STOCKLAND — Annual Report 2012

Aug 7, 2012

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8 August 2012

FY12 Results Pack - Index

Financial Management 1 Commercial Property 22 Residential 39 Retirement Living 60

Financial Management

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Shellharbour, NSW
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Profit summary

	FY12	FY11	Change	Commentary
Retail 310 286  8% 3.8% comparable NOI growth Office 142 183  22% Asset disposals; flat comparable growth Industrial 77 77 - 4.1% comparable NOI growth; asset disposals CP Overheads and Trading (19) (22)  14% Cost reduction initiatives
Total Commercial Property 510 524  3% Residential Communities 198 233  15% Volumes up 6%; margins impacted by portfolio mix Retirement Living 36 161  125% Turnover up 25%; price growth UK and Apartments 17 29  41% Last meaningful period of profit contribution Interest, tax and other2 (35) (13)  269% Higher interest expense to fund short term share buyback needs Unallocated corporate overheads (50) (63)  21% Prudent cost management
Underlying Profit 676 726  7% Commercial Property revaluations 65 75 Largely from growth in NOI Unrealised MTM of financial instruments (net of tax) (139) (36) Will not be realised if held to maturity Net write-down of inventory (net of tax) (48) (7) Resi lifestyle projects ($34m) and UK ($14m) FV adjustments of strategic stakes3(net of tax) (39) 18 Unrealised fair value movement on FKP stake Other4(net of tax) (28) (21)
Statutory Profit 487 755  35%

1. The basis of determining Underlying Profit for the Retirement Living business has been amended from previous periods to be more closely aligned to realised cash profits. As a result, the 30 June 2011 comparative Underlying Profit has been restated from $54m to $16m before tax

2. 2 - 2. Includes strategic stakes 3. Current year relates to FKP holding. FY11 relates to Aevum ($15m gain) and FKP ($3m gain)

3. Consists of profit / (loss) on sale of Commercial Property assets, realised movements on financial instruments and FX, RL unrealised losses and business combination integration costs (FY11 only)

Historical profit summary

		FY12 ($m)	FY11 ($m)	FY10 ($m)
Residential Communities EBIT (before interest in COGS) Apartments EBIT (before interest in COGS)		270 9	307 274 76 40
Commercial Property EBIT (before interest in COGS)		511	525 510
Retirement Living EBIT1		36	16 9
UK EBIT (before interest in COGS)		19	- 1
Strategic stakes income		5	13 20
Unallocated corporate overheads		(50)	(63) (66)
Group EBIT (before interest in COGS)		800	874 788
Net interest expense: Interest paid (net of interest income)2		(212)	(171) (136)
Interest capitalised to inventory2		138	147 118
Interest capitalised to Investment Properties under development		27	10 9
Interest expensed in COGS3		(84)	(124) (91)
Net interest expense		(131)	(138) (100)
Tax benefit / (expense)		7	(10) (23)
Underlying Profit		676	726 665
Statutory Profit Adjustments		(212)	66 15
Tax benefit / (expense) of Adjustments		23	(37) (2)
Statutory Profit		487	755 678

1. The basis of determining Underlying Profit for the Retirement Living business has been amended from previous periods to be more closely aligned to realised cash profits. As a result, the prior - 3 - period comparatives for Underlying Profit have been restated from $54m to $16m before tax in FY11, and from $36m to $9m in FY10

2. Includes deferred interest on Residential land purchases of $8.9m (FY11: $21.5m; FY10: $9.7m)

3. Excludes $4.8m (FY11: $3.6m, FY10: $2.9m) of interest in relation to Retirement Living which is included in Fair Value Adjustment of Investment Properties

Underlying Profit reconciliation

Gross ($m) Tax ($m) Net FY12 ($m)	Gross ($m) Tax ($m) Net FY12 ($m)	Gross ($m) Tax ($m) Net FY12 ($m)	Gross ($m) Tax ($m) Net FY12 ($m)	Net FY11 ($m)
Underlying Profit	669.2	6.9	676.1	726.3
Non-cash adjustment to inventories and development profits
Net inventory impairment – Australia (48.9) 14.7 (34.2)				(1.3)
Net inventory impairment – UK (14.2) - (14.2)				(5.7)
Development profit adjustment on The Hyde 1.9 - 1.9				8.0
Fair value unrealised adjustment of investment properties
Net gain from fair value adjustment (Commercial Properties) 65.7 (0.5) 65.2				75.1
Deferred management fees earned but unrealised (Retirement Living) 5.9 (1.8) 4.1				1.9
Fair value movement of operating villages and villages under development (Retirement Living) (33.0) 10.2 (22.8)				23.1
Fair value movement of existing resident obligations (Retirement Living) 19.3 (5.8) 13.5				(10.3)
Fair value adjustment of other financial assets, impairment and net gain/(loss) on sale of other non current assets
Net unrealised (loss)/gain from fair value adjustment of other financial assets1 (55.5) 16.6 (38.9)				17.5
Net gain/(loss) on sale of other non-current assets and impairment of other investments 1.5 0.1 1.6				(5.7)
Fair value adjustment of financial instruments and foreign exchange movements
Net unrealised (loss)/gain from financial instruments and foreign exchange movements (138.7) - (138.7)				(36.2)
Net realised foreign exchange movements (16.1) (10.5) (26.6)				0.6
Net loss on exit of exposure to GPT - - -				(24.9)
Other Aevum Acquisition and integration costs - - -				(13.8)
Profit for the year attributable to securityholders of Stockland 457.1 29.9 487.0				754.6

- 4 - 1. FY12 relates to fair value movement of FKP stake; FY11 relates to FKP, GPT and AVE stakes

Segment Note to Underlying Profit reconciliation

	Residential	Retirement	Commercial	UK	Other1	Total
	($m)	Living ($m)	Property ($m)	($m)	($m)	($m)
Total external segment revenue	1,175	85	698	67	5	2,030
Segment result before interest, share of profits of investments accounted for using the equity method	**2782 **	36	451	11	5	781
Interest expense included in COGS	(81)	-	(1)	(2)	-	(84)
Share of profits of investments accounted for using the equity method (excluding certain items)	1	-	60	8	-	69
Segment profit (before certain items)	**1983 **	**364 **	510	17	5	766
Unallocated corporate other income and expenses						(50)
Interest income						8
Borrowing costs (net of capitalised interest)						(55)
Underlying Profit before income tax benefit						669
Income tax benefit						7
Underlying Profit after income tax benefit						676

1. Relates to income from strategic stake in FKP 2. Includes $269m Residential Communities and $9m Apartments 3. Includes $198m Residential Communities and $0m Apartments 4. Includes $3m of profit from Aged Care

- 5 -

Net interest

	Interest expense - $m	Interest expense - $m		FY12		FY11	Gap between interest paid and expense increased; expect contraction for FY13	Gap between interest paid and expense increased; expect contraction for FY13
	Interest paid1			210.1		176.6
							•	Interest in COGS decreased as
	Less: capitalised interest							significant Apartment sales in FY11 and
	- Commercial Property development projects - Residential1 - Retirement Living			(17.8) (129.3) (9.7)		(5.6) (124.8) (4.9)		capital reinvested in Residential Communities
				(156.8)		(135.3)	•	Increase in interest cost to 6.2% (FY11: 5.7%) reflects higher post GFC credit
	Net borrowing cost in P&L			53.3		41.3		spreads and favourable fixed interest
	Add: capitalised interest expensed in P&L2			88.7		128.4		swaps maturing
	Total interest expense in P&L			142.0		169.7
	FY12 Reconciliation of Interest Expense and Capitalised Interest to Financial Report						Deferred Interest - Residential
	$m	FY12		FY12		Net borrowing
						cost – P&L	•	Non-cash adjustment for unwinding of
	Interest paid	210.1	Less: Capitalised interest	(156.8)		53.3		present value discount on land
	Deferred interest unwind -	8.9	Deferred interest booked in	(8.9)		-		acquisitions on deferred terms:
	Residential Deferred interest unwind - Retirement Living3 Interest expense	2.1 221.1	inventory - Residential Capitalised interest	- (165.7)		2.1 55.4		- Discount initially booked through balance sheet (inventory and land creditor)
	Financial Report (Note 6)		Financial Report (Note 6)					- Unwound over same period through
								P&L therefore always profit neutral in
								each period

1. Excludes $8.9m (FY11: $21.5m) of deferred interest on Residential land creditors and $2.1m (FY11: $nil) of deferred interest on Retirement Living deferred contracts 2. Made up of: Residential - $72.3m (FY11: $74.4m), Apartments - $8.7m (FY11:$47.8m), UK - $2.0m (FY11: $1.3m) and Commercial Property - $0.9 (FY11: $1.3m) This differs to statutory reporting by $4.8m (FY11: $3.6m) as Retirement Living is reported through the fair value adjustment of investment properties

2. Non-cash adjustment for unwinding of present value discount on deferred payment contracts. Discount initially booked through resident obligation. Unwound over the deferred terms until settlement

- 6 -

Continue to leverage scale and achieve operating efficiencies

Maintained focus on extracting fixed overhead efficiencies

• Focus on reducing overheads across all businesses and support functions

• Restructure costs of $13m incurred in FY12, will deliver around $20m of sustainable savings

• FY12 overheads have benefited from lower variable overheads (particularly remuneration related)

	Prudent Cost Management	Prudent Cost Management	Prudent Cost Management
	$m	FY12	**FY111 **	FY10
	Commercial Property2	27	35	36
	Residential	144	142	140
	Retirement Living	38	37	28
	Unallocated corporate costs	50	63	66
	Sub-total	259	277	270
	UK	7	9	12
	Aged Care	20	13	-
	Total management, administration, marketing and selling expense	286	299	282

- 7 -

1. Excluded from Underlying Profit and Retirement Living costs is $20m of transaction and integration costs related to Aevum and three villages acquired from Retirement Villages Group 2. Net of tenant recoveries and costs capitalised to development projects

Prudent capital management strategy reflecting investment focus

S&P rating	A- / Stable
Drawn debt1	$3.3b
Cash on deposit	$0.1b
Available undrawn committed debt facilities	$0.7b
Gearing (net debt2/ total tangible assets)	25.8%
Interest cover	3.8:1
Weighted average debt maturity3	5.3 years
Debt fixed/hedged as at 30 June 2012	64%
Weighted average cost of debt for FY124	6.2%
Weighted average cost of debt at 30 June 20124	6.0%

Long-dated drawn debt maturity profile[1]

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$m
700
600
500
400
300
200
100
-
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY27 FY36
Aus. Bank Debt USPP DMTNs EMTNs
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• S&P A- / stable credit rating maintained

