Stockland

Welcome to Stockland's FY26 result briefing. There will be a formal presentation followed by a Q&A session. I will now hand over to Tarun Gupta, Managing Director and CEO, for opening remarks.

Good morning and thank you for joining Stockland's full year 2026 financial results update. Joining me today is Josh McCutcheson, our CFO. And joining us for Q&A will be Kylie O'Connor, CEO Investment Management, and Andrew Whitson, CEO of Development. Before we begin, I'd like to acknowledge the traditional owners and custodians of the land on which we meet, the Garigal people of the Euronation, and pay my respects to elders past, present, and emerging. Over the last five years, our focus has been on reshaping our portfolio embedding additional growth pathways and positioning the business for sustainable performance. This time last year, we said that FY26 would mark an inflection point in both activity levels and strategic delivery. In this result, you will see that we have not only achieved this objective, but have done so in a rapidly changing macroeconomic environment. Looking forward, we are confident that the strength of our multi-sector platform can provide further growth as the residential market moves through a more moderate phase of the cycle. FY26 was a year of strong delivery, with a step change in development volumes, continued growth in our capital partnering platform, and active recycling of capital into targeted growth areas. Funds from operations was up 10.4% to $892 million, with FFO per security of 36.9 cents at the top end of our guidance range. We delivered this earnings growth while also further strengthening the balance sheet, with gearing reducing to 22.7% and MTA growing 4% to $4.39 per security. We maintained our focus on maximizing risk-adjusted returns, delivering return on invested capital outcomes consistently within our targeted ranges. And importantly, we have positioned Stockland for growth in FY27. I'm pleased to report today that the disciplined implementation of our strategy has translated to strong operational and financial performance across all parts of the business. In our residential platforms, we delivered record settlements and a 53% increase in sales, and we are well positioned with strong contracts on hand for FY27. We have delivered a significant increase in volumes across our commercial development pipeline, completing projects with an end value of $830 million and commencing projects worth a further $1.2 billion. creating high-quality investment product for our partners and for us. With the majority of our capital now allocated to our preferred sectors of living, retail, and logistics, we are making good progress in capturing change of use upside within our workplace portfolio and maximizing the value of existing logistics assets through conversion to data centers. We have approximately 450 megawatts of power secured across three data center sites, along with a pipeline of four additional identified opportunities, all on land that we already control. Growing our capital partnering platform is an integral part of our strategy, and we were pleased to welcome three new capital partners during the year, Morgan Stanley Real Estate, Mercer, and Edge Connects, In addition to these new partners, we have expanded partnerships with several existing investors. By expanding our third-party capital base and restocking our development pipelines in a capital-efficient manner, we have significantly scaled our platform, strengthened our market position and portfolio quality, and enhanced our ROIC. Over the last three years, we have increased group assets under management by $5 billion with the addition of less than $1 billion to our net funds employed. And as a result, we have grown our high-quality recurring management income by an average of 25% per annum over that period. Creating some we serve requires sustainability to remain embedded across everything we do, recognizing that the homes, communities, and assets we create today will shape how people live, work, and connect for generations. We have delivered close to 10,000 affordably priced new homes and residential lots across the country, with almost a third of these being delivered for first-time home buyers. We achieved net zero Scope 1 and 2 emissions, marking a major milestone in our journey toward a low-carbon future and continue to advance initiatives designed to reduce our most material Scope 3 emissions. In FY24, Stockland has generated just over $800 million of social value and our employee engagement remained high at 84%. And almost 80% of our people own Stockland securities, aligning with the interests of our security holders. I now hand over to Josh, who will talk through the financials.

Thanks, Tarun, and good morning, everyone. As Tarun mentioned, the consistent execution of our strategy has delivered strong operational and financial outcomes over the year. This result is characterized by a significant earnings uplift, a strong balance sheet, and capital settings that support future growth. Turning to the financial result in detail, funds from operations was up 10.4% to $892 million, with FFO per security up 9.1% at the top end of our guidance range. The investment management segment delivered FFO of $606 million, reflecting strong, comparable performance and contributions from development completions. Pleasingly, we achieved this growth while also absorbing NOI dilution from the transfer of assets into partnerships during FY25 and FY26, together with investment in capability and platform expansion. Development FFR was up 17.3%, driven by a step change in settlement volumes across our residential portfolios, growing development fees from increased activity and partnerships, and a larger contribution from commercial development. We have continued to invest in growth while maintaining cost discipline. Across the group, total overheads have grown by 6.4% per annum over the last three years, while we have grown our revenue base by over 13% per annum over the same period. Net interest expense was down, reflecting higher capitalisation into projects in line with increased activation of the pipeline. Statutory profit was up 20.2% to $994 million. This includes just over $200 million of net fair value gains for the period. Given the scale and duration of major project opportunities that we have secured, revaluations relating to properties under development are expected to comprise an increasing proportion of the group's valuation movements in future periods. From FY27, cumulative revaluation gains relating to these properties will be recognised in FFO when development value is monetised through a capital partnering or divestment transaction and becomes cash backed. This adjustment is not expected to have a material impact on FFO and FY27. Looking now at the result for the investment management segment in more detail. We've delivered comparable growth of 3.5% from our portfolio, primarily driven by another strong performance from the logistics portfolio and continued growth from retail. The logistics portfolio benefited from project completions and strong underlying growth, partly offset by lower NOI from the prior year transfer of $400 million of assets into new partnerships and $289 million of strategic asset disposals. Growth in our retail portfolio was supported by strong re-leasing spreads and the completion of three new developments. We continue to actively manage the workplace portfolio, recycling capital from non-core exposures and positioning assets for future change-of-use development opportunities. Communities rental income comprises our established land lease portfolio, which contributed $17 million during the year, and our smaller portfolio of communities real estate assets, which contributed approximately $8 million. Investment management net overhead increased 12% as a result of investment in capability across the business and the growth of operational land lease platform. Turning now to the development segment. Settlements are up 30% in our MPC business. By volume, the proportion of lots settled in joint ventures or project development agreements increased to 55%, primarily due to a greater number of lots settled in our partnership with Superlie. The MPC development operating profit margin was 21.2%, in line with previous guidance, and reflecting further price growth in the Queensland and WA markets during the year, offset by a mixed shift to lower margin projects. The land lease development business delivered FFO of $100 million, a 67% increase on the prior year. The business recorded 777 home settlements and transferred three communities into partnerships. The LLC development operating profit margin reflected a mix of settlements from lower margin projects and increasing marketing costs associated with newly launched communities. The commercial development business generated FFO of $35 million, underpinned by build-to-sell logistics profits and the transfer of three recently completed retail assets into the partnership with Morgan Stanley. Net overheads increased 13.1%, reflecting growth in the development platform as well as increased activation of our pipeline. Operating cash flow was broadly in line with FFO at $876 million. We finished the year with gearing at 22.7%, down significantly from 28.1% at December, reflecting strong second-half cash inflows from MPC and LLC settlements and further capital recycling. Our weighted average cost of debt for the year was in line with FY25 at 5.3%. We expect this to increase to 5.9% for FY27. We extended the tenor of our debt book and we've maintained prudent levels of hedging and substantial liquidity. Our capital management settings are aligned with our strategic growth objectives and our funding sources are clearly defined. In FY26, we continue to effectively redeploy retained earnings, recycle our own capital and raise additional third-party capital. Over the last three years, we have raised or recycled an average of over $2 billion of capital per annum, maintaining a strong balance sheet position and enabling future growth. I'll now hand back to Turun.