STOCKLAND — Annual Report 2021

Aug 19, 2021

FY21 Results

20 August 2021

We acknowledge the Traditional Custodians of the land on which we meet, work and live. We pay our respects to First Nation Elders past, present and emerging and the care they have given this country. Stockland is committed to supporting organisations and individual Aboriginal and Torres Strait Islander people in a culturally appropriate manner.

Agenda
Group update	Tarun GuptaManaging Director & CEO
Financial results andcapitalmanagement	Tiernan O'RourkeCFO
CommercialProperty	Louise MasonGroup Executive & CEO,Commercial Property
Communities	Andrew WhitsonGroup Executive & CEO,Communities
Summary	Tarun GuptaManaging Director & CEO

Group update

Tarun Gupta

Strong platform for growth

1. Across Retail shopper satisfaction, Residential, Retirement Living, Workplace, Logistics, Life Sciences & Technology.

Group update Financial results

and capital management Commercial Property

Communities Summary

ESG leadership – FY21 achievements

Proactive approach to long-term environmental, social and governance risks and opportunities

Our performance

FFO1 $788m (4.6)% on FY20 FFO1 per security 33.1 cents (4.6)% on FY20 NTA per security $3.98 5.3%2 on 30 June 2020 Distribution per security 24.6 cents 75% payout ratio

Return on equity3

10.3%

Statutory profit $1.1bn

• 1. Funds from operations (FFO) and adjusted funds from operations (AFFO) are determined with reference to the PCA guidelines.
• 1. Compared to 30 June 2020 NTA per security of $3.78.

(120) bps on 30 June 2020

• 1. Return on equity accumulates individual business return on assets and adjusts for cash interest paid and average drawn debt for the 12 month period ended 30 June 2021. Excludes Residential Communities workout projects.
• 1. Compared to pre COVID-19, 12 months to February 2020.
• 1. Comparable sales adjusted for historical asset sales.
• 1. Forecast value on completion.

FY21 Highlights

• FFO at top end of guidance range
• Residential sales volumes (7,700 lots) up 54.2% vs FY20 and with strong momentum continuing into FY22
• Comparable MAT growth up 2.3%4 vs pre COVID-19 levels, with occupancy and leasing spreads both improving over 2H and 96% rent collection for FY21 (vs 1H 87%)
• Retirement Living delivered strongest ever5 established sales for portfolio – settlements up 22.3% on a like for like basis
• Executing on our $5.5bn6 Logistics, Life Sciences & Technology development pipeline, with several key leasing, planning and construction milestones reached over FY21
• Strong capital position, with gearing of 21.4% and $2.2bn of available liquidity
• Halcyon transaction (post balance date) accelerates land lease strategy and is immediately accretive to FFO

7

Group update Financial results

COVID-19 decisive and proactive response

Stockland continues to adapt to protectour people and business
Safety and wellbeing	Safety and wellbeing of tenants, customers, contractors and our teams remains #1 priority••COVIDSafe operational plans active across assetsas Government restrictionsandlockdowns continue in 2021•'Hub and Home' hybrid working model in place for employeeswith ongoing focus on personal wellbeing
Industry and governmentengagement	•Proactive engagement continues,working closely with government and industry to manage the safe and efficientoperation of construction sites across key markets in Melbourne and Sydney•Continued provision of space at assets for temporary testing clinics
Capital managementandfinancial health	•Maintained strong available liquidity of$2.2bn
Tenant support	•Engagement continues with tenants as State governments re-institute regulatory regime to support impacted smallto medium enterprises
Releases and production levels	•Production levels will be guided by customer demand and restrictions imposed on civil infrastructure andconstruction works, in line with State government guidelines•Monitoring pressure on supply chains as extended lockdowns impact access to goods and skilled labour
Customer experience	•Innovation, digital and data capability driving online Communities business enquiry and improved retail customerexperiences

