Key financial metrics

Statutory profit

Statutory profit was marginally down on the prior year, primarily due to a number of unrealised fair value items, including the mark to market movement of Stockland’s debt and derivatives as well as the realised gain of $73 million in the prior year from the sale of Stockland’s investment in Australand.

STATUTORY PROFIT ($M)

$m

  • 889
  • 903
  • 527
  • 105
  • 487
Underlying profit

Underlying profit was $660 million, up 8.5% on FY15.

UNDERLYING PROFIT ($M)

$m

  • 660
  • 608
  • 555
  • 495
  • 676
Funds from operations

Funds from operations was $740 million, up 12.5% on FY15.
FFO will replace underlying profit as Stockland’s primary performance measure from FY17, in line with our peers in the Australian Real Estate Investment Trust sector. FFO is considered to be the most meaningful measure of underlying and recurring earnings, as referenced in the Property Council of Australia voluntary disclosure guidelines.

FUNDS FROM OPERATIONS ($M)

$m

  • 740
  • 657
  • 573
  • 472
Underlying earnings per security

Underlying earnings per security (EPS) was 27.8 cents, up 7.3% on FY15.

UNDERLYING EARNINGS PER SECURITY (¢) 

¢

  • 27.8
  • 25.9
  • 24.0
  • 22.4
  • 29.3
FFO per security

FFO per security was 31.1 cents, up 11.1%.

FFO PER SECURITY (¢)

¢

  • 31.1
  • 28.0
  • 24.8
  • 21.3
Distribution per security

The distribution payable for the year ended 30 June 2016 is 24.5 cents per stapled security, up 0.5 cents on FY15 and reflecting a payout ratio of 88% of underlying EPS and 79% of FFO.
From FY17 our distribution policy will be based on FFO and will reflect a payout ratio of 75–85%.

DISTRIBUTION PER SECURITY (¢)

¢

  • 24.5
  • 24.0
  • 24.0
  • 24.0
  • 24.0
Return on equity (ROE)

Return on equity (excluding Residential workout projects) was 11.0%, up 1.1% on FY15.

RETURN ON EQUITY (ROE)

%

  • 11.0
  • 9.9
  • 8.8
  • 7.7
  • 8.2
Net tangible assets per security

Our net tangible assets per security has increased to $3.82, representing our total assets minus liabilities and intangible assets.

NET TANGIBLE ASSETS PER SECURITY ($)

$

  • 3.82
  • 3.68
  • 3.53
  • 3.50
  • 3.68
 

 

 

Key performance outcomes

 

Grow our asset returns and customer base

Commercial Property

Retail
FUNDS FROM OPERATIONS (FFO)

$402m

Comparable FFO 3.7%
NET OPERATING INCOME (NOI)

$371m

Comparable NOI 3.2%
DEVELOPMENT UNDERWAY

$681m

with a $1.0bn pipeline
OCCUPANCY

99.3%

RETAILER SATISFACTION

76%

Logistics and Business Parks
FUNDS FROM OPERATIONS (FFO)

$132m

Comparable FFO 3.7%
NET OPERATING INCOME (NOI)

$119m

Comparable NOI 1.0%
DEVELOPMENT PIPELINE

$467m

OCCUPANCY

94.7%

LEASING ACTIVITY

306,500 sqm

Office
FUNDS FROM OPERATIONS (FFO)

$68m

Comparable FFO 9.9%
NET OPERATING INCOME (NOI)

$53m

Comparable NOI 5.9%
OCCUPANCY

95.4%

LEASING ACTIVITY

17,900 sqm

 

Residential
OPERATING PROFIT

$230m

PROPORTION OF NET FUNDS EMPLOYED IN ACTIVELY SELLING PROJECTS

90%

LOTS SETTLED

6,135

OWNER OCCUPIER DEPOSITS

75%

BROADENING CUSTOMER REACH

74

110

completed home settlements
Retirement Living
OPERATING PROFIT

$57m

SETTLEMENTS

1,013

HOMES UNDER DEVELOPMENT

400

OCCUPANCY

94.9%

VILLAGE RESIDENT SATISFACTION

90%

 

Capital strength

Operational excellence

S&P RATING

$A- / stable

GEARING

23.8%

WEIGHTED AVERAGE DEBT MATURITY (PRO FORMA)

5.9 YEARS

OPERATING CASH FLOWS

$787m

up from $401m
RETURN ON EQUITY (ROE)

11.0%, up 1.1%

WORLD DOW JONES SUSTAINABILITY INDEX

2015-16 Global Real Estate Industry Leader

WORKPLACE GENDER EQUALITY AGENCY CITATION

Employer of Choice for Women

CORE SYSTEMS PROGRAM PROGRESS

SAP and Salesforce deployment

MORE FLEXIBLE AND SCALABLE SUPPLER

Embedded Stockland Support Centre





Shape thriving communities
RESIDENTIAL COMMUNITY LIVEABILITY

84%

RETIREMENT LIVING RESIDENT SATSIFACTION

90%

NEW SOCIAL INFRASTRUCTURE

4 inclusive playspaces,
4 social enterprise cafes

STOCKLAND COMMUNITY GRANTS PROGRAM

300+ local community organisations

COMMUNITY CONTRIBUTION

$4.05m invested

Optimise and innovate
GREEN STAR - PERFORMANCE

22 centres

WASTE DIVERSION FROM LANDFILL

96%

39%

of Retail waste diverted
ELECTRICITY INTENSITY REDUCTIONS IN RETAIL

30% reduction since FY06

SOLAR AIR CONDITIONING TRIALS

Pioneering solar thermal technology

BIODIVERSITY SAVINGS

Around 1,750 hectares

Enrich our value chain
EMPLOYEE ENGAGEMENT SCORE

83%

EMPLOYEE FLEXIBLE WORK OPTIONS

61%

Employees now work flexibly
PROCUREMENT AND SUPPLY CHAIN EXCELLENCE

Award winner

ENABLING ENDURING EMPLOYMENT

Launch of Connectivity Centre

 

Enquire