Key financial metrics

Statutory profit

Our statutory profit was $1,025 million, down 14.2 per cent, primarily reflecting lower mark to market gains on financial instruments and smaller revaluation gains.

STATUTORY PROFIT ($M)

$m

  • 1,025
  • 1,095
  • 889
  • 903
  • 527
Funds from operations (FFO)

FFO has been determined with reference to the Property Council of Australia's guidelines. It excludes adjustments such as unrealised fair value gains/losses, realised transactions occurring infrequently and those that are outside the course of our core ongoing business activities.

FUNDS FROM OPERATIONS ($M)

$m

  • 863
  • 802
  • 740
  • 657
  • 573
 
Distribution per security

The distribution payable for the full year ended 30 June 2018 is 26.5 cents per ordinary stapled security. Our distribution policy is to pay the higher of 100% of Trust taxable income or 75-85% of FFO.

DISTRIBUTION PER SECURITY (¢)

¢

  • 26.5
  • 25.5
  • 24.5
  • 24.0
  • 24.0
FFO per security

FFO per security was 35.6 cents, up 6.6 per cent on FY17.

FFO PER SECURITY (¢) 

¢

  • 35.6
  • 33.4
  • 31.1
  • 28.0
  • 24.8
 
Net tangible assets (NTA) per security

While some retail town centre assets recorded downward valuations, the overall portfolio was a net $139 million increase, contributing to a 3.5 per cent increase in NTA.

NTA PER SECURITY (¢)

$

  • 4.18
  • 4.04
  • 3.82
  • 3.68
  • 3.53
Adjusted funds from operations (AFFO)

AFFO is an alternative, secondary, non-IRFS measure used to assist in the assessment of the underlying performance of the Group. AFFO is calculated by deducting maintenance capital expenditure and incentive leasing costs from FFO.

AFFO

$

AFFO PER SECURITY (¢)

¢

 

 

 

Strategic focus areas

 

Grow asset returns and our customer base

COMMUNITIES

HouseAndLand ORESIDENTIAL

RetirementLiving G RETIREMENT LIVING

OPERATING PROFIT

$336m ↑ 24.3%

OPERATING PROFIT

$53m   ↓ 16.7%

LOTS SETTLED

6,438

SETTLEMENTS - ESTABLISHED AND DEVELOPED

854

RESIDENT SATISFACTION

93% 

OCCUPANCY

95%

OPERATING PROFIT MARGIN

18.3% 
RESIDENT SATISFACTION

90%

RETURN ON ASSETS, CORE PORTFOLIO

22.0% 

CASH RETURN ON ASSETS

4.6%

 

COMMERCIAL PROPERTY

Retail B RETAIL TOWN CENTRES
LogisticsBusinessParks K  WORKPLACE AND LOGISTICS

FUNDS FROM OPERATIONS (FFO)

$428m ↑ 2.2%

Comparable FFO ↑ 1.3%

LOGISTICS FUNDS FROM OPERATIONS (FFO)

$152m   ↑ 6.2%

Comparable FFO  ↑ 6.0%

OCCUPANCY

99.4%

LOGISTICS OCCUPANCY 

98.7%

RETAILER SATISFACTION

72% - rated Top 2

LOGISTICS TENANT SATISFACTION

90%

WEIGHTED AVERAGE LEASE EXPIRY

6.3 years

LOGISTICS WEIGHTED AVERAGE LEASE EXPIRY

4.1 years

DEVELOPMENT UNDERWAY

~$500m  

LOGISTICS DEVELOPMENT PIPELINE

~$600m 
 

WORKPLACE FUNDS FROM OPERATIONS (FFO)

$54m  ↓ 9.6%

Comparable FFO  ↓ 2.0%

 

WORKPLACE OCCUPANCY

88.3%
 WORKPLACE TENANT SATISFACTION
82%
 WORKPLACE WEIGHTED AVERAGE LEASE EXPIRY 
3.5 years

 

Capital strength

KEY PERFORMANCE OUTCOMES

 

Ratings 

  • Maintained S&P A-/stable credit rating for 17 years
  • Moody's credit rating of A3
 TickBoxChecked CORP

Gearing 

  • 22.2% gearing remains within our target range of 20 - 30% 
 TickBoxChecked CORP

