hedges* 1H08 $m 1H07 $m FY07 $m Profit & Loss (131) (0) 21 Effective Hedges* Balance Sheet 79 (30) (194) Net Impact of movement in Financial Instruments (52) (30) (173) * As defined by AASB139-Financial Instruments: Recognition & Measurement -43-1H08 Results Presentation

44 Retail Portfolio Sales Total MAT ($m) % MAT Growth % Comparable Growth Supermarkets 1, DDS Specialties 1, Mini Majors/Cinemas/Other TOTAL 5, H08 Results Presentation Year to 31 December 2007

45 Retail Sales - Portfolio Summary Property Total MAT ($m) % MAT Growth Specialities MAT ($/m 2 ) % Occupancy Cost Baldivis* 20.1 NA NA NA Batemans Bay , Bathurst , Baulkham Hills* 82.9 NA NA NA Bay Village , Bridge Plaza , Bull Creek , Burleigh Central 3.7 NA NA NA Burleigh Heads , Cairns , Caloundra , Cleveland , Corrimal , Forster* NA NA NA Gladstone , Glendale , Glenrose* 59.9 NA NA NA Green Hills , Jesmond , Jimboomba* 23.3 NA NA NA -45-1H08 Results Presentation * Under development during the period

46 Retail Sales - Portfolio Summary (continued) Property Total MAT ($m) % MAT Growth Specialities MAT ($/m 2 ) % Occupancy Cost Karrinyup , Lilydale 52.1 NA NA NA Merrylands* NA NA NA Nowra , Parabanks , Piccadilly 18.2 NA NA NA Riverton , Rockhampton , Shellharbour , Shellharbour Retail Park 79.5 NA NA NA Traralgon , The Pines , Townsville , Vincentia 33.4 NA NA NA Wallsend 69.1 NA NA NA Wendouree* NA NA NA Wetherill Park , King St 15.6 (0.3) NA NA TOTAL 5, , H08 Results Presentation * Under development during the period

47 Retail - Development Pipeline UNDER CONSTRUCTION Forecast Cost ($m) Forecast Yield (%) FY08 FY09 FY10 FY11 FY12 Rockhampton Merrylands (Stage 1 & 2) Balgowlah Cammeray Total Under Construction Projects DA APPROVED Forecast Cost ($m) Forecast Yield (%) FY08 FY09 FY10 FY11 FY12 Nowra Riverton Total DA Approved Projects H08 Results Presentation

48 Retail - Development Pipeline (continued) DA PREPARATION / MASTER PLANNING Forecast Cost ($m) Forecast Yield (%) FY08 FY09 FY10 FY11 FY12 Caloundra Gladstone Glenrose Green Hills Jimboomba (Stage 1) Kawana (Stage 1) Merrylands (Stage 3 & 4) Shellharbour Townsville (Stage 1) Townsville Waterway Gardens (Stage 1) Vincentia (Stage 1) Tooronga Glenmore Park Total DA Preparation/ Master Planning Projects 1, GRAND TOTAL 2, H08 Results Presentation

49 Retail - Revaluations Property Valuation ($m) Previous BV (adjusted for Capex) ($m) % Increment Cap Rate % Stockland Wetherill Park Stockland Shellharbour Stockland Rockhampton Stockland Baulkham Hills Stockland Glendale Stockland Wendouree Stockland Forster Stockland Gladstone Stockland Cleveland Stockland Traralgon Stockland Corrimal King Street, Sydney (Retail only 50%) Stockland Glenrose (49.9) 6.00 Bridge Plaza (inc 8 Nth St) Burleigh Central Auckland Creek NA TOTAL 1, , H08 Results Presentation

50 Retail Revaluations (continued) Property Valuation ($m) Previous BV (adjusted for Capex) ($m) % Increment Cap Rate % Botany Town Centre (50%) Lynnmall Shopping Centre (50%) Manukau Supa Centa (50%) Karrinyup TOTAL H08 Results Presentation

51 Office Market Commentary SGP Portfolio * Market Vacancy Dec- 07 ** 2007 Net Absorption m 2 Supply Under Construction m² % Pre-Com Increase in Stock (%) Sydney CBD 33% 6.1% 132, , Nth Sydney & St Leonards 9% 10.5% -4,144 36, Macquarie Park 10% 3.3% 103, , Melbourne CBD 6% 4.2% 186, , Brisbane CBD 16%* 0.6% 3, , Adelaide CBD 3% 5.2% 76,744 55, Perth CBD 17%* 0.3% 21, , Canberra 6% 4.0% 213, , H08 Results Presentation * SGP Portfolio includes suburban properties in those cities, excludes properties held for sale, includes acquired properties exchanged ** Arrows represent change in vacancy over the past 6 months Source: Jones Lang LaSalle Research, December Quarter 2007