• Low gearing maintained within target range (20% - 30%)

• No refinancing issues – issued $331m USPP and bought back $295m of European Medium Term Notes; next major maturity is in October 2013 (FY14)

• Expect FY13 average cost of debt ~6.5% - takes account of continued seasoning of higher post GFC credit spreads

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Diverse debt sources
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European /
Asian MTNs,
Bank debt [2]
$300m, 9%
$710m, 21%
US Private Domestic MTNs
Placement $686m, 21%
$1,633m, 49%
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1. Excludes bank guarantees of $0.3b and cash on deposit of $0.1b

2. Drawn debt less cash 3. Weighted average debt maturity increased to 5.5 years upon settlement of A$155.3m (10-12 year) US private placement debt on 1 August 2012 4. Excludes the impact of bank guarantee fees of 61bps.The weighted impact on WACD of bank guarantee fees would be 12bps

- 8 -

Cash flow

Net operating cash flow movement FY11 to FY12

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Interest payments higher due
FY11 was the last year of
to inter-period drawdown to
significant Apartment
revenue contribution fund share buyback, and an
increase in weighted average
cost of debt
(404)
146 (109) 5 10
767 23
(25)
(41) (61) 542
310
FY11 Revenue - Revenue - Revenue - Cash Payments for Distributions Net receipts RL Net interest FY12 FY12
Operating Apartments Office excluding payments in land received from RL Development paid Operating Distributions
cash flow apartments course of residents expenditure cash flow1 @ 24cps
and office operations
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Operating and investing cash flow

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(638)
(369)
(522)
1,915
(286) 964
(47) (31)
(205)
674
(107) 310
Revenue Development Land Operating Net interest RL Cash flows Proceeds from Development Investment Other 3 Net cash flow
expenditure on acquisitions expenses cost Development from sale capex of property before
inventory expenditure Operating of Investment Investment acquisitions financing
(reclass for activities1 properties 2 acquisitions activities
Investor pres)
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1. Differs to operating cash flow disclosed in the Financial Report as Retirement Living development expenditure (FY12: $107m; FY11: $82m) and disposal proceeds relating to UK equity investments (FY12: $18m) is treated as an investing cash flow for statutory purposes but shown here as an operating cash flow

2. Includes proceeds from the sale of investment properties, equity accounted for investments and other assets

3. Includes capex for Property, Plant and Equipment of $23m

- 9 -

Gearing movement from June 2011

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Operating Cashflow movement FY12 - FY13 Gearing movement Jun-11 to JunFY13 Operating Cashflow 12
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1.0%
1.1%
1.7%
22.0% 25.8%
FY11 Gearing Acquisitions (incl. Brookfield land Reduction in TTA Investment in FY12 Gearing
acquisition) 1 from asset sales to development pipeline
fund share buyback
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Increase in gearing (Net Debt/TTA) of 3.8% from June 2011 is primarily driven by:

• Brookfield land acquisition with settlement taking place 1 July 2011, partly funded by sale of Bank West Tower $130m

• Asset disposals to fund the share buyback spend of ~$550m incurred to date

• Investment in development pipeline partly funded out of operating cash and remaining asset disposal proceeds

- 10 - 1. $271m for residential land at Vale and Whiteman Edge, less cash received for sale of Bank West Tower of $130m

Debt summary

	Facility	Facility limit **($m)1 **	Facility limit **($m)1 **	Amount drawn ($m)1,2	Amount drawn ($m)1,2	Amount drawn ($m)1,2
	Bank Debt	1,195		535
	Other3	175		175		A
	Domestic Medium Term Notes	686		686
	European Medium Term Notes	149		149		A
	US Senior Term Notes	1,633		1,633		B
	Asian Medium Term Notes	151		151
	Total	3,989		3,329
	Facility	Facility limit **($m)1 **		Amount drawn ($m)		Facility maturity
	Bank Debt
	- Multi option facility - Australia	120		-		Aug 2012
	- Multi option facility - Australia	450	C	-		Sep 2012
	- Multi option facility - Australia	25		-		Nov 2012
	- Multi option facility - Australia	175		125		Nov 2014
	- Multi option facility - Australia	100		100		Nov 2015
	- Multi option facility - Australia	175		175		Dec 2015
	- Multi option facility - Australia	150	C	135		Feb 2017
	Bank Debt	1,195		535
	- Other3	175		175		Oct 2013
	Total Bank Debt and Other	1,370		710

• A • EMTNs have been reduced by $470m; $295m bought back and $175m has been reclassified as other debt as relates to cross currency interest rate swaps

• B New 10 year US Senior Term Note (A$176m) issued during the period:

• A$32m in maturing US notes repaid in October 2011

Further 10-12 year US Senior Term Notes (A$155m) were issued 1 Aug 12

• C New bank debt facilities of $745m were established during the year to maintain liquidity buffer as longer-dated facilities used to support funding of land acquisitions and EMTN buyback

• 11 - 1. Facility limit excludes bank guarantees of $0.3b for which $0.3b was utilised as at 30 June 2012 2. Amount excludes borrowing costs and fair value adjustment required to reconcile to the Financial Report

• Facility limit and amount drawn is the result of $175m of principal repayments of EMTN being restructured under cross currency interest rate swap

Debt summary (continued)

Facility Issued debt ($m)1 Facility maturity	Facility Issued debt ($m)1 Facility maturity
Domestic Medium Term Note Facility (MTN) - MTN 76 May 2013 - MTN 300 Feb 2015 - MTN 150 Jul 2016 - MTN 160 Nov 2020 Total Domestic 686 Offshore Medium Term Note Facility (MTN) - European MTN 1492 Oct 2013 - Asia MTN 151 Aug 2035 Total Offshore 300	**US Senior Term Note Facility (STN)3 **
	- US STN 51 Jul 2012
	- US STN 46 Oct 2012
	- US STN 51 Jul 2013
	- US STN 28 Jul 2014
	- US STN 75 Jun 2015
	- US STN 64 Jul 2015
	- US STN 99 Oct 2015
	- US STN 62 Jul 2016
	- US STN 27 Oct 2016
	- US STN 164 Jun 2017
	- US STN 61 Oct 2017
	- US STN 250 Jun 2018
	- US STN 269 Oct 2018
	- US STN 71 Jul 2019
	- US STN 90 Jul 2020
	- US STN 176 Sep 2021
	- US STN 28 Jun 2022
	- US STN 21 Jun 2027
	Total US Senior Term Notes 1,633

- 12 - 1. Amount relates to face value of debt and excludes borrowing costs and fair value adjustments required to reconcile to the Financial Report 2. During the year Stockland repurchased EMTN of $295m (£190m), with remaining $175m in cross currency interest rate swaps being reported as Other

1. Further 10-12 year US Senior Term Notes (A$155m) were issued on 1 August 2012

Debt and hedging profile[1]

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Existing Debt Portfolio - Long dated and hedged
$b
3.5
BBSW
3.0 +86bps
2.5
2.0
5.9% 6.1%
1.5
6.3% 6.9%
6.7%
1.0 6.8%
0.5
7.9% 8.1%
8.0%
7.8%
7.9%
0.0
FY13 FY14 FY15 FY16 FY17
2
Current fixed rate debt Hedged debt Floating debt
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- 13 - 1. Excludes line fees of approximately 30 bps p.a.

1. Higher current fixed debt rates is due to higher base rates and credit spreads charged on debt with longer maturities (~7 years)

Balance sheet

30 June 2012 ($m) 30 June 2011 ($m)	30 June 2012 ($m) 30 June 2011 ($m)	30 June 2012 ($m) 30 June 2011 ($m)
Cash 135.6 194.6
Real estate assets
- Commercial Property 8,134.4 8,484.7
- Residential 2,554.8 2,383.0
- Retirement Living Communities (including Aged Care) 1,134.8 1,018.4
- UK 93.4 168.8
Retirement Living communities gross up (excluded for gearing purposes) 1,699.2 1,564.0
Intangibles 116.6 116.6
Derivative assets 212.7 148.0
Other assets 452.4 493.1
Total assets	14,533.9	14,571.2
Interest-bearing liabilities (2,867.6) (2,407.4)
Retirement Living resident obligations1 (1,753.4) (1,629.2)
Derivative liabilities (809.6) (687.4)
Other liabilities (875.9) (1,047.8)
Total liabilities (6,306.5) (5,771.8)
Net assets 8,227.4 8,799.4
NTA per share $3.68 $3.65
Increase driven by share buyback accretion

- 14 - 1.

This amount comprises of $1,699m of existing resident obligations and Aged Care accommodation bonds (30 June 2011: $1,564m) and $54m of ex-resident obligations (30 June 2011: $65m)

Covenant calculations

As at 30 June 2012	Statutory Balance Sheet ($m)	Adjustments ($m)	Gearing Covenant Balance Sheet ($m)
Assets
Cash	136	-	136
Real estate related assets	11,918	-	11,918
Retirement Living Gross-Up	1,699	(1,699)	-	B
Intangibles	117	(117)	-
Derivative assets	213	(213)	-	A
Other assets	451	-	451
Total assets	14,534	(2,029)	12,505
Liabilities
Interest-bearing liabilities	(2,868)	(454)	(3,322)	A
Net Retirement Living resident obligations	(1,753)	1,699	(54)	B
Derivative liabilities	(810)	810	-	A
Other liabilities	(876)	-	(876)
Total liabilities	(6,307)	2,055	(4,252)
Net assets	8,227	26	8,253

All lenders have consistent covenants

• Total liabilities / total tangible assets (TL/TTA): 45% No adjustment made for cash held

• Interest cover: 2:1 (write-downs and provisions are excluded from calculation)

Gearing covenant limited to Stockland’s balance sheet liabilities and excludes

• MTM of hedges and interest-bearing liabilities

A

• Net Retirement Living obligation for existing residents B

		Interest	TL/TTA	D/TTA
		**Cover1 **		(net of cash)
30	June 2012	3.8:1	34.0%	25.8%2
31	December 2011	4.5:1	31.7%	23.2%
30	June 2011	5.3:1	31.8%	22.0%
30	June 2010	4.9:1	31.1%	17.8%

• Interest cover impacted by challenging residential market conditions, investment in development pipeline for future returns and share buyback

- 15 - 1. Rolling 12 month average 2. Debt = Interest bearing debt ($3,322m) + transaction costs ($7m) - Cash ($136m) TTA = Total assets ($12,505m) - Cash ($136m)

