Stockland December 2009 Half-Year Results

Stockland's 2010 half year results, with a focus on strategy, outlook and sustainability.

• Underlying profit $334.6 million, up 17% on 1H09
• Underlying earnings per security 14.1 cents, down 21% on 1H09 due to higher number of shares on issue
• Distribution per security 10.8 cents
• Statutory profit $213.7 million
• Gearing (Net Debt / Total Tangible Assets) 18%
• FY10 EPS guidance upgraded from 28c to 29c

Managing Director Matthew Quinn said: "The last couple of years have been challenging. We had to make a lot of tough decisions, such as last year's capital raising which places us in a strong financial position, but also came at the cost of dilution to our securityholder returns.

"As we move into the economic recovery phase we are focussed on rebuilding securityholder value through a clear, consistent strategy and delivering strong financial results.

"Today's announcement of solid underlying profit growth, momentum in our core business operations and upgraded guidance for the full year reflects good progress towards these outcomes.

"In the first half, we continued to adapt our Residential product to meet market demand and delivered record sales results. We also acquired four residential land parcels in new growth corridors.

"We commenced three new Retirement Living projects and in our Commercial Property business, we leveraged our asset management expertise to deliver solid leasing results and reasonable rental growth."

"Our operating businesses enter the second half in a good position. We have a strong balance sheet, good cash flows and long-dated debt," Mr Quinn said.

Strategy and Outlook

Stockland is focussed on delivering increased securityholder returns through the growth of its three core businesses: Residential, Retirement Living and Commercial Property.

The Residential business remains focussed on enhancing its market-leading position and growing market share by acquiring land in key growth corridors.

Retirement Living is a key growth platform with rising demand as the population ages. By utilising Stockland's existing land bank, the development pipeline will add significant scale to the business over the next few years.

Stockland has a large retail development pipeline with four projects under construction and five projects set to commence in the next 18 months.

The Group's organic growth is fully funded for the foreseeable future given its strong balance sheet, expected positive cash flows from the trade out.

Sustainability

Stockland recognises the importance of sustainability to its long-term success and aims to integrate sustainability principles into the way it works, to deliver long-term value to its customers, tenants, investors and business partners. Stockland was ranked 24th in the Corporate Knights Global 100 Most Sustainable Corporations in the World at the 2010 World Economic Forum in Davos, Switzerland. The Group was one of only eight Australian companies to make the list and named the top diversified property company in the world. This comes after the Group was named Ethical Investor's 2009 Australian Sustainable Company of the Year.

Outlook

Stockland Managing Director Matthew Quinn said: "While market dynamics continue to fluctuate, we enter the second half in the strongest shape we have been in for some time and our business is well positioned to deliver results through the market cycles. "I'm confident that we have a proven business model, a clear strategy and the right management team in place to deliver it," Mr Quinn said.

Visit us: www.stockland.com.au

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