Financial results and capital management

Tiernan O'Rourke

Capital position

At 30 June 2021

Gearing

21.4% At the low end of target range of 20-30%

Investment grade credit ratings

A-/A3 Stable outlook S&P / Moody's

Operating cashflow

$1.0bn For FY21

Weighted average cost of debt

3.7% For FY21

Available liquidity (cash and undrawn facilities) $2.2bn

Weighted average cost of debt

3.5% Expected for FY22 Weighted average debt maturity

5.3 years

• Significant headroom in financial metrics under debt documentation
• Continued broad access to global capital markets

and capital management Commercial Property

Group update Financial results Summary Communities

Strong operating cashflows

1. Includes Residential and Logistics projects.

2. Includes the settlement of transactions previously announced in FY20 results disclosures.

3. At 31 July 2021.

• Distribution covered by strong operating cashflows
• FY21 distribution of 24.6 cps reflecting a payout ratio of 75% and our continued focus on retaining capital for growth
• Completed $584m of non-core divestments including $495m2 Retail Town Centres and $89m Retirement Living villages
• 80% of land acquired on capital efficient terms

Debt collection update

• 97%3 of FY21 rent collected across the portfolio (96% retail, 99% logistics and 98% workplace), after abatements
• Close to 100% of FY21 tenant rental support negotiations completed
• $9m charge to FFO for ECL and abatements during FY21
• Monitoring impact of new round of Government regulations supporting impacted small to medium enterprises in early FY22

Group update Financial results and capital management

Commercial Property

Communities Summary

Funds from operations

FFO reflects:

• Strong debt recovery in Commercial Property, Workplace & Logistics income-producing acquisitions and completed developments offset in part by non-core disposals
• Strong underlying results in Residential, marginally below last year due to lower transaction profit contributions
• Increased overheads due to increased insurance premiums, investment in technology, and controlled cost increases to drive growth

$m	FY21	FY20	Change	Comparable growth1
Logistics	164	160	2.5%	1.0%
Workplace	60	54	11.1%	1.0%
Retail Town Centres	363	343	5.8%	5.6%
Commercial Property net overheads	(29)	(20)	45.0%
Commercial Property	558	537	3.9%	3.9%
Residential Communities	331	372	(10.9)%
Retirement Living	54	58	(6.9)%
Unallocated corporate overheads	(69)	(56)	(23.7)%
Net interest expense	(86)	(86)	0.8%
Total	788	825	(4.6)%
FFO per security	33.1	34.7	(4.6)%
Distribution per security	24.6	24.1	2.1%

1. Includes comparable assets excluding acquisitions, divestments and assets under development.

and capital management Property

Commercial

Communities Summary 12

Statutory profit to FFO and AFFO reconciliation

The table below shows the reconciliation of statutory profit to FFO and AFFO with reference to the definitions outlined in the Property Council of Australia (PCA) white paper "Voluntary best practice guidelines for disclosing FFO and AFFO"

$m		FY21	FY20	Change
PCA reference	Statutory profit	1,105	(21)	5,515.2%
	Adjusted for:
D1/D4	Amortisation of lease incentives and lease fees	92	89
D5	Straight-line rent	1	(3)
A3/A4	Net change in fair value of Commercial investment property1	(433)	452
A3/A4	Net unrealised change in fair value of Retirement Living investment properties and obligation	92	130
F2	Unrealised DMF revenue	(46)	(29)
C2	Net loss/(gain) on financial instruments	(63)	109
F2	Net loss/(gain) on other financial assets	(1)	4
A1/A2	Net loss/(gain) on sale of other non-current assets	18	(20)
A6	Net reversal of impairment of inventories	(5)	-
B1	Impairment of Retirement Living goodwill	-	38
E	Tax (benefit)/expense (non-cash)2	(27)	45
F2	One-off costs3	55	31
G	Funds from operations (FFO)	788	825	(4.6)%
G2	Maintenance capital expenditure4	(61)	(32)
G3	Incentives and leasing costs for the accounting period5	(76)	(57)
	Adjusted funds from operations (AFFO)	651	736	(11.6)%
	AFFO per security	27.3	31.0	(11.9)%

, and fair value unwinding of ground leases recognised under AASB 16 (FY21: $1m; FY20: $1m). 1. Includes Stockland's share of revaluation movements relating to properties held through joint venture entities (FY21: $17m gain; FY20: $44m gain)

. 2. The Group has accumulated tax losses of $1.4bn and as a result does not have any near-term material income tax expense that will be settled in cash

1. Gross of tax benefits of $17m (FY20:$9m), other one-off costs reflect the impact of the IFRIC agenda decision on SaaS costs and

2. Includes $6m (FY20: $6m) Retirement Living maintenance capital expenditure. 5. Excludes assets under construction. provisions for expected onerous contract costs. Prior year also includes costs associated with the delay of SAP systems go-live and restructuring costs. To be classified as a one-off, these costs were assessed to be highly unlikely to reoccur in future years.

Group update Financial results Summary and capital management Commercial Property Communities 13

Year in review

Strong portfolio performance with comparable FFO growth of 3.9%1

Authority approvals for Workplace developments at Affinity Place (NSW) and Piccadilly (NSW)

progressing well

September 2021

Portfolio resilience underlined by rent collection at 97%2

Portfolio rebalancing continued with $635m further divestment of noncore Retail Town Centres, including the above book value sale of Bundaberg

(QLD), anticipated settlement

Retail portfolio occupancy of 99.1%3

Growth of Workplace and Logistics

capital allocation to

32%

Total retail sales growth at 3.1%4 compared to pre-pandemic

Construction underway at M_Park (NSW) with agreements for lease with data and life sciences

tenants executed

1. 1. FY21 growth on the 12 months to February 2020. Includes comparable assets excluding acquisitions, divestments and assets under development.

2. Net of abatements, at 31 July 2021.

3. Occupancy across the stable portfolio (92% by value) based on signed leases and agreements at 30 June 2021.

Commercial Property

Operating metrics

Key metrics	Asset value1	Portfolioweightingat 30 June 2021	FFO	FFOcomparablegrowth2	Occupancy	WALE4
Retail TownCentres	$5,486m	38%	$363m	5.6%	99.1%3	5.3 yrs
Workplace	$1,011m	7%	$60m	1.0%	91.7%	2.5 yrs
Logistics	$3,397m	25%	$164m	1.0%	98.0%	4.6 yrs
Total	$9,894m	70%	$587m5	3.9%

25% Logistics portfolio weighting

16

3.9% Comparable FFO2

1. Excludes WIP and sundry properties.

2. Includes comparable assets excluding acquisitions, divestments and assets under development.

3. Occupancy reflects stable assets for the period. This calculation is based on signed leases at 30 June 2021.

4. Weighted average lease expiry.

5. Excludes Commercial Property net overheads of $(29)m.

Commercial Property

Valuation results

Net valuation increase of$432m1With 99%2of assetsrevalued in FY213independently	Birtinya, QLD	601 Pacific Highway, NSW	Forrester Distribution Centre, NSW
	Retail Town Centres	Workplace	Logistics
FY214	$(82)m, (1.4)%	$(31)m, (3.0)%	$545m, 19.1%
Cap rates	Unchanged at 6.1%	Firmed by 20 basis points to 5.6%	Firmed by 605basis points to 4.8%
Drivers	2H21 valuations stabilised in line with animprovement in leasing and retailersentiment	Movement reflects a fall in netincome and higher letting upallowances/incentives due topandemic uncertainty	Uplift driven predominantly bycapitalisation rate compression as wellasmoderate rental growth

1. Excludes WIP, sundry properties and stapling adjustment for owner-occupied space.

2. By value.

3. The external valuers have indicated that their retail valuations are subject to material uncertainty on a forward-looking basis. They have certified that their valuations were appropriate on the valuation date of 30 June 2021 but do state that due to the current market uncertainty the valuations may change materially after that date as new information comes to light.

4. Represents net valuation change for 12 months to June 2021.

5. Represent six months movement to December 2020, full year movement to June 2020 firmed by 90 basis points.

Logistics, Life Sciences & Technology

Portfolio quality

• Portfolio growth from 15% to 25% of Stockland capital allocation over 5 years
• Comparable FFO growth of 1.0%
• Leasing demand strong with over 400,000 sqm leased
• Delivered 53,700 sqm of new logistics assets, with a combined value of $111m

1. Excludes WIP and sundry properties.

• 1. Reflects retained and new tenants, executed leases & HOA.
• 1. At 30 June 2021.

1. Represents 100% interest.

$3.4bn Asset value1

408,984 sqm Leased/HOA2

Communities Summary

18

	FY21	FY20
FFO	$164m	$160m
Asset value1	$3,397m	$2,859m
Leased area	310,652 sqm	423,579 sqm
Leases under HOA3,4	98,332 sqm	63,694 sqm
Average rental growth on new leases andrenewals	1.3%6	0.7%7
Portfolio occupancy3,5	98.0%	96.3%
Portfolio WALE3,5	4.6 yrs	5.2 yrs

Commercial Property

1. By income.

2. Excluding a single deal at Forrester Distribution Centre (NSW), rebased to market rent.

Group update Financial results

and capital management

1. Excludes material lease renewal at Optus Centre, Macquarie Park (NSW).

Logistics, Life Sciences & Technology

Scaling through development

$2.8bn1

Restocking opportunity

• Altona Industrial Estate (VIC)
• M_Park Stage 2 (NSW)
• Melbourne Business Park future stages (VIC)

• Melbourne Business Park (VIC) –

• Willawong Distribution Centre

• Willawong Joint Venture Project

• Leakes Road, Truganina (VIC)3

• Cranbourne West (VIC)3

$1.0bn1

Detailed planning

• Kemps Creek (NSW)

(QLD) Stage 3-5

Lot 452

(QLD)

Master planning Progressed planning Active development

Projects currently under development

• Melbourne Business Park (VIC)
• Gregory Hills Industrial Estate (NSW)
• Leppington Business Park (NSW)
• M_Park (NSW) Stage 1 Buildings A, B, C & D

Projects ready to start developing

• Silica Street Industrial Park, Carole Park (QLD)
• Yatala Distribution Centre (QLD)
• Yatala 77 Darlington Drive (QLD)

Total $5.5bn1

development pipeline

• 1. Forecast value on completion.
• 1. Construction to commence immediately following settlement and depending on approvals, is targeted for completion by April 2022.
• 1. Under conditional contracts to acquire. Will be acquired and held as part of the joint venture arrangements with the fund managed by JP Morgan Asset Management.

Group update Financial results

and capital management Commercial Property

Communities Summary

Yatala Distribution Centre, QLD

Retail Town Centres

Resilient performance

• Specialty occupancy cost 14.9%1
• Leasing activity returned to pre-pandemic levels, with 6832 deals completed in FY21
• Negative rent reversion of (6.1)%, improved on the (7.8)% reported at 1H21
• 67%3 tenant retention reflecting increasing retailer confidence
• Shopper satisfaction score of 81%4
• Incentives lower at 12.6 months5

		FY21	FY20
Occupancy6		99.1%	99.0%
WALE7,8		5.3 yrs	5.7 yrs
	Specialty retail leasing activity9
Tenant retention3		67%	61%
Total lease deals2		683	523
	Specialty occupancy cost ratio1	14.9%	15.5%
	Average rental growth on lease deals10	(6.1)%	(6.0)%
		2H21 –(5.4)%	2H20 –(7.7)%
Renewals:	number, area	357 / 54,695 sqm	225 / 26,682 sqm
	rental growth10	(5.5)%	(2.9)%
New leases:	number, area	220 / 29,071 sqm	193 / 25,630 sqm
	rental growth10	(7.1)%	(9.5)%
	incentives:months5	12.6	12.9

1. Occupancy cost reflects stable assets, adjusted to reflect tenants trading more than 24 months.

• 1. Includes stable, unstable and project leasing.
• 1. Adjusted for operational centre remixes and reconfiguration as well as retailers subject to administration.
• 1. Based on Stockland 'always on' shopper satisfaction survey, representing the proportion of shoppers that rated their satisfaction with Stockland as a score of 6-10 (on a 0-10 satisfaction rating scale).
• 1. Represents the contributions made towards the retailers' fit outs, expressed in equivalent months of net rent.
• 1. Occupancy across the stable portfolio based on signed leases and agreements at 30 June 2021.