Group strategic weightings

	Operating Profit FY12	Operating Profit FY12	Assets 30 June 2012	Assets 30 June 2012
	Actual	Strategic weighting	Actual	Strategic weighting
Recurring
Retirement Living	5%		7%
Commercial Property	71%		68%
Unallocated corporate overhead	(3%)		-
Total recurring	73%	60-80%	75%	70-80%
Trading
Residential	28%		21%
Retirement Living1	-		2%
Commercial Property	1%		1%
UK and unallocated corporate overhead	(2)%		1%
Total trading	27%	20-40%	25%	20-30%

- 16 - 1. Retirement Living development delivers a development profit and an on-going DMF income stream which is recognised within recurring upon future turnovers. Retirement Living development profit contributed <1% to Stockland’s trading profit weighting

Stockland Return on Assets and Return on Equity methodology

Simple, cash focused approach in assessing capital management

	Numerator	Denominator
Residential (incl. Apartments)	EBIT (including EBIT from impaired projects1) less overheads	Net Funds Employed (NFE) (excluding capitalised interest and adding back impairment provision2) average for the 12 month period
Commercial Property	AIFRS net operating income plus amortisation of lease incentives less overheads	Average cost + capital additions + lease incentives + development work in progress. Business unit overheads are allocated across the asset classes based on NOI contribution
Retirement Living	EBIT3less overheads	Average Net Funds Employed3(including inventory, development expenditure, cash paid for acquired DMFs and goodwill, excluding capitalised interest, impairment and revaluations)
Other - UK, FKP, working capital and unallocated overheads	EBIT less overheads	Average Net Funds employed (excluding capitalised interest, fair value movements) + average working capital (excluding derivatives, deferred taxes and distribution provision)
Debt Funding	Cash interest paid less interest income received	Average drawn debt (net of cash on hand)

Note: EBIT is before capitalised interest in COGS

- 17 - 1. EBIT contribution from impaired projects is before the release of impairment provision 2. Impairment provision excluded to gross the denominator up to total cash invested 3. Including Aged Care

Reduction in FY12 ROE following Residential lower margins

Retail	FY12	FY11	Commentary
	Cash Return ($m) Avg. Cash Invested ($b) Return on Investment (%)	Cash Return ($m) Avg. Cash Invested ($b) Return on Investment (%)
	310 3.9 8.0%	284 3.4 8.3%	Completion of development projects will drive ROA growth Impacted by impaired projects and trading conditions Unlocking the pipeline is a key focus for growth in capital return Growing turnover and improved margins
Residential Communities Active Non-Active	253 2.2 11.3% 253 1.6 15.9% - 0.6 -	292 1.9 15.5% 292 1.2 25.3% - 0.7 -
Retirement	41 1.0 4.2%	20 0.7 2.9%
Core Business ROA(sub-total)	604 7.1 8.5%	595 6.0 10.0%
Office	158 2.1 7.4%	196 2.5 7.8%	Intention is to orderly recycle the capital into on average higher returning and less volatile Retail investments
Industrial	80 0.9 8.7%	78 1.0 8.2%
UK/Apts/FKP & working capital	25 0.7 3.4%	55 0.9 6.3%
Other Assets ROA(sub-total)	263 3.7 7.1%	329 4.3 7.6%
Unallocated Overheads	(50) - -	(63) - -	Cost saving initiatives
Group ROA	818 10.8 7.6%	861 10.3 8.4%
Interest / net debt	(205) (3.3) -	(145) (2.6) -	Debt increase to fund acquisitions and development
Group ROE	613 7.4 8.2%	716 7.7 9.3%

- 18 -

Reconciliation between ROE table values and Accounting Results

Reconciliation of Group Return in ROE Calculation to Underlying Profit ($m)

	FY12	FY11
Group Return	613	716
Capitalised Interest expensed in COGS	(89)	(128)
Capitalised interest for the year	157	135
Add-back impairment release in COGS and Investment Property Incentives adjustment	(13)	8
Tax and other	8	(5)
Underlying Profit	676	726

Reconciliation of Capital Employed in ROE Calculation to Statutory Net Assets ($b)

	Average for FY12	Average for FY11
Group Capital Employed (Net Assets)	7.4	7.7
Commercial Property Revaluations	1.2	1.2
Residential Communities (RC) Capitalised Interest	0.5	0.4
RC and Apartments Impairment	(0.3)	(0.3)
Retirement Living DMF Revaluations	0.2	0.2
UK Impairment and FKP fair value	(0.2)	(0.2)
Non-cash working capital and other	(0.3)	(0.3)
Statutory Net Assets (average for the period)	8.5	8.7

- 19 -

Our share buyback has created value and is earnings accretive

Value enhancement

Buyback
Securities acquired (m)	179.5
Average price	$3.04
Consideration ($m)	545.3
Average discount to NTA	(17.4%)
Value enhancement – buyback ($m)1	115
Asset Sales
FY12 asset sale proceeds ($m)	964
Book value of assets sold ($m)2	949
Value enhancement – asset sales ($m)	15
Combined value enhancement ($m)	130
%NTA accretion	2%

Earnings accretion

Buyback
Securities acquired (m)	179.5
Average price	$3.04
Consideration ($m)	545.3
FY12 EPS (c)	29.3
FY12 EPS yield on buyback price	9.7%
Asset Sales
**Passing yield on assets sold4 **	6.8%
FY12 EPS accretion3 (c)	0.3
FY12 EPS accretion3 (%)	1%

Value creation through selling assets at a premium to fund buyback at a discount

Buyback has delivered earnings accretion with full benefit realised in FY13

1. Calculated as the difference between the cost of securities purchased and NTA

- 20 - 2. Pre transaction costs 3. Reflects the weighted impact of the buyback acquisition during FY12

1. Yield result excludes disposal of the development sites of 150 Charlotte St, Myuna and Wacol assets

Stockland Corporation statutory income tax calculation

	FY12 ($m)	FY11 ($m)
Statutory Group profit before tax	457	802
Less: Trust profit	(606)	(678)
Add/(less): Intergroup eliminations	11	59
Corporation (loss)/profit before tax	(138)	183	B
Less: Net non-assessable income	(1)	(40)
(UK Utilisation of previously unrecognised tax losses)/UK Losses not recognised	(7)	14
Corporation adjusted taxable (loss)/profit	(146)	157
Tax benefit/(expense) @ 30%	44	(47)
Prior period true-ups	(4)	-
Tax expense transferred from Foreign Currency Translation Reserve to the P&L on wind-down of the investment in the UK	(10)	-
Tax benefit/(expense)	30	(47)	A
Effective tax rate ( / ) A B	22%	26%

• An income tax benefit arises due to the market conditions impacting on Residential performance resulting in the Corporation’s operating profit, on a stand-alone basis, being less than interest paid to the Trust on cross staple debt (eliminated on consolidation)

- 21 -

Commercial Property

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Shellharbour, NSW
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Good result following ~$1bn of asset disposals

Key movements between FY11 and FY12

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----- Start of picture text -----

$m
550
18 (46) 8
500
11 (5)
450
524
400 510
350
300
FY11 Operating Acqn/Dev Disposal NOI growth Trading & Fees Net FY12 Operating
Profit Operating Costs Profit
----- End of picture text -----

Commercial Property ($m) FY12 FY11 FY12 Comparable NOI Growth1 Post-AIFRS NOI (%) Pre-AIFRS NOI2 (%)	Commercial Property ($m) FY12 FY11 FY12 Comparable NOI Growth1 Post-AIFRS NOI (%) Pre-AIFRS NOI2 (%)
Net operating income: - Retail 310 286  8% - Office 142 183  22% - Industrial 77 77 -	3.8% 4.5% 0.0% 0.3%
	4.1% 5.3%
Net operating income (NOI) $529m $546m  3% Trading profits 4 9  56% Fees 4 4 - Net operating costs (27) (35)  23% Operating Profit $510m $524m  3%	2.8% 3.3%

- 23 - 1. Comparable growth excludes unstable/non-comparable properties which includes Assets Held for Sale 2. Pre-AIFRS NOI backs out all AIFRS accounting entries

Leasing growth and development driving improved Retail NOI

Retail NOI movements between FY11 and FY12

Retail NOI up 8% to $310m

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----- Start of picture text -----

$m
315
7
310
18 (1)
305
300
295
290 310
285
280
286
275
270
FY11 NOI Acqn/Dev NOI Growth Disposal FY12 NOI
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Renewals driving income growth	Renewals driving income growth	Renewals driving income growth	Renewals driving income growth	Renewals driving income growth
	No. of Deals	Area	Rental growth	Incentive (months)
Lease renewals 231 25,436 5.4% 0
New leases1 - Expiring lease/vacancy - Retailer Administration2 138 12 16,924 1,956 0.4% (19.8%) 7.0 9.7
Total portfolio 381 44,316 2.6% 7.3

  - Higher tenant retention rate driving lease renewal growth of 5.4% p.a.

  - High occupancy of 99.4%, 46 vacant shops (a third of which were casually leased out and were generating income at 30 June 2012)

  - Sustainable speciality occupancy costs of 14.1%, up 0.4% on June 2011

  - 85% of specialty store leases are on fixed annual increases (64% of which are on fixed 5% p.a.) and 14% on CPI+ increases

  - Stable WALE[3] of 5.9 years

• 24 - 1. Total growth from new lease is (2.3%)

• Includes two additional administration stores leased out in 2H12

• Assumes all leases are terminated at earliest of expiry/option date

Our strong relationships with retailers underpin sustainable growth

Focus on retailer relationships to drive retention[1]

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----- Start of picture text -----

Tenants’ perception of Stockland and peers
100%
75%
50%
25%
0%
Committed to High quality people Shopping centre
developing long term redevelopment
relationships capability
Industry average Closest competitor Stockland
(excl. Stockland)
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Tenant Renewal Retention Rate driving NOI growth

Retention Rate for FY12 Renewals

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----- Start of picture text -----

24%
76%
Renewed Did not renew
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Research shows we are well respected

• Strong retailer relationships has led to high retention and new project leasing momentum

• Sustainable rents underwritten by profitable retailers

Development leasing is progressing well

• Three major projects on schedule and will be unique in their trade areas:

• Townsville will have 40 retailers who are not present elsewhere in the total trade area

• Merrylands will be the only regional with 3 supermarkets and 3 DDS in the entire trade area

• Shellharbour will be the only major regional centre servicing the entire Illawarra region

- 25 - 1. Directional Insights - 2011 Retail Tenant Customer Satisfaction Survey; due to differences in sample size for each landlord the scores are indicative

Stockland specialty store productivity well above benchmark

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Comparable MAT growth remains strong
6.0%
5.2%
5.0% 4.7%
3.9%
4.0% 3.5%
3.3% 3.2%
3.0% 2.8% 2.9% 2.5% 2.7%
2.2%
1.8%
2.0%
1.0%
0.0%
Total MAT Growth 12 Month Comparable Growth 6 Month Comparable Growth 3 Month Comparable Growth
FY11 1H12 FY12
----- End of picture text -----