52 Industrial Market Commentary SGP Portfolio Under Construction m² Pre-Commitment Land Values * Rental Growth * Sydney 55% 874,936 70% Melbourne 23% 625,052 39% Brisbane 17% 655,952 58% Adelaide 5% 59,142 81% Perth 0% 259,100 85% -52-1H08 Results Presentation * Arrows represent change in vacancy over the past 12 months Source: Jones Lang LaSalle Research, December Quarter 2007

53 Office and Industrial - Revaluations Property Office Valuation ($m) Previous BV (adjusted for Capex) ($m) % Increment Cap Rate % 135 King St, Sydney (50%), NSW Sussex Street, Sydney, NSW Pacific Hwy, Nth Sydney, NSW Pacific Highway, NSW Macquarie Technology Centre, Macquarie Park, NSW Giffnock Avenue, Macquarie Park, NSW Byfield St, Nth Ryde, NSW Waterfront Place, Brisbane (50%), QLD Charlotte St, Brisbane, QLD Ann St, Brisbane, QLD High St, Toowong, QLD BankWest, Perth (50%), WA Exchange Plaza, Perth (50%), WA St Georges Terrace, Perth, WA Durack Centre, 263 Adelaide Tce, Perth, WA Havelock St, West Perth, WA TOTAL Office 1, , H08 Results Presentation

54 Office and Industrial Revaluations (continued) Property Industrial Valuation ($m) Previous BV (adjusted for Capex) ($m) % Increment Cap Rate % 42 Birnie Avenue, Lidcombe, NSW A Ferndell Street, Granville, NSW Ferndell Street, Granville, NSW M4 Greystanes, NSW Orielton, Smeaton Grange, NSW Lenore Lane, Erskine Park, NSW (4.3) Bourke Street, Alexandria, NSW Boundary Rd, Richlands, QLD Boundary Rd, Richlands, QLD Boundary Rd, Richlands, QLD Fulcrum St, Richlands, QLD Brooklyn Estate, VIC Toll Drive, Altona, VIC Toll Drive, Altona, VIC Toll Drive, Altona, VIC (4.0) Somerton Park Drive, Somerton, VIC (2.5) H08 Results Presentation

55 Office and Industrial Revaluations (continued) Property Industrial Valuation ($m) Previous BV (adjusted for Capex) ($m) % Increment Cap Rate % Fillo Dr & 10 Stubb St, Somerton, VIC (3.3) Fillo Dr, Somerton, VIC McNaughton Rd, Clayton, VIC Port Adelaide Distribution Park, Adelaide, SA Defence Distribution Centre, Moorebank (60%), NSW (5.6) 7.00 Total - Industrial H08 Results Presentation

56 Lease Expiry Profile Office June 2007 December 2007 Vacant 1% FY08 8% Vacant 1% FY08 11% FY12+ 41% FY09 15% FY12+ 44% FY09 13% FY11 13% FY10 22% FY11 14% FY10 17% WALT: 4.5 Years WALT: 4.2 Years Expiry by NLA -56-1H08 Results Presentation Includes 9 Castlereagh Street

57 Lease Expiry Profile Industrial June 2007 December 2007 Vacant 5% FY08 10% Vacant 3% FY08 10% FY12+ 43% FY09 15% FY12+ 50% FY09 12% FY10 13% FY11 13% FY10 14% FY11 12% WALT: 4.0 Years WALT: 4.0 Years Expiry by NLA -57-1H08 Results Presentation

58 Office & Industrial 1H08 Acquisitions Property Office Acquisition Cost ($m) Initial Yield - Before costs 78 Waterloo Rd, Macquarie Park, NSW % 255 & 267 St Georges Terrace, Perth, WA % Total Office 40.3 Property Industrial Acquisition Cost ($m) Initial Yield - Before costs 1 Amour St, Revesby, NSW % 4 Viola Place, Brisbane Airport, QLD % Defence Distribution Centre, Moorebank (60%), NSW % Total - Industrial H08 Results Presentation

