STOCKLAND — Interim / Quarterly Report 2021

Apr 19, 2021

3Q21 update 20 April 2021

3Q21 UPDATE

1

Delivering outcomes that drive long-term value

Quarter ended 31 March 2021

Continued strategy execution maximising returns through community creation, our commercial property development pipeline and rebasing and remixing our retail portfolio

Safety andwellbeing	COVIDSafeplans	•Operational plans remain active across our assets as we continue to protect our tenants, customers, contractors andteams
Innovation andtechnology	Customer experience andretailer support	•Digitisationof our residential customer experience and omni-channel home buying which is driving over 80% of our customer enquiry•Supported our retailers to connect their physical product offerings to our online product visualisationcapability, driving incremental sales
Residential	Market leading businesswith ~81,000 lot landbank1	•Strong sales for the quarterup69% on pcp, enquiry levels demonstrate ongoing appeal for masterplannedcommunities beyond HomeBuilder•Full year target of ~6,300settlements with anaverage operating margin of ~19%in FY21 with 4,611 lots settled (3Q21: 1,510, 1H21: 3,101)
RetirementLiving	Continued strength inestablished sales	•Established net sales of 190 units reflects the strongest quarter in 4years•Demonstrates continuedincrease in the value customers place on village living andstronghousingmarket conditions•First land lease product launched at Aura (QLD) in late February 2021 with 25 sales to date
Retail	Resilience demonstratedthrough increasedproductivity	•70%+ low and non-discretionary retailer/service mix delivering strong 3Q21 comparable total sales growth of 3.2%Retail rent collected financial year to 14 April 2021 has risen to 94% of billings, net of abatements2 from•87% reportedin the 1H21 disclosures•COVID tenant support arrangements are almost complete, with unresolved negotiations representing less than 4% of retail monthly billings•Settled non-core divestments of Traralgon(VIC) for $85 million on 31 March 2021 and The Pines (VIC) for $155 million on 8 January 2021
Workplace andLogistics	Progressing major projectsto upgrade our portfolios	Maintained solid operational metrics and 98% rent collection, net of abatements2••Executed leases of over 230,000sqm financial year to date in Logistics$5.9bn3,4 development pipeline progressing in line with expectations•Strong Logistics land trading performance; 89%5 of land exchanged at Gregory Hills (NSW), 45%5 of Stage 1 land at Melbourne Business Park•(VIC) exchanged or reserved for FY22 settlement
Capitalmanagement	Strong balancesheetprovides confidencein accessing debt markets	•Maintained investment grade credit ratings of A-/A3 with stable outlook from S&P and Moody's respectively$2.2bn available liquidity6, likely to reduce our liquidity profile in the medium term••$366m long-term debt issued; $300m 7 yearAUD medium term note, AUD equivalent $66m 15 yearHKD private placement

1. Lots controlled by Stockland.

2. Relating to FY21 total outstanding debt at 14 April 2021.

3. Stockland share of expected incremental development spend, excluding land cost and subject to planning approval.

4. Development commencements are subject to a continuing review of acceptable financial metrics, pre-commitment levels and market conditions.

5. By gross sellable area.

2

1. Comprising cash and committed undrawn bank debt facilities at 31 March 2021.

Communities

Well positioned to capitalise on strong market conditions

Residential

• 3Q21 sales of 1,891 lots ahead of expectations and 69% above pcp
• Continued sales momentum over February 2021 and March 2021 reflects underlying strength of demand with continued price growth across the eastern seaboard
• Elevated enquiry levels demonstrates ongoing appeal for masterplanned communities product beyond HomeBuilder
• Contracts on hand of 4,739 with ~3,100 contracts due to settle in FY22 provides good earnings visibility
• Restocking of ~1,950 lots1 over the quarter including 900 lots from recent acquisitions at Wantirna (VIC) and Piara Waters (WA)
• FY21 target of ~6,300 settlements with 1,510 settlements completed in 3Q21
• FY21 target operating profit margin of ~19%, with the consolidation of Clydesdale and Elara (NSW) delaying the release of approximately $15m FFO into FY22 and FY23

1. Includes previously disclosed acquisitions of Grand Central (VIC) ~500 lots, The Gables consolidation (NSW) ~200 lots, and Clydesdale (NSW) ~350 lots which settled in the quarter. A total of 10,100 lots were acquired in the financial year to date.

4 NEWPORT, QLD COMMUNITIES

Supply and demand outlook for detached housing

Vacant land market to remain supply constrained

• Detached dwelling segment (vacant land) to reach equilibrium in 2021 post a prolonged period of undersupply¹
• Low interest rates, access to credit and shift in customer preferences has released pent up demand and brought forward future demand, largely offsetting net negative overseas migration in 2021
• Pull forward of demand to be partially offset by population growth as borders reopen in 2022
• 255,000 Australians (net) have returned for the short term since March 2020 and have the potential to increase dwelling demand over the short to medium term
• Supply to remain low in 2021 and fall further in 2022 due to easing of demand, with shortages of englobo land in Greater Sydney and SEQ to limit supply over the medium term
• Overall, the 2021-2025 period is expected to be characterised by material undersupply in Greater Sydney and SEQ, market equilibrium in Greater Melbourne and moderate oversupply in WA

SUPPLY-DEMAND BALANCE FOR DETACHED DWELLINGS1,2 - AUSTRALIA

1. Stockland Research.

1. Forecasts include allowance for net demolitions and withdrawals.

Leveraging housing market strength Retirement Living

Strong established sales performance

• 3Q21 established net sales of 190 units reflects the strongest quarter in over 4 years
• Result reflects the increased appeal of village living and improving residential market conditions

Continued land lease momentum

• Aura (QLD) land lease launched in late February 2021 resulting in 25 sales to date
• Our second land lease community at Minta (VIC) will be launched in June 2021
• Focussed on unlocking incremental pipeline opportunities from our masterplanned communities landbank
• Further acquisition opportunities currently under consideration

Commercial Property

ARTIST IMPRESSION OF AFFINITY PLACE, NORTH SYDNEY, NSW

7

Continued improvement in performance Retail Town Centres

• Improving productivity and rent collection demonstrates the resilience of our portfolio, the success of our rebasing and remixing strategy and the location of our assets with less COVID related disruption

• 2H21 leasing spreads are forecast to be in line with 1H21 rental reversions

• 3Q21 comparable total sales growth of 3.2% and specialty sales growth of 9.4% demonstrating a continuing recovery in sales

• March 2021 comparable specialty sales growth of 31.0% reflects COVID restrictions in place in March 2020

• Specialty occupancy cost1 improved relative to 1H21 to 15.2%, reflecting stronger sales

• Continuing the successful remixing strategy, H&M backfill at Townsville (QLD) and Rockhampton (QLD) was leased to on-trend brands including Timezone, TK Maxx, Pivot and Cotton On

• Anticipate and forecast abatements2 of less than 2% will be applied to 3Q21 billings which is significantly lower than the abatements of 12% and 3% applied to 4Q20 and 1H21 respectively

• Some localised COVID lockdowns had a minor impact on sales, most notably at our centres in Balgowlah and Shellharbour in NSW, Point Cook in Victoria, and Bull Creek, Riverton and Baldivis in WA

• 129 tenants on holdover at 31 March 2021, compared to 182 holdovers at 31 December 2020

• JobKeeper and the Commercial Code of Conduct has now concluded

  • 3Q21 shows improving tenant sales rates
  • Our earnings forecast for the retail business includes provisions for vacancy, let up periods and estimated credit losses commensurate with current market conditions
• 1. Majority of the abatements are for SMEs, non-SME is 0.7%.
• 1. Sales data includes all Stockland managed retail assets including Unlisted Property Fund and joint venture assets.