	Total MAT ($m)	Total MAT Growth (%)	12 mth Comparable Growth (%)	6mth Comparable Growth (%)	3mth Comparable Growth (%)
Supermarkets	2,332	4.4	3.2	2.3	2.3
DDS	859	(1.2)	0.2	2.0	3.2
Specialties	1,543	2.9	2.5	1.9	2.5
Mini Majors/ Cinemas/Other	923	5.5	5.1	4.4	3.7
Total	5,657	3.3	2.9	2.5	2.7

- 26 -

Our value and convenience based Retail continues to outperform

Resilient growth achieved compared to market average

• Total MAT up 3.3%; outperformed ABS growth

• Achieved 2% growth on comparable speciality MAT per sqm

Solid retail sales growth	Solid retail sales growth	Solid retail sales growth
	SGP Total MAT growth	ABS Total MAT growth
Specialty shops  2.9%  1.5%
Supermarkets  4.4%  4.3%
Discount Department Stores  1.2% n/a
Other1  5.5% n/a
Total MAT growth (12 months to June 12)  3.3%  3.1%

Comparable specialty MAT per sqm

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----- Start of picture text -----

$8,444
$8,282 2%
$7,739
Urbis average for Stockland Stockland
Sub-Regional 2010/11 June 2011 2 June 2012
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- 27 - 1. Includes mini-majors and cinemas 2. June 2011 Specialty MAT is re-based for FY12 comparable properties

We continue to unlock value through development

• Developing highly productive retail assets in strong trade areas to achieve average incremental IRRs of 13-14%

Strong incremental development returns

• Harnessing internal capability advantages in development and project management:

• Efficient and attractive design

• Development Approvals secured faster

• Strong cost control and project management

Active projects on track

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~2%
4-5%
13-14%
11.0%
7-8% 7.0%
Cash yield Annual income Enhanced capital Incremental IRR
growth value
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• Townsville and Merrylands open and commence trading by December 2012

• Shellharbour opened Stage 1 in May 2012, 2 months ahead of program

Progress with next wave of projects

• DA approvals received for Wetherill Park (Stage 1), Hervey Bay and Jimboomba, all of which are in detailed documentation phase

• DA approval secured for Green Hills, Baldivis, North Shore Townsville (Stages 2 and 3) and Nowra

• DAs submitted for Point Cook, Gladstone, Wendouree and Wetherill Park (Stage 2)

More profitable than acquiring centres on market

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Typical returns from acquisition of vanilla shopping centre
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----- Start of picture text -----

3-4% (0.5-1%)
10.0% 9-10%
7-
7.0%
7.5%
Cash yield Annual income Capital IRR
growth Expenditure
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- 28 -

Major retail projects delivering strong returns

				Retail developmentpipeline	Retail developmentpipeline	Retail developmentpipeline	Retail developmentpipeline	Retail developmentpipeline	Retail developmentpipeline	Retail developmentpipeline
	Est. total incremental cost ($m)	Cost Spent to Date ($m)	Est. Cost to Complete ($m)	Completion		Est. fully leased year 1 yield (%)	% Total income Leased	% Specialty Shop income leased	Est. Incremental Return (%)	Est. total return1 (%)	Trade area
											Popn. ('000)	SGP market position2
				Date	Est. Value ($m)
Under Construction
Merrylands 395 330 65				FY13 470 - 490 6.5 92% 89% N/A 10.5							280 2
Townsville 175 140 35				FY13 380 - 390 6.5 93% 94% 14.0 11.5							225 1
Shellharbour 330 220 110				FY14 670 - 700 7.6 72% 63% 14.5 12.5							210 1
900 690 210
Projects expected to commence in the next 2 years
Wetherill Park 125 125				FY15 ~ 575 7.5 – 8.0 ~14.5 12.5							260 1
Hervey Bay 110 110				FY15 ~ 190 7.25 – 7.75 ~12.5 11.5							100 1
Gladstone 125 125				FY15 ~ 290 7.25 – 7.75 ~13.5 12.5							65 1
Jimboomba3 70 70				FY16 ~ 125 7.25 – 7.75 ~13.0 12.0							73 1
Baldivis 90 90				FY16 ~ 150 7.25 – 7.75 ~13.0 12.0							69 1
Green Hills 350 350				FY16 ~ 715 7.25 – 7.75 ~13.5 12.5							250 1
870 870
TOTAL 1,770 1,080

- 29 - 1. Unleveraged 10 year IRR for existing asset and incremental development from completion 2. Location IQ; Irbis; Pitney Bowes; Quantium Group

1. 50% share only

Office & Industrial - Solid leasing metrics despite asset disposals

	Occupancy and Lease Expiry	FY12	FY11		Low Office and	Low Office and	Industrial rent at	risk	risk
	Occupancy level						Office Industrial		Total
	Office (excl. space under refurbishment)	94.5%	96.3%				FY13 $m FY13 $m		FY13 $m
	Industrial	97.3%	99.8%		Fully leased income – vacant space/leases expiry1		14.3 16.6		30.9
	WALE
	Office	4.1	4.3		Management expectation of likely renewals/new leases2		(11.6) (10.2)		(21.8)
	Industrial	2.7	3.2		**Potential downtime3 **		$2.7m $6.4m		$9.1m

• WALE and occupancy down on FY11 due to challenging market conditions, and the change in asset mix following disposals during FY12

• Office rent affected by challenging market conditions in Sydney CBD

• Industrial WALE affected by short-term lease deals which kept occupancy high

Portfolio concentrated in large quality assets

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$b Office and Industrial assets by book value
2.0 ~$1.9bn [4 ]
1.8
1.6 $0.4b
1.4
1.2
1.0
Top 10 ~$0.8bn
0.8 $1.5b Office Assets
$0.2b
0.6 Top 5
0.4 Industrial
$0.6b Assets
0.2
0.0
Office Portfolio Industrial Portfolio
by Book Value by Book Value
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1. Total potential FY13 income for pending and upcoming expiries/vacant sites as at 30 June 2012

2. Management’s expectations for vacant space/lease expiries, represents potential rent/income at risk if management expectation is not delivered 3. Potential downtime/lost rent after management’s leasing assumptions 4. Includes assets held for sale, 255-267 St Georges Terrace

Tenancy retention and new leasing: Incentives still high (Syd/Bris)

			Operational Portfolio	Operational Portfolio	Operational Portfolio	Operational Portfolio	Operational Portfolio	Operational Portfolio	Operational Portfolio
Office	GLA Leased **(sqm)1 **		Retention (sqm)1	Increase on Base rents	Weighted Average Incentives		New Leases (sqm)1	Increase on Base rents	Weighted Average Incentives
Sydney CBD	14,931		6,505	5%	21%		8,426	2%	23%
Sydney Metro	15,861		14,065	3%	16%		1,796	1%	16%
Qld	9,906		7,263	11%	19%		2,642	2%	25%
Vic	2,695		2,695	0%	10%		0	0%	0%
WA	4,849		1,275	0%	0%		3,574	3%	12%
	48,242		31,803	5%	17%		16,439	2%	21%
			66% retention

Industrial NSW Qld SA Vic				Operational Portfolio	Operational Portfolio	Operational Portfolio	Operational Portfolio	Operational Portfolio	Operational Portfolio
	GLA Leased (sqm)1		Retention (sqm)1	Increase /decrease on Base rents	Weighted Average Incentives		New Leases (sqm)1	Increase /decrease on Base rents	Weighted Average Incentives
	44,204		0	0%	0%		44,204	0%	9%
	3,991		2,503	(16%)	0%		1,488	0%	2%
	38,170		23,071	2%	0%		15,099	0%	1%
	17,353		0	0%	0%		17,353	18%	5%
	103,718		25,574	0%	0%		78,144	4%	6%
			25% retention

- 31 - 1. Area represents SGP ownership only

Income growth driving positive revaluations for FY12

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$b Commercial Property book values $7.7b [1 ]
9.0
0.1
0.4
8.0
0.1
(1.0)
7.0 8.1
7.7
6.0
30 Jun 2011 Dev/Capex Acquisitions Disposals Revaluations 30 Jun 2012
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• In FY12, 61% of all investment property assets by value were independently valued

• FY12 total net valuation increment $66m

Retail income growth supporting valuation gains

• Retail valuations up $60m reflecting income growth and low vacancy

Office and Industrial valuations

Net revaluation breakdown ($m)	FY12
Income growth	51
Change in cap rates	32
Asset specific issues	(17)
Net revaluation	66

• Office up $12m reflecting strong rental growth in Perth and Brisbane markets

• Industrial down $6m reflecting short term risks associated with expiries/re-letting

- 32 - 1. Includes assets held for sale and JV and associate investment properties. Excludes WIP and Sundry properties

Portfolio weightings and valuation movements

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||||||||
|---|---|---|---|---|---|---|
|Commercial Property assets - $7.7b|[1 ]|
|Retail - $5.0b|Office - $1.9b|Industrial - $0.8b|
|42 properties|21 properties|13 properties|
|904,422sqm gross lettable area|[2]|436,215sqm net lettable area|[2]|968,663sqm gross lettable area|[2]|
|WA|ACT|
|Vic|
|12%|1%|
|13%|
|Vic|
|WA|
|29%|
|4%|
|Qld|
|NSW|NSW|
|17%|
|65%|54%|24%|11%|48%|
|of CP total|of CP total|of CP total|
|Qld|assets|[ 3 ]|assets|[ 3]|assets|[ 3]|
|29%|SA|
|NSW|10%|
|70%|
|Qld|
|13%|
|WACR|WACR|FY12 Book Value|FY12|
|Jun-12|Jun-11|($m)|Movement ($m)|
|Retail|[4 ]|7.1%|7.2%|4,841.1|61.2|
|Office|7.9%|7.8%|1,829.5|9.6|
|Industrial|8.7%|8.5%|831.4|(6.3)|
|Assets held for sale|[5 ]|-|-|191.4|0.8|
|Capital works and sundry properties|[6 ]|-|-|357.2|0.3|
|Total|7.5%|7.5%|8,050.6|65.6|

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1. Includes assets held for sale but excludes WIP and Sundry properties

2. Represents 100% ownership and JV and associates properties and includes Assets Held for Sale.

3. Based on book value at 30 June 2012, includes Assets Held for Sale. 4. Includes $5.6m for Townsville Kingsvale and Sunvale

4. Includes Bay Village and 255-267 St Georges Terrace

5. An independent valuation will be performed on completion of the capital works, includes Eagle Street Pier

Asset values - Retail

Retail Portfolio	Book Value ($m)	FY12 Val. Incr/ Decr ($m)	Change (%)	Cap Rate (%)	FY12 AIFRS NOI **($m)1 **
Stockland Shellharbour2	414.3			7.00%	17.3
Stockland Wetherill Park	359.6	26.1	7.8%	6.75%	24.6
Stockland Merrylands2	350.9			6.50%	7.4
Stockland Rockhampton	347.9			6.75%	21.5
Stockland Townsville2	287.1			7.75%	11.9
Stockland Green Hills	271.0	10.3	4.0%	6.75%	18.5
Stockland Glendale	255.0	5.6	2.2%	6.75%	17.4
Stockland Cairns	216.6	8.4	4.0%	6.75%	13.5
Stockland Point Cook	183.5	(5.1)	(2.7%)	7.25%	12.7
Stockland Burleigh Heads	146.3	5.7	4.1%	7.75%	10.7
Stockland The Pines	146.3	3.6	2.5%	7.25%	10.5
Stockland Forster	132.0	3.0	2.2%	7.50%	9.3
Stockland Jesmond	121.4			7.75%	9.3
Stockland Wendouree	114.0	2.8	2.5%	7.50%	8.6
Stockland Balgowlah	112.7			7.00%	5.7
Stockland Baulkham Hills	108.0	0.6	0.6%	7.50%	7.4
Stockland Caloundra	103.0	(0.8)	(0.8%)	7.50%	7.8
Stockland Gladstone Stockland Nowra	101.1 85.7			7.50% 7.75%	8.6 6.6
Stockland Cleveland	82.0			7.50%	6.0
Stockland Bull Creek	81.9	1.1	1.4%	7.75%	6.1
Stockland Traralgon	79.0	0.7	0.9%	7.75%	6.2
Stockland Bathurst	76.8	0.5	0.6%	8.00%	6.1
Stockland Hervey Bay	63.7	(7.7)	(10.8%)	7.50%	3.6

Retail Portfolio	Book Value ($m)	FY12 Val. Incr/ Decr ($m)	Change (%)	Cap Rate (%)	FY12 AIFRS NOI ($m)1
Stockland Corrimal	59.6			8.0%	4.8
Stockland Riverton (50%)	55.6	7.9	16.6%	7.50%	4.2
Stockland Wallsend	52.5			8.25%	4.0
Stockland Piccadilly	54.1	0.2	0.3%	7.25%	3.0
Stockland Tooronga	49.7			7.25%	2.4
Shellharbour Retail Park	46.5	1.8	4.0%	8.25%	3.9
Stockland Baldivis	45.5			7.50%	2.7
Glasshouse	41.0			6.90%	2.8
Townsville Kmart	38.8			-	0.5
Stockland Cammeray	31.0			7.50%	2.5
Stockland Highlands	25.2	0.1		8.00%	0.3
North Shore Townsville	19.7			7.50%	1.3
Jimboomba (50%)	16.1			8.75%	1.4
Burleigh Central	15.7	0.3	2.0%	9.25%	1.3
Woolworths Toowong2	13.6			N/A	0.2
Adelaide Street Plaza	11.3	(2.5)	(18.3%)	9.75%	0.9
Vincentia SC	10.7	(1.6)	(13.2%)	10.00%	1.0
Merrylands Court	9.1	0.2	1.9%	9.00%	0.4
T/ville, Kingsvale & Sunvale2	5.6			9.50%	0.3
Subtotal Retail	4841.1	61.2			295.2
Other3	`	0.3			1.9
Assets held for sale
Bay Village	164.5	(1.7)	(1.0%)	-	12.6
Total Retail					309.7

• 34 - 1. NOI includes AIFRS adjustments for straight-lining rental income, amortisation of lease fees and amortisation of incentives 2. Properties impacted by development

• Relates to sundry properties , Lilydale and properties with capital works in progress

Asset values - Office

Office Portfolio	Book Value ($m)	FY12 Val Incr/ Dec ($m)	Change (%)	Cap Rate (%)	FY12 AIFRS NOI **($m)1 **
Piccadilly Tower2	269.7	4.1	1.6%	7.25%	14.7
Waterfront Place (50%)	245.0	16.2	7.1%	7.50%	18.7
9 Castlereagh Street	172.3	(1.0)	(0.6%)	7.15%	7.7
Triniti Business Campus	168.8	14.1	9.1%	7.50%	9.3
Durack Centre	150.5	8.4	5.9%	8.50-9.00%	11.7
Optus Centre (31%)	116.3	(2.0)	(1.7%)	7.50%	8.8
135 King Street (50%)	98.4			6.90-7.20%	5.4
78 Waterloo Road	71.1	4.3	6.4%	7.50%	4.0
60-66 Waterloo Road	68.6			8.25-8.50%	5.5
601 Pacific Highway	66.9	(5.4)	(7.5%)	8.50%	6.1
77 Pacific Highway	55.7	3.2	4.9%	8.25%	4.2
45 St Georges Terrace	55.2			8.75%	5.4
175-181 Castlereagh St	50.5	(5.3)	(9.5%)	8.75%	4.2
Piccadilly Court	40.2	(1.1)	(2.6%)	8.25%	1.9
Garden Square	38.4	(1.3)	(3.2%)	9.00%	3.1

Office Portfolio	Book Value ($m)	FY12 Val Incr/ Dec ($m)	Change (%)	Cap Rate (%)	FY12 AIFRS NOI ($m)1
Macquarie Technology Centre	35.1	(2.9)	(7.6%)	8.25-9.00%	2.8
16 Giffnock Avenue	34.9	(0.1)		8.90%	2.7
40 Cameron Avenue	23.0	(18.6)	(44.7%)	10.17%	3.5
110 Walker Street	22.7	(1.3)	(5.3%)	8.50%	1.2
118-120 Pacific Highway	20.5			9.00%	1.8
80-88 Jephson Street	18.5	(0.9)	(4.7%)	9.00%	1.0
23 High Street	3.9	(0.4)	(10.3%)	8.25%	0.3
27-29 High Street	3.3	(0.4)	(11.0%)	8.50%	0.2
Subtotal Office	1,829.5	9.6			124.2
Disposals3					16.3
Assets held for sale
255-267 St Georges Terrace	26.9	2.5	10.6%	9.31%	1.7
Total Office					142.2

1. NOI includes AIFRS adjustments for straight-lining rental income, amortisation of lease fees and amortisation of incentives 2. Excluding stapling adjustment due to owner occupied space

- 35 -

1. Includes disposed properties: Bank West Tower, Exchange Plaza, 7 Macquarie Place, Colonial Centre, Myuna, 150 Charlotte and Riverside Plaza

Asset values - Industrial

Industrial Portfolio	Book Value ($m)	FY12 Val Incr/ Dec ($m)	BV Change (%)	Cap Rate (%)	FY12 AIFRS NOI ($m)1
Yennora Distribution Centre	343.0	(1.8)	(0.50%)	8.00%	25.6
Port Adelaide Distribution Centre	83.3			9.50%	8.1
Brooklyn Estate	82.8			9.00%	6.9
Hendra Distribution Centre	81.8			9.00%	7.1
9-11A Ferndell Street	42.1	(3.7)	(8.2%)	9.50- 10.00%	4.5
1090-1124 Centre Road	33.6			8.79%	2.4
20-50 Fillo Drive & 10 Stubb Street	32.8	2.2	7.4%	9.25%	2.6
Altona Distribution Centre	26.5	(0.2)	0.8%	9.25%	2.0
11-25 Toll Drive	17.3	(0.1)	(0.6%)	9.00%	1.6
2 Davis Road	16.0	(0.4)	(2.2%)	9.25%	1.8
32-54 Toll Drive	15.8			8.75%	1.3
76-82 Fillo Drive	13.9	0.2	1.2%	9.00%	1.3
56-60 Toll Drive	13.7	(1.2)	(8.2%)	9.50%	1.0
Export Park, 9-13 Viola Place	12.6	1.1	10.0%	9.00%	1.3
M1 Yatala Enterprise Park	8.5	(2.4)	(22.2%)	n/a	0
40 Scanlon Drive	7.7			8.75%	0.6
Subtotal	831.4	(6.3)			68.1
Disposals2					9.3
Total Industrial					77.4

- 36 - 1. NOI includes AIFRS adjustments for straight-lining rental income, amortisation of lease fees and amortisation of incentives 2. Includes disposed properties: Moorebank and Wacol

Commercial Property asset disposals – FY12

Property Disposed	Asset Class	Exchange Date	Settlement Date	Disposal Value ($m)
Bank West Tower	Office	Jun 2011	Jul 2011	130.0
Lilydale	Retail	Dec 2010	Jul 2011	28.0
Wacol	Industrial	2009 – 2011	Nov 2011 – Dec 2011	35.2
52 Martin Place	Office	Oct 2011	Nov 2011	172.2
Riverside Plaza1	Office	Nov 2011	Nov 2011	193.6
Exchange Plaza	Office	Dec 2011	Dec 2011	157.7
7 Macquarie Place	Office	Apr 2012	April 2012	55.0
Moorebank	Industrial	Mar 2012	Jun 2012	123.0
150 Charlotte Street	Office	Jun 2011	Jun 2012	45.3
Myuna	Office	Jun 2011	Jun 2012	24.0
Total Asset Disposals – FY12				964.0

- 37 - 1. Disposal value is the net proceeds after allowing for outstanding incentives of $7.9m

Top 20 tenant customers

Retail Portfolio		Office Portfolio		Industrial Portfolio
Tenant Portfolio (%)		Tenant Portfolio (%)		Tenant Portfolio (%)
Wesfarmers 27.0% Woolworths 22.6% Retail Adventures 1.7% Best & Less 1.4% Amalgamated Holdings Limited 1.4% Metcash Trading Limited 1.3% The Reject Shop 1.1% Aldi Foods 0.9% Specialty Fashion Group 0.8% McDonald's 0.7% JB HI-FI Group 0.7% Priceline 0.6% Westpac Bank Corporation 0.6% Commonwealth Bank of Australia 0.6% Just Group 0.6% Terry White Chemist 0.6% Super Retail Group 0.5% Hoyts Multiplex Cinemas 0.5% Cotton On Clothing 0.5% Prouds Jewellers 0.4%		Singtel 8.3% IBM LTD 3.7% Sony Australia Limited 3.4% Sinclair Knight Merz 3.4% Stockland 3.3% Schneider 3.0% Goodman Fielder 2.7% Symbion Health 2.6% Downer EDI Engineering 2.2% CSR 2.0% Worley Parsons 1.9% Shell 1.8% Merck Sharp Dohme 1.7% Uniting Church 1.7% Clemenger BBDO 1.6% Jansen Cilag Pty Ltd 1.5% Baulderstone Hornibrook 1.5% HMGM QEII (Crown Property) 1.5% GHD Services 1.4% Boehringer Ingelheim 1.3%		O-I (ACI) 16.1% Toll Holdings Limited 13.0% Qube Logistics 7.5% Australian Wool Handlers 7.1% Ceva (TNT) 5.0% Linfox Australia PtyLimited 4.5% William Enterprises Group 3.5% Visy Industrial Packaging 3.4% Unitised Building (Aust) Pty Ltd 2.9% Impact Fertiliser 2.1% Yakka Pty Ltd 1.9% Spendless Shoes Pty Limited 1.4% Silk Logistics 1.4% Kagan Logistics 1.3% KMart Distribution 1.2% Simon Transport 1.2% Isuzu 1.2% Amcor 1.2% Viterra 1.1% Queensland Cotton Corporation Ltd 1.0%
64.6%		50.4%		78.2%

- 38 -

Residential

==> picture [772 x 390] intentionally omitted <==

----- Start of picture text -----

Brightwater, QLD
----- End of picture text -----

Delivering on our strategy

Our strategy remains to deliver affordable, high-quality residential communities for middle Australia

Focus on large scale greenfield projects with speed to market Target high-growth corridors for improved market reach Continued focus on customer, product and community to drive competitive advantage Leverage our integrated strategy to deliver better community amenity

Market share in active corridors[1 ]

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----- Start of picture text -----

Stockland
27% 1%
Smaller Closest
Developers Competitor
44% 5%
steady steady
Rest of top 10
24%
1%
----- End of picture text -----

Market Share maintained within our target range

• Seeing emergence of increased activity from Top 10, particularly in NSW and Vic

• Share steady in Qld and WA while NSW and Vic declined

- 40 - 1. Charter Keck Cramer/Research4, Stockland Research. Proportion of vacant land sales in all of Stockland’s active corridors where deposits were taken in FY12. Comparison percentage based on 12 month period ending Dec 2011

Solid volumes but profit margins lower

Residential Communities	Residential Communities	FY12	FY11
Total lots settled		5,388	5,097	 6%
- Wholly owned lots settled		5,064	4,749	 7%
- Part owned		324	348	 7%
Revenue - Retail		$1,016m	$960m	 6%
- Superlots		$64m	$97m	 34%
EBIT (before interest in COGS)		$270m	$307m	 12%
Operating Profit (incl.	interest in COGS)1	$198m	$233m	 15%
Contracts on hand	- no.	1,561	2,288	 32%
	- $	$333m	$485m	 31%

Residential Communities sales

==> picture [649 x 155] intentionally omitted <==

----- Start of picture text -----

Lots
8,000
4,518 (5,388)
6,000
4,000
143
303
2,000
2,288 2,288 2,431 1,561 1,561 1,561 1,864
0
Jun 11 Contracts Vale & Whiteman FY12 FY12 Jun 12 contracts Jul 12 Net Deposits Jul 12 Contracts
on hand Edge (WA) Contracts Net Deposits Settlements on hand on hand
on Hand
----- End of picture text -----

- 41 - 1. Pre-tax

Lead volumes underpinned by First Home Buyers in FY12

Customer lead volumes remain steady

First Home Buyers have been active

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----- Start of picture text -----

Strong leads following Composition of Stockland new leads
annual sales 75% 65%
3,500 campaign 59%
51%
3,000
49% 43%
2,500 50% 53% 45%
2,000 29% 34% 41% 44%
1,500 25% 23%
1,000 22%
500 13% 18% 19% 15% 16%
13%
11%
- 0%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12
Average monthly leads First Home Buyers Upgraders Investors and other
----- End of picture text -----

Strong enquiry levels supported by new projects launched in FY12

==> picture [676 x 163] intentionally omitted <==

----- Start of picture text -----

10,000
8,000
6,000
Entering new
markets in WA
4,000
Builder Boost
removed in QLD
2,000
0
3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Vic Qld WA NSW
----- End of picture text -----

- 42 -

Deposit volumes stable, supported by geographic diversity

Net deposits steady half-on-half

Net deposits

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----- Start of picture text -----

3,500 3,101 3,169 3,134
2,975
3,000
328 568 738 780
2,266 2,252
2,500
2,002
1,870 942 ▼ 11%
2,000 397 352
224 1,236 420 vs. 1H12
1,544 1,381
1,500 842 792 ▼ 6%
805
1,000 861 vs. 1H12
1,705
1,297 ▲ 8%
500 841 887 973 721 1,027 1,108 vs. 1H12
0
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12
First Home Buyers Upgraders Investors and other
----- End of picture text -----

Net deposits in WA strengthened by new projects

Net deposits

==> picture [671 x 150] intentionally omitted <==

----- Start of picture text -----

2,000 1,757
1,600 254 1,377
1,200 159 287 1,112 1,092 1,174 1,125 1,127
574 143 221 890 251 241 228 170
800 441 153 187 158 226 295 334
308 152
400 770 287 411 392 362 334
506 430
264 272 315 240 289
0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Vic Qld WA NSW
----- End of picture text -----

- 43 -

Margins impacted by flat prices and project mix

Lots settled by location (units)

Change in median house prices[1] , FY11-FY12

==> picture [333 x 178] intentionally omitted <==

----- Start of picture text -----

Lots
6,000
5,388
5,236 5,097
5,000 744 14% 729 14% 1,059 19%
4,000
1,600 31%
1,934 38% 1,829 34%
3,000
2,000
2,332 44% 1,733 34% 1,601 30%
1,000
560 11% 701 14% 899 17%
-
FY10 Settled FY11 Settled FY12 Settled
NSW Qld Vic WA
----- End of picture text -----

==> picture [296 x 182] intentionally omitted <==

----- Start of picture text -----

3%
Stockland achieved
2% 0% like for like price
growth in FY12
1%
0%
-1%
-2%
-3%
State
-4%
SGP corridor
-5%
NSW Qld Vic WA Overall
----- End of picture text -----

Movement in EBIT Margin

Residential Margins

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----- Start of picture text -----

0%
1%
2%
1%
29%
25%
FY11 EBIT Price Cost Project Overheads/ FY12 EBIT
Margin of mix & restructuring Margin
sales superlots costs
----- End of picture text -----

==> picture [274 x 157] intentionally omitted <==

----- Start of picture text -----

29%
28% 28%
27%
25% 25%
26%
25%
22%
21% 21%
18%
FY07 FY08 FY09 FY10 FY11 FY12
Operating profit margin EBIT margin
----- End of picture text -----

- 44 - 1. Based on house sales in the 3 months to June 2011 and June 2012. SGP corridors based on weighted average change in median prices in specific corridors. Source: Charter Keck Cramer, National Land Survey Program

Price per sqm growth of 4.5% driven by product mix

Retail sales price[1 ] – Based on all lots settled

	FY12 Settlements	FY12 Settlements	FY12 Settlements	FY12 Settlements	FY11 Settlements	FY11 Settlements	FY11 Settlements	FY11 Settlements
State	No. lots	Av. size per lot sqm	Av. Price per lot $k	$/sqm	No. lots	Av. size per lot sqm	Av. Price per lot $k	$/sqm
NSW	846 466 223 478				650 542 230 425
Qld	1,548 490 212 433				1,664 518 219 423
Vic	1,797 425 201 474				1,917 428 191 447
WA	1,041 428 215 503				718 480 256 533
Residential Communities	5,232 451 211 467				4,949 481 215 447

Revenue Reconciliation

==> picture [521 x 168] intentionally omitted <==

----- Start of picture text -----

1,100
88
1,050
104
1,000 39
950 1,103
1,080
900 1,015
976 976
850
800
Proforma gross revenue GST Non-Stockland part-owned Superlots revenue Actual FY12 revenue
(5,232 lots x $211k per lot) revenue and
>1,000 sqm lot sales
Revenue ($m)
----- End of picture text -----

- 45 - 1. Average price of retail sales excludes sales of all lots over 1,000 sqm and superlot sales. Average price includes GST. Includes PDA’s and SREEF projects for which Stockland receives a part-share

Continued focus on affordable product for our customers

Stockland projects providing more affordable product[1 ]

==> picture [669 x 388] intentionally omitted <==

----- Start of picture text -----

Proportion of sub $200k lots sold Lot size Smallest lot in each state
(sqm)
50% 46% 45% 500
42%
40% 37% 400 Stockland average lot size: 451sqm
33% 34%
30% 300
22%
20% 200 155sqm 150sqm
13% 120sqm
10% 100 75sqm
0% 0
NSW Qld Vic WA Vic WA NSW Qld
FY12 Market FY12 Stockland
Stockland projects consistently more affordable than local median house price [2,3 ]
Stockland Entry Price Median Price
$117k
500k
400k
300k
North Lakes North Shore Ormeau Ridge Glenmore Ridge Highlands Selandra Rise Allura Newhaven Corimbia
QLD NSW VIC WA
495k
469k
438k
428k 422k
395k
387k
368k
360k
350k 350k
332k 336k 327k 322k 340k
314k 311k
----- End of picture text -----

• 46 - 1. National Land Survey Program, Charter Keck Cramer/Research4 and Stockland Research.