59 Office & Industrial - Development Pipeline UNDER CONSTRUCTION Forecast Cost ($m) Lot 25 & 42 Scanlon Dr, Epping, VIC 16 Forecast Yield (%) Building/ Land Area (m 2 ) ,400 Triniti Business Campus (A + B), NSW , Waterloo Rd, Macquarie Park NSW , Ipswich Rd, Wacol, QLD - Stage ,270 Durack Two, Perth, WA ,200 Total Under Construction Projects 70,704 FY08 FY09 FY10 FY11 FY12+ DA APPROVED Forecast Cost ($m) Forecast Yield (%) Building/ Land Area (m 2 ) Darlington Drive, Yatala, QLD , Ipswich Rd, Wacol, QLD Stages ,905 Port Adelaide, SA ,810 2 Davis Rd - Visy Pet, NSW ,000 Boundary Rd West - Trust Project, QLD ,588 Triniti Business Campus (C), NSW ,364 Edmund Barton Building, ACT ,069 North Lakes - MIBA Trust, QLD ,810 Total DA Approved Projects 230,846 FY08 FY09 FY10 FY11 FY H08 Results Presentation

60 Office & Industrial - Development Pipeline (continued) MASTER PLANNING Forecast Cost ($m) Forecast Yield (%) Building/ Land Area (m 2 ) Yennora Building 8A, NSW ,000 Garden Square, Mt Gravatt, QLD Stg 1& ,000 Waterfront Place - Restaurants, QLD ,100 Hendra East/ West, QLD ,400 Lot 21 Riverside South, NSW ,500 Toowong - Town Centre, QLD ,500 Eagle Street Pier, Brisbane, QLD , Charlotte St, Brisbane, QLD ,300 Total Master Planning 149,300 FY08 FY09 FY10 FY11 FY H08 Results Presentation

61 Residential - Geographic Diversity National TOTAL Lots: 49,500* Queensland NSW & ACT 26% WA 14% QLD 34% Far North Queensland 25% Brisbane 36% Sunshine Coast 22% VIC & SA 26% Gold Coast 17% 31 December H08 Results Presentation * Excluding Retirement Living & Caloundra Downs (20,000+ lots)

62 Residential Product Diversity Rural Retirement 1% Living 5% Family 15% Courtyard 17% Large 3% O&I & Retail 7% Conventional 20% Small Lots 12% Apartments 10% Townhouses 10% -62-1H08 Results Presentation

63 Residential Communities - Lots Sold 70% 60% 50% 40% 30% 20% 10% Average Age of Lots Sold 1H08 0% 1-3 yrs 4-6 yrs 6+ yrs -63-1H08 Results Presentation

64 Residential Communities Projects Launched Projects Launched in 1H08 Eve (Ravenhurst), VIC Sierra (Rossiters Hill), VIC Darcy s Peak, NSW Projects Completed in 1H08 Hidden Grove, VIC Monterey Central, VIC Highcroft, NSW The Sanctuary, WA -64-1H08 Results Presentation

65 Residential Communities Restocking Location State / Region No. Future Lots Acquired Acquisition Date Off Market Deferred Purchase Terms Residential communities Murwillumbah QLD 158 Nov-07 Y N Cranbourne North VIC 312 Nov-07 Y Y Settlers Hill East WA/SA 516 Oct-07 Y N Brookdale West WA/SA 225 Dec-07 Y N Ocean Drive QLD 522 Dec-07 Y N Total 1, H08 Results Presentation

66 Residential Communities Lots Sold 1H08 1H07 No. Lots Sold Avg Price $(000) No. Lots Sold Avg Price $(000) New South Wales Victoria Queensland 1, Western Australia TOTAL 2, , H08 Results Presentation

67 Strategy for Growth - Apartments UNDER CONSTRUCTION* Project Value ($m) Norman Reach, QLD $106m % Sold 2H08 FY09 FY10 FY11 FY12+ 67% South Beach, WA (stage launch) $140m 86% Allisee Stage 2, QLD $123m 35% Prince Henry, NSW (stage launch) $71m 59% Hyde, NSW $229m 53% Village, Balgowlah, NSW $215m N/A DEVELOPMENT PIPELINE* Prince Henry, Little Bay, NSW (Staged Launch FY08-FY10) Elysium, Gordon, NSW Project Value ($m) $295m $110m 2H08 FY09 FY10 FY11 FY12+ Kawana, Entrance Island, QLD $180m Tooronga, Glen Iris, VIC (Staged Launch FY09-FY11) $520m South Beach, Perth, WA $190m Eagle Street Pier, Brisbane, QLD $400m RVIB St Kilda Road, VIC $210m -67-1H08 Results Presentation * Excluding Office & Retail

68 Stockland Corporation Limited ACN Stockland Trust Management Limited ACN th Floor 133 Castlereagh Street SYDNEY NSW 2000 DISCLAIMER OF LIABILITY 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. The information provided in this presentation may not be suitable for your specific situation or needs and should not be relied upon by you in substitution of you obtaining independent advice. Subject to any terms implied by law and which cannot be excluded, Stockland accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice.