STOCKLAND — Earnings Release 2007

Aug 7, 2007

ASX/Media Release 8 August 2007

==> picture [91 x 69] intentionally omitted <==

Level 25 133 Castlereagh Street SYDNEY NSW 2000

www.stockland.com.au

Tel: 02 9035 2551

ANOTHER RECORD PERFORMANCE FOR STOCKLAND � 10.3% increase in full year profit to $611.0 million � Strong growth in shareholder returns � Building a global platform for growth*

Stockland today announced an excellent performance for the full year ended 30 June 2007, delivering a net profit of $1.7 billion, including significant items such as property revaluations.

The group’s operating profit (excluding significant items) was $611.0 million, a 10.3% increase on the previous corresponding period.

Shareholder returns also grew strongly:

• Earnings per security* rose by 6% to 44.0 cents

• Dividend/distribution** per security increased by 7% to 44.3 cents, comprising;

	Trust Distribution, 17% tax preferred 35.5 cents Corporation Dividend, fully franked 8.8 cents Total 44.3 cents
	Total 44.3 cents

Stockland managing director Matthew Quinn said “We delivered another record performance this year, with strong operating results achieved across all our businesses coupled with the delivery of key strategic initiatives.”

“The Retail, Commercial and Industrial businesses achieved great results with good net income growth, significant revaluation gains, low vacancies and increased development pipelines.”

“The Development Division delivered yet another impressive increase in profits despite challenging residential conditions in Sydney, with solid EBIT margins and a record value of contracts on hand underpinning the continued performance of our diversified portfolio.”

Mr Quinn said “Through our move into the retirement living sector and our entry into the UK/European markets via the Halladale acquisition, we are in great strategic shape.”

“Our integrated business model continues to go from strength to strength, with a commitment to property fundamentals and leveraging our development capabilities to add significant value to our diversified portfolio, while building a global platform for future growth,” said Mr Quinn.

Group highlights also included:

• Established UK and European platform through the $525 million acquisition of UK property investment and development group Halladale

• Delivery of retirement living strategy with the $328 million acquisition of Australian Retirement Communities (ARC)

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

1

==> picture [72 x 56] intentionally omitted <==

• Development pipeline has now increased to almost $3 billion across the retail, commercial and industrial portfolios

• Successful capital recycling with profits from the sale of Saville Hotel Group used in the funding of the above growth initiatives

• Over $1 billion of investment property revaluations, an increase of 17.0% on previous book value

• Net Tangible Assets per security increased by 17.4% to $5.33

• Gearing ratio of 25.1%, at the lower end of Stockland’s 25% to 35% target range

• Diverse, long-dated sources of debt with an average maturity of 7.6 years.

OPERATIONAL HIGHLIGHTS

Retail Division: Operating profit increased 6.5% to $252.1 million

• Comparable rental income growth of 5.5%

• $543.5 million of property revaluations, an increase of 16.6% on previous book value

• $103.9 million of developments completed with a solid average yield of 8.4%

• $181.6 million of acquisitions with development potential, with an initial yield of 6.5%

• Strong leasing activity with 584 leasing transactions completed at an average increase of 23.9% on prior rents.

Mr Quinn said “The Retail Division achieved a strong increase in profits in an environment of positive consumer sentiment and steady sales growth. These impressive results were delivered through a focus on accretive acquisitions with asset management and development upside, and increasing productivity to deliver income growth across the portfolio.”

“Our $1.8 billion development pipeline continues to gather momentum, with a substantial increase in active projects with solid yields and a quarter of a billion dollar boost to the project pipeline across the country, which is set to drive the continued growth of our retail business.”

Commercial & Industrial Division: Operating profit increased 19.4% to $251.6 million

• Comparable net income growth of 3.1%

• High portfolio occupancy of 96% with over 294,000m² of space leased or renewed

• $747 million of commercial and industrial acquisitions at a yield of 6.7%

• Development pipeline increased to $1.3 billion

• Revaluations of $468.6 million, an increase of 16.8% on previous book value.

“Solid operational results from our commercial and industrial business have ensured that the division is poised to enter a new phase of growth in the year ahead. Office markets are in very good shape across the country, with the resource-rich states continuing to outperform and Sydney set for rental growth due to limited supply,” said Mr Quinn.

