FY17 progress

TickBoxChecked CORP

11.1% increase in Retirement Living operating profit

TickBoxChecked CORP

6.2% cash return on assets

TickBoxChecked CORP

84% resident satisfaction

Retirement Living performance

($m, unless otherwise stated) FY17 FY16 Change
EBIT 69 64 8.3%  ↑
Operating profit (FFO)1 63 57 11.1% ↑
95.0%  94.9%  ↑
Cash ROA 6.2%  5.8%  ↑
 - Established settlements (units)  731  716 2.1%  ↑
 - Withheld settlements (units) 49  19  ↑
Total sales volume (units)   780  735 6.1% ↑
 Average re-sale price $339k  $329k 3.3% ↑
Turnover cash per unit  $86k $81k 6.2% ↑
Turnover cash margin  25.4%  24.7%
Reservations on hand (units)  128  155  17.4% ↓
Average price per unit  $539k  $509k
5.8% ↑
Average margin - excludes Deferred Management Fee (DMF)  19.1% 16.8%  ↑
Development settlements (units)   270 297  9.1% ↓
Reservations on hand (units)   58  67  13.4% 

1 Operating profit is equal to FFO for the Retirement Living business.

Retirement Living update

Operating profit (FFO) in Retirement Living was up 11.1% on FY16, reflecting strong sales, active management of our portfolio and improved margins. Reservations on hand reflect the availability of stock in key markets. Cash ROA increased to 6.2%, from 5.8% in FY16.

This is the fourth consecutive year of double-digit operating profit growth for our business, driven by our focus on resident satisfaction underpinned by a customer-centric culture.

Our development pipeline is proceeding well, with the delivery of our UDIA award winning apartments at Cardinal Freeman The Residences in Sydney’s inner-west. We are also making good progress on our new vertical village at Birtinya, in the heart of the Sunshine Coast’s new health hub.

We continue to invest in new projects, with planning underway on a number of brownfield redevelopments at existing villages.

Stockland's Retirement Living development pipeline as at 30 June 2017

Development margins were high this year at 19.1% due to project delivery mix, but will normalise in FY18 to around 15 -17%.

We are further extending our reputation for quality villages and broadening our customer reach through our new, non-deferred management fee communities for over 55s, called ‘Aspire’. We have two projects currently underway, at our Elara residential community in Sydney and Calleya in Perth, and the initiative will be rolled out at other locations in our portfolio over the coming years.

We understand there is a lot of focus on the sector at the moment. We take pride in our Retirement Living business, and we are committed to open, transparent and respectful relationships with our residents. Every year we engage independent consultants to assess resident satisfaction. Last year, more than 6,800 residents participated in the survey, and rated their overall satisfaction with Stockland as 8.4 out of 10.

Retirement Living strategic priorities

The business remains focused on being a preferred operator and developer of Retirement Living villages by creating high quality retirement villages in Australia. The business has a clear strategy to continue to improve its return on assets by:

  1. Actively managing the portfolio;
  2. Growing development volumes; and
  3. Differentiating the customer experience through access to a range of resident care and other services.

Download Reports

Stockland Annual Review 2017

Annual Review

Stockland Corporate Reporting 2017

Financial Report

Stockland Corporate Reporting 2017

Property Portfolio

The community garden at Stockland's Bells Reach community on the Sunshine Coast (Qld)