Our strategy

Stockland Corporate Reporting 2016

The primary objective of our Group business strategy is to deliver earnings per security growth and total risk-adjusted securityholder returns above the Australian Real Estate Investment Trust index average, by creating quality communities and property assets and delivering great customer experiences.

Our Group business strategy has three strategic priorities:

Grow assets returns and our customer base

  • driving returns in our core businesses

Capital strength

  • actively managing our balance sheet to maintain diverse funding sources and an efficient cost of capital

Operational excellence

  • improving the way we operate across the Group to drive efficiencies and effectiveness

Our integrated sustainability strategy

Our sustainability strategy integrates with our business strategy and priorities, providing a better way to deliver shared value for all stakeholders. We have three core sustainability priorities: Shape Thriving Communities, Optimise and Innovate, and Enrich Our Value Chain.

Each sustainability priority is pursued through action in several focus areas. We explore our sustainability priorities and focus areas throughout this review.

Sustainability

Our Group business strategy has three strategic priorities. 

Click on the tiles below to find out more:

     
   
Grow Asset Returns and Our Customer Base
   Capital Strength
  Operational Excellence

Our sustainability strategy integrates with our business strategy and priorities, providing a better way to deliver shared value for all stakeholders. 

We have three core sustainability priorities. Click on the tiles below to find our more:

 Stockland Corporate Reporting 2016    Stockland Corporate Reporting 2016
   Stockland Corporate Reporting 2016
A better way to shape thriving communities 
  A better way to optimise and innovate   A better way to enrich our value chain

Responding to our challenges and opportunities

Stockland adopts a rigorous approach to understanding and proactively managing the risks faced in its business. We recognise that making business decisions that involve calculated risks, and managing these risks within sensible tolerances, is fundamental to creating long-term value for securityholders and meeting commitments to our employees, tenants, customers, business partners, consultants and the communities in which we do business. Various risks could impact our business, and the nature and potential impact of these risks change over time. These include, but are not limited to those listed below.

Short term

Continue to:

  • maintain a diversified business model at scale in each sector
  • focus on retaining a strong balance sheet with appropriate gearing
  • use diverse funding sources
  • concentrate on efficiency and cost management
  • maintain a prudent approach to provisioning
  • replenish our land and asset pipeline
  • maintain discipline and agility in our investment decision making
  • use a rigorous whole of business approach informed by detailed research to drive our capital allocation process

Continue to:

  • use our proprietary Liveability Index research to understand priorities of residents in our communities and drive property management and development decisions
  • focus on stakeholder engagement plans for all projects that minimise obstacles to infrastructure and amenity delivery and provide appropriate communication with all stakeholders about these matters
  • improve our project delivery through supply chain management 

Stockland’s Residential business is influenced by the dynamics of the Australian residential market. Housing affordability remains of key concern for Australians as the price of housing and rental properties continues to increase.

We will continue to:

  • seek opportunities to provide market leading sustainable communities and a broader mix of value for money housing options including house and land packages, completed housing, medium density and apartments
  • balance the demand from home owners and investors so that our residential communities remain attractive to future buyers
  • engage with government to seek effective solutions on land supply issues 

As part of our continued investment in the efficiency of our operations, we have made significant progress on improving the Group’s systems capabilities including the commitment to implement SAP and Salesforce as core systems. With deployment to take place during the next two years, we will continue to maintain two-way engagement with employees across the business to enable a smooth transition

Continue to:

  • engage with industry and government on policy areas including taxation and planning reform
  • develop in areas where governments support growth
  • focus on good practice to remain well positioned in the market


Longer term

Continue to:

  • train our employees and increase their risk awareness
  • undertake regular scenario testing
  • engage with peers and across industry
  • invest in asset upgrades 

Stockland’s long-term growth is dependent on our ability to access capital at the appropriate time and cost even as capital markets fluctuate in response to domestic and global economic shifts. So that we are able to continue to access sufficient capital to fund growth, we will continue to:

  • focus on retaining a strong balance sheet at appropriate levels of gearing
  • maintain diverse funding sources
  • maintain our prudent capital management policies 

Continue to:

  • foster a culture of innovation where we remain flexible, and identify and take advantage of opportunities to leverage movements in stakeholder preferences
  • evolve our market leading product innovation and deepen our customer insights using our proprietary Liveability Index research and platforms such as Stockland Exchange (our online research community) and Quantium (which provides de-identified customer transactional data to inform how we view markets and opportunities)
  • focus on creating sustainable and liveable communities and assets
  • enhance our design excellence, providing greater functionality and value for money

Continue to:

  • identify, develop and integrate technical enhancements across our business, including online residential and retirement living engagement opportunities
  • support Stockland retail centres as thriving community hubs by delivering quality services and community spaces that are e-enabled
  • promote employee innovation and collaboration through Ideas@Stockland to further enable us to take advantage of new opportunities

ComputerRoom B   More information on Stockland’s risk management policy is available at stockland.com.au/about-stockland/corporate-governance.

  

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