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STOCKLAND (SGP)

STOCKLAND (SGP)

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General Information
Company Name: Stockland
Stock Code: SGP
Website: www.stockland.com.au
GICS Sub-Industry: Diversified Real Estate Activities
Market Cap ($M): 7,783
Equiv. Shares (M): 2,316

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 3.280 $ 3.370 $ 3.405 $ 3.280 $ 3.360 10,562,882 $ -0.080  -2.381 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 19th Dec 2011
12 Month Target Price (average): $3.611
Brokers Surveyed: 7

Company Overview

Business Description:
Stockland Group (SGP) is a global property development and investment management group, founded in 1952. It holds a diversified portfolio of retail, commercial and industrial investment properties across Australia together with an Australian retirement communities portfolio and an extensive residential land bank and development pipeline.

Strategy Analysis:
SGP aims to create a world class, diversified property group by leveraging the existing businesses. Through the Commercial property, Residential Communities and Retirement Living businesses, SGP has a highly developed integrated, mixed use skill base which is well placed to optimise collaboration, synergies, economies of scale and global knowledge transfer. Corporate activity with GPT, FKP and Aevum, initiated over the preceding three years, has now been acted upon. A strong focus on sustainability, people and culture continues. Stockland reported NPAT of $667.9m for the year ended 30 June 2011, compared to $382.2m in the prior year. The underlying profit for the financial year was $752.4m, reflecting a 8.7% increase from the prior year. Revenues from ordinary activities were $679.0m, compared to $672.3m last year. Diluted EPS was 28.2 cents compared to 16.2 cents last year. Net operating cash flow was $673.9m compared to $664.2m last year. The final dividend declared was 11.9 cents, taking the full year dividend to 23.7 cents compared with 21.8 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 760.5 31.7 0.2 10.6 23.7 7.1 0.0
2012  F 758.8 31.6 0.0 10.6 23.7 7.1 0.0
2011  A 752.4 31.6 8.5 11.8 23.7 6.4 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
GPT Group (GPT) $5,428 M 0.3763 -0.3386 0.0112 8.8784 13.4228 13.2743 0.0450 0.0588 0.0614
Lend Lease Group (LLC) $4,191 M 0.3145 -0.0893 0.1314 8.5651 9.4047 8.3125 0.0477 0.0536 0.0592
Mirvac Group (MGR) $4,152 M 0.1382 0.0000 0.0361 11.5275 11.5275 11.1264 0.0675 0.0677 0.0718
Stockland (SGP) $7,737 M 0.0871 0.0134 0.0227 10.6675 10.5263 10.2928 0.0710 0.0715 0.0740
Westfield (WDC) $20,065 M 0.1969 -0.1661 0.0493 11.4402 13.7196 13.0755 0.0731 0.0557 0.0574

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth
SGP 1.07 10.64 0.91 5.90
Market 0.82 12.5 1.38 1.21
Sector 1.25 11.5 0.74 5.90

Directors
Name Position Start Date
Mr Matthew James Quinn Managing Director 01 January 1999
Mr Graham John Bradley Non-Executive Chairman 04 February 2004
Ms Carolyn Judith Hewson Non-Executive Director 01 March 2009
Mr Barry Hugh Roxborough Neil Non-Executive Director 23 October 2007
Mr Peter Brooke Scott Non-Executive Director 09 August 2005
Ms Carol Judith Schwartz Non-Executive Director 01 July 2010
Mr Terry Williamson Non-Executive Director 29 April 2003
Mr Duncan Boyle Non-Executive Director 07 August 2007

Management
Name Position
John Schroder CEO Commercial Property
David Pitman CEO Retirement Living
Mark Hunter Chief Executive Officer Residential
Tim Foster Chief Financial Officer
Phillip Raymond Hepburn Company Secretary
Derwyn Williams Company Secretary
Michael Rosmarin EGM Human Resources
Karyn Munsie Executive General Manager Corporate Affairs

Substantial Shareholders
Holding Name
123,536,121 (5.19%) AMP Limited
156,972,956 (6.59%) Commonwealth Bank of Australia
131,344,992 (5.52%) BlackRock Investment Management (Australia) Limited (formerly Barclays Global Investors Australia)
145,917,504 (6.13%) Vanguard Investments Australia Ltd

Calendar of Events
Date Event
17 September 2012 Report (Annual)
17 August 2012 Report (Prelim)
08 August 2012 Report (Annual)
08 August 2012 Report (Prelim)
29 February 2012 Div Pay Date
09 February 2012 Report (Interim)
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