• Fixed Price House and Land packages for sale within Stockland House and Land Finder, June 2012

• APM: Median value of established houses in surrounding suburbs as at March 2012

Meeting customer demand for smaller houses

Average house sizes continue to decrease[1 ]

==> picture [418 x 176] intentionally omitted <==

----- Start of picture text -----

sqm
310 300sqm
290
4 br
270
247sqm
250
230 3 br 242sqm
210
190
186sqm
170
150
2007 2008 2009 2010 2011 2012
----- End of picture text -----

An increasing trend for three bedroom houses is emerging[1 ]

==> picture [392 x 141] intentionally omitted <==

----- Start of picture text -----

10% 2%
62%
69%
36%
21%
2007 2012
Five bedroom Four bedroom Three bedroom
----- End of picture text -----

Demand for smaller house sizes

• As housing design continues to become more efficient we are able to meet increasing customer affordability constraints

• At circa $800-$1,000 per sqm build cost, reduction in house size presents significant savings

Three bedroom houses becoming more desirable

• Customers are recognising the benefits of smaller houses to meet affordability needs

- 47 - 1. Stockland Research; Based on houses built in Stockland Residential Communities

ROA down in short term due to lower profits in transitional period

==> picture [560 x 313] intentionally omitted <==

----- Start of picture text -----

Landbank Capital Employed [1]
Active ROA [2 ]
Delivering 40 Active projects
$1.6b Excluding impaired projects 20%
current earnings
31,100 lots (+5k lots vs. 1H12)
Including impaired projects 16%
Enhance near 11 New projects
term earnings Commencing within 2 yrs $0.3b
27,900 lots (+13k lots vs. 1H12)
Total
ROA [2 ] 11%
Underpin long 8 Medium & Long-term projects
$0.3b [3 ]
term earnings 26,150 lots (-22k lots vs. 1H12)
Focus on working
11 Impaired projects
through as soon as $0.2b [4 ]
possible 2,750 lots (+1k lots vs. 1H12)
$2.4b
0 yrs 1 yrs 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs 7+ yrs 7 yrs
----- End of picture text -----

ROA[2] down from 16% in FY11 to 11% in FY12

• Reflecting lower profit and 11 new projects commencing within two years not yet revenue generating

• ROA to improve from FY14, as medium and long-term capital employed becomes active

• After impairment provision of $0.2bn

• Based on net funds employed as at 30 June 2012 - 48 - 2. ROA = EBIT (before interest in COGS, before impairment release) / (Average Annual Net Funds Employed less capitalised interest, add back impairment provision) 3. Caloundra is ~$0.2b

Geographically diverse portfolio underpinned by large projects

Major projects

Total pipeline of 88,000 lots - Geographic mix

		Approximate	Approximate
State	Project	lot sales per	remaining
		**annum1 **	project lots
Qld	North Shore	290	4,280
	North Lakes	360	990
	Brightwater	200	770
Vic	Highlands	550	3,780
	Mernda Villages	280	1,300
	Allura (formerly Leakes Road)	240	1,020
	Selandra Rise	290	580
WA	Vale (formerly The Vale)	270	2,570
	Whiteman Edge	210	1,090
	Newhaven	290	720
	Corimbia	190	570
NSW	McKeachies Run	240	540
	Brooks Reach	210	590

==> picture [309 x 252] intentionally omitted <==

----- Start of picture text -----

Vic
26%
Qld
45%
NSW
15%
WA
14%
North Qld
16%
Brisbane CaloundrCaloundra
17% a South South
50%
50%
Gold
Coast
Sunshine
8%
Coast
9%
----- End of picture text -----

- 49 - 1. Average of FY12 actual, FY13 and FY14 estimates

16 projects with first settlements by FY15

		Summary of new projects
	Project	Timing of first settlements Approximate total lots in project Approximate life of project
	NSW	Lochinvar, Hunter FY14 570 6 yrs
		Anambah, Hunter FY14 2,050 9 yrs
		East Leppington, SW Sydney FY14 3,200 10 yrs
		Marsden Park, NW Sydney FY14 2,300 8 yrs
		Brooks Reach 2, Illawarra FY15 600 3 yrs
	Qld	Paradise Waters, West Brisbane FY14 1,800 12 yrs
		Brookbent Road, South Brisbane FY14 920 7 yrs
		Bahrs Scrub, South Brisbane FY14 1,200 8 yrs
		Ellida, Rockhampton FY15 2,000 13 yrs
		Caloundra South, Sunshine Coast FY15 20,000 20+ yrs
		Ocean Drive, Sunshine Coast FY15 850 12 yrs
	Vic	The Point, Geelong FY13 520 12 yrs
		Arbourlea, Casey FY13 340 3 yrs
		Lockerbie, Hume FY14 11,500 20+ yrs
		Davis Rd, Wyndham FY14 2,620 11 yrs
	WA	Banjup, SW Perth FY14 1,700 10 yrs
		Total lots 52,170
- 50 -

- 50 -

13 projects completing prior to FY15

	Summary of completing projects
Project	Timing of final settlements Total Lots Lots remaining to sell (as at 2H12)
NSW	McKeachies Run FY14 1,050 538
	Darcys Peak FY13 220 28
	Waterside FY14 610 231
	Lakewood FY13 520 4
	McCauleys Beach FY13 280 60
	Glenmore Ridge FY13 520 96
	Brooks Reach FY14 620 589
QLD	Woodgrove FY13 300 5
	Parkwood FY13 660 3
	Pacific Pines FY13 5,000 4
WA	South Beach FY13 230 1
	Townside FY13 430 111
	Baldivis Town Centre FY14 140 125
	Total lots ~10,580

- 51 -

WA outlook positive while Qld moving through bottom of cycle

Tight Perth rental market stimulating new home demand[1 ]

WA market showing positive signs

==> picture [436 x 411] intentionally omitted <==

----- Start of picture text -----

6.0% 2.0%
Annual Rental Growth (LHS)
5.0% Rental Vacancy Rate (RHS)
1.5%
4.0%
3.0% 1.0%
2.0%
0.5%
1.0%
0.0% 0.0%
Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12
Qld housing finance approvals indicates improved outlook [2 ]
14,000
13,000
Seasonally
adjusted
12,000 Trend
11,000
10,000
9,000
8,000
7,000
2008 2009 2010 2011 2012
- 52 - 1. ABS Catalogue No. 6401.0, Table 11, SQM Research
2. ABS Catalogue No. 5609.0
Annual Rental Growth Rental Vacancy Rate
Monthly Finance Approvals
----- End of picture text -----

• Rents climb while vacancy rate at lowest level in 6 years

• Affordability up as incomes continue to grow strongly

• Established stock on market down 13% from April 2011 peak

QLD new home market yet to see recovery

• Housing finance and building approvals up throughout FY12

• Building Boost Grant expired 30 April 2012

• May and June new home sales at lowest level on record

Demand rising in NSW, VIC returning to long-term average

NSW Private House Building Approvals rising throughout 2012[1 ]

NSW remains most robust market in the country

==> picture [422 x 390] intentionally omitted <==

----- Start of picture text -----

1,450
1,400
1,350
1,300
1,250
1,200
1,150
Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12
Vic vacant land sales have risen off December 2011 lows [2 ]
20,000
16,000
12,000
8,000
4,000
0
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
Monthly Building Approvals
Annualised Sales
----- End of picture text -----

• Building approvals up 7% off Feb lows

• Houses prices achieved ~1.5%[3] increase in 2012

• First Home Buyers expected to return to market post October due to doubling of first home owner grant for new homes only

Victorian difficult market conditions to extend into FY13

  - New home bonus grant expired 30 June 2012

  - Vacant land sales less than half 2010 levels

  - Underlying demand underpinned by net international migration

• 53 - 1. ABS Cat. No. 8731.0 2. National Land Survey Program, Charter Keck Cramer/Research4 and Stockland Research.

• Based on house sales in the 3 months to June 2011 and June 2012. Source: Charter Keck Cramer, National Land Survey Program

Market fundamentals driven by population growth and undersupply

Population growth diverging from dwelling starts[1 ]

==> picture [332 x 22] intentionally omitted <==

----- Start of picture text -----

Net overseas migration rising in all states [2 ]
----- End of picture text -----

==> picture [678 x 171] intentionally omitted <==

----- Start of picture text -----

375,000 Dwelling Commencements: Annualised (LHS) 450,000 120 NSW VIC QLD WA
Population Growth: Annualised (RHS)
325,000 400,000 100
275,000 350,000 80
225,000 300,000 60
175,000 250,000 40
125,000 200,000 20
75,000 150,000 -
1985 1990 1995 2000 2005 2010 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Annual Rolling Sum (‘000s)
----- End of picture text -----

Strong labour market supporting household income growth[3 ]

Large and growing housing undersupply[4 ]

==> picture [320 x 164] intentionally omitted <==

----- Start of picture text -----

200 10.0%
180 9.0%
160 8.0%
140 7.0%
120 6.0%
100 5.0%
80 4.0%
60 3.0%
40 2.0%
Unemployment Expectations Index (LHS)
20 1.0%
Unemployment Rate (RHS)
0 0.0%
2007 2008 2009 2010 2011 2012
----- End of picture text -----

==> picture [301 x 172] intentionally omitted <==

----- Start of picture text -----

Forecast
100,000
Excess
50,000
0
-50,000
-100,000
-150,000
-200,000 Shortage
-250,000
1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014
Number of Dwellings
----- End of picture text -----

1. ABS Cat. No. 8752.0, 3101.0

- 54 - 2. ABS Cat. No. 3101.0 3. ABS Cat. No. 6202.0, Westpac-Melbourne Institute Survey of Consumer Unemployment Expectations

1. Goldman Sachs Global Economics

Affordability improving as household income rises

Household income rising[1 ]

Mortgage repayments as % of household income[2 ]

==> picture [674 x 435] intentionally omitted <==

----- Start of picture text -----

18%
NSW VIC QLD WA
16% 50.0%
14%
40.0%
12% 35% “affordable” benchmark
10% 30.0%
8%
20.0%
6%
4% 10.0%
Sydney Melbourne Brisbane Perth
2%
0.0%
0% 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11
01 02 03 04 05 06 07 08 09 10 11 12
Rental vacancies remain at low levels [3 ] Loan defaults remain low in Australia
Large Banks’ Non-performing Loans(%) [4 ]
5%
4%
Vacancy
rates below
long term
3% average
2%
1%
0%
80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
1. ABS, Stockland Research
- 55 - 2. ABS, RBA, REIA, Stockland Research
3. REIA
4. RBA, APRA, Bloomberg, FDIC, banks’ annual and interim reports
Disposable Income Growth (%)
----- End of picture text -----

75% of Apartments NFE is contracted to settle in FY13

Apartments	FY12	FY11
Apartments settled 92 560
Revenue $86m $491m
Operating Profit (incl. interest in COGS)1,2,3 $0m $29m
Operating Profit margin (incl. interest in COGS)3 0% 6%
Apartment contracts on hand - no. 14 91
- $ $28m $101m
Net funds employed $89m $152m
Net funds employed contracted and to settle in FY134 $69m N/A

1. Stockland’s former head office classified as plant and equipment, depreciated and held below fair value. FY12: $1.9m (FY11:$8m) profit from the Hyde development excluded from underlying profit 2. Excludes net profit on settlements from impaired projects 3. Pre-tax

- 56 -

1. Includes disposal sites

Additional FY12 impairment of non-core, lifestyle projects

• Projects reviewed quarterly to assess recoverability:

• Inventory carried at lower of cost and net realisable value

• $48m of additional impairment booked in FY12

• Net profit on settlements from previously impaired projects excluded from Underlying Profit:

• 8% of total lots settled in Residential Communities

• 91% of total lots settled in Apartments

		Estimated	Impairment	Final
		future revenue	provision	settlement
		($m)	balance
			June 2012 ($m)
	Residential Communities
	Projects to be completed	484	141	7+ years
	Disposal of undeveloped sites	45	101	8 years
	Apartments	107	58	1-2 years
	Total	636	300

FY12	Residential Communities ($m)	Apartments ($m)	Total ($m)
Movement in provision for impairment in FY12	(31)	12	(19)
Utilisation of impairment provision in FY12	(17)	(12)	(29)
Additional Impairment taken (Below the Line)	(48)	0	48

Residential - Forecast utilisation of provision[1 ]

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----- Start of picture text -----

Balance Primarily relates to the timing of expected
$m
disposal of undeveloped sites in
400
Residential Communities and Apartments
in FY13 and FY14
300
300
198
200
94
100 67 47
17
0
Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Jun 2017
----- End of picture text -----

- 57 - 1. Forecast impairment provision balance as at 30 June 2012, based on forecast settlement dates, revenue and costs by project

ROA – Residential example

Example of an active project delivering benchmark returns. ROA calculation for Residential also takes into consideration overheads and non active projects, in accordance with definitions on page 17.