Group update Financial results and capital management

1. Metrics relate to stable assets unless otherwise stated.

2. Rental growth on an annualised basis.

3. By area.

Commercial Property

Communities Summary

Retail Town Centres

Strong sales performance

• Comparable specialty sales of $9,799 sqm1 , 8% above the Urbis benchmark2
• Comparable MAT growth of 2.3% on the twelve months preceding COVID-19 to February 2020
• Comparable non-discretionary MAT has experienced strong growth of 6.8% on February 2020
• Pro-actively managing current lockdowns with provisioning based on past outcomes, and resilience of sales with 75% essential goods and services

To 30 June 2021		Total portfolio4			Comparable centres5
Retail salesby category	MAT $m	MATgrowth	MATgrowth preCOVID-19(Feb 20)	MATgrowth	MATgrowth preCOVID-19(Feb 20)	2H21growth(on 2H19)
Total	5,936	6.4%	3.1%	6.2%	2.3%	2.4%
Specialties	1,875	11.7%	2.3%	11.1%	1.6%	2.4%
Supermarkets	2,101	4.4%	7.0%	3.9%	6.0%	6.1%
DDS/DS	902	13.0%	13.9%	13.7%	14.6%	15.3%
Mini majors	799	20.1%	24.6%	20.1%	23.0%	26.5%

To 30 June 2021	Total portfolio4				Comparable centres5
Specialty sales bycategory	MAT $m	MATgrowth	MAT growthPre COVID-19(Feb 20)	MATgrowth	MAT growthpre COVID(Feb 20)	2H21growth(on 2H19)
Apparel	467	19.9%	4.0%	20.2%	4.4%	5.9%
Food catering	336	7.8%	(4.6)%	7.2%	(5.5)%	0.9%
Homewares	74	17.2%	15.4%	14.7%	12.9%	8.4%
Retail services	280	22.1%	10.2%	21.0%	8.8%	16.5%

Group update Financial results

and capital management

1. Comparable centres, excludes divestments and development centres and adjusted for stores trading less than 12 months.

• 1. Urbis Double DDS Sub-regional Shopping Centre benchmark, pre-COVID-19 benchmarks.
• 1. Compared to pre COVID-19, 12 months to February 2020.
• 1. Sales data includes all Stockland managed retail assets, including joint venture assets.

1. Comparable basket of assets as per SCCA guidelines, which excludes assets which have been redeveloped within the past 24 months.

Communities Summary 21

Workplace

Strong platform for future growth

• Stable FFO growth of 1.0% through FY21 despite impact of COVID-19
• Rental growth on new leases and renewals of 5.8%
• Portfolio WALE of 2.5 years to support the development pipeline, with less than 13% of leases expiring in FY22
• 98% rent collected in FY211

1. At 31 July 2021, net of COVID-19 abatements.

• 1. Excludes WIP and sundry properties.
• 1. Forecast value on completion.
• 1. At 30 June 2021.
• 1. By income.

4	$1.0bn
assets	portfolio value2
7%	$3.9bn
portfolio weighting	development pipeline3

	FY21	FY20
FFO	$60m	$54m
Asset value	$1,011m	$1,038m
Leases executed	8,556 sqm	14,177 sqm
Leases under HOA4	713 sqm	578 sqm
Average rental growth on new leases andrenewals	5.8%	18.6%
Portfolio occupancy4,5	91.7%	93.6%
Portfolio WALE4,5	2.5 yrs	3.2 yrs

Group update Financial results and capital management Commercial Property

Communities Summary

Key developments progressing

M_Park, Affinity Place and Piccadilly

Future of workplace

• Humanising design
• Health and wellbeing
• Community and belonging
• Collaboration and innovation

M_Park (NSW) – Stage 1

• Commenced construction
• $600m end value1
• 60%2 pre-commitment tenants
  • Johnson & Johnson Medical
  • Wise Medical
  • Multinational data centre operator

Affinity Place (NSW)

• Development Application approval expected late 2021

Piccadilly (NSW)

• Unanimous support from City of Sydney Council to submit planning proposal to NSW Government for assessment

1. Expected value on completion, subject to planning approval and market conditions. 2. By lettable area.

Group update Financial results

and capital management Commercial Property

Communities Summary 23

Commercial Property

Strategy delivery

Logistics

• Quality portfolio, strong valuation uplift

• Roll out of $3.2bn1,2 pipeline

• Future masterplanning opportunities

• Strong progress on authority approvals for $3.9bn1 development pipeline

• Market opportunity to deliver physically and digitally designed precincts with a focus on people and the future way of working

Workplace Retail Town Centres

• Resilient essentials driving strong sales growth
• Proven repositioning and placemaking
• Omnichannel focus

Technology and Life Sciences

• M_Park (NSW) innovation precinct dedicated to whole-ofbusiness and whole-of-life health
  • $600m1 M_Park (NSW) Stage 1 under construction, est. completion 2024
  • Lodgement of $1.7bn1 M_Park (NSW) Stage 23 masterplan – six buildings, est. 2024-2029 construction4

24

• 1. Forecast value on completion.
• 1. Developments commenced or progressed planning.
• 1. Interest held under a binding put and call option deed.
• 1. Subject to completion of the acquisition on exercise of the put/call option.

Group update Financial results and capital management Commercial Property Communities Summary

Communities

Andrew Whitson

Year in review

Growing and reshaping the communities business

Residential

Continued outperformance in MPC

• Strong result with ~54.2% growth in net sales and ~19.8% growth in settlements
• Significant early cycle restocking with ~14,000 lots acquired since outbreak of the pandemic
• Strong customer demand for affordable MPC product expected to continue over FY22
• Well positioned to capitalise with 77,0001 lot landbank, skewed to the Eastern Seaboard

Retirement Living Record established sales

• Strongest established sales on record with settlements growth of 22.3% on FY20

• Continued increase in customer preferences towards safety and wellbeing
• Strength of established housing market to continue to support customer demand
• Explore solutions to reduce capital allocation over time

Acceleration in scale of business Land Lease

• Successful entry into land lease with the launch of Aura (QLD) and Minta (VIC)
• Organic pipeline growth of ~1,000 lots to ~4,000 over the last six months
• Halcyon acquisition increasing total portfolio to 7,800 sites
• Opportunity to introduce third party capital as the portfolio grows

1. Includes ~2,000 lots under due diligence.

and capital management Commercial Property

Communities Summary

Strong result reflects competitive advantage in MPC

• 6,374¹ settlements was 19.8% above FY20 with default rates in line with historical averages over 2H21
• Result demonstrates the strength of the Stockland brand as customers display an ongoing preference for low density MPC
• FFO of $331m reflects a decline of (10.9)% on FY20, or an increase of 20.5% excluding one-off transaction profits²
• Operating profit margin of 18.0%³ impacted by earlier disposal of non-core superlots and higher WA settlement volumes than expected
• (5,507) • Strategic early cycle restocking of 11,900 lots over FY21, including the acquisition of 1,300 lots4 in VIC and a 450 lot consolidation at The Gables4 (NSW) over 4Q21

1. Includes 1,777 settlements under joint venture/project development agreements (FY20: 1,341).

2. FY21 FFO includes $12m balance of transaction profits from the sale of The Grove (VIC), FY20 transaction profits of $107m from The Grove (VIC), Merrylands Court (NSW) and the capital partnering transaction at Aura (QLD).

3. Compared to prior guidance of approximately 19.0%.

4. Includes acquisitions and exchange of contracts subject to planning approvals and finalisation of due diligence.

5. Includes 79 sales acquired from the acquisition of Providence (QLD).

6. Excludes July 2021 settlements.

Communities Summary

Demand for MPC to remain strong over FY22

• FY21 net sales of 7,7001 reflects a 54.2% increase on FY20
• Enquiries remain strong despite the roll-off of HomeBuilder stimulus
• Strong customer demand for affordable MPC product continues with 20%2 of customers willing to live further from CBDs
• Continue to leverage our end-to-end virtual sales process and visualisation tools to capitalise on 58,000 new leads generated online
• Good FY22 earnings visibility, with 4,600 contracts on hand due to settle at average price points ~10% above FY21
• FY22 target operating profit margin3 of ~18% and around 6,400 settlements2 with a skew to 2H21
• Statutory approval timing and construction industry shutdowns resulting in the deferral of 600 settlements into FY23

1. Excludes 79 sales acquired from the acquisition of Providence (QLD).

• 1. Stockland Customer Insights Research.
• 1. Subject to no significant disruption to construction activities due to COVID-19 related lockdowns through FY22.

Significant early cycle restocking to underpin future margins

1. Includes acquisitions and exchange of contracts subject to planning approvals and finalisation of due diligence.

Source: NLS (Research4). Indexed weighted average price growth for SEQ, Melbourne and Perth corridors, and capital city price growth for Sydney.