“We will continue to add value to our portfolio by unlocking rent reversions and the delivery of our burgeoning development pipeline – with the milestone completion of the $410 million new Optus Centre in Macquarie Park achieved during FY07 and eight projects forecast to commence across the country in FY08.”

2

==> picture [72 x 56] intentionally omitted <==

Development Division: Operating profit increased 14% to $272.7 million

• Solid Residential Communities margin of 26%, underpinned by geographic and product diversity

• Four key apartments projects delivered and four significant DA approvals achieved for future major mixed use projects

• Successfully acquired and integrated ARC, bringing forward our retirement living strategy

• Strong pipeline of projects across the country with over 73,000 future lots with an end value of over $18 billion.

Mr Quinn said “The Development Division delivered another record result this year. Our extensive, diversified pipeline of projects and focus on product innovation and new initiatives will underpin the continued performance of our business, cementing our leadership position in this competitive market.”

Core demand drivers for the residential market are generally robust with record population growth and low unemployment continuing to drive the underlying performance of residential markets across the country, although conditions vary from state to state:

• Queensland: Demand has driven a strong pick up in dwelling approvals during FY07, and should remain robust in the coming year

• New South Wales: Trading conditions have been soft, but with recent improvement in the Sydney inner ring there should be a gradual recovery in 2008

• Victoria: Commencements close to historical average, steady conditions expected

• Western Australia: A slowdown in volumes has seen price growth flatten, with further easing in volumes expected.

Stockland Halladale

• Integration going very well, business is performing in line with expectations

• EPS neutral in FY07 & FY08 due to fair value adjustments required by accounting standards

• Expected to be EPS accretive from FY09 with potential to outperform.

“Stockland Halladale was a key strategic acquisition and the first step in our UK/European expansion strategy. We believe we can develop a significant and successful international business from this platform in the medium term.”

“Stockland Halladale is currently involved in several town centre and urban rejuvenation projects across the UK, and more mixed use opportunities are being targeted as we look to grow this new part of our business,” said Mr Quinn.

Stockland Capital Partners

Australian FUM platform

• Over $850m of wholesale and retail assets under management

• 6 funds operating, with all funds outperforming initial forecasts.

3

==> picture [72 x 56] intentionally omitted <==

Mr Quinn said “New Capital Partners CEO Brett Newman will build on the platform established by our unlisted property funds business and leverage our product and investor base both locally and internationally to take this business to the next level, ensuring Stockland has a variety of capital sources to fund our growth.”

UK/Europe FUM platform

• Established JV partnerships with major international institutions

• Over $2.2 billion of assets under management.

“Stockland Halladale’s investment management focus provides many UK and European product and wholesale opportunities and we will now work together to build on this and create a strong link with our Australian business,” said Mr Quinn.

FUTURE STRATEGY & OUTLOOK

Mr Quinn said “We are well positioned to deliver continued strong performance in the year ahead, leveraging the combined expertise across our diversified business to build a globally respected capability.”

“The strength of our balance sheet means we are capable of building on our success by capitalising on opportunities in the current volatile market.”

Stockland’s guidance for FY08 EPS growth is 5%.

Stockland’s 2007 Full Year results presentation will be web cast via www.stockland.com.au on Wednesday 8 August at 11:30am.

For investor enquiries contact: For media enquiries contact:: Johanna Keating Amy Menere EGM Corporate Affairs Media & Corporate Communication Manager Stockland Stockland Tel: +61 2 9035 2180 / +61 (0)409 168 848 Tel: +61 2 9035 2551 / +61 (0)422 449 310

Joanne Trimboli

Investor Relations Manager Stockland Tel: +61 2 9035 2553 / +61 (0)403 972 736

Stockland (ASX: SGP) is one of the largest and most diversified property groups in Australia with interests in retail, commercial, industrial, residential and retirement living investment and development, and unlisted property funds. Stockland currently has total assets in Australia, New Zealand and the United Kingdom of over $13.7 billion, market capitalisation in excess of $11 billion, and reported an operating profit of $611 million for the year ended 30 June 2007. Additional information can be found on our website www.stockland.com.au

• Net profit and EPS before certain significant items.

** Includes pay out of realised profit on sale of Investa exposure.

4