STOCKLAND FY19 Results
21 August 2019
WILLOWDALE, SYDNEY
Group update
Mark Steinert
Managing Director & CEO
Financial results
Tiernan O'Rourke
CFO
Commercial Property
Louise Mason
Group Executive & CEO, Commercial Property
Communities
Andrew Whitson
Group Executive & CEO, Communities
Summary and outlook
Mark Steinert
Managing Director & CEO
Figures are rounded to nearest million, unless otherwise stated. Percentages are calculated based on the figures rounded to one decimal place throughout this presentation.
Group update
Mark Steinert
BRIGHTWATER, QLD
Focus on sustainable returns
FFO in line with forecast - reflects residential, workplace & logistics growth
Funds from operations1 (FFO) | FFO per security1 | Adjusted FFO (AFFO) per security1 | Distribution per security (DPS) |
$897m | 37.4 cents | 32.5 cents | 27.6 cents |
+4.0% | +5.1% | +4.2% | +4.2% payout ratio 74% |
Distribution |
Statutory profit | Return on equity2 | Net tangible assets (NTA) | Gearing |
per security | |||
$311m | 11.9% | $4.04 | 26.7% |
(69.6)% | +70bp | (3.3)% | Within target range |
20-30% |
- Funds from operations (FFO) and Adjusted Funds From Operations (AFFO) are determined with reference to the PCA guidelines.
- Return on equity accumulates individual business return on assets and adjusts for cash interest paid and average drawn debt for the 12 month period. Excludes Residential Communities workout projects.
4 Stockland FY19 Results Presentation
Group update
Group update
Executing on our strategic priorities
Improving portfolio quality
- Transacted $505m1 non-core Retail Town Centre divestments before the targeted time frame to complete $400m retail divestment program
- Exchanged contracts to acquire remaining 50% interest in Stockland Piccadilly, Sydney for $347m and divest our 50% interest in 135 King Street (incl. Glasshouse), Sydney for $340m2
- Improved retail portfolio - comparable specialty sales per sqm up 2.5% (MLA)
- Invested in key capabilities to deliver strategic outcomes and curate customer experience in Commercial Property
Driving sustainable and growing returns
- Demonstrated strength and resilience of residential business with operating profit growth up 8.0% and margin increasing to 19.9%
- Settled 5,878 residential lots in line with our revised guidance, 3,869 residential contracts on hand
- Increased residential market share from 12% to 15%
- Divested $60m non-core retirement living villages
- Achieved strong leasing and rental growth in Workplace
- Delivered solid Logistics rental growth and successful developments
Increasing Workplace &
Logistics weighting
- Increased weighting by 4% to 23%
- Completed $99m Logistics developments with risk adjusted IRRs over 10%3 and FFO yields above 7.5%
- Secured 294 hectares of strategic logistics sites, Melbourne Business Park development application submitted
- On track to achieve a 25-35% portfolio weighting in the next five years
Sustaining capital strength
- Completed4 a strategic capital partnership at Aura, a $5bn5 masterplanned community development on the Sunshine Coast, at a 30% premium to book value
- Improved borrowing capacity with updated debt covenants
- Reduced unallocated overheads by $5m
- $1.8bn capital transactions1
- Exchanged or settled from 1 July 2018 to 21 August 2019.
- Exchanged on 20 August 2019 and 21 August 2019 respectively.
- Estimated 10 year IRR on completion.
- Post period end, announced on 4 July 2019.
- Estimated end value.
5 Stockland FY19 Results Presentation
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Stockland Corporation Limited published this content on 21 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 August 2019 01:07:05 UTC