Numerator	$m	Denominator	$m
Revenue	53	Land	40
COGS (Land and development expenditure)	(27)	Development expenditure	30
COGS Capitalised interest	(8)	Capitalised interest	20
Underlying profit	18	Net Funds Employed	90
Post-interest return	20%
Adjustments to ROA calculation to exclude interest
Exclude: COGS Capitalised Interest	8	Exclude: Capitalised Interest	(20)
EBIT	26	Capital Employed	70
ROA (pre-interest)	37%

- 58 -

ROA – Residential impairment example

Example of an impaired project. ROA calculation for Residential also takes into consideration overheads and non active projects, in accordance with definitions on page 17.

Numerator	$m	Denominator	$m
Revenue	30	Land	40
COGS (Land and development expenditure)	(27)	Development expenditure	30
COGS Capitalised interest	(8)	Capitalised interest	20
COGS Impairment Release	5	Impairment	(10)
Underlying profit	0	Net Funds Employed	80
Post-interest return	**0%1 **
Adjustments for interest and impairment ROA calculation
Exclude: COGS Capitalised Interest	8	Exclude: Capitalised Interest	(20)
Add back: Impairment release	(5)	Add back: Impairment	10
EBIT	3	Capital Employed	70
ROA (pre-interest and impairment)	4%

- 59 - 1. Post interest return; impaired projects will produce nil return due to impairment release

Retirement Living

==> picture [772 x 390] intentionally omitted <==

----- Start of picture text -----

Arilla, VIC
----- End of picture text -----

Volumes and improved returns drive profit growth

Establishedportfolio	Establishedportfolio	Establishedportfolio	Establishedportfolio
	FY12	**FY111 **
Established turnovers 519 416  25%
-Average re-sale price -Turnover cash per unit $324k $87k $303k $78k  7%2  12%
-Turnover cash margin 27% 26%  1%
Reservations on hand 115 122  6%
Established occupancy 94% 95%  1%

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Operating profit and cash metrics
$m
35 10%
36
30
25
20 16
4.2% 5%
15
9 2.9%
10
5 2.7%
0 0%
FY10 FY11 FY12
Operating Profit Return on Asset (ROA)
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Economies of scale being achieved	Economies of scale being achieved	Economies of scale being achieved
	FY12	FY11
Cash receipts3 Overheads Operating profit	$270m $38m $36m	$198m $37m $16m	 36%  3%  125%

Net reservations

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796 787
1,000
Development
900
284 268
800 Established
700
600
500
512 519
400
300 204 213
200
82 98
100 204 213
122 115
0
On Hand Net new FY12 On Hand
30 June 2011 reservations FY12 Settlements 30 June 2012
Number of Units
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1. FY11 has been restated to reflect changes to accounting methodology. Refer to slide 64 for a reconciliation between the restated FY11 Operating Profit and FY11 Operating Profit under previous methodology. FY11 only includes 8 months of Aevum results

2. Increase in average sales price results from a combination of an increase in average unit values across the portfolio of 1% and portfolio mix of units settled.

3. Total receipts from incoming residents at established villages and new developments

Growth is supported by strong development pipeline

First settlements from development villages in FY12

• New greenfield development villages:

• Macarthur Gardens (NSW) and Affinity (WA)

Growth underpinned by existing pipeline

• Active projects cover 100% of FY13 sales targets

Development portfolio	Development portfolio	Development portfolio	Development portfolio
	FY12	FY11
New unit settlements 268 192  40%
- Average price $378k $377k  0%
- Average margin1 18% 19%  1%
Reservations on hand 98 82  20%

• Commenced construction of Selandra Rise (Vic) greenfield development of 202 units

• Mernda Village approved for construction of 270 units

Pipeline capacity will continue to increase settlements

Retirement Living ILU development pipeline[2 ]

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2,000
2,000
1,500
1,100
1,000 700
500
0
FY13-FY14 FY15-FY16 FY17+
Under construction Future stages of current projects Future pipeline
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- 62 -

1. FY11 has been restated to reflect changes to accounting methodology, capitalisation of community centre. Refer to slide 64 for breakdown of the restatement 2. Timing subject to market conditions

Solid ortfolio com rised of mature villa es and develo ment i eline p p g p p p

Portfolio Statistics	FY12	FY11
Established villages	62	59
Established units1	7,807	7,452
National ranking2	#3	#3
Market share2	~11%	~11%
% of residents satisfied / extremely satisfied	88%	87%
Referrals as a % of settlements	26%	23%
Established units turned over	519	416
Actual turnover rate	6.8%	7.4%
Average age of resident on entry	73.6 years	73.9 years
Average age of current residents	80.8 years	80.7 years
Average tenure on exit	8.9 years	8.3 years
Average village age	19.5 years	18.1 years
Development pipeline	3,800 units	3,400 units
-Active	1,400 units	1,100 units
-Long-term	2,400 units	2,300 units

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Net Funds Employed
$1,251m [3] $1,135m
30
117 31
117
225
199
226
178
653 610
FY12 FY11
Established Development Revaluation Goodwill Aged care
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Age profile of established villages

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60%
50%
40%
30%
20%
10%
0%
0-5 Years 6-10 Years 11-20 Years +20 Years
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1. The development NFE includes all land owned by Stockland included in the Retirement Living development pipeline

- 63 - 1. The property portfolio comprises of 7,984 units of which 177 (FY11: 83) relate to development units greater than 3 months that are excluded above 2. Share ranking based on number of units under management

Im roved erformance usin either accountin methodolo p p g g gy

	FY12	FY111, 2
New units settled (#)	268	192
Established unit turnovers (#)	519	416
Operating Profit
Turnover cash margin	45	32
Conversion profit	11	9
Settled development margin	18	14
Aged Care contribution	3	2
Other income / recoveries	(3)	(4)
Net overheads3	(38)	(37)
Operating Profit	36	16
Reconciliation of Operating Profit under new methodology to previously reported Operating Profit
Operating profit	36	16
Add: Accrued DMF	67	67
Less: Turnover cash margin	(45)	(32)
Add: Unsettled development margin	7	5
Less: Community facility costs capitalised and other	(2)	(3)
Operating profit under previous methodology	63	53

1. FY11 has been restated to reflect changes to accounting methodology. Finalisation of the application of the new accounting methodology was reflected in the FY11 restated Operating Profit to be $16m as compared to $20m reflected in the 1 May Investor Presentation

2. FY11 only includes 8 months actual Aevum results

3. Excludes overheads relating to Aged Care which are included in the Aged Care profit contribution

Develo ment i eline has eo ra hic diversit p p p g g p y

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Geographically diverse development pipeline
WA 11% Qld
16%
NSW 28%
Vic 45%
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Total ~3,800 units

Development pipeline
Development villages2	27
Total development pipeline units	3,800
- Greenfield pipeline units	2,900
- Village extension pipeline units	900
Average greenfield development stage size (units)	27
Average village extension development stage size (units)	16
Estimated end value	$1.8bn

(~1,400[1] under development, in stages, ~2,400 pipeline)

- 65 - 1. Includes established units yet to be released plus Farrington Grove and Mernda 2. Includes 12 villages underway and 15 pipeline

Strong development pipeline capability across the next 5 years

	S P Yet to come	S P Yet to come	Anticipated Settlements	Anticipated Settlements	Anticipated Settlements	Anticipated Settlements	Anticipated Settlements
	tate roject online		FY13	FY14	FY15	FY16	FY17+
	Active Developments
	VC Highlands 92 VIC Arilla 45 VIC Tarneit Skies 29 VIC Selandra Rise 202 VIC Mernda 270 QLD Fig Tree 89 QLD North Lakes 40 QLD Farrington Grove 100 NSW Waratah Highlands 69 NSW The Willows 52 NSW Macarthur Gardens 198 WA Affinity 186
	Development Pipeline
	VIC Gillin Park 40 VIC Highlands Extn 120 VIC Eucalypt 220 VIC Highlands II 230 VIC Lockerbie 200 VIC Davis Road 200 QLD Caloundra 400 NSW Lourdes 10 NSW Golden Ponds 50 NSW Maybrook 20 NSW Marsden Park 220 NSW Cardinal Freeman 220 NSW The Cove 60 NSW Leppington 220 WA Banjup 220
	~~NSW~~ ~~Qld~~ ~~WA~~ Total ILUsyet to be released 3,802
- 66 -

- 66 -

Valuation metrics are robust and thorou h g

Key valuation assumptions	Key valuation assumptions	Key valuation assumptions
	FY12	FY11
Discount rate	12.8%	12.8%
Average growth rate	3.9%	4.0%
Expected average Turnover Rate (long term)	9%	8%

DMF Asset Valuation

• Directors’ valuations are performed every six months with independent valuations commissioned at least once every three years

• Established DMF asset valuation has increased from $716m at June 2011 to $726m at June 2012 primarily driven by the addition of newly constructed units

Revised DMF asset valuation technique

• Stockland has undertaken extensive analysis with Ernst & Young to develop and implement actuarial techniques in forecasting DMF cash flows[1 ]

• Current methodology takes into account resident age, gender and current tenure

• Future resident profiles now more robust and based on historical observations ~ slight rise in long term turnover rate

• These adopted techniques have been evaluated as part of KPMG’s audit of the Stockland Consolidated Group Financial Report

• All key valuation assumptions independently sourced and substantiated

- 67 - 1. KPMG were not engaged and have not provided a separate report on this actuarial work to Stockland

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Stockland Corporation Limited ACN 000 181 733

Stockland Trust Management Limited ACN 001 900 741

25th Floor

133 Castlereagh Street SYDNEY NSW 2000

DISCLAIMER OF LIABILITY

While every effort is made to provide accurate and complete information, Stockland does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. The information provided in this presentation may not be suitable for your specific situation or needs and should not be relied upon by you in substitution of you obtaining independent advice. Subject to any terms implied by law and which cannot be excluded, Stockland accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice.