Stockland : 1H16 Results Presentation

1H16 Stockland Results Presentation Main

1H16 Stockland Results Presentation

Delivering sustainable growth

Agenda

Topic Speaker Page

Group Update	Mark Steinert - Managing Director and CEO	03
Group Finance	Tiernan O'Rourke - CFO	06
Commercial Property	John Schroder - Group Executive and CEO, Commercial Property	12
Residential	Andrew Whitson - Group Executive and CEO, Residential	18
Retirement Living	Stephen Bull - Group Executive and CEO, Retirement Living	23
Summary and Outlook	Mark Steinert - Managing Director and CEO	26

Stockland 1H16 Results Presentation 2

Strategy delivering strong results

1H16	1H15	Change
Statutory Profit	$696m	$462m	50.6%
Statutory Earnings per security	29.4 cents	19.8 cents	48.9%
Funds from Operations (FFO)1	$342m	$307m	11.3%
FFO per Security	14.5 cents	13.1 cents	9.9%
Underlying Profit2	$313m	$290m	8.1%
Underlying Earnings per security	13.2 cents	12.4 cents	6.7%
Distribution per security	12.2 cents	12.0 cents	1.6%
Net Tangible Assets per security	$3.87	$3.60	7.5%
Gearing (D/TTA)	23.1%	22.1%
Return on Equity3	10.3%	9.6%

• All businesses contributing to growth, reflecting successful

  delivery of our strategy and supportive market conditions

• FFO per security of 14.5c, up 9.9%

• Underlying Earnings per security of 13.2c, 6.7% growth

• Distribution increased to 12.2c supporting the target full year distribution of 24.5c

  
  

• Maintained balance sheet strength

• Increase in NTA per security of 7.5%

1. Funds from Operations (FFO) is determined with reference to the PCA guidelines. FFO is calculated by adding back tenant incentive amortisation and non cash income tax expense/benefit to underlying profit and deducting straight line rent from underlying profit

2. Underlying Profit is a non-IFRS measure that is determined to present, in the opinion of the Directors and Management, the ongoing operating activities of Stockland in a way that appropriately

   reflects its underlying performance. Underlying Profit is the basis on which distributions are determined. Refer to Interim Financial Report for the complete definition

3. Return on Equity is a measure that accumulates individual business Return on Assets and incorporates the cash interest paid and average drawn debt for the 12 month period. 1H15 comparative number of 9.6% refers to the twelve month period from Jan-Dec 2014. Excludes workout and other.

Stockland 1H16 Results Presentation 3

1H16 Achievements

Grow Asset Returns and Customer Base

Commercial Property Residential Communities Retirement Living

VALUATION UPLIFT

4.5% owth OVER

Record

contracts

18%

9.2%

Increase in

operating profit

$433m

Gr

in comparable FFO

4,100

on hand

core ROA2

Including $127m from

recent developments

Now over

80%

of residential capital employed in projects actively selling

Strong retail sales growth of 5.5%1

Over

Record reservations

$651m

retail development

underway

300 on hand

$1b completed

in last three years, and future pipeline of $1b

Broadening customer reach

Seven medium density projects launched across four states

Retire

Your Way

Launch of our unique selling proposition

1. MAT

2. Core excludes impaired projects

Stockland 1H16 Results Presentation 4