ONE of the longest-serving chief executives in property, Matthew Quinn, has announced his retirement from Stockland Group.
Mr Quinn joined the group 11 years ago and has steered it through the global financial crisis, a series of hard-fought acquisitions and a realignment of operations.
His decision comes four months after saying he was committed to staying with the group for another three years, albeit not on a contract, but on a "statement of intent".
At the same time, he agreed to a clawback of short-term incentives for the 2013 year, but his pay of $5.3 million last year did include about $2.2 million in short-term cash incentives.
Over the 11 years , Mr Quinn's high salary has been the subject of shareholder dispute, but after buybacks and capital raisings over his tenure, the share price has returned 96.5 per cent, against the S&P/ASX 200 A-REIT Accumulation Index's 54 per cent.
Mr Quinn joined Stockland at a time when it was a single-focused "rent collector" run by late founder and industry stalwart Ervin Graf. Mr Quinn was only the third chief executive employed at Stockland.
And showing the strong ties it had to its past, Peter Daly, whom Mr Quinn replaced, remained as the group's executive chairman for at least a year before he let go of the reins to allow the new guard some freedom.
In the ensuing years, Mr Quinn and his team, including the current head of retail, John Schroder, fought off the big guns and became one.
It made a series of hard-fought takeovers, including a move on the AMP Diversified Property Trust, which propelled Stockland to the third-biggest Australian real estate investment trust by market capitalisation. It retains that position.
But Mr Quinn also made two unsuccessful tilts at GPT and was rumoured to have looked at rival Mirvac over the years.
He also bowed to market pressure and bought into the UK, an investment that was later written down and is up for sale.
There is also the investment in FKP Property, where Stockland has a first right over the retirement assets. It is a strategy that still upsets some investors.
Mr Quinn said one of the highlights of his tenure was "creating the culture here and assembling a great team of people that I watched excel and seeing their careers flourish".
"The other is related to our customers and the centres we have created," he said.
"While I would prefer to be leaving when the market was stronger, I think it's time to seek out new opportunities for me and the company."
But for Mr Quinn, one of his legacies will be the much publicised three Rs strategy of retail, residential and retirement.
These three are now the hardest hit by the current climate and have caused two earnings downgrades this year.
Frequently Asked Questions about this Article…
Who is Matthew Quinn and why is his Stockland retirement news important for investors?
Matthew Quinn is the long-serving chief executive of Stockland Group who joined the company 11 years ago. His retirement is notable because he steered Stockland through the global financial crisis, major takeovers and a realignment of operations, helping the group grow to become one of Australia’s largest A-REITs.
How did Stockland perform under Matthew Quinn's leadership?
During Quinn’s 11-year tenure the share price returned about 96.5%, outperforming the S&P/ASX 200 A-REIT Accumulation Index’s 54% return. The company completed major takeovers that pushed it to the third-largest Australian real estate investment trust by market capitalisation.
What was Matthew Quinn paid and were there any incentive issues?
Last year Quinn’s reported pay was $5.3 million, which included about $2.2 million in short-term cash incentives. He also agreed to a clawback of short-term incentives for the 2013 year following shareholder pressure.
What is Stockland’s 'three Rs' strategy and why should everyday investors care?
The 'three Rs' strategy refers to Stockland’s focus on retail, residential and retirement assets. Investors should note this because those three sectors have been the hardest hit by the current market climate and have contributed to two earnings downgrades this year.
Which major acquisitions and corporate moves did Stockland make during Quinn’s time as CEO?
Under Quinn, Stockland executed a string of takeovers including the move on AMP Diversified Property Trust, making it the third-biggest A-REIT by market cap. The company also invested in the UK (later written down and put up for sale), took a strategic stake in FKP Property with first rights over retirement assets, and mounted unsuccessful bids for GPT while reportedly eyeing Mirvac at times.
Why have some investors been unhappy with Stockland’s investment decisions?
Some investors were displeased by Stockland’s overseas push into the UK, which was later written down and is up for sale, and by the FKP Property strategy (Stockland holds first rights over retirement assets). These moves, along with mixed takeover attempts, have prompted criticism.
Who in Stockland’s management was highlighted as part of Quinn’s leadership team?
The article highlights John Schroder, the current head of retail, as a member of Quinn’s leadership team. It also notes Peter Daly, Quinn’s predecessor, who stayed on as executive chairman for at least a year after Quinn took over.
What legacy did Matthew Quinn leave at Stockland that everyday investors should know about?
Quinn says his key legacies are creating a strong corporate culture, assembling a high-performing team, and building customer-facing centres. Strategically, the three Rs (retail, residential and retirement) are also a defining legacy—though they are currently under pressure and have affected earnings.
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