Weighted average debt maturity  

  • 6.2 years
 TickBoxChecked CORP

Weighted average cost of debt  

  • 5.2%
 TickBoxChecked CORP

Return on equity (ROE)  

  • 11.2%
 TickBoxChecked CORP

 

 

Operational excellence

KEY PERFORMANCE OUTCOMES

 

Management restructure

  • $8 million in gross savings per annum from FY20
TickBoxChecked CORP

Employee engagement

  • Improved our employee engagement score to 83% - seven points above the Australian norm
TickBoxChecked CORP

Citation by Workplace Gender Equality Agency (WGEA)

  • Employer of Choice for Women for fourth consecutive year
TickBoxChecked CORP

Global leadership in sustainability

  • Tenth year listed on the World Dow Jones Sustainability Index
  • Global Real Estate Sector Benchmark (GRESB) Global Sector Leader for Diversified - Listed - Retail/Office 
  • CDP A List, only Australian company recognised by CDP for leading global climate performance
TickBoxChecked CORP

 

Sustainability performance

 

Optimise and innovate

KEY PERFORMANCE OUTCOMES

 

Climate change and energy efficiency

  • 5% reduction in carbon intensity of our Commercial Property portfolio (52% reduction since FY06)
  • Increased total investment in solar to $30 million, exceeding 10% return over 10 years
Stockland Sustainability Reporting 2016

Biodiversity

  • Worked to rehabilitate and restore 204 hectares of biodiversity, and will have protected around 2,202 hectares of land upon completion of our current residential developments
Stockland Sustainability Reporting 2016

Water management and quality

  • Reduced water intensity of our Retail Town Centre and Workplace and Business Park assets by 5% and 11% respectively
Stockland Sustainability Reporting 2016

Waste and materials management

  • 89% and 94% waste diversion rates for our Commercial Property developments and Residential developments respectively
Stockland Sustainability Reporting 2016

 

Shape thriving communities

KEY PERFORMANCE OUTCOMES

 

Health and wellbeing

  • Residential community national liveability score of 78%
  • Resident satisfaction across our Residential communities is 93%
  • Residential community resident personal wellbeing index (PWI) score of 77%, above the national average
  • Retirement Living resident PWI score of 82%, well above the national average
TickBoxChecked CORP

Community connection

  • $7.7 million invested in community initiatives across Australia
  • 308 local organisations awarded over $560,000 in total as grants to our communities
  • Six new inclusive playspaces developed with the Touched by Olivia Foundation
TickBoxChecked CORP

Education and prosperity

  • Final year of Green Hills Connectivity Centre project placing over 180 people in local employment
  • Determined that our Retirement Living portfolio generates $1.66 in social value for every $1 invested by our business
  • Over 2,200 people attended Jamie's Ministry of Food classes at Stockland assets
  • 479 students benefited from Stockland mentoring through the Australian Business and Community Network 
  • Over 11,000 primary school students engaged in STEAM programming through our partnership with the National Theatre for Children
TickBoxChecked CORP

 

Enrich our value chain

KEY PERFORMANCE OUTCOMES

 

Employee engagement, development, diversity, and inclusion

  • 83% employee engagement score, 7% higher than Australian National Norm
  • 80% of employees have flexible work arrangements
  • 45.1% women in management, 39.7% in senior management
TickBoxChecked CORP
Health and safety
  • Corporate Lost Time Injury Frequency Rate (LTIFR) of 1.6, our lowest rate in seven years
 TickBoxChecked CORP

Supply chain management

  • Delivered our Sights on Safety program focused on reducing injuries at worksites
  • Expanded Mates In Construction training to enhance awareness of mental health at our worksites
TickBoxChecked CORP

Stakeholder engagement

  • Substantially progressed or completed 49 actions in our Reconciliation Action Plan
  • Procured over $3.2 million from indigenous suppliers since 2014
  • Completed a human rights risk review, enhancing our capacity to address modern slavery in our supply chain
TickBoxChecked CORP

 

Download Reports

The cover of the Stockland Annual Review 2018

Annual Review

The cover of the Stockland Annual Report 2018

Annual Report

The cover of the Stockland Property Portfolio as at 30Jun2018

Property Portfolio

The Golden Sun Moth Park at Stockland's award-winning Highlands masterplanned community in Craigieburn, Vic.

Sustainability Reporting