Uniquely positioned to undersupplied markets

Undersupply to drive land market relative outperformance Landbank skew to Eastern Seaboard markets

Cumulative detached housing undersupply estimate (2022-2025)

• Significant vacant land market undersupply forecast across Greater Sydney, SEQ and Greater Melbourne
• 96% of lots acquired since the outbreak of the pandemic located on the Eastern Seaboard

• Competitive advantage reflected in scale and location of our ~77,0001 lot landbank, a key driver of relative outperformance
• Embedded margins in landbank with average age of ~9.9 yrs

Group update Financial results and capital management Commercial Property Communities Summary 30

Fundamentals to remain strong across the Eastern Seaboard

FY22 market outlook1

State	Price	Volumes	Market commentary
NSW			•Strong demand for low density MPC product to continue•Chronic undersupply of available land to place a ceiling on volumes with pricegrowth to continue•Potential for further construction closures may restrict market production andvolumes
VIC			•Currently early in the cycle post lagged volume and price growth recovery relativeto other states•Significant pent-up demand and relative affordability to Sydney to drive volumeand price growth outperformance
QLD			•Continued strong demand post further decentralisation of the workforce andincreased relative affordability to other Eastern Seaboard major cities•Acute undersupply of available land to constrain volumes with price growth tocontinue
WA			•Moderation in sales volumes from cyclical highs post roll-off of the strongeststimulus in the country•Expect price increases over 2H22 in response to continued established marketstrength which is currently reflected in the tightest rental market nationally

1. Current market conditions remain challenging with ongoing lockdowns and community transmission of COVID-19. All forward-looking statements including FY22 earnings guidance are provided on the basis that the vaccination roll-out continues COVID-19 restrictions ease toward the end of CY21.

Group update Financial results

and capital management Commercial Property

Communities Summary

Retirement Living

Record established sales driven by increasing customer demand

• Record¹ established sales of 711 and strong growth in settlements of 22.3%
• Result reflects the continued increase in customer preferences towards safety and wellbeing and the strength of the established housing market
• Decline in FFO reflects reduced development settlement volumes due to pipeline timing ahead of future brownfield opportunities
• Incremental profit from village disposals to drive FFO growth of ~$30m in FY22
• Explore solutions to reduce capital allocation over time

1. Comparable sales adjusted for historical asset sales. 2. Includes no withheld settlements (FY20: 6).

Land Lease

Differentiated over 50's product offering and business model

Typical development project

1. Operating profit margin comprises sales revenue less cost of goods sold (excludes land costs & community facility development costs).

2. NOI yield on cost = net operating income / residual land value (land cost + community facility development costs).

Land Lease

Acceleration in ramp-up of land lease

Successful entry into land lease business

• Successful launch of Aura (QLD) and Minta (VIC) in 2H21
• Stockland pipeline increase of ~1,000 lots to ~4,000 over the last six months driven by:
• Incremental yield from existing projects
• Acquisition of sites at Coffs Harbour (NSW)1 and Armstrong Creek (VIC), and MPC acquisition in Tarneit (VIC)

Halcyon acquisition driving growth and value accretion

• Acquired market leading, fully integrated platform
• Driven significant increase in total portfolio scale
• Established sites delivering high quality recurring income, with material activity in development and further pipeline in planning

Growth in scale and activity

Land Lease

Combined portfolio activity to grow beyond FY22

• Good earnings visibility with ~340 contracts on hand including 55 sales secured in July 2021
• Targeting ~300 settlements in FY22, with Halcyon contributions to grow from ~250 in FY22 to ~350 p.a. over the medium term
• Combined portfolio to generate ~600 settlements p.a. within three years, with significant project launches in FY23-24 to drive longer term volumes

	Community	Remaining sites	FY22	FY23	FY24	FY25	FY26	FY27+
ntempovelednI	Halcyon Greens (QLD)	200
	Halcyon Rise (QLD)	300
	B by Halcyon (QLD)	300
	Halcyon Bayside (QLD)	380
	Stockland Aura (QLD)	240
	Stockland Minta (VIC)	180
	Subtotal in development	1,600
esgnatnidnhancplnuaIl	FY23	1,200	Significant ramp-up in
	FY24	2,150	project launches over
	FY25	400	FY23-24
	FY26+	950
	Subtotal in planning	4,700
	Total pipeline	6,300

* Shaded areas represent transition from project launch to settlements. In planning developments subject to DA approval.

Outlook

Tarun Gupta

Focus on future opportunities

• Strategic review underway anticipated completion by end 2021

• Well positioned to capitalise on key trends:

  • Shift in consumer preferences toward suburban living
  • Continued growth in institutional demand for real property assets

• Technological change driving both customer and investor demand across core and emerging real estate sectors

• ~$33bn1 development pipeline provides visibility of future development profits and creation of high quality investment product

• Acceleration of third party capital partnerships increasing assets under management and recurring earnings

• Ability to leverage scale and quality of existing landbank including mixed use opportunities to leverage longer term urbanisation trends

• Optimisation of capital allocation across the portfolio

1. Total development pipeline, includes projects in early planning stages, projects with planning approval and projects under construction across both Commercial Property and Communities.

Optimise Stockland capital allocation

Unlock $33bn1 development pipeline

1. Total development pipeline, includes projects in early planning stages, projects with planning approval and projects under construction across both Commercial Property and Communities Business.

2. Forecast value on completion.

Commercial Property

38 Communities Summary

FY22 outlook

• Strategic review to be completed late 2021 • Strong residential sales momentum into FY22, production constraints may defer settlements into FY23 • COVID-19 trading restrictions increase near term uncertainty for retail portfolio. 2H21 performance indicates capacity for rapid recovery as restrictions ease • Continue to investigate opportunities to rebalance portfolio • End to end capabilities to accelerate delivery of $33bn1 development pipeline • Invest to build capability as asset creator across target sectors and in capital partnering - new CIO Justin Louis appointed to commence late • Continue strong track record in ESG

Guidance2

FY22 estimated FFO per security forecast in the range of 34.6 to 35.6 cents

Distribution per security forecast to be within our target payout ratio of 75% to 85% of FFO

2021

Current market conditions remain challenging with ongoing lockdowns and community transmission of COVID-19. All forward looking statements including FY22 earnings guidance are provided on the basis that the vaccination roll out continues and COVID-19 restrictions ease towards the end of CY21 and are underpinned by the following business assumptions:

• Residential settlement around 6,400 lots
• Residential operating profit margin ~18%
• Land lease communities delivering 300 sites in FY22
• Recent average rent collection trends returning towards the end of CY21

1. Total development pipeline, includes projects in early planning stages, projects with planning approval and projects under construction across both Commercial Property and Communities.

2. All forward-looking statements are subject to no material change in market conditions; including the level of community transmission, the impact of restrictions including state border closures, lockdowns and other impacts from COVID-19 on the economy, broader community and business performance.

Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741; AFSL 241190 As responsible entity for Stockland Trust ARSN 092 897 348

LEVEL 25 133 Castlereagh Street SYDNEY NSW 2000

Important Notice

This Presentation and its accompanying Annexures ("Presentation") has been prepared and issued by Stockland Corporation Limited (A.C.N 000 181 733) and Stockland Trust Management Limited as Responsible Entity for Stockland Trust (ARSN 092 897 348) ("Stockland"). Whilst every effort is made to provide accurate and complete information, Stockland does not warrant or represent that the information included in this Presentation is free from errors or omissions or that is suitable for your intended use.

This Presentations and its accompanying Annexures may contain forward-looking statements, including statements regarding future earnings and distributions that are based on information and assumptions available to us as of the date of this Presentation. Actual results, performance or achievements could be significantly different from those expressed in, or implied by these forward looking statements. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this Presentation.

Current market conditions remain challenging with ongoing lockdowns and community transmission of COVID-19. All forward looking statements including FY22 earnings guidance are provided on the basis that the vaccination roll out continues and COVID-19 restrictions ease towards the end of CY21.

The information provided in this Presentation may not be suitable for your specific needs and should not be relied upon by you in substitution of you obtaining independent advice. To the maximum extent permitted by law , Stockland and its respective directors, officers, employees and agents 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 this Presentation. All information in this Presentation is subject to change without notice. This presentation does not constitute an offer or an invitation to acquire Stockland stapled securities or any other financial products in any jurisdictions, and is not a prospectus, product disclosure statements or other offering document under Australian law or any other law.

This announcement is authorised for release to the market by Ms Katherine Grace, Stockland's Company Secretary.