TO 31 MARCH 2021		TOTAL PORTFOLIO3		COMPARABLE CENTRES4
Retail salesby category		MAT$m	growth	MAT	MATgrowth		3Q21growth
Total		5,717		(0.3)%		(1.2)%		3.2%
Specialties		1,710		(4.5)%	(5.7)%			9.4%
Supermarkets		2,103	5.0%		4.4%			(1.7)%
DDS/DS		897		13.2%	13.7%			18.9%
Mini-majors		775		19.6%	18.4%		20.7%
Other retail5		233	(53.8)%		(55.5)%		(42.0)%
Comparablesales growth4	1H21	3Q19	3Q20		3Q21	JAN-21	FEB-21	MAR-21
Total	2.6%	1.7%	1.2%		3.2%	1.5%	(0.1)%	8.5%
Specialties	(0.8)%	2.4%	(4.5)%		9.4%	0.4%	1.5%	31.0%

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

2. Other includes pad sites, non-retail, and cinemas.

1. Occupancy cost reflects those tenants with active leases of 12 months or more and rental abatements.

Solid operational metrics

Workplace

• Portfolio occupancy1 of 94.1% and expiry profile of 2.7 years are aligned to the redevelopment strategy
• $2.6bn2,3 future development pipeline targeting tenant pre-commitments and capital partners in place at project commencement
  • Affinity Place, North Sydney (NSW); DA lodged in January 2021, targeting construction commencement ~1H23
  • Piccadilly, Sydney (NSW); proceeding to Central Sydney Planning Committee

Logistics – including Business Parks

• Portfolio occupancy of 97.8%1
• WALE2 of 4.6 years typically reflects our tenants' client contract terms with ~50% of our portfolio leased to pure logistics providers
• 2.6% of leases (by income) expire in 4Q21
• $3.3bn2,3 future development pipeline is progressing to plan
  • M_Park Macquarie Park (NSW); 60% of Stage 1 terms agreed
  • Leppington Business Park (NSW); Stage 1 built form DA lodged in January 2021 for 21,400sqm, targeting construction commencement ~1Q22

	3Q219 months ended31 March 2021	1H216 months ended31 December 2020
Leases executed	3,231sqm	2,797sqm
Leases under HOA5	4,851sqm	1,103sqm
Portfolio occupancy1	94.1%	93.2%
Portfolio WALE4	2.7 years	2.8 years

	3Q219 months ended31 March 2021	1H216 months ended31 December 2020
Leasesexecuted	230,897sqm	182,019sqm
Leases under HOA5	86,280sqm	71,954sqm
Portfolio occupancy1	97.8%	96.3%
Portfolio WALE4	4.6 years	4.8 years

1. By income.

2. Stockland share of expected incremental development spend, excluding land cost and subject to planning approval.

3. Development commencements are subject to a continuing review of acceptable financial metrics, pre-commitment levels and market conditions.

4. Weighted average lease expiry, by income.

5. At 31 March 2021.

Key priorities

• Seamless leadership transition with new MD&CEO to commence 1 June 2021
• Optimise customer experience, continue strong focus on safety and wellbeing
• Upweight Logistics exposure through development and capital partnerships
• Undertake Residential land acquisitions to restock pipeline
• Maintain Communities' leading market share
• Continue acceleration of innovation, digital and data capabilities
• Delivery of 2030 Sustainability strategy and the transition to a low carbon economy

FY21 guidance

We continue to target:

• FFO per security of 32.5c to 33.1c, currently trending towards the top end of the range
• Distribution per security within our target payout ratio of 75% to 85% of FFO, albeit at the lower end of the range

Assumptions:

• Residential settlements ~6,300 lots
• Residential operating profit margin ~19%
• Continuing recent rent collection trends in Commercial Property

1. Due to gaining more certainty around our business performance and market conditions, guidance was re-established in February 2021. All forward-looking statements are subject to the continuation of recent trends in rental collection and residential settlements and no material change in market conditions; including the level of community transmission, the impact of restrictions including state border closures and other impacts from COVID 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

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. This presentation contains 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 the release. While Stockland has provided some guidance in relation to FY21 earnings in this presentation, this remains subject to no material change in market conditions including the impact of any state border closures, COVID transmission and other impacts from COVID on the economy, the broader community and business performance including all forward -looking statements.

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. 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 this presentation. All information in this presentation is subject to change without notice. This presentation is not 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. It is for information purposes only.

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