Stockland Annual Report 2023

FY2023 Annual Report · Stockland
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A better  way to live.Annual report 30 June 2023 Stockland acknowledges the Traditional Custodians and knowledge holders of the land 
where we live, work and play, and pay our respects to their Elders past, present and 
emerging. We thank all Aboriginal and Torres Strait Islander Peoples for enriching our nation 
with their leadership, language, art, story-telling and ongoing connection to Country.

A better way to live
Stockland’s Annual Report demonstrates how we create 
value for all our stakeholders. It illustrates how we achieve 
our purpose, ‘a better way to live’, as we help create and 
curate connected communities across Australia.

Our Annual Report is a consolidated summary of Stockland 
Corporation Limited and its controlled entities, including 
Stockland Trust and its controlled entities (Stockland 
or Group) for the year ended 30 June 2023 (FY23). 
It has been prepared with reference to the principles 
of the International Integrated Reporting Council (IIRC) 
Integrated Reporting (IR) Framework to communicate how 
our strategy, operational and financial performance, and 
approach to environmental, social, and governance matters 
create value for stakeholders over the short, medium and 
long term.

Corporate reporting suite

Our corporate reporting suite includes:

• Annual Report

• Results Presentations

• Databook

• Property Portfolio

• ESG Supplements, including FY23 ESG Data Pack and 
Management Approaches, Modern Slavery Statement, 
Climate Transition Action Plan, Reconciliation Action Plan

Our corporate reporting suite documents are available 
for download on the Stockland Investor Centre 
www.stockland.com.au/investor-centre

The Directors of Stockland Corporation Limited (ACN 000 181 733) and the Directors of Stockland Trust Management Limited 
(ACN 001 900 741, AFSL 241190), the Responsible Entity of Stockland Trust (ARSN 092 897 348), present their report together 
with the Financial Report of Stockland and the Independent Auditor’s Report thereon. The Directors’ Report for FY23 has 
been prepared in accordance with the requirements of the Corporations Act 2001 (Cth)

02

Stockland Annual Report 2023

A better  way to live. 
 
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Year ended 30 June 2023

03

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Contents

Contents

Chairman and CEO letters

FY23 performance and outlook

p.08

p.24

How we create value

Governance

p.16

p.57

04

Stockland Annual Report 2023

Remuneration Report

FY23 Highlights

p.78

Securityholder information and key dates

p.181

Chairman and CEO letters

How we create value
Financial
Assets and land
FY23 performance and outlook
Sustainability
People and capability
Quality relationships

Governance
Our approach to corporate governance
Our approach to tax
Our approach to risk management 
Lead auditor’s independence declaration

Remuneration Report

06

08

16
20
22
24
30
45
53

57
63
70
73
77

78

Financial report for the year ended 
30 June 2023
Consolidated statement of 
comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial report
Directors’ declaration
Independent auditor’s report

100

101

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105
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174
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Securityholder information and key dates

181

Glossary

185

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Year ended 30 June 2023

05

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY23 Highlights

FY23 Highlights

Pre-tax Funds From Operations (FFO)

$883m

up 3.8% on FY22

Pre-tax FFO per security

37.1c

up 3.9% on FY22

Distribution per security (DPS)

26.2c

74% payout ratio

Net tangible assets (NTA) per security

$4.24

down from $4.31 at 30 June 2022

Statutory profit

$440m

vs $1,381m in FY22

06

Stockland Annual Report 2023

Image caption:Stockland head office, NSWStrong FY23 operational and financial
results, supported by balance sheet strength.

Development return on invested capital (ROIC)1

Recurring return on invested capital (ROIC)1

18%

upper end of 14-18% target range

3%

below target range of 6-9%

Gearing

21.9%

vs 23.4% at 30 June 2022

Employee engagement

88%

above Australian National Norm2

Commercial Property emissions intensity reduction

Customer satisfaction3

13%

on FY20 baseline

>80%

in line with FY22

Accelerated

Net zero

scope 1 & 2 target to 2025

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1 Recurring return comprises management income and property NOI (net of amortisation and straight-line rental adjustment) less divisional overheads plus 
revaluation movements. Development return includes realised development gains and profit on sale of inventories, net of divisional overheads and before 
interest and tax.
2 Willis Tower Watson
3 Average across retail shopper satisfaction, retail tenant satisfaction, resident deposit satisfaction, and Workplace and Logistics tenant satisfaction.

Year ended 30 June 2023

07

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chairman and CEO letters

Letter from 
the Chairman

Dear Securityholders,

FY23 financial highlights

Our statutory profit was $440m compared with $1,381m in 
FY22. The statutory result for FY23 includes $(250)m1 of net 
commercial property devaluations, which also contributed 
to a decline in our net tangible asset backing (NTA) per 
security from $4.31 to $4.24. Statutory profit in the previous 
corresponding period included a net revaluation uplift 
of $725m1.

On a pre-tax basis, FY23 FFO of $883m was up 3.8 per cent 
relative to FY22. FFO per security of 37.1 cents was up 3.9 per 
cent, toward the upper end of our guidance range of 36.4 to 
37.4 cents. Both the Commercial Property and Communities 
segments delivered solid earnings growth over FY23, up ~13 
per cent and ~17 per cent respectively.

As previously signalled, Stockland Corporation Limited 
returned to an income tax paying position during the year. 
On a post-tax basis, FFO for FY23 was $847m or 35.6 cents 
per security.

The distribution for the year declined by 1.5 per cent to 26.2 
cents per security. The distribution payout ratio of 74 per 
cent is marginally below our target range of 75 per cent to 
85 per cent of post-tax Funds from Operations.

Stockland finished the year in a strong capital position, 
with gearing of 21.9 per cent at the bottom end of our 
target range of 20-30 per cent. This provides the Group with 
significant capacity for investment in its strategic priorities.

FY23 was a year of solid achievement for Stockland.

Our FY23 result represents a strong financial and 
operational performance, with Funds From Operations 
(FFO) toward the upper end of our guidance range.

The result also reflects the strength of our diversified
platform and the cumulative results of several years’ 
worth of focused and disciplined efforts by the Stockland 
team to create a high quality, resilient portfolio and 
development pipeline. The initial earnings benefits of the 
refreshed strategy that we announced in November 2021 
are also evident, along with our disciplined approach to 
capital management.

Portfolio quality and balance sheet strength come to the 
fore during periods of economic and market uncertainty.

The rapid and sustained increase in interest rates 
observed since May 2022 has had a material impact on 
housing affordability and the confidence of prospective 
homebuyers. In recent months the more restrictive 
interest rate environment has also started to impact 
discretionary consumption, and a combination of higher 
return requirements and greater uncertainty regarding the 
growth outlook has also led to valuation declines across 
some sectors of the real estate market.

Our Town Centres are benefiting from their high weighting 
to “essentials” categories, and structural drivers continue to 
underpin strong occupier demand for our Logistics assets 
and development projects. Demand has also remained 
resilient for our Land Lease Communities (LLC) product, 
facilitating further price growth for new releases.

We continue to increase our portfolio weighting to the 
Logistics and LLC sectors, in line with the strategic targets 
that we shared with you in November 2021. We are 
also positioning our Masterplanned Communities (MPC) 
business for the recovery phase of the residential cycle and 
leveraging the scale and breadth of our landbank to provide 
more affordably priced product to meet the affordability
challenges faced by our customers.

1 Excludes sundry properties and stapling adjustment, includes investment properties under construction (IPUC) and Stockland’s share of equity 

accounted investments.

08

Stockland Annual Report 2023

 
 
Focusing on sustainable growth

The focus of the Board and the management team is on 
driving sustainable growth.

Disciplined capital management – in the form of prudent 
balance sheet settings, targeted capital allocation and 
appropriate return hurdles – is one of the ways in which we 
endeavour to achieve this outcome.

For FY23, our development activities generated a return on 
invested capital (ROIC) of 18 per cent, at the upper end of 
our through-cycle target range of 14 to 18 per cent2.

The ROIC for our recurring activities (including management 
income and returns from our real estate investment assets) 
of 3 per cent was below our target range of 6 to 9 
per cent2. This largely reflects the impact of adverse 
market cap rate movements on real estate values over 
the period. We believe that our target return range for 
these activities remains appropriate on a through-cycle 
basis, noting that at various stages of the real estate 
cycle, valuation movements can have a material impact 
on the result.

We are proud to present our first Climate Transition 
Action Plan in 2023 together with our refreshed 
ESG strategy which sets out our ambitions in the 
areas of decarbonisation, circularity, social impact and 
climate resilience3.

We have brought forward our net zero target for scope 1 and 
2 by three years, to 2025, and are working to halve our most 
material scope 3 emissions by 20304. We target net zero for 
scope 1, 2 and 3 emissions by 20505.

Importantly, we have identified a pathway to achieving 
our decarbonisation goals, with a focus on making a 
measurable difference through the implementation of 
practical, commercially viable initiatives5.

Our focus on making practical and measurable impact 
extends to our social impact ambitions. Our goal is to create 
~$1 billion of social value by 2030, targeting areas such as 
housing affordability and First Nations engagement6.

Tom Pockett, Chairman

Aligning remuneration to our strategy

As stated in last year’s remuneration report, the Board 
conducted a review of the executive remuneration 
framework for FY23 to optimise how it supports and aligns 
with our strategy.

The review incorporated feedback from securityholders and 
their representatives and identified opportunities to further 
evolve the framework’s design and execution. These were 
set out in the notice of meetings for the 2022 Annual 
General Meeting and included:

• Strengthening the performance focus by further 

simplifying the Short Term Incentive (STI) scorecard and 
aligning measures to the refreshed business strategy, 
such as introducing ‘through the cycle’ target ranges for 
Recurring and Development Return On Invested Capital 
(ROIC) for FY23; and

• Improving the alignment of Long Term Incentives (LTI) to 

the strategy and to support transformative growth.

We consider the refreshed executive remuneration 
framework to be aligned to Stockland’s strategy during this 
period of transformative growth.

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2

Indicative long-term target for return on invested capital. Recurring return comprises Management income and Property NOI (net of amortisation and 
straight-line rental adjustment) less divisional overheads plus revaluation movements. Development return includes realised development gains and profit 
on sale of inventories, net of divisional overheads and before interest and tax.

3 Roadmap for achieving our ESG targets and the material assumptions, uncertainties and dependencies associated with those targets, are set out in 

Stockland’s Climate Transition Action Plan (CTAP) 2023, available on our website.

4 The 2030 scope 3 target includes GHG Protocol Categories 1 (purchased goods and services) and 13 (leased assets), which collectively represent 

approximately 89 per cent of Stockland's scope 3 emissions.

5 Stockland’s emissions reduction targets have been prepared by reference to criteria set out by the Science Based Targets Initiative (SBTi). The targets have 
been reviewed by Ernst & Young (EY), which has provided limited assurance in relation to their alignment with the published SBTi criteria. Stockland has 
also submitted its targets to SBTi for validation.

6 We define social value creation as our intentional effort and investment to deliver social, economic and/or environmental benefits for our communities 
and broader society. EY was engaged to provide limited assurance over Stockland’s approach to defining, measuring, and calculating the social value target 
– for further detail refer to page 38 within this report.

Year ended 30 June 2023

09

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chairman and CEO letters

People and culture underpin our success

Looking ahead

Our innovative and inclusive culture underpins how we 
operate and is essential to our success.

At the heart of our culture is our dialogue with our people. 
Our independently administered ‘Our Voice’ employee 
surveys provide regular opportunities for our people to 
share their feedback about what it is like to work at 
Stockland and allow our leaders to listen and respond to 
that feedback. In FY23, we achieved a significant increase 
in our already-high overall employee engagement, which 
at 88 per cent is ~8 points above the Australian National 
Norm and for some categories above the Global High 
Performing Norm1.

Stockland has a clear strategy and a unique set of strengths 
and capabilities that position the group for continued 
success: a high quality, resilient portfolio; a strong, 
innovative, and customer-centric culture with a focus on 
safety; a commitment to ESG leadership supported by 
a proud record of achievement; brand leadership; multi-
sector end-to-end capability across a large, nationally 
diversified land bank; and a robust balance sheet.

Our purpose, ‘a better way to live’, has driven us for the 
last 71 years, and our values of Community, Accountability, 
Respect and Excellence remain at the core of everything 
we do.

Both employee surveys conducted in FY23 showed 
significant improvement in our peoples’ wellbeing 
compared with prior years. In our October 2022 survey, 
wellbeing levels returned to pre-COVID levels, scoring 
significantly above the Australian Norm1.

I would like to extend my thanks to the Board, Leadership 
Team and all employees for their hard work and 
commitment over the past year. Finally, thank you to all 
of our securityholders for your continued support and 
investment in Stockland.

Tom Pockett
Chairman

Stockland has a strong track record of encouraging 
innovative thinking and behaviour across the business. 
As part of my role as Chairman, I have had the 
privilege of supporting the annual Stockland Innovation and 
Excellence Awards and sponsoring the Chairman’s Award 
for Innovation. This year’s award was won by the Cool 
Roofs initiative – utilising light coloured roofs, cool roads 
and pavements, and increased tree canopy cover – to help 
reduce urban heat by 2-4 degrees at our masterplanned 
communities. This initiative demonstrates our mindset 
around innovation - applying practical solutions that further 
our ESG goals while achieving commercial outcomes.

I am also proud of our commitment to First Nations 
engagement and reconciliation. During FY23, we developed 
our inaugural First Nations strategy, focusing on key areas 
where we believe Stockland can make a meaningful 
impact, including indigenous employment, procurement, 
and designing with Country. To help deliver on our strategy 
and further embed our indigenous commitment into our 
business, we have established the Stockland Indigenous 
engagement team, an all-Indigenous team of experts 
across the country.

Our purpose, ‘a better way to live’, has 
driven us for the last 71 years, and 
our values of Community, Accountability, 
Respect and Excellence remain at the core 
of everything we do.

1 Willis Tower Watson.

10

Stockland Annual Report 2023

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Year ended 30 June 2023

11

Image caption:Artists’ impression, Affinity Place, NSW 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chairman and CEO letters

Letter from the 
Managing Director 
and CEO

Dear Securityholders,

In November 2021, we shared our refreshed 
strategy, building on Stockland’s strengths to deliver 
sustainable growth.

Over FY23, we made further progress in executing this 
strategy: reshaping our portfolio through the targeted 
divestment of non-core properties and creation of new, 
high-quality assets that are accretive to both earnings 
and net tangible assets; progressing the delivery of 
our $40 billion1 development pipeline; and growing our 
existing capital partnerships while executing on new 
partnering initiatives.

While progressing our strategy, we also delivered strong 
operational and financial results and maintained our focus 
on financial strength and flexibility.

The macroeconomic backdrop remains uncertain, and 
conditions across the markets in which we operate are 
variable. Our strategy is informed by the longer-term 
structural and demographic drivers that are shaping the 
real estate industry, and designed to produce sustainable 
returns through various stages of the real estate and 
economic cycles. In the current environment, the quality of 
our diversified portfolio and our robust financial position 
provide both resilience and the ability to capitalise on 
opportunities to drive further sustainable growth for 
our stakeholders.

As we progress our Commercial Property development 
pipeline, we remain disciplined regarding the level of 
development risk we take on and the returns that we 
require. Similarly, we continue to balance our investment in 
growth areas with the need to maintain a sharp focus on 
costs, particularly during this period of macroeconomic and 
real estate market volatility.

FY23 financial & operational performance

On a pre-tax basis, FY23 Funds From Operations (FFO) of 
$883 million was up 3.8 per cent relative to FY22. FFO per 
security of 37.1 cents was up 3.9 per cent and toward the 
upper end of our guidance range of 36.4 to 37.4 cents.

The completion of the sale of our Retirement Living 
business in July 2022 crystalised a material taxable gain, 
resulting in Stockland Corporation Limited returning to an 
income tax paying position during the year.

On a post-tax basis, FFO for FY23 was $847 million or 35.6 
cents per security. The effective FFO tax rate for the Group 
for FY23 of ~4 per cent is post the utilisation of remaining 
tax losses and is expected to rise in future periods.

Both the Commercial Property and Communities segments 
delivered solid earnings growth over FY23, up ~13 per cent 
and ~17 per cent respectively.

The increased contribution from the Communities segment 
was delivered in the environment that saw a ~9 per cent 
decline in settlement volumes from our Masterplanned 
Communities (MPC) business. This was offset by strong 
MPC price growth and margin expansion, along with an 
increased contribution from our Land Lease Communities 
(LLC) business in the form of development profits, rental 
income, and management fees.

Underlying demand for our MPC product remains resilient, 
as demonstrated by 2H23 enquiry levels that were up 
relative to 1H23 and slightly above pre-COVID-19 levels. 
Conversion rates remain below historical levels, impacted 
by affordability constraints and continued uncertainty 
regarding the interest rate outlook.

We do not expect sales rates to improve materially until 
the interest rate environment stabilises. The medium-term 
outlook for MPC market fundamentals remains strong, 
with increasing rates of net overseas migration, low rental 
vacancy rates, and a chronic undersupply of new product 
across key Eastern Seaboard markets.

1

Total development pipeline, includes projects in early planning stages, projects with planning approval and projects under construction. Includes M_Park 
stage 1 at a 100 per cent share.

12

Stockland Annual Report 2023

Demand for our LLC product has remained resilient, 
supporting further price growth on new releases. The 
average sales price per home in FY23 was ~11 per cent2 
above FY22 levels. Our operational LLC portfolio also 
continues to perform strongly, with its CPI-linked3 rental 
structure providing strong organic growth in the current 
inflationary environment, and both occupancy and rent 
collection rates remaining at 100 per cent for FY23.

Our $10.5 billion4 Commercial Property portfolio delivered 
comparable FFO growth of 3.5 per cent5, up from 
3.3 per cent in FY22. This solid comparable growth 
was supplemented by contributions from Logistics 
developments completed over FY22 and FY23, and 
the end of COVID-19-related rental abatements which 
affected FY22.

Our ~$3.4 billion6 Logistics portfolio delivered FFO growth 
of 11.5 per cent versus FY22. Comparable growth of 4.6 
per cent5 was supplemented by income contributions from 
developments completed over FY22 and FY23. 

Occupancy was maintained at over 99 per cent7 over the 
period, and new leases and renewals negotiated over the 
year (including those yet to be executed) saw an average 
uplift of 21.1 per cent relative to previous in-place rents.

With a weighted average lease duration of 3.3 years7, 
our portfolio is well positioned to capture positive rental 
reversion and to benefit from strong near-term demand-
supply dynamics for the logistics sector.

Our Town Centre portfolio delivered strong operational 
and financial performance over the period, with FY23 
FFO of $379m up 8.2 per cent versus FY22. This reflects
comparable FFO growth of 4.8 per cent5, along with the 
impact of COVID-19-related rental abatements in FY22.

On a MAT basis, total comparable sales grew by 14.7 per cent 
and comparable specialty sales were up by 19.8 per cent 
versus the previous corresponding period which reflected
COVID-19 restrictions8. The strong sales results delivered by 
the portfolio resulted in specialty occupancy costs reducing 
to 14.8 per cent versus 15.8 per cent at June 20228. Leasing 
spreads remained positive over FY23, averaging 3.1 per cent 
versus 1.5 per cent for FY229.

The cumulative impact of successive interest rate increases 
led to a slowing of sales growth in discretionary categories 
such as apparel, jewellery and homewares over the June 
quarter. However, sales growth for the essentials categories 
to which our portfolio is heavily skewed is tracking in line 
with inflation.

Specialty sales productivity for our Town Centres portfolio 
is well above industry benchmarks, driving positive leasing 
spreads and an overall portfolio occupancy rate of over 99 
per cent10.

Tarun Gupta, Managing Director and CEO

Comparable FFO for our ~$2.0 billion6 Workplace portfolio 
declined by 1.9 per cent5, impacted by vacancy at one 
asset. New leases and renewals negotiated over the period 
(including those yet to be executed) resulted in an average 
increase of 0.9 per cent11.

The majority of this portfolio is currently being positioned 
for future development.

Progressing our strategic priorities

The FY23 result also reflected the initial financial benefits 
of the strategic initiatives that we implemented during 
FY22. In February 2022, we announced the establishment 
of two significant capital partnerships – the Stockland 
Residential Rental Partnership (SRRP) with Mitsubishi Estate 
Asia (MEA), and the M_Park Capital Partnership with 
Ivanhoé Cambridge.

The FY23 result included Management Income 
and Development Income contributions across the 
Communities and Commercial Property segments from 
both these partnerships, along with our other joint ventures 
and management agreements.

During the year, we extended our existing relationship 
with MEA through agreement to invest in masterplanned 
communities. The new capital partnership took effect
in July 2023, and has a non-exclusive mandate to 
invest in Stockland owned and market originated 
masterplanned communities.

We continue to reshape our portfolio in line with our 
strategic priorities. We completed the divestment of our 
Retirement Living business in July 2022 and executed 
on ~$266 million12 of non-core Town Centre asset sales 
over FY23.

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2 Average price per home. Excludes sales at Stockland B by Halcyon, QLD where average price points are above $1.1m.
3 Typical site agreement – annual rent escalations at the greater of CPI or 3.5 per cent, and a market rent review every 10 years.
4 Excludes sundry properties and stapling adjustment.
5

Includes comparable assets; excluding acquisitions, divestments and assets under development. Excludes COVID-19 abatements and ECL 
where applicable.

6 Excludes WIP and sundry properties.
7 By income. As at 30 June 2023.
8 Occupancy cost reflects stable assets, adjusted to reflect tenants trading more than 24 months.
9 Rental growth on stable portfolio on an annualised basis.
10 Occupancy across the stable portfolio based on signed leases and agreements at 30 June 2023.
11 Excludes Walker Street Complex and 601 Pacific Highway in NSW.
12

Includes disposal of Stockland Bull Creek, WA, Stockland Riverton, WA and Stockland Gladstone, QLD.

Year ended 30 June 2023

13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chairman and CEO letters

These transactions have strengthened our balance sheet, 
providing capital for redeployment into higher returning and 
higher growth initiatives, including the expansion of our LLC 
platform and the realisation of our $6.4 billion1 Logistics 
development pipeline.

The combination of our strong liquidity position, access 
to domestic and global debt capital markets, strong 
relationships with capital partners and ongoing discipline 
around cashflows, positions us well to deliver on our 
strategic priorities.

Extending our ESG ambitions

Our refreshed ESG strategy is focused on integrated, 
commercially sustainable solutions in areas where we can 
have meaningful and measurable impact5.

Our response to climate change remains a key priority. 
We have accelerated and expanded our decarbonisation 
commitment. We aim to achieve net zero scope 1 & 2 in 
20256,7, three years earlier than our previous commitment. 
Our new science-based targets across scopes 1, 2 
and 3 are designed to leverage our scale and diverse 
portfolio to maximise onsite renewable energy generation 
across our portfolio and accelerate the adoption of lower-
carbon materials7.

This is coupled with a focus on resilience. We will use 
our comprehensive view of climate-related risk across 
our asset base to more effectively allocate capital and 
operational expenditure to strengthen our portfolio.

Circularity principles will be embedded throughout the 
business designed to reduce our use of virgin materials, 
and find alternative, higher value uses for materials to stay 
in the system longer.

We have also shifted our social investment focus from 
inputs (how, what and where we make a contribution) to 
measuring the social impacts (what changes) and the social 
value we create. 

Our social value methodology has been developed into 
a digital tool that uses third-party empirical data and 
research to forecast social value creation and embed social 
outcomes into our decision-making.

We are targeting the creation of $1 billion of social value 
by 20308. This will capture our commitment to furthering 
our First Nations engagement, with a focus on employment 
and procurement, and our role in delivering affordable and 
sustainable housing solutions.

We have positioned our LLC business to deliver significantly 
higher settlement volumes over the medium term. The 
acquisition of five additional LLC projects subsequent to 
balance date will enable us to accelerate the scale-up of 
our LLC platform and drive material growth in the earnings 
contribution from this business in future periods.

We delivered ~$450 million of Logistics developments since 
June 20222 and expect a similar volume of deliveries in 
FY241. Our targeted FY24 deliveries are now ~62 per cent 
pre-leased or subject to signed heads of agreement.

We continue to add value to our ~$5.8 billion1 Workplace 
and mixed-use development pipeline while maintaining 
optionality regarding the timing, scope and composition of 
future development commencements.

Maintaining capital discipline

While progressing our strategic initiatives, we have 
remained focused on balance sheet strength and 
financial flexibility.

We finished the period in a strong financial position. At 
30 June 2023, the Group’s gearing was 21.9 per cent, toward 
the lower end of our target range of 20 per cent to 30 per 
cent, and compared with 23.4 per cent at 30 June 2022.

The reduction in gearing over the year was achieved despite 
a $(250)m revaluation movement, which also contributed to 
a decline in our net tangible asset backing (NTA) per security 
from $4.31 to $4.24. Approximately 97 per cent (by value) 
of the Commercial Property portfolio was independently 
revalued over FY23. This resulted in a 2.3 per cent decrease 
on previous book values, reflecting the net impacts of 
softer market capitalisation rates and strong income growth 
across our high-quality portfolio. 

We maintain significant headroom under our financial
covenants, and strong investment grade credit ratings 
of A-/A3 with stable outlook from S&P and 
Moody’s, respectively.

Our weighted average cost of debt for FY23 was 4.3 per 
cent3. We expect this to average approximately 5.3 per 
cent for FY24, reflecting the higher floating interest rate 
environment and the increased cost of hedging put in place 
over FY234. Our weighted average debt maturity sits at 
5.0 years, and our fixed hedge ratio averaged 62 per cent 
over the period. Available liquidity at 30 June 2023 was 
~$1.6 billion.

1

2

Forecast end value on completion, subject to relevant approvals. Workplace includes M_Park at 100 per cent share.
Including ~$270m of FY23 development commencements delivered post balance date.

3 Average over the 12-months to 30 June 2023.
4 Assuming average BBSW of ~4.3 per cent over FY24.
5 Roadmap for achieving our ESG targets and the material assumptions, uncertainties and dependencies associated with those targets, are set out in 

Stockland’s Climate Transition Action Plan (CTAP) 2023, available on our website.

6 Offsets of residual emissions will commence in FY26 and will be subject to third-party offset verification and assurance. Emissions removal carbon credits 
will be preferenced where possible. The 2030 scope 3 target includes GHG Protocol Categories 1 (purchased goods and services) and 13 (leased assets), 
which collectively represent approximately 89 per cent of Stockland's scope 3 emissions.s

7 Stockland’s emissions reduction targets have been prepared by reference to criteria set out by the Science Based Targets Initiative (SBTi). The targets have 
been reviewed by Ernst & Young (EY), which has provided limited assurance in relation to their alignment with the published SBTi criteria. Stockland has 
also submitted its targets to SBTi for validation.

8 We define social value creation as our intentional effort and investment to deliver social, economic and/or environmental benefits for our communities 
and broader society. EY was engaged to provide limited assurance over Stockland’s approach to defining, measuring, and calculating the social value target 
– for further detail refer to page 38 within this report.

14

Stockland Annual Report 2023

 
Outlook

We are well-positioned for an uncertain macro-
economic environment.

We are reshaping our portfolio by delivering new, high-
quality Logistics assets and scaling up our Land Lease 
platform, and we continue to engage with a range of capital 
partners for opportunities across our platform.

Our Town Centres portfolio has a high weighting to 
“essentials" categories, and structural drivers continue to 
underpin demand for our well-located Logistics portfolio.

Importantly, we enter FY24 in a very strong balance 
sheet position, with gearing toward the lower end of our 
target range.

We are seeing sustained demand for our Land 
Lease product and are positioning our Masterplanned 
Communities business for the recovery phase of the 
residential cycle.

I thank the Stockland team for their contribution to this 
year’s results, and on behalf of the Stockland team, I thank 
you for your ongoing support.

Tarun Gupta
Managing Director and CEO

The quality of our diversified portfolio 
and robust financial position provide both 
resilience and the ability to capitalise on 
opportunities to drive further sustainable 
growth for our stakeholders.

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Year ended 30 June 2023

15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Our strategy

Our vision to be the leading creator and curator of connected communities is underpinned 
by our purpose – a better way to live.

Our vision and purpose are supported by the four key 
pillars of our Group strategy – to dynamically reshape the 
portfolio, accelerate delivery in our core business, scale 
our capital partnerships and generate sustainable long-
term growth.

Our strategy is designed to leverage and respond to the 
major trends in our operating environment:

• Urbanisation and urban renewal

• Growth in the availability of long-term institutional capital 

and demand for real-estate

• Acceleration in the adoption of digital and technology 

changing the future of real estate

• Growing momentum on ESG driving demand for 

investments with superior ESG credentials

Using our capital inputs, resources, relationships and a 
clear strategy, we create value by delivering on a range 
of outcomes for our stakeholders. As a purpose-led 
organisation, our core values of Community, Accountability, 
Respect and Excellence (CARE) drive our innovative and 
customer-focused culture and set the foundations of how 
we execute our strategy and deliver on our vision to be the 
leading creator and curator of connected communities.

We track and manage our progress on delivering value 
through clear, tangible targets across our business.

Inspired by a better way to live

Stakeholder expectations continue to evolve and we 
continue to elevate and evolve our approach to ESG 
in accordance with our leadership commitment. We 
have developed a new ESG strategy underpinned by 
four key pillars: decarbonisation, circularity, social impact 
and resilience.

Our ESG strategy is supported by targets grounded in 
science and driven by possibiities1

• 1.5 degree aligned decarbonisation pathway

• Net zero scopes 1 & 2 by 20252

• Most material scope 3 emissions intensity halved 

by 2030

• Net zero scopes 1, 2 & 3 by 2050

• Create over $1 billion in social value by 2030

Initiatives under these pillars focus on innovation, scale 
and economically sustainable solutions. Our ESG Strategy 
is where our ambition meets tangible, real-world actions. 
Actions that will help us pioneer more connected, resilient, 
future ready communities. Stockland will commence 
reporting progress against key ESG targets in FY24. For more 
information, see page 30.

1

Further detail on our ESG strategy is set out in pages 30 to 45 of this Annual Report and our Climate Transition Action Plan which includes our 
decarbonisation pathway and assumptions used to set targets.

2 Offsetting of residual emissions will commence 1 July 2025.

16

Stockland Annual Report 2023

Our vision and purpose are brought to life by more than 1,600 employees who are guided by Stockland's values of 
Community, Accountability, Respect and Excellence (CARE).

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Year ended 30 June 2023

17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

The value we create

Customers 

Securityholders 

We are committed to delivering a better way to live for our 
customers and being truly customer centric. With our diverse and 
growing customer base, we help more Australians achieve the 
dream of home ownership and create places and spaces full of 
energy, soul and life - from residential and land lease communities 
through to retail town centres. We aim to optimise our landbank 
and develop innovative and resilient places that will provide the 
highest value use for communities now and in the future. Through 
our workplaces and logistics assets we are shaping the future of 
work and enabling more flexible and efficient last mile delivery 
and fulfillment.

To maximise value for our securityholders we are structured as 
a stapled security, an innovation pioneered by Stockland in the 
1980s. A Stockland stapled security (ASX:SGP) represents one 
ordinary share in Stockland Corporation Limited and one ordinary 
unit in Stockland Trust. This allows us to efficiently undertake 
property investment, management and development activities, 
offering investors end-to-end exposure to the property life 
cycle. Our focus is on generating high-quality recurring income 
supplemented by growth from disciplined development activity. 
Executing on our strategy will help us to drive diversified income 
streams and increase return on invested capital.  

18

Stockland Annual Report 2023

 
 
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Our people

Capital partners 

Community

Stockland fosters a culture of connection 
and collaboration where our people can be 
themselves and thrive. Our diverse career 
opportunities and passion for learning means 
our people can grow as we grow and make 
a real contribution towards our strategic 
objectives, creating a better future for our 
people, communities and the planet.

We provide high-quality, commercially 
attractive investment prospects for third-
party investor partners by leveraging 
our demonstrated leadership and proven 
expertise in asset development and 
management. Our strategic capital 
partnerships enable us to scale our 
management and development capabilities 
and grow assets under management more 
quickly to enhance long-term, sustainable 
business growth for us and our partners. 

We are proud of our 71-year history creating 
and curating communities with people 
at the heart of the places we create. 
Through our work, we impact and engage 
with diverse stakeholders representing all 
the Australian community. Through our 
approach to accessible physical and social 
infrastructure, as well as our Reconciliation 
Action Plan, we work to provide welcoming 
and inclusive places and spaces where 
people of all backgrounds and abilities 
can come together to play, work, shop 
and socialise.

Year ended 30 June 2023

19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Financial

Financial capital

High quality business with 
sustainable growth

Stockland is structured as a stapled security. Each 
stapled security represents one ordinary share in Stockland 
Corporation Limited and one ordinary unit in Stockland 
Trust. This structure allows us to efficiently undertake 
property investment, management and development 
activities, and offers investors end-to-end exposure to the 
property life cycle.

Our focus is on generating high-quality recurring income 
supplemented by growth from disciplined development 
activity that drives sustainable growth for our stakeholders. 
Executing on our strategy delivers diversified income 
streams and increased return on invested capital.

Capital structure

Stockland's capital structure determines how much is 
raised from securityholders (equity) and how much is 
borrowed from financial institutions and global capital 
markets (debt) to finance our activities.

This is monitored through our gearing ratio, in line with 
the Board's risk appetite. Stockland has a disciplined 
target gearing ratio of 20-30 per cent and maintains 
credit ratings of A-/stable and A3/stable from S&P and 
Moody's, respectively.

Our disciplined approach to capital management across 
our business means we actively manage our gearing level 
and hedging profile to maintain a strong balance sheet, 
while providing sufficient liquidity and optionality to invest 
appropriately in existing and emerging opportunities.

Capital allocation and Return on Invested 
Capital (ROIC)

We actively manage the strategic allocation of capital 
across our diversified portfolio to minimise risk, maximise 
return on our investments and create sustainable value for 
our stakeholders.

Our focus is on generating high-quality recurring 
income and disciplined development activity that drives 
sustainable growth. We target 60 per cent development 
income and 40 per cent recurring income, and capital 
allocation to those sectors of 70-80 per cent, and 20-30 per 
cent, respectively.

By investing in partnership with third-party capital, 
we can generate higher returns on Stockland’s capital 
while achieving a greater diversification of earnings, 
and accelerating the execution of our high-quality 
development pipeline.

Stockland maintains a distribution payout ratio target range 
of 75-85 per cent of pre-tax FFO to support growth 
opportunities across our business.

20

Stockland Annual Report 2023

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Year ended 30 June 2023

21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Assets and land

We are one of the largest diversified real 
estate groups in Australia with $15.5 billion 
of real estate assets and a development 
pipeline of $40 billion, as at 30 June 2023.

We own, manage and develop a portfolio of high-
quality income-producing investment assets across leading 
Town Centres, Workplaces and Logistics centres. We also 
create communities and whole-of-life housing solutions 
across our Masterplanned and Land Lease Communities.

Our focus is on leveraging our specialist end-to-end, multi-
sector capability to create value at each stage of the 
real estate life cycle. This includes optimising our land 
bank to highest value uses and delivering our secured 
development pipeline.

22

Stockland Annual Report 2023

Image caption:Stockland Aura Town Centre, QLDOur portfolio as at 30 June 2023

Logistics

Masterplanned Communities

Strategically positioned assets in key locations for 
logistics, infrastructure and employment.

We're building thriving, connected communities across 
our nationally diversified land bank.

• 27% portfolio weighting1

• 26 properties2

• 17% portfolio weighting1

• ~68,000 lots remaining

• $3.4bn ownership interest value

• $2.4bn net funds employed

Workplace

Land Lease Communities

High-quality portfolio with an attractive 
development pipeline, providing the opportunity to 
create vibrant workplaces focused on innovation, 
well-being and sustainability.

• 13% portfolio weighting1

• 10 assets

• $2.0bn ownership interest value

Creating and managing Land Lease Communities that offer
lifestyle, amenity, and social connectivity.

• 5% portfolio weighting1

• 333 Land Lease Communities

• ~9,2003 home sites

Town Centres

We're focused on suburban and regional locations, 
providing a curated and convenient essentials-based mix to 
our communities.

• 38% portfolio weighting1

• 20 properties

• $5.2bn ownership interest value

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1

Includes WIP and sundry properties of $0.6 billion. Cost to completion provision, deferred land payments and option payments are excluded.

2 Excludes development and inventory land.
3 Excluding post balance date acquisition of five LLC projects.

Year ended 30 June 2023

23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

FY23 performance and outlook

Group performance

Stockland’s FY23 result reflects the continued 
execution of our strategy and a focus on 
driving operational and financial performance while 
maintaining a strong capital position in an uncertain 
macroeconomic environment. 

On a pre-tax basis, FFO of $883 million was up 3.8 per cent 
relative to FY22. Pre-tax FFO per security of 37.1 cents was 
up 3.9 per cent and toward the upper end of our guidance 
range of 36.4 to 37.4 cents.

Both the Commercial Property and Communities segments 
delivered strong earnings growth over the period, up ~13 per 
cent and ~17 per cent, respectively. 

The increased contribution from Communities was driven 
by strong Masterplaned Communities (MPC) price growth 
and margin expansion, along with an increased contribution 
from our Land Lease Communities (LLC) business in 
the form of development profits, rental income and 
management fees.

Our $10.5 billion1 Commercial Property portfolio delivered 
comparable FFO growth of 3.5 per cent2, up from 
3.3 per cent in FY22. This solid comparable growth 
was supplemented by contributions from Logistics 
developments completed over FY22 and FY23, and the end 
of COVID-19-related rental abatements.

The FY23 result also reflected the initial financial benefits 
of the strategic initiatives that we implemented during 
FY22. In February 2022, we announced the establishment 
of two capital partnerships – the Stockland Residential 
Rental Partnership (SRRP) with Mitsubishi Estate Asia 
(MEA), and the M_Park Capital Partnership with Ivanhoé 
Cambridge. The FY23 result included Management Income 
and Development Income contributions across the 
Communities and Commercial Property segments from 
both these partnerships, along with other existing joint 
ventures and management agreements.

During the year, we extended our existing relationship with 
MEA through an agreement to invest in masterplanned 
communities. The new capital partnership took effect in 
July 20233. 

We continue to reshape our portfolio in line with our 
strategic priorities. We completed the divestment of our 
Retirement Living business in July 2022 and executed 
on ~$266 million4 of non-core asset sales over FY23. 
These transactions have strengthened our balance sheet, 
providing capital for redeployment into higher returning and 
higher growth initiatives, including the expansion of our LLC 
platform and the realisation of our $6.4 billion5 Logistics 
development pipeline.

$883m

Pre-tax FFO up 3.8%

We have positioned our LLC business for growth and 
expect to deliver significantly higher settlement volumes 
over the medium-term. The acquisition of five additional 
LLC projects subsequent to balance date will enable to 
us to accelerate the scale-up of our LLC platform and 
drive material growth in the earnings contribution from this 
business in the future.

The sale of the Retirement Living business realised a 
material taxable gain, resulting in Stockland Corporation 
Limited returning to an income tax paying position during 
the year. On a post-tax basis, FFO for FY23 was $847 million, 
or 35.6 cents per security. The effective FFO tax rate 
for the Group for FY23 of ~4 per cent is post the 
utilisation of remaining tax losses and is expected to rise in 
future periods.

Statutory profit for FY23 was $440 million, compared 
with $1,381 million in FY22. The statutory result for this 
period includes $(250) million6 of net commercial property 
devaluations. Statutory profit in the previous corresponding 
period included a net revaluation uplift of $725 million6.

While progressing our strategic initiatives, we have 
remained focused on balance sheet strength and financial
flexibility. Gearing sits toward the lower end of our 
target range and we have maintained a prudent hedging 
profile and substantial liquidity. Our strong balance 
sheet provides the capacity to take advantage of 

1 Excludes sundry properties and stapling adjustment.
2

Includes comparable assets; excluding acquisitions, divestments and assets under development. Excludes COVID-19 abatements and ECL provision 
where applicable.

3 Effective 31 July 2023. The Capital Partnership has a non-exclusive mandate to invest in on and off market residential masterplanned 

community opportunities.
Includes disposal of Stockland Bull Creek, WA, Stockland Riverton, WA and Stockland Gladstone, QLD.

4

5 Forecast end-value on completion, subject to relevant approvals. 
6 Excludes sundry properties and stapling adjustment, includes investment properties under construction (IPUC) and Stockland’s share of equity 

accounted investments.

24

Stockland Annual Report 2023

 
opportunities that may emerge and fund our near-term 
development commitments.

Capital management

Stockland finished the period in a strong financial
position. At 30 June 2023, the Group’s gearing was 21.9 
per cent, at the lower end of our target range of 20 per 
cent to 30 per cent, and compared with 23.4 per cent 
at 30 June 2022. We maintained significant headroom 
under our financial covenants, and strong investment 
grade credit ratings of A-/A3 with stable outlook from 
S&P and Moody’s, respectively.

Our weighted average cost of debt for FY23 was 4.3 per 
cent7. We expect this to average approximately 5.2 per 
cent8 for FY24, reflecting the higher floating interest rate 
environment and the increased cost of hedging put in place 
over FY23. Our weighted average debt maturity sits at 5.0 
years, and our fixed hedge ratio averaged 62 per cent7 over 
the period.

Available liquidity at 30 June 2023 was ~$1.6 billion. 
The combination of our strong liquidity position, access 
to domestic and global debt capital markets, strong 
relationships with capital partners and ongoing discipline 
around cashflows, positions us well to deliver on our 
strategic priorities.

Cashflow management

Net cash flows from operating activities for the year of 
$332 million were down from $918 million in FY22 primarily 
due to a higher level of development expenditure in our 
MPC business. Before land acquisitions, operating cash flow 
was $981 million, and comfortably above FFO and the 
distribution for the period. Over time, we expect operating 
cash flow to approximate FFO. However, this can vary from 
year to year depending on the timing of items such as 
development expenditure and payments for land.

Net cash flows from investing activities were up strongly to 
$763 million (versus $(976) million in FY22). This primarily 
reflects receipts from the disposal of our Retirement 
Living business in July 2022 and proceeds from the sale 
of non-core assets, offset by ongoing investment in our 
Commercial Property development pipeline.

Financing activities produced a net cash outflow of 
$1,223 million for FY23, reflecting a reduction in our 
borrowings over the period along with the payment of 
previously-announced dividends and distributions. 

Distributions

The distribution for FY23 is 26.2 cents per security, 
compared with 26.6 cents per security in FY22.

The distribution payout ratio of 74 per cent is marginally 
below our target range of 75 per cent to 85 per cent of FFO.

26.2c

Distribution per security

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7 Average over the 12-months to 30 June 2023.
8 Assuming average BBSW of ~4.3 per cent over FY24.

Year ended 30 June 2023

25

Image caption:Waterlea, VIC 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Commercial Property

The Commercial Property segment delivered a strong 
FY23 result, with FFO of $636m up by ~13 per cent 
relative to the previous corresponding period. This 
reflects comparable growth of 3.5 per cent1 from 
the ~$10.5 billion2 Commercial Property investment 
portfolio, contributions from completed Logistics 
developments and strong growth in Development 
and Management Income. This includes the initial 
contributions from the M_Park Stage 13 development. 

As at 31 July 2023, the rent collection rate across the 
Commercial Property portfolio was 99.5 per cent4 for the 
period, compared with 99.7 per cent for FY22.

Approximately 97 per cent (by value) of the Commercial 
Property portfolio was independently revalued over FY23. 
This resulted in a $250 million, or 2.3 per cent decrease 
on previous book values, reflecting a 41 basis point (bp) 
softening in the portfolio’s weighted average capitalisation 
rate, partially offset by strong income growth across our 
high-quality portfolio5.  

Over the year, we made further progress on our key 
strategic priorities for the Commercial Property business: 
progressing the delivery of our ~$6.4 billion6 Logistics 
development pipeline; maintaining optionality over our 
~$5.8 billion6 Workplace development pipeline while 
continuing to add value to the assets; continuing to 
reposition our Town Centre portfolio; and maximising the 
value of our existing asset base through exploring mixed use 
and densification opportunities.

We have delivered ~$450 million7 of Logistics developments 
since July 2022, and expect a similar volume of deliveries 
in FY24. Our targeted FY24 deliveries are now ~62 per cent 
pre-leased or subject to signed heads of agreement.

The disposal of ~$266 million8 of non-core Town Centre 
assets over the period brings the total value of Town Centre 
disposals since FY16 to ~$2 billion. The quality of our Town 
Centre portfolio has been reflected in the strong sales and 
comparable FFO results delivered over the period.

Logistics

Our ~$3.4 billion9 Logistics portfolio delivered FFO of 
$139 million in FY23 million, up 11.5 per cent versus FY22. 
Comparable growth of 4.6 per cent1 was supplemented 
by income contributions from developments completed 
over FY22 and FY23. The portfolio continues to benefit 
from strong occupier demand for high quality, well-located 
logistics properties.

Occupancy was maintained at over 99 per cent10 over the 
period, and new leases and renewals negotiated over the 
year (including those yet to be executed) saw an average 
uplift of 21.1 per cent relative to previous in-place rents.

With a weighted average lease duration of 3.3 years10, 
our portfolio is well positioned to capture positive rental 
reversion and to benefit from strong near-term demand-
supply dynamics for the logistics sector.

The Logistics portfolio delivered a net valuation gain over 
the year of $100 million, or 3.3 per cent, with a 71 bp 
softening of the portfolio’s weighted average capitalisation 
rate more than offset by strong market rental growth.

Workplace

The majority of our ~$2.0 billion9 Workplace portfolio 
is currently being positioned for future development, 
including mixed use opportunities. This is reflected in the 
portfolio’s weighted average lease duration of 4.2 years11,12.

The Workplace portfolio delivered FFO of $108 million for 
FY23, compared with $110 million in FY22. Comparable 
FFO declined by 1.9 per cent1, reflecting vacancy at one 
asset. New leases and renewals negotiated over the period 
(including those yet to be executed) resulted in an average 
increase of 0.9 per cent12.

Stockland’s exposure to well-located workplace sites 
provides the Group with a potential pipeline of longer-dated 
mixed use developments.

Stage 1 of the M_Park development is progressing in 
partnership with Ivanhoé Cambridge, with completion of 
the first two buildings and commencement of the final
two buildings in 1H24. The mixed use M_Park stage 2 
development is currently going through the masterplanning 
approvals process.

The valuation of our Workplace portfolio declined by 
$237 million, or 11.1 per cent, reflecting 56 bps of cap 
rate expansion.

1

Includes comparable assets; excluding acquisitions, divestments and assets under development. Excludes COVID-19 abatements and ECL provision 
where applicable.

2 Excludes sundry properties and stapling adjustment.
3 M_Park Capital Partnership with Ivanhoé Cambridge.
4 Rent collection rates across the portfolio up to 31 July 2023 on FY23 billings.
5 Excludes sundry properties and stapling adjustment, includes investment properties under construction (IPUC) and Stockland’s share of equity 

accounted investments.

6 Forecast end value on completion, subject to relevant approvals. Workplace includes M_Park at a 100 per cent share.
7

Including ~$270m of FY23 development commencements delivered post balance date
Includes disposal of Stockland Bull Creek, WA, Stockland Riverton, WA and Stockland Gladstone, QLD.

8

9 Excludes WIP and sundry properties.
10 By income.
11 By income. As at 30 June 2023.
12 Excludes Walker Street Complex, NSW and 601 Pacific Highway, NSW in FY23.

26

Stockland Annual Report 2023

 
Commercial Property Management 
and Development Income

Commercial Property (CP) Development Income comprises 
development revenues net of direct costs, along with profit 
from the disposal of build-to-sell development projects.

CP Development Income rose to $43 million versus 
$30 million for FY22. This reflects the recognition of initial 
development profits relating to M_Park stage 1 in FY23 and 
Logistics build-to-sell Development Income. 

CP Management Income comprises ongoing fee income 
from third parties relating to the provision of investment, 
development and property management services.

CP Management Income of $32 million over FY23 
comprised development management fees relating to 
M_Park stage 1 along with ongoing fees from third parties 
for development and property management services 
provided across our CP assets. The result for the previous 
corresponding period of $12 million did not include any 
development management fee contribution.

Town Centres

Our Town Centre portfolio delivered strong operational and 
financial performance over the period, with FY23 FFO of 
$379 million up 8.2 per cent versus FY22. This reflects
comparable FFO growth of 4.8 per cent13, along with the 
impact of COVID-19-related rental abatements in FY22. 

On a MAT basis, total comparable sales grew by 14.7 per 
cent and comparable specialty sales were up by 19.8 
per cent versus the previous corresponding period, which 
was impacted by COVID-19 trade restrictions14. The strong 
sales results delivered by the portfolio resulted in specialty 
occupancy costs15 reducing to 14.8 per cent versus 15.8 per 
cent at June 2022. Leasing spreads remained positive over 
FY23, averaging 3.1 per cent16 versus 1.5 per cent for FY22.

The cumulative effect of successive interest rate increases 
led to a slowing of sales growth in discretionary categories 
such as apparel, jewellery and homewares over the June 
2023 quarter. Sales growth for the essentials categories 
to which our portfolio is heavily skewed is tracking in line 
with inflation.

Specialty sales productivity for our Town Centres portfolio 
is well above industry benchmarks. This is reflected in 
positive leasing spreads and an overall portfolio occupancy 
rate of over 99 per cent17.

The valuation of the Town Centre portfolio declined by 
$113 million, or 2.0 per cent, with market rent growth partly 
offsetting 26 bp of cap rate softening.

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13

Includes comparable assets; excluding acquisitions, divestments and assets under development. Excludes COVID-19 abatements and ECL provision 
where applicable.

14 Comparable basket of assets as per SCCA guidelines, which excludes assets which have been redeveloped within the past 24 months. Excludes the Mobile 
Phones category, due to reporting changes by one retailer resulting in sales data being not comparable. Prior corresponding period impacted by COVID-19 
trading restrictions over July 2021-October 2021.

15 Occupancy cost reflects stable assets, adjusted to reflect tenants trading more than 24 months.
16 Rental growth on stable portfolio on an annualised basis.
17 Occupancy across the stable portfolio based on signed leases and agreements at 30 June 2023.

Year ended 30 June 2023

27

Image caption:Coopers Paddock, NSW 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Communities

The Communities segment FFO contribution of 
$412 million was ~17 per cent per cent above the FY22 
result for the business. The result includes an improved 
Development FFO contribution from our MPC business, 
delivered in an environment of rising interest rates.

The contribution from our Land Lease development 
business was up by $41 million to $58 million for FY23, 
driven by growth in the platform and gains on the transfer of 
two development communities1 into the SRRP partnership.

The creation of the SRRP partnership has resulted in an 
uplift in Management Income relating to the Communities 
business over the period.

Over FY23, we generated high-quality recurring income 
from our rent-generating assets across our Communities 
business, including from the established Land Lease 
Communities home sites.

We are positioned to extend our residential leadership 
and drive growth in our platform as we activate our 
extensive landbank.

With an average age of ~10 years and a skew to the 
undersupplied Eastern Seaboard markets, our ~68,000-lot 
MPC landbank provides strong embedded margins and a 
differentiated platform as we look to further expand our 
Land Lease platform.

Masterplanned Communities

The MPC business delivered Development FFO of 
$464 million for FY23, up from $443 million in FY22. 

The business achieved 5,4032 settlements during the period 
(versus 5,964 settlements in FY22), representing a resilient 
result in an environment of supply chain constraints, rising 
interest rates and significant inclement weather. 

The development operating profit margin was 26 per cent 
(versus 24.3 per cent in FY22), benefiting from high margin 
projects completing in FY23.

Underlying demand for our MPC product remains 
resilient, as demonstrated by 2H23 enquiry levels 
that were up relative to 1H23 and slightly above pre-
COVID-19 levels. Conversion rates remain below historical 
levels, reflecting affordability constraints and continued 
uncertainty regarding the interest rate outlook. 

Net sales for the year totaled 3,770 lots, compared with 
6,992 lots for FY22, with default and cancellation rates 
slightly above long-run average levels3.

The business ended the period with 4,275 contracts on 
hand, providing good visibility into FY24. 

We expect conversion rates to improve once the interest 
rate environment stabilises. The medium-term MPC market 
fundamentals remain strong, with increasing rates of 
net overseas migration, low rental vacancy rates, and a 
chronic undersupply of new product across key Eastern 
Seaboard markets. 

1 Stockland Halcyon Nirimba, QLD and Stockland Halcyon Berwick, VIC.
2

Includes 1,944 settlements under joint venture/project development agreements (FY22: 2,128).

3 On a rolling 12-month basis.

28

Stockland Annual Report 2023

Image caption:The Gables, NSWWe are positioning the business for the recovery phase of 
the residential cycle with the expected launches of up to six 
new communities over FY24, while also leveraging the scale 
and breadth of our landbank to provide more affordably 
priced product.

The rate of construction cost escalation continues 
to moderate. Construction timeframes remain above 
historical levels, with some normalisation expected 
over FY24.

Land Lease Communities

The LLC development business delivered FFO of $58 million 
for the period (versus $17 million in FY22) comprising 
our share of SRRP development income and cash-backed 
gains from transferring two development communities4 
into SRRP in 1H23. 

Development settlement volumes for FY23 totaled 382 
homes, at a development operating profit margin of 29.6 
per cent. 

We continue to experience sustained demand for our LLC 
product, supporting further price growth on new releases. 
The average sales price per home in FY23 was ~11 per cent5 
above FY22 levels.

The FY23 net sales rate of 270 homes (versus 405 for FY22) 
continues to reflect a deliberate slowing of of releases to 
allow production to catch up. 

We have good visibility into FY24, with 387 contracts 
on hand at an average price ~7 per cent6 above FY23 
settlement pricing.

We have positioned our Land Lease platform for further 
growth and to deliver significantly higher settlement 
volumes over the medium-term. The acquisition of five 
additional LLC projects subsequent to balance date will 
accelerate the scale-up of our LLC platform and help 
drive material growth in the earnings contribution from this 
business in future periods.

At the end of FY23, we were actively selling from 
five communities7. We expect to launch up to 128 new 
communities over FY24, which will see the number of 
communities from which we are actively selling more than 
triple over the period.

Communities Rental and 
Management Income

Over FY23, we generated $15 million (up ~27 per cent 
vs FY22) in high-quality Communities rental income, 
reflecting contributions from the established Land Lease 
Communities portfolio as well as from stand-alone medical 
and childcare centres within our communities.

Our operational LLC portfolio performed strongly over the 
year, with FY23 rental income benefiting from CPI-linked 
rental growth9, high occupancy and rent collection rates10 
and net operating margins maintained at 65 per cent across 
the stabilized portfolio.

Communities Management Income of $48 million over 
FY23 comprised development management and property 
management fees relating to SRRP and existing MPC joint 
ventures. The result for the previous corresponding period 
of $32 million included only a partial year contribution from 
fee income relating to SRRP.

Outlook

We are well-positioned for an uncertain macro-
economic environment.

Our Town Centres portfolio has a high weighting to 
“essentials” categories, and structural drivers continue 
to underpin demand for our well-located Logistics 
portfolio. We are seeing sustained demand for our Land 
Lease product and are positioning our Masterplanned 
Communities business for the recovery phase of the 
residential cycle. We are reshaping our portfolio by 
delivering new, high-quality Logistics assets and scaling 
up our Land Lease platform, and we continue to engage 
with a range of capital partners for opportunities across 
our platform.

Importantly, we enter FY24 in a very strong balance 
sheet position, with gearing toward the lower end of our 
target range.

FY24 FFO per security is expected to be in the range of 
34.5c to 35.5c cents on a pre-tax basis, with tax expense 
expected to be a high single-digit percentage of pre-tax 
FFO. Distribution per security is expected to be within 
Stockland’s targeted payout ratio of 75 to 85 per cent of 
post-tax FFO.

Current market conditions remain uncertain. All 
forward looking statements, including FY24 earnings 
guidance, remain subject to no material deterioration in 
market conditions.

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4 Stockland Halcyon Nirimba, QLD and Stockland Halcyon Berwick, VIC.
5 Average price per home. Excludes sales at Stockland B by Halcyon, QLD where average price points are above $1.1m.
6 Average price per home of contracts on hand vs FY23 settlements (FY23 average settlement price per home: ~$707,000).
7 Excluding Stockland Halcyon Greens, QLD which is close to fully stabilised; and Stockland Halcyon Evergreen, VIC and Stockland Halcyon Horizon, VIC, 

formally launched in July 2023.

8 Subject to relevant approvals and planning. Includes the post balance date acquisition of five LLC projects.
9 Typical site agreement – annual rent escalations at the greater of CPI or 3.5 per cent, and a market rent review every 10 years.
10 Occupancy and rent collections rates at 100 per cent as at 30 June 2023.

Year ended 30 June 2023

29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Sustainability

Inspired by a better way to live 

Stockland has received global recognition1 for many years 
for our holistic approach to environmental, social and 
governance (ESG) matters.

Our strategy identifies the ESG matters where we 
have an opportunity to lead and to meet and exceed 
stakeholder expectations. 

We recognise that ESG awareness and stakeholder 
expectations are growing, and we continue to elevate and 
evolve our own approach to these issues in accordance 
with our leadership commitment.

Our refreshed ESG strategy has been informed by a 
thorough materiality process, and stakeholder insights, and 
supported by leadership and Board engagement.

Underpinning the strategy are four pillars and targets 
that are grounded in science2 and driven by possibilities. 
Initiatives under these pillars support our targets 
and focus on innovation, scale and economically 
sustainable solutions.

Our ESG Strategy is where our ambition meets tangible, 
real-world actions. Actions that will help us pioneer more 
connected, resilient, future ready communities.  

30

Stockland Annual Report 2023

Image caption:The Gables, NSW 
An enterprise-wide delivery model will support the 
execution of our ESG strategy and we are committed to 
reporting back to our stakeholders on an annual basis on 
the progress we are making. Stockland will commence 
reporting progress against its key targets in FY24.

The following chapter highlights our FY23 performance in 
alignment with these new pillars.

More detail on our ESG performance is available in 
our ESG Supplements:

• ESG Data Pack

• ESG Management Approaches

• Modern Slavery Statement

• Climate Transition Action Plan

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Year ended 30 June 2023

31

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Decarbonisation

Our decarbonisation approach is 
designed to be a commercially 
sustainable reduction pathway.

Our targets recognise where we can 
take immediate action in the short 
term across areas under our control, 
how we will partner with our suppliers 
and tenants in the medium term to 
reduce embodied emissions and advocate 
through research and development and 
cross sector engagement for broader 
long-term decarbonisation.

Targets grounded in science1
We are accelerating and expanding our carbon 
commitment to reduce and align our business carbon 
emissions with a science-based 1.5°C aligned trajectory 
and pathway. We have set new decarbonisation targets 
and and detailed our plan to meet them in our Climate 
Transition Action Plan (summarised below, and available on 
our website)

Through this plan, we are taking action that is designed 
to enable our business, our supply chain, and our tenants 
and communities to move towards net zero greenhouse 
gas emissions. Our actions aim to realise social and 
commercial benefits that support more resilient and lower-
carbon communities.

We have set science-based targets across Stockland’s 
scope 1, 2 and 3 emissions over the short, medium 
and long-term.

1 Stockland’s emissions reduction targets have been prepared by reference to criteria set out by the Science 
Based Targets Initiative (SBTi). The targets have been reviewed by EY, which has provided limited assurance 
in relation to their alignment with the published SBTi criteria. Stockland has also submitted its targets to 
SBTi for validation

32

Stockland Annual Report 2023

Image caption:Stockland Aura Town Centre, QLD 
Net zero scope 1 & 2 in 20252

Most material scope 3 emissions intensity halved by 20303

Net zero scope 1, 2 & 3 by 2050

Climate Transition Action Plan

Published with our FY23 Corporate Reporting is Stockland's first Climate Transition Action Plan (Plan). The Plan 
outlines how Stockland is addressing climate change risk and opportunities and delivering on our purpose. Our Plan 
has been developed with reference to the Science Based Targets Initiative (SBTi) criteria and in response to the 
Task Force on Climate Related Financial Disclosures (TCFD). The Plan has received independent third-party limited 
assurance the scope and results of which are available on our website4. Our roadmap for achieving our targets, 
the material assumptions, uncertainties and dependencies associated with those targets, are set out in the Plan. 
Progress against our Plan will be included in our Annual Report from FY24 onwards. A summary of where we have 
made our TCFD recommended disclosures is set out in the table below.

In our Plan we have published our FY21 Scopes 1, 2 and 3 baseline and inventory for our business activities and 
targets.  This has been calculated using the GHG Protocol, the most recognised global greenhouse gas accounting 
standard. The Protocol covers scopes 1, 2 and 3 emissions and provides guidance on how to establish a boundary 
which accurately reflects the GHG emissions inventory of an organisation. We will report on our annual scope 
3 emissions in alignment with the GHG protocol and boundary established in our Plan from FY24 onwards. For 
information on our FY23 scopes 1 & 2 emissions and the climate resilience of our portfolio refer to our ESG Data Pack.

Task Force on Climate Related Financial Disclosure References

Recommended disclosures

Reference

Recommended disclosures

Reference

Governance

Risk Management

A. Describe the board’s oversight of climate-
related risks and opportunities.

B. Describe management’s role in assessing and 
managing climate-related risks and opportunities.

Plan - Governance

A. Describe the organisation’s processes for 
identifying and assessing climate-related risks.

B. Describe the organisation’s processes for 
managing climate-related risks.

C. Describe how processes for identifying, 
assessing, and managing climate-related risks 
are integrated into the organisation’s overall 
risk management.

Plan - 
Risk Management

Strategy

Metrics and targets

A. Describe the climate-related risks and 
opportunities the organisation has identified over 
the short, medium, and long term.

B. Describe the impact of climate related 
risks and opportunities on the organisation’s 
businesses, strategy, and financial planning

C. Describe the resilience of the organisation’s 
strategy, taking into consideration different 
climate related scenarios, including a 2°c or 
lower scenario.

Plan – 
Decarbonisation 
Pathway; Climate 
Resilience; 
Scenario Analysis

A. Disclose the metrics used by the 
organisation to assess climate related risks and 
opportunities in line with its strategy and risk 
management process

Plan – Our 
Decarbonisation 
Pathway; Climate 
Resilience

B. Disclose scope 1, scope 2, and, if appropriate, 
scope 3 greenhouse gas (GHG) emissions, and the 
related risks.

Plan – Our 
Footprint; ESG 
Data Pack

C. Describe the targets used by the organisation to 
manage climate-related risks and opportunities 
and performance against targets

Plan – Our 
Decarbonisation 
Pathway; Climate 
Resilience; ESG 
Data Pack

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2 Offsetting of residual emissions will commence 1 July 2025 and will be subject to third-party offset verification and assurance. Emissions removal carbon 

credits will be preferenced where possible, as opposed to emissions reduction / avoidance credits.

3 The 2030 scope 3 target is by 30 June 2030 and includes GHG Protocol Categories 1 (purchased goods and services) and 13 (leased assets), which 

collectively represent approximately 89 per cent of Stockland's scope 3 emissions.

4 The Basis of Preparation for our Climate Transition Action Plan including decarbonisation roadmap and its associated calculation methods were reviewed 

by EY as third-party assurers.

Year ended 30 June 2023

33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Scope 1 & 2 emissions

We have opportunities to partner on large-
scale onsite renewable energy generation.

Throughout FY23, we continued to reduce our emissions 
intensity of our Town Centre and Workplace portfolio 
through energy efficiency initiatives and onsite renewable 
energy generation. We have achieved a 13 per cent 
emissions intensity reduction1 across our Commercial 
Property portfolio since FY20, outperforming our FY24 
target of 10 per cent and 70 per cent since 2006. This 
was largely due to our increased onsite renewable energy 
generation. At the end of FY23, we had total solar capacity 
of 13.5MW with an additional 4.3MW in construction or out 
to tender. Progress across the FY19-22 period has been 
recalculated based on an update to our scope 2 emissions 
methodology resulting in slightly higher emissions. Refer to 
our ESG Data Pack for more information.

Our average NABERS Energy portfolio rating for Workplaces 
is 5.0 stars achieving our 5 Star target. Our Town Centre 
portfolio average decreased from 5 to 4.7 stars due to 
the divestment of higher-rated assets during FY23. We 
continue to roll out our building upgrade program across 
the Commercial Property portfolio with investment in LED 
lighting and Building Management Systems throughout 
the year.

We are bringing forward our 2028 net zero scopes 1 & 2 
target to 2025, three years ahead of our previous target. 
We have opportunities to partner on large scale onsite 
renewable energy generation to enable the achievement 
of 100 per cent renewable energy across our portfolio. We 
will also continue to include energy saving features in all 
our property developments as standard and accelerate our 
transition to all electric developments.

The challenge remains to eliminate all emissions. In 2025, 
we plan to achieve an absolute reduction in our scope 1 and 
2 emissions of over 90 per cent leaving a small proportion 
of residual scope 1 emissions, such as refrigerants and gas 
which are harder to abate, that will need to be neutralised 
to meet our scope 1 and 2 net zero target. Historically, 
our scope 1 emissions have been less than 10 per cent 
of our overall scope 1 and 2 emissions. Offsetting of any 
residual scope 1 emissions will commence in 2025 when we 
will seek to purchase a minimal amount of high-integrity, 
high-quality carbon credits from nature-based projects as 
these support social and environmental outcomes.

13%

Commercial Property
emissions intensity
reduction since FY201

1 Emissions intensity is base building emissions per square metre (kgCO2-e/m2 – net lettable area or gross lettable area)

34

Stockland Annual Report 2023

Image caption:Highlands, VIC 
Scope 3 emissions – 
value chain

The most demanding aspect of our new targets is the 
reduction of our scope 3 emissions and, more specifically, 
the embodied carbon in the materials we use. This requires 
timely access to commercially sustainable zero or lower-
carbon materials in the market. We will seek to move to 
lower-carbon concrete at scale and significantly reduce our 
reliance on carbon-intensive steel.

We will also seek to transition tenancies to renewable 
energy as part of lease renewals. We expect to benefit from 
ongoing grid decarbonisation2 to help meet our leased 
assets intensity reduction target. We are investigating 
options to support tenants with access to renewable 
energy via a potential extension of our onsite renewable 
energy generation.

Our ability to achieve emissions reduction beyond 2030 
and net zero scopes 1, 2 and 3 emissions by 2050 largely 
depends on factors over which we have limited control. 
We will leverage commercially sustainable opportunities 
for emissions reduction where available, relying heavily on 
the transition of industry to a low carbon future. We will 
continue to advocate and work with industry bodies on 
opportunities to accelerate the transition. In alignment with 
our science-based targets, we consider offsets a last resort 
that follows our efforts to reduce emissions.

Embodied carbon reductions 
at M_Park

Supporting our customers 
with lower-carbon living

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Work to reduce the embodied carbon of our 
developments is already underway. At our M_Park 
development in Sydney, NSW, upfront carbon 
assessments have been used to identify the 
largest sources of embodied carbon in our building 
materials to enable the team to target the most 
impactful materials.

Concrete and steel have the most significant 
contribution to Buildings C and D embodied carbon. 
Through optimisation of design to minimise the use of 
these materials, utilising lower-carbon concrete which 
is engineered to have a Portland Cement reduction of 
40 per cent and utilising lower carbon reinforcement 
steel produced by electric arc furnace, the buildings 
are expected to deliver a reduction in the embodied 
carbon of these buildings of up to 38 per cent.

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At our Land Lease Communities (LLC), we have 
continued to expand our solar program with new 
solar systems installed on community centres across 
our LLC portfolio including a 15kW solar system on 
Halcyon Berwick’s club house and a 36kW solar 
system on Haylcon Nirimba’s community centre.

In addition, Stockland Halcyon Greens, Rise, B by 
Halcyon, Promenade and Nirimba in Queensland all 
include solar as standard for resident sites ranging 
from 2.5kW to 5kW. In our residential communities 
portfolio, we continue to offer discounted solar 
packages to selected residential communities 
through our partnership with a solar provider.

We are also supporting the transition to electric 
vehicles with recently established Land Lease 
communities Rise, B by Halcyon, Promenade and 
Nirimba all including a Tesla electric vehicle for use as 
a car share by residents.

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*Australian Energy Market Operator (AEMO) Integrated Systems Plan 2022 scenarios project Australia’s electricity grid in 2050 to reach 95 per cent 
emissions reduction from 2021 baseline.

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35

Image caption:Yennora Distribution Centre, NSW 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Circularity

Implementing circular models

We understand that the circular economy is a bigger 
concept than simply switching one material for another 
or recycling better – it is about creating solutions to 
meet interconnected challenges such as climate change, 
biodiversity loss, and waste.

During FY23, we focused our efforts on understanding what 
the circular economy means to Stockland and how we can 
develop this vision into circularity principles to be utilised 
across our operations. A fundamental part of this is trialling 
new ways to advance circularity, such as considering how 
we design our assets and close material loops.

To support this work, we have created a business-
led circularity workstream. A cross-business knowledge 
sharing workshop brought together key team members 
across the business to share insights on projects piloting 
circularity principles. The workshop provided shared 
learnings across teams and a path forward in our plan 
to maximise short-term wins and create opportunities for 
a more substantive shift towards circularity across the 
business. Examples showcased were upcycling and reuse 
at The Gables and M_Park in NSW.

A key element of developing assets with leading 
sustainability credentials is understanding the embodied 
impact of materials. We have performed Materials Flow 
Analysis and Life Cycle Analysis (LCA) in collaboration with 
third-party consultants to inform our target setting and 
identify ways to reduce our embodied carbon impacts. This 
process involved measuring the quantity of each material 
used during the construction and operation of buildings and 
their associated environmental impacts.

We have used this information on current projects 
to identify impact hotspots and opportunities for 
improvement across a building’s life cycle, including 
materials selection, future renovations and end-of-life.

These opportunities and circularity principles will be 
embedded into how we do business with our D-Life 
(our development process) acting as a key enabler of 
business integration.

36

Stockland Annual Report 2023

Adaptive reuse at The Gables, NSW

Our masterplanned community, The Gables, in NSW, has 
successfully embraced and integrated circular economy 
principles to construct the site’s temporary food 
precinct. Through a partnership with our contractors 
and the application of adaptive reuse, the project 
has increased its use of reclaimed, salvaged, or 
reused materials.

function room and an old school bus repurposed into a 
food truck. The materials ecosystem has been tracked 
to strengthen our data, improve material transparency 
and increase our understanding of the materials’ value 
for their recovery and reuse. To date the project has 
repurposed over 2,000 metres of corrugated iron and 
close to 900m2 of bricks.

Repurposing of existing assets has been championed on 
site with a shearing shed repurposed into a glass house 

Upcycling at M_Park Stage 1

Resource management

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As part of our ongoing development at M_Park in 
NSW, Stockland recognised an opportunity to identify 
building items within the existing asset due for 
deconstruction that were suitable for reuse. The 
team engaged a third-party consultant to identify 
appropriate partners for the materials and create a 
material reuse catalogue for the site.

All materials identified within the internal fit out 
of the existing asset as well as 40 per cent 
of building materials were deemed salvageable, 
including elements of the aluminium façade, steel 
handrails, glass partitions and carpet tiles.

For more information on our water performance, refer to our 
ESG Data Pack.

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In FY23, we sought to increase water efficiency 
in our Commercial Property portfolio through our 
sub-metering network, which saved approximately 
27,700 kL through prevented leaks. We maintained 
our NABERS Water portfolio average rating for our 
Workplace portfolio at 4.7 stars, however our Town 
Centre portfolio average decreased from 3.7 to 3.6 
stars due to the divestment of high-performing assets 
during the year.

In FY23, we continued working with our centralised 
waste management contractor to improve collection 
and reporting data and increase waste diversion rates 
across our portfolio, particularly in our Town Centres. 
We continue to deliver above our waste diversion 
benchmarks with a 93 per cent average diversion rate 
for Commercial Property developments and 94 per 
cent average diversion rate across Masterplanned and 
Land Lease Communities. 

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37

Image caption:The Gables, NSW 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Social impact

In the development of our refreshed 
ESG Strategy we have enhanced our 
understanding and determination of 
social value in alignment with the 
global framework, B4SI (Business for 
Societal Impact).

We define social value creation as our 
intentional effort and investment to deliver 
social, economic and/or environmental 
benefits for local communities and our 
broader society. 

By embedding social considerations and 
investment decisions across our business, 
we can amplify our positive impact 
across Australia.

We are committed to creating over 
$1 billion of social value by 20301.

1 EY was engaged to provide limited assurance over Stockland’s approach to defining, measuring, and calculating the social value target

38

Stockland Annual Report 2023

From input to impact – our Social Value Framework

As part of our refreshed ESG strategy, we have shifted our 
social investment focus from inputs (how, what and where 
we make a contribution) to measuring the social impacts 
(what changes) and the social value we create. 

During FY23, we developed an enterprise-wide approach 
that aims to deliver consistent, impact-orientated social 
investment and a framework that guides our intentional 
investment in social outcomes in line with our refreshed 
ESG strategy.

We approach social value at both a societal and local level, 
as informed by needs analysis: 

• Universal needs – impact all of our communities, 
including accessibility, inclusion, health, education 
and employability.  

• Bespoke needs – are unique to each community 

and are influenced by multiple socio-economic and 
environmental factors. 

Solutions to these needs are determined through 
community collaboration, with outcomes and impact both 
forecasted and reported through our Social IQ tool during 
our design phase. 

Social IQ tool
Our social value methodology has been developed into 
a digital tool that uses third-party empirical data and 
research to forecast social value and embed social 
outcomes into our decision making. 

• Social IQ determines the social value we create and we 
use this to inform alignment between commercial and 
social value. 

• A leading global framework, Business for Societal Impact 
(B4SI), has been used to inform our definition of social 
impact and has been complemented with Australian2 and 
OECD wellbeing frameworks to map Stockland’s social 
impact areas. 

• The tool covers 18 outcome domains across environment, 
economic and social areas and behind each outcome 
domain sits an auditable logic model that covers source 
data, outcome valuation data, methodology, assumption 
and attribution calculation. 

• Social IQ was used to forecast our Social Value Target for 
FY24-FY30 and will be used to report against progress 
from FY24.  

• EY was engaged to provide limited assurance over 
Stockland’s approach to defining, measuring, and 
calculating its Social Value Target of $1 billion by 2030. The 
assurance statement is available on our website.

Housing continuum – 
adapting core business for 
social impact

As Australia’s largest developer of masterplanned 
communities, Stockland is committed to 
collaborating with our government and industry 
partners to deliver more affordable, diverse and 
sustainable housing solutions.

We recognise that solutions are required across the 
housing continuum – from investment in social and 
affordable housing, build-to-rent and shared equity, to 
the sale of private houses.

We are rethinking existing models and considering 
how we can provide diverse and affordable 
housing options to move people through the 
housing continuum.

In Queensland, our Aura, Providence, and Botanica 
communities have dedicated five per cent of their 
respective sites to social housing and 25 per cent to 
affordable housing.

Sienna Wood in WA has a median price of $450,000 
which represents a 20 per cent discount to the 
Perth median house price (with prices starting 
from $350,000).

Our provision of affordable housing is expected to be 
a significant contributor to our social value creation 
target. The economic and social value derived comes 
from third party empirical data and research and 
will come from factors such as key worker retention, 
housing stress relief and improved mental health. Our 
Social IQ tool, together with our deep community 
needs analysis, allows our teams to determine 
how to optimise access to affordable housing and 
social mobility along the housing continuum in an 
economically sustainable way.

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2 Frameworks referenced include the ACT Wellbeing Framework and Tasmanian Wellbeing Budget

Year ended 30 June 2023

39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

The Stockland CARE Foundation is a 
charitable trust established to deliver 
programs and initiatives to improve 
the lives of people living in or near 
Stockland communities.

Indigenous procurement 
– diverting spend for 
social impact

In FY23, we spent over $4.3m in Indigenous 
procurement across 24 Supply Nation suppliers1.

This included spend from our All-Indigenous Tenders 
program which aims to increases Indigenous inclusion 
in our tender process. Specifically, this has resulted 
in the appointment of a new national Indigenous 
stationery supplier, as well as the awarding of 
contracts to Indigenous businesses and suppliers at 
multiple construction projects, including Stockland 
Wetherill Park revitalisation, Stockland Shellharbour 
food court remix, Stockland Nowra car park and 
Stockland Wetherill Park Kinchin Lane in NSW. 

The value of working with Indigenous owned 
businesses extends well beyond economic impact. 
By procuring from First Nations business we 
increase the development of skills and improve 
livelihoods contributing to long-term economic 
resilience and wellbeing of the communities in which 
the business operates.

Indigenous procurement is also expected to be a 
significant contributor to our social value creation 
target. We aim to engage over 50 Supply Nation 
suppliers by FY25 increasing our annual addressable 
spend on First Nations suppliers to 3 per cent by FY25.

We recognise the increasing demand for Indigenous 
owned and operated businesses through state 
governments' social procurement policies and are 
committed to supporting capability building with 
Indigenous suppliers to scale to meet this demand.  

CARE Foundation – 
Beyond giving

Founded in May 2015, the Stockland CARE Foundation 
is a charitable trust established to deliver programs 
and initiatives to improve the lives of people living in or 
near Stockland communities.

In alignment with our refreshed ESG Strategy and 
our focus on impact, we are evolving the CARE 
Foundation’s strategy beyond community investment 
to place-based social innovation and the identification 
of partnerships that will enable us to deliver on the 
ESG Strategy. Our Foundation will be an enabler and 
exemplar of social value creation at Stockland. 

During FY23, the CARE Foundation continued 
to support the important role of giving and 
volunteering in fostering community connection and 
building organisational culture. In FY23, Stockland 
employees spent over 1,640 hours volunteering, 
including Australian Business and Community 
Network (ABCN) mentoring, team volunteering and 
personal volunteering.

This year, we achieved a total community contribution 
of $7.65 million, comprising close to $1.3 million 
community development spend, which delivers social 
infrastructure and programs across our strategic 
focus areas, and over $6.4 community investment, 
which encompasses our employee giving and 
volunteering programs.

1 Supply Nation provides Australia’s leading database of verified Indigenous businesses https://supplynation.org.au/

40

Stockland Annual Report 2023

 
First Nations engagement

Stockland has a clear vision and 
commitment for reconciliation and 
aspires to contribute to a just, equitable 
and reconciled Australia.

During FY23, we developed our inaugural First Nations 
Strategy which aims to embed our commitment to 
Indigenous engagement and reconciliation into the way we 
operate our business. Our strategy is focused on those 
areas that we believe we can contribute to including 
employment, procurement, cultural learning, designing with 
Country and cultural heritage and land management.

To help deliver these priorities, we have a highly-engaged 
and active Reconciliation Working Group. We have 
also increased our internal capacity and capability by 
establishing the Stockland Indigenous Engagement Team, 
an all-Indigenous team of experts across the country with 
over 80 years of collective knowledge and experience in 
Indigenous affairs, community engagement, reconciliation 
strategies, Indigenous employment and procurement 
initiatives as well delivering and implementing cultural 
awareness and learning programs.

Our strategy builds on our recent Innovate Reconciliation 
Action Plan2 (RAP) 2020 – 2022, whereby we achieved over 
90 per cent of our RAP targets and commitments that had 
either been completed or that had commenced and will 
continue into our next RAP cycle.

We will continue this work in our Stretch RAP 2023 – 
2025, which has recently been submitted to Reconciliation 
Australia for its consideration and endorsement.

Key achievements in FY23 have included:

• expansion of our internal Indigenous 

Engagement Team

• More than 90 per cent of employees completed 

cultural learning training

• $4.32m of indigenous procurement with 24 Supply 

Nation suppliers engaged

• Conducted caring for Country initiatives across 

multiple projects including at Aura and Providence 
in Qld and M_Park and Western Sydney University 
in NSW.

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2 Reconciliation Australia's RAP Framework provides organisations with a structured approach to advance reconciliation. The four RAP 

types – Reflect, Innovate, Stretch and Elevate – allow organisations to continuously develop their reconciliation commitments. https://
www.reconciliation.org.au/reconciliation-action-plans/

Year ended 30 June 2023

41

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Killara Cafe at Stockland Mt Atkinson in Victoria

Killara Cafe is a partnership between Stockland Mt. 
Atkinson, the Killara Foundation and Edmund Rice 
Services Mt. Atkinson (ERSMA), in Truganina, Victoria 
on Wurundjeri Woi Wurung Country. The café, which 
opened in June 2023, is a social enterprise run by the 
community, providing opportunities for employment, on-
the-job training, and education for Aboriginal and Torres 
Strait Islander people.

Historically, Mt Atkinson was a meeting place for 
Indigenous communities, where ceremonies took place 
and trade occurred. The Killara Café brand and design 
is inspired by this history, providing a social hub for 
the growing Mt. Atkinson community, and a shared safe 
space for storytelling, knowledge sharing, connection to 
place, education and learning.

Designing with Country at M_Park in NSW

• Caring: By developing systems and processes for 
ensuring Country is protected and cared for, our 
team worked through an interactive terrain map 
of ‘Wallumatta’ that has now been gifted to the 
Dharug working group. From these discussions around 
the extraction of the ochre and its handling, the 
preservation of significant trees and the development 
of our terrain map, in addition to the future 
maintenance and educational opportunities which are 
integral to the project and the site, the journey of 
‘yanaladyi budyari gumada’ (Dharug language: walking 
together with good spirit) continues.

....we are working to embed Designing 
with Country principles and better 
understand Country...

Through our relationship with Wallumatta (Dharug 
Ngurra/Country), Her Traditional Custodians, the Dharug 
people, and the broader Indigenous community, we are 
working to embed Designing with Country principles into 
our projects, and better understand Country at M_Park 
in NSW. We have considered the following Designing with 
Country principles so that they are applied to the benefit 
of Country, humans, and non-human lives:

• Sensing: A critical connection point which included 

walks to local places of significance to Wallumattagal 
(Dharug) Community such as Sugarloaf Point, Brown’s 
Waterhole and Shrimpton’s Creek. These experiences 
of walking on Country have inspired the design of the 
landscape for M_Park Stage 1, such as the selection of 
plant species that have cultural relevance, medicinal 
and healing properties.

• Hearing: A process of deep listening throughout from 

which we investigated the history of the land, its 
topography and geology.

• Envisioning: This process involved translating Dharug 
cultural knowledge and community ambitions into 
design principles to inform our work. This includes 
cultural narratives around the white ochre and its 
importance to the Dharug women, the presence of 
water and its purification, the Spirit Woman who is 
omnipresent on site, and the higher point of the ridge 
and potential presence of Bora rings. These narratives 
informed our design and construction methodology, 
so that they can be respected and celebrated, cared 
for, and shared as part of the long-term educational 
journey for all.

42

Stockland Annual Report 2023

Image caption:Tarun Gupta, Managing Director and CEOImage caption:Stockland Mt Atkinson, VICResilience

Climate resilience1
As a systemic risk, climate change poses unprecedented 
economic, social, and environmental challenges for the 
global economy and the communities and industry sectors 
in which Stockland invests.

Our Climate Resilience Assessments are aligned with 
the Stockland Enterprise Risk Framework and focus 
on the vulnerability of an asset to climate change, 
particularly its ability to endure severe weather impacts 
and operate without disruption. In FY23, we completed 
72 asset level Climate Resilience Assessments applying 
the Intergovernmental Panel on Climate Change’s 
Representative Concentration Pathway 8.5 projections, 
taking our total number of asset level climate resilience 
assessments to 141, representing 100 per cent coverage 
of assets and development projects within our portfolio. 
The results of these assessments are available in our ESG 
Data Pack.

These assessments indicate varying levels of climate-
related risk across our portfolio and have given us a 
portfolio view of where to most effectively allocate capital 
and operational expenditure to strengthen our portfolio 
over time. climate resilience

With a complete view of our climate-related risk across our 
portfolio, our actions can be planned for greatest impact 
and business plan alignment. Assets with higher risks will 
incorporate resilience plans into their ongoing asset plans.

We have identified consistent initiatives with business asset 
teams that can be incorporated into design guidance and 
operational policies.

In design and development:

• Addressing future extreme storms by updating 

roof design specification for cyclone integrity and 
setting minimum standards for siphonic drainage to 
address hail-storms.  

• Addressing extreme heat risks with a minimum 

specification for roof insulation, based on predictive 
climate modelling, through on-going implementation of 
our cool roofs policy and tree canopy coverage goals.

• Incorporating climate-risk mitigation measures into 

existing asset emergency management plans provided 
to tenants.

• Reducing risks of damage from extreme storms by 

updating our asset preparation plans to provide ongoing 
inspection to ensure fixtures are secured and storm 
protection systems remain intact.

In operation:

• Incorporating climate-risk mitigation measures into 

existing asset emergency management plans provided 
to tenants.

• Reducing risks of damage from extreme storms by 

updating our asset preparation plans to provide ongoing 
inspection to ensure fixtures are secured and storm 
protection systems remain intact.

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1 Stockland's approach to climate resilience is detailed in our Climate Transition Action Plan available on our website.

Year ended 30 June 2023

43

Image caption:Willowdale, NSW 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Contributing to a 
nature-positive future

Nature is a key part of our approach to resilience in our 
refreshed ESG strategy. Our first steps towards a nature-
positive transition are to understand and manage the 
nature-related risks and opportunities across our business. 
We are a member of the Taskforce on Nature-related 
Financial Disclosures (TNFD) Forum and Science Based 
Targets Network (SBTN) Corporate Engagement Program.

Understanding our business’ impacts and 
dependencies on nature

In FY23, Stockland undertook significant work to 
understand our business’ impacts and dependencies 
on nature and the associated risks and opportunities 
in the transition to a nature-positive economy. In 
alignment with the draft TNFD recommendations, we 
have completed a whole-of-business nature risk and 
opportunity assessment as well as site-level assessments 
of cumulative biodiversity impacts.

In FY23, Stockland also coordinated one of four nature 
scenario workshops globally with our senior Stockland and 
TNFD management, providing feedback that has helped 
the TNFD refine its scenario guidance and toolkit, and 

Stockland's approach to assessing how our use of materials 
and our design principles could present nature risks and 
opportunities under two future scenarios.

With the draft TNFD framework not yet final (expected 
September 2023 release), our view of impacts and 
dependencies may need to be adapted as global 
standards emerge and the tools and data to support 
full understanding of nature risks and opportunities, 
particularly in supply chains, continue to mature.

We will continue to review and update our approach to 
contributing to a nature-positive future.

Assessing biodiversity at 
our developments

In FY23, Stockland completed a review of how we 
measure positive and negative impacts on biodiversity 
associated with our developments. We found that there 
have been advances in relation to the quantification 
of biodiversity outcomes since we first deployed our 
proprietary biodiversity calculator in 2015. Following this 
review, Stockland has started work on the development of 
an updated calculator and approach to tracking biodiversity 
outcomes associated with our developments. Data on our 
biodiversity impacts is available in our ESG Data Pack.

Stockland Aura fostering the thriving habitat of the 
Wallum Sedge Frog

For more than 10 years, Stockland has partnered with a 
renowned expert in frog habitat restoration, to identify 
and create a habitat where frogs with distinctive habitat 
requirements can thrive. New research has revealed 
positive results from conservation efforts at Stockland 
Aura in Qld, with the Wallum Sedge Frog found to be 
using and breeding in specially created wetland habitats 
across the masterplanned community.

Through collaborative efforts involving local community, 
environmental groups and international experts, we 
are actively rehabilitating 700 hectares of previously 
degraded pine plantation land into a fully functional 
ecosystem for frog species at Aura. Upon completion 
of the development, these areas will transform into 
permanent conservation lands.

Stockland continues to protect and regenerate the 
significant conservation zone in Aura as part of its 
development approach, bringing back the biodiversity 
values in the region.

44

Stockland Annual Report 2023

People and 
capability

At Stockland, we continue to enhance 
our culture and capability to deliver on 
our business strategy. We believe that 
our dedication to skills and learning, 
diversity and inclusion, new ways of working, 
and rewarding performance supports our 
strength in attracting, developing, and 
retaining talent.

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Year ended 30 June 2023

45

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
leaders. Both programs aim to accelerate the growth of 
talented people and support our leaders to deliver on our 
ambitious strategy.   

In an uncertain environment we continue to ready ourselves 
for the future of work and of real estate, and to prioritise 
investment in talent development to futureproof our 
people and our organisation.

We invest in our people and our leaders to evolve our strong 
and differentiated culture as our organisation grows. Our 
performance culture embraces wellbeing as a pillar of a 
sustainable work environment, where all people can truly 
thrive. Our wellbeing program includes new initiatives such 
as our voluntary mental health peer supporter network and 
our focus on psychological safety. We remain focussed on 
our culture priorities of being bold, curious and creative.

Like most organisations, we experienced a post-covid 
reduction in our retention rate and this has now returned to 
within our normal range.

How we create value

Exceptional people

Developer of talent

Stockland is committed to investing in the next generation 
of talent. In February 2023, we welcomed 36 graduates 
into our two-year Graduate Program, reflecting our focus 
on building our pipeline of talent. We achieved a diverse 
representation of graduates with a balanced gender split. 
Our unique option to ‘Create Your Future’ allows graduates 
to craft their program and gain experience across a variety 
of roles in our business. Our graduate program has been 
awarded a Top 100 program by GradConnection for seven 
consecutive years, and over the last two years has received 
similar awards by Prosple and the Australian Association of 
Graduate Employers. We continue to evolve and improve 
the program every year.

We are investing in our current and future leaders through 
our leadership development programs. Supported by multi-
year investments and strong sponsorship from our senior 
leadership team, our leadership programs help us to build 
the quality of our leaders across our organisation as we 
grow. The programs are tailored to various career stages, 
with our “Next Generation” program focused on emerging 
talent and our “Bold Futures” program designed for senior 

Stockland’s Graduate Program

Through four six-month rotations, our graduates 
are exposed to different asset classes, teams, 
skills and projects. This approach allows them to 
develop broad, transferable skills to complement their 
developing technical expertise, nurturing true enterprise-
minded leaders.

In building our talent pipeline, we recognise it is 
important to connect talent with talent. Each graduate 
is matched with a senior manager 'Career Coach', fast-
tracking growth and sharing their knowledge.

2022 graduate, Sugandi Doratiyawa, says: “I joined 
Stockland because of its impressive reputation and 
alignment with my personal values and career goals. 
The Stockland Graduate Program has offered me a 
chance to grow professionally and personally, and has 
exceeded my expectations. The inclusive culture is great 
and I’ve felt welcome from day one. I’ve completed 
rotations in Masterplanned Communities and Land 
Lease Communities and I’m now in the learning and 
development area in our People & Culture team. This 
has not only broadened my skillset but also helped 
me discover where my strengths and interests lie. As a 
commerce graduate with a finance major, learning and 
development isn’t necessarily where I thought I’d be, but 
I’ve found that it allows me to be creative and think 
outside the box. I’m particularly enjoying the emphasis 
on innovation; having the freedom to explore new ideas 
and solutions keeps me fully engaged and genuinely 
excited about the projects I’m involved in. I’m excited 
about where my career with Stockland might take me.”

46

Stockland Annual Report 2023

Image caption:Sugandi Doratiyawa, Stockland graduateEmployer of choice

Diversity and inclusion

At the heart of Stockland’s culture is our dialogue with 
our people. Our independently administered ‘Our Voice’ 
employee surveys provide regular opportunities for our 
people to share their feedback about what it is like to 
work at Stockland and allow our leaders to listen and 
respond to that feedback. In FY23, we achieved a significant 
increase in our already-high overall employee engagement, 
which is now eight points above the Australian National 
Norm1 and for some categories above the Global High 
Performing Norm1.

Both employee surveys conducted in FY23 showed 
significant improvement in our peoples’ wellbeing 
compared with prior years. In our October 2022 survey, 
wellbeing levels returned to pre-COVID levels, scoring 
significantly above the Australian Norm. The survey also 
revealed strengths in the leadership of our people.

We are recognised as a leading 
organisation in the sector:

2021-23 WGEA Employer of Choice 
citation for the 13th successive year. 

2023 Top 100 Global Workplace 
ranking for Gender Equality 
by Equileap.

2022 Property Council of Australia 
“People First Award” for our leading 
Parental Leave Policy

Silver Employer in the 
Australian Workplace Equality Index 
(AWEI) 2022 Australian LGBTQ 
Inclusion Awards

At Stockland, we aim to foster a safe, inclusive and 
culturally diverse environment that helps achieve our 
vision of representing and celebrating the communities 
we serve. We strive to create a culture within our 
communities where people feel a sense of belonging; 
a place where they feel safe and valued.

To achieve our vision, we invest in our Diversity & Inclusion 
strategy as an integral part of our evolving culture. We 
believe creating a more diverse and inclusive environment 
helps empower our people to create more inclusive 
communities for our customers and stakeholders.

We communicate our commitment clearly and encourage 
open discussion with our people about how everyone can 
bring their authentic selves to work.

Our Diversity & Inclusion strategy is guided by 
five principles: 

1. Recognise psychological safety as key to unlocking 

our best

2. Mirror and represent the communities we serve

3. Identify and develop diverse and inclusive leaders

4. Create a culture of everyday respect

5. Recognise the uniqueness of all our people

Our strategy is supported by four focused Employee 
Advocacy Groups (EAGs) across Gender Equity, LGBTQ+, 
Cultural Diversity, Wellbeing and Disability. These groups 
include employees at various levels in the organisation 
and from a mix of backgrounds to encourage diversity 
of thought, more representative decision making and 
improved delivery on our initiatives.

During FY23, our EAGs have led a series of 
initiatives to promote diversity and inclusion in our 
workplaces, including:

• Our second Everyday Respect campaign aimed at 

increasing awareness and understanding of acceptable 
and unacceptable behaviour, equipping employees to 
deal with everyday sexism and encouraging them to 
speak up.

• Acknowledgement of various days of significance

throughout the year, including the commissioning of 
powerful images created by First Nations artist and proud 
Noongar woman, Janelle Burger, to illustrate our assets 
and echo World Pride’s strong partnership with First 
Nations people.

• The establishment of Stockland’s first Disability Ally 

Network with over 100 employees signing up within two 
months of launch.

• A live employee webinar and short film titled ‘You can ask 
that’ to help dispel cultural myths and generate greater 
understanding of cultural backgrounds and norms across 
our workforce.

Our First Nations Engagement Strategy is detailed on 
page 41,

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1 Willis Towers Watson.

Year ended 30 June 2023

47

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Gender pay equity

We conduct regular analysis of gender pay equity to 
understand any differences in pay between men and 
women in our organisation.

Our long-term objective is to achieve zero gender pay 
gap. This can only be achieved by addressing inequalities 
between men and women such as under-representation of 
women in higher-paid jobs and leadership roles.

In the short term, our objective is to maintain no systemic 
instances of pay inequity in ‘like-for-like’ roles. To do this, 
we analyse pay for ‘like-for-like’ roles as well as average 
pay for men and women across different levels of our 
organisation. We also conduct statistical analysis to help 
determine the extent to which gender is a driver of pay 
differences after allowing for other factors such as location, 
seniority and occupation.

Stockland has no known instances of gender pay 
inequity. While this is pleasing, we recognise we have more 
work to do to achieve gender equality and zero gender 
pay gap.

At Stockland, women hold the majority of our lower-paid 
administrative and customer care roles and are under-
represented in some higher-paid areas. This results in the 
average fixed pay of men at Stockland being higher than the 
average fixed pay of women.

Through initiatives to create pathways for women to enter 
and thrive in more senior, higher-paying roles traditionally 
filled by men, we reduced our gender pay gap by four 
percentage points in FY23 and with ongoing focus we 
expect this gap to further reduce over time.

48

Stockland Annual Report 2023

Image caption:Stockland head office, NSW 
Health, safety and wellbeing

We are committed to providing physically and 
psychologically safe and healthy environments for 
everyone who works with us or attends our 
communities, workspaces and places.

During FY23, we trained 30 mental health peer supporters 
across our business to support a positive mental health 
environment in our workplaces. These voluntary, non-
clinical roles are trained to work collaboratively with 
their peers to help recognise signs of distress, listen to 
concerns and refer colleagues who could benefit from 
additional support.

Following an earlier program of work to better understand 
levels of psychological safety within our business, why it’s 
important for Stockland and what it looks like, we engaged 
an external organisation to measure our progress. This 
analysis showed that we made progress over the last year, 
while there is still room for improvement, and we remain 
focused on strengthening this aspect of our culture.

Stockland has long valued the benefits of flexible work, and 
we have continued to evolve our approach to flexibility. Our 
hybrid working model is an enterprise approach to flexibility
involving a mix of working in asset, offices, local workplaces 
and at home or remote locations. Leaders and teams 
build plans aligned to our principles. Each team develops 
working rhythms aligned with our recommended blueprint, 
highlighting the importance of face-to-face collaboration 
for complex problem solving and learning. Our approach 
encourages a focus on the goals and needs of the 
organisation (our strategic mission), each team and each 
employee. This approach has supported our people to 
work more collaboratively, enhance social cohesion, and 
deliver performance.

In FY23, our employee Lost Time Injury Frequency Rate 
(LTIFR) was 1.6, which represents an improvement on our 
FY22 rate of 2.6. Our employee Medical Treatment Injury 
Frequency Rate (MTIFR) was 3.6, our rate in FY22 was 3.2.

We also monitor the safety performance of our contractors 
on our development sites. In recognition that global 
supply chain issues and labour shortages are affecting
contractor safety performance, we have developed a 
Serious Incidence Response Plan with a range of key 
initiatives to support our contractors. The initiatives include 
independent audits, stop work meetings, commercial 
property safety briefings, and civil and infrastructure on-site 
safety training. The Serious Incidence Response Plan has 
been successful in reducing our development contractor 
LTIFR to 6.2 in FY23 down from 9.9 in FY22. 

More information on our safety performance is available in our 
ESG Data Pack.

1.6

Lost Time Injury 
Frequency Rate (LTIFR)
Down from 2.9 in FY22

Our values and conduct

Stockland believes in doing business professionally 
and in line with our CARE values and we have 
developed a framework to guide our decision making 
and engagement in relation to social and ethical matters.

We ask all employees to confirm they have read and 
acknowledged our Code of Conduct both on commencing 
with Stockland and as part of their annual compliance 
statement. We act promptly to investigate any breaches of 
our Code of Conduct and apply penalties for substantiated 
breaches up to and including dismissal.

We regularly monitor compliance with corporate 
policies and investigate breaches, as outlined 
below. In FY23:

• Employee Conduct – there were nine substantiated 
breaches of our Code of Conduct in FY23, which 
resulted in four terminations of employment and 
five formal warnings. Four of these breaches 
resulted in formal grievances being raised.

• Privacy – there were no notifiable data breaches 
reported to the regulator, Office of the Australian 
Information Commissioner (OAIC).

• Grievances – there were seven formal grievances 

raised in FY23, with investigations carried out 
in accordance with our grievance handling 
procedures with appropriate actions taken to 
address matters raised. Of the seven cases, one 
remains under investigation.

• Whistleblower – Stockland’s Whistleblower 
Protection Officers (WPOs) received a total of 
five concerns via our whistleblower escalation 
channels in FY23, with investigations carried out in 
accordance with our Whistleblower Policy including, 
where appropriate, actions taken to address 
matters raised.

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49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Investing in capability

End-to-end multi-sector capability

Stockland is focused on leveraging our specialist end-to-end, multi-sector capabilities to build resilient assets 
and create liveable communities. To drive future growth and support the delivery of our strategy, we are investing in 
supporting our people to build these capabilities through our Future Ready Careers program of work.

Future Ready Careers

In FY23, we launched Future Ready Careers as part of 
our reimagined learning and development strategy. The 
program expands opportunities for learning and opens 
up career pathways for our people.

Being Future Ready at Stockland means 
developing seven key capabilities including: customer 
centricity, adaptive mindset, collaboration and 
teamwork, judgement and decision making, building 
high performing teams, leading change, and 
enterprise leadership.

Since its introduction in late 2022, more than 400 
employees have completed their Future Ready Profile.

We have introduced a new partnership with LinkedIn 
Learning to enable our people to learn as they work. 
Focused on the subjects that matter to them, LinkedIn 
Learning is an educational platform that helps our 
employees develop business, technology-related, and 
creative skills through expert-led course videos. Over 50 
per cent of employees have activated their accounts, 
completing over 276 courses with 11,035 videos viewed.

A Future Ready Profile, a preference-based psychometric 
assessment, is designed to test and measure the 
mindsets of our people and assist them identifying 
areas of strength and where they can further develop 
their skills.

Our Future Ready Careers program is complemented 
by a refreshed approach to individual development 
conversations to build our employees’ future 
career focus.

50

Stockland Annual Report 2023

Driving an innovative culture

When we foster a culture of innovation, we grow 
capacity within our organisation.

A culture of innovation brings a diversity of thinking 
which helps our people to reimagine how we work in 
line with our purpose of a better way to live, and be 
supported to drive everyday innovation in their role. This 
enhances our ability to accelerate our strategy and deliver 
competitive advantage.

In FY23, we held our first Innovation Week, where 
more than 1,200 of our employees engaged with our 
program spotlighting innovators across the business 
and demonstrating the strong link between ESG and 
innovation. We have also extended our people’s digital 
and data capabilities, with both theoretical and targeted 
practical learning experiences around data, robotic process 
automation, and the emerging area of generative artificial
intelligence (AI).

Our internal 2023 Innovation & Excellence program received 
59 entries across eight strategically aligned categories. 
Highlights include: 

• A sales and service model designed to manage 
the changing customer journey and to scale our 
business, connecting customers with the right person 
at the right time, increasing the new enquiry contact 
rate by greater than 20 per cent and empowering 
sales professionals to focus on maximising sales and 
minimising settlement cancellations.

• In FY23 we designed a new, integrated and scalable 
business planning and forecasting solution that has 
supported the growth of our Halcyon land lease business. 
This has delivered tangible efficiency benefits for our 
people, streamlining processes and digital capability.

• Several project and asset-based innovations delivering 
sustainable outcomes, delivery excellence across our 
assets including our Halcyon communities, M_Park 
staged delivery, and leveraging data and analytics to 
deliver efficiencies to our project and business teams.

Chairman’s award for innovation: 
'cool communities' reducing urban heat stress

Our Aura community on the Sunshine Coast is 
well known for its white roofs or cool roofs policy 
implemented to reduce Urban Heat Island Effect. To 
understand the impact of the framework in action, 
heat mapping was conducted and revealed that there 
was a difference in temperature of 1.5-2 degrees 
celsius between Aura and surrounding suburbs, which 
contributes to increased comfort levels for our residents.

To better understand what contributes to urban heating 
our team undertook an assessment of key trends 
and implementation strategies for cooling measures at 
our communities.

A data-driven scalability framework was established to 
provide a system of measurement and cost/benefit 
analysis of cooling mitigation measures and how they 
could be scaled across our portfolio.

High-performing reduction measures identified as part 
of the framework included cool roads and cool roofs, 
increased tree canopy cover and vegetation, orientation 
related decisions and green roofs. The framework also 
includes engagement with First Nations communities 
to understand appropriate local vegetation to maximise 
heat mitigation.

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51

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Cyber security

Our business is digitally enabled to deliver efficient 
operations, great customer experience, and value 
through the property lifecycle. Our cyber resilience 
continues to be a focus as a strategic risk and a priority for 
building and maintaining stakeholder trust and confidence.   

To protect Stockland, our people and our customers 
from current and emerging cyber threats, we are focused 
on maintaining and strengthening our technical and 
cyber resilience through culture, capability, and strategic 
partnerships. This helps us manage the risk of sensitive 
information loss and operational disruption, as well as other 
reputational, financial, regulatory, or customer impacts 
associated with adverse events.   

Our cyber resilience program is guided by industry 
frameworks including ISO27001, the international 
standard for information security, and the National 
Institute of Standards and Technology Cybersecurity 
Framework (NIST CSF). These complementary frameworks 
focus on identifying risks, implementing controls and 
monitoring performance.

As part of our cyber program, we continue our 
disciplined focus on:   

• Equipping and training our people for a cyber-aware 
culture, and to proactively identify and manage 
emerging and potential threats.

• Providing digitally safe and protected working and 

system environments.

• Preparing resilience and recovery capabilities 
through planning for and simulating cyber 
threat response.

• Proactive risk management through security testing, 
supply-chain management, and targeted reviews. 

52

Stockland Annual Report 2023

 
Quality relationships

As a business, we recognise that building strong, mutually beneficial customer, partner, 
supplier and business relationships is essential for our long-term success. The strength 
and quality of our relationships underpins our strategic goals of reshaping our portfolio and 
scaling our capital partnerships to improve our return on capital and further accelerate the 
development of our pipeline.

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53

Image caption:Stockland head office, NSW 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Our commitment to customer excellence

Through our focus on delivering a superior customer experience we can cultivate 
trust, strengthen our relationships, improve our competitiveness and drive sustainable 
growth. Our commitment to customer excellence sees us striving to develop meaningful 
connections through a deep understanding of our customers and leveraging data-driven 
insights to provide a great customer experience that sets us apart from our competitors.

Measuring customer satisfaction and wellbeing

We take a data-driven approach to understanding customer 
values and aspirations, uncovering timely and actionable 
insights and leveraging predictive intelligence to deliver 
personalised customer experiences across our portfolio.

Our annual Liveability Index Survey measures what 
matters to our residents and helps inform our design 
and development processes, including strategic planning, 
placemaking guidelines and sustainability initiatives and 
partnerships. This year, we enhanced the survey to 
address feedback from residents and better reflect our 
diversified portfolio. This included streamlining the survey, 
the inclusion of advanced analytics to better identify drivers 
and opportunities of liveability and the extension of the 
survey to include Halcyon home owners.

In FY23, our national Liveability index score across MPC 
communities remained stable at 70 per cent. This is below 
our target of 75 per cent. Among early-stage communities, 
key priorities for improvement include access to amenities 
such as retail, transport and community spaces. Our 
Halcyon communities performed well on home design 
along with safety and security and further improvements 
are planned to improve community updates and address 
perceptions in relation to ongoing costs.

Our Workplace and Logistics Satisfaction monitor takes the 
pulse of our tenants annually, allowing them to provide 
feedback on their relationship with Stockland. The insight 
from this research enables us to address tenant pain points 
and identify future opportunities for improvement.

In FY23, we sought to better understand and assess our 
performance in the marketplace by enhancing our survey 
design and incorporating industry benchmarks.

Our logistics and workplace tenant satisfaction score 
increased two per cent on FY22 to 82 per cent against 
our target of 80 per cent. These improvements were driven 
largely by strong property and employee relationship ratings 
particularly among our logistics tenants.

Across our retail portfolio, derived shopper satisfaction 
increased to 82.1 per cent above our target of 78 
per cent. Overall, our retail tenant satisfaction score 
was 82.5 per cent, remaining above our 75 per 
cent target. We maintain a strong focus on customer-
centric engagement with improved tenant relationship 
management practices and the implementation of a new 
customer relationship program.

Residential Communities Customer Service Centre

Our Communities business successfully rolled out the 
Customer Service Centre (CSC) based on customer 
data, resulting in a 25 per cent increase in sales team 
productivity and an improved customer journey. First 
piloted in FY22, the initial data led to an expansion to 
all Masterplanned Communities and medium density 
projects this year, and more recently to our Land Lease 
Communities customers. 

Our previous operating model required the sales team to 
contact and service all potential customers as well as 
manage all sales from deposit to settlement. Customer 

data showed us there was an increased demand for 
frequent engagement. To address this, we introduced the 
CSC, a dedicated phone/digital team assisting customers 
from initial inquiries to sales readiness, where sales 
professionals can then guide them to settlement.

This approach resulted in three times more customers 
moving forward to being sales ready and an increase in 
satisfaction scores with sales professionals rated as very 
good or excellent since the implementation of this new 
operating model.

54

Stockland Annual Report 2023

WELL ratings

In November 2022, Stockland was recognised by the 
International WELL Building Institute (IWBI) as the first 
Australian property group to achieve a WELL Health-
Safety Rating in the retail sector, obtaining a rating for 
eight of its shopping centres across New South Wales, 
Victoria, Queensland, and Western Australia.

The rating was achieved by working collaboratively with a 
team of contractors, consultants, facilities managers and 
retailers at each centre to assist us in adopting strategies 

to support the health and wellbeing of Stockland 
customers and retailer staff. Some of the strategies 
implemented are visible – like keeping spaces clean and 
sanitised – while others less so, like having best-practice 
emergency procedures in place and ensuring we have 
high-quality clean air and water supplied within our 
buildings. This allows our customers and retailers to have 
a heightened experience in our spaces knowing their 
health and safety is prioritised.

Capital partner of choice

We provide high-quality, commercially attractive investment prospects for third-party investor partners by leveraging our 
demonstrated leadership and proven expertise in asset development and management. Our strategic capital partnerships 
enable us to scale our management and development capabilities and grow assets under management more quickly to 
enhance long-term, sustainable business growth for us and our partners.

Our strategic capital partnerships enable us 
to enhance long-term sustainable business 
growth for us and our partners

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Year ended 30 June 2023

55

Image caption:Stockland Green Hills, NSW 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
How we create value

Digital and data excellence

Innovation gives us a platform for customers and stakeholders to have an exceptional 
experience with Stockland, develop and extend trust, and to create sustainable growth. 
Innovation is essential to what we do, every day.

Our focus on innovation is demonstrated in the leading 
assets we develop for our communities, and the 
transformation of the capabilities that deliver them, 
leveraging leading digital and data. 

Data-enabled solutions continue to drive customer 
centricity, operational excellence, and enhanced decision 
making across our asset lifecycles. 

We are expanding our leading-edge analytics capability, 
including artificial intelligence (AI) and advanced geospatial 
analytics, harnessing the power of our technology 
capabilities to create value from data for our business, 
stakeholders, and customers.

We have embraced digital technology to create leading 
customer experiences. In December 2022, we launched 
The Stockland Hub to provide our customers with an 
enhanced and personalised digital experience across 22 
of our Masterplanned communities. The Hub supports new 
digital enquiries, and provides a streamlined engagement 
path for our customers by personalising their experience 
based on their buyer type, and guiding customers through 
the home buying and building process in a self-service 
digital portal. This digital platform will continue to be 
leveraged across our portfolio in line with our growth plans.

For our Retail Town Centres, we are leveraging digital 
solutions to support our tenants and shoppers for example, 
our Stockland Marketplace is an online hyper-local platform 
allowing retailers to list their products, and shoppers find,
browse, click and collect locally.

Stockland Terra

Stockland Terra, our proprietary and tailored geospatial 
analytical application, is improving the way our 
teams explore, track, and evaluate land acquisition 
opportunities across Australia. In FY23, we further 
embedded our 'customer first' thinking into our Terra 
platform, including:

• Surfacing demographic data for land corridors, 

allowing us to rapidly understand the 
addressable market.

• integrating aggregated customer data such as lifestyle 
needs, household characteristics, product and location 

preferences, and likelihood to move – all of which 
provide a richer understanding of our customer base.

• incorporating ESG-related datasets and intelligence, 

allowing for ESG analysis earlier in the 
development process.

Expanding Stockland Terra’s capability to make insights 
more dynamic and accessible empowers us to make 
decisions quickly and with conviction, and it helps the 
communities we develop to be fit-for-purpose, delivering 
on our customers’ needs and values, and in line with our 
ESG Strategy.

56

Stockland Annual Report 2023

 
Governance

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Year ended 30 June 2023

57

Image caption:Stockland head office, NSW 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governance

Board of Directors

Tom Pockett

Chairman
Tom Pockett was appointed to the Board on 1 September 
2014 and became Non-Executive Chairman on 
26 October 2016. 

Mr Pockett has extensive experience in both the property 
and financial sectors having held a number of senior 
executive positions including Chief Financial Officer and 
Executive Director of Woolworths Limited, Deputy Chief 
Financial Officer at the Commonwealth Bank of Australia 
and several senior finance roles at Lendlease. He is also the 
Chairman of Insurance Australia Group Limited. In addition 
to his role as the Chair of the Stockland Board, Mr Pockett 
is a member of the People & Culture Committee. Mr Pockett 
was also Chairman of the Stockland CARE Foundation 
Board until April 2022.

Qualifications and age
BComm, FCA, 65

Directorships of listed entities in last three years
Directorships of listed entities in last three years: 
Autosports Group Limited (29 August 2016 to 30 November 
2021), Insurance Australia Group Limited (1 January 2015 
to present).

Tarun Gupta

Managing Director and Chief 
Executive Officer
Tarun Gupta was appointed Managing Director and Chief 
Executive Officer of Stockland on 1 June 2021. Mr Gupta 
was also appointed to the Board of Directors on 1 June 
2021. Mr Gupta has over 25 years’ experience in the 
property industry and has held a number of senior roles 
at a large listed Australian property company including 
Chief Executive Officer, Property Australia, Group Head of 
Investment Management, Chief Investment Officer, Asia 
Pacific, Fund Manager, Australian Prime Property Funds and 
most recently Group Chief Financial Officer. 

Qualifications and age
BA (Econ) (Hons), MBA, GAICD, 53

Directorships of listed entities in last three years 
None.

58

Stockland Annual Report 2023

 
Melinda Conrad

Non-Executive Director
Melinda Conrad was appointed to the Board on 18 May 2018. 

Ms Conrad has more than 25 years of expertise 
in consumer- related industries, including as a retail 
entrepreneur  and CEO, and roles at Colgate-Palmolive and 
Harvard Business School. 

Ms Conrad is currently a Director of ASX Limited, Ampol 
Limited and Penten Pty Ltd. She is also a Non-Executive 
Director of The Centre for Independent Studies, a member 
of the AICD Corporate Governance Committee and an 
Advisory Board Member of Five V Capital. 

Ms Conrad is Chair of the People & Culture Committee. 

Qualifications and age
BA, MBA, FAICD, 54

Directorships of listed entities in last three years
ASX Limited (1 August 2018 to present), Ampol Limited 
(1 March 2017 to present).

Kate McKenzie

Non-Executive Director
Kate McKenzie was appointed to the Board on 
2 December 2019. 

Ms McKenzie’s executive career included over 30 years’ 
experience in the telecommunication and government 
sectors in Australia, New Zealand and Hong Kong. She 
was most recently the chief executive officer of Chorus, 
New Zealand’s largest provider of telecommunications 
infrastructure, a top 50 New Zealand Stock Exchange 
listed company. Prior to this, Ms McKenzie held several 
senior roles at Telstra from 2004 – 2016, including Chief 
Operating Officer, where she oversaw the group’s extensive 
property portfolio, and seven years in senior roles in NSW 
Government, including the Department of Commerce and 
Department of Industrial Relations.

Ms McKenzie is currently the Chair of NBN Co Limited, and 
a director of Healius Limited and AMP Limited. 

Ms McKenzie is a member of the Audit Committee and 
Sustainability Committee. 

Qualifications and age
BA, LLB, 62

Directorships of listed entities in last three years
AMP Limited (18 November 2020 to present), Healius 
Limited (25 February 2021 to present).

Stephen Newton

Non-Executive Director
Stephen Newton was appointed to the Board on 
20 June 2016. 

Mr Newton has extensive experience across real 
estate investment, development and management 
and infrastructure investment and management. Mr 
Newton is a Principal and Director of Arcadia 
Funds Management Limited, a real estate investment 
management and capital advisory business and prior to 
this, he was the Chief Executive Officer - Asia/Pacific for 
the real estate investment management arm of Lendlease. 
Mr Newton is currently a Director of BAI Communications 
Australia, Boldyn Networks Group, Waypoint REIT Group, 
Arcadia Funds Management Group Companies, Sydney 
Catholic Schools Limited, and Chairman of the Finance 
Council for the Catholic Archdiocese of Sydney. 

Mr Newton is Chair of the Audit Committee and a member 
of the Risk Committee. 

Qualifications and age
BA (Ec and Acc), M.Com, MICAA, MAICD, 70

Directorships of listed entities in last three years
Viva Waypoint REIT Group (10 July 2016 to present).

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Christine O’Reilly

Non-Executive Director
Christine O’Reilly was appointed to the Board on 
23 August 2018. 

Ms O’Reilly’s executive career included 30 years’ experience 
in both financial and operational entities both domestically 
and offshore. Following an early career in chartered 
accounting and investment banking, she has held a number 
of senior executive roles in diverse industries including CEO 
and Director of the GasNet Australia Group and Co-Head of 
Unlisted Infrastructure Investments at Colonial First State 
Global Asset Management. 

Ms O’Reilly is currently a Director of ANZ Limited, BHP Group 
Limited and Baker Heart and Diabetes Institute. 

Ms O’Reilly is the Chair of the Risk Committee and a 
member of the Audit Committee. 

Year ended 30 June 2023

59

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governance

Qualifications and age
BBus, 62

Directorships of listed entities in last three years
Directorships of listed entities in last three years: CSL 
Limited (16 February 2011 to 14 October 2020), Transurban 
Limited (12 April 2012 to 8 October 2020), Medibank 
Private Limited (31 March 2014 to 12 November 2021), BHP 
Group Limited (12 October 2020 to present), ANZ Limited 
(1 November 2021 to present). 

has previously been a director of Westfield Retail 
Trust and Scentre Group. Mr Brindle holds a Bachelor of 
Engineering (Honours), Bachelor of Commerce and Master 
of Business Administration.

Mr Brindle is a member of the Audit Committee. 

Qualifications and age
BE, BComm, MBA, 65

Directorships of listed entities in last three years
National Storage REIT (19 December 2013 to April 2022), 
Waypoint REIT (10 July 2016 to present).

Andrew Stevens

Non-Executive Director
Andrew Stevens was appointed to the Board on 1 July 
2017. Mr Stevens’ executive career at Price Waterhouse, 
PricewaterhouseCoopers and IBM, has provided him with 
experience in change management, business and ICT 
program design and risk evaluation, governance and 
delivery, and in business transformation and regional/ 
global expansion. Mr Stevens is Chair of Industry Innovation 
and Science Australia and the Chairman, Data Standards 
for the Consumer Data Right in Australia. Mr Stevens also 
serves as a Director of Ooh Media Limited. 

Mr Stevens is a member of the Champions of Change. 

Mr Stevens is the Chair of the Sustainability Committee 
and a member of the Risk Committee and the People and 
Culture Committee. 

Qualifications and age
BComm, MComm, FCA, 63

Directorships of listed entities in last three years
Thorn Group Limited (1 June 2015 to 4 December 2019), OoH 
Media Limited (25 September 2020 to present). 

Adam Tindall

Non-Executive Director
Mr Tindall was appointed to the Board on 1 July 2021. 
Mr Tindall has over 30 years’ experience in investment 
management and real estate. Mr Tindall was the Chief 
Executive Officer of AMP Capital from 2015 to 2020 
where he led a global team overseeing funds and separate 
accounts for clients across a range of asset classes 
including real estate, infrastructure, equities, fixed income 
and multi-asset capabilities. Mr Tindall's prior roles at 
AMP Capital include Director and Chief Investment Officer
for Property, leading a team managing a $19 billion 
portfolio of real estate investments of behalf of domestic 
and international institutional investors. Prior to 2009 Mr 
Tindall held senior leadership roles at Macquarie Capital 
and Lendlease. 

Mr Tindall holds a Bachelor of Engineering (Civil) 
(Honours) and is a Fellow of the Australian Institute of 
Company Directors. 

Mr Tindall is a member of the Audit Committee and the 
Sustainability Committee.

Qualifications and age
BE (Hons), 58

Directorships of listed entities in last three years
CSR (16 January 2023 to present). 

Laurence Brindle

Non-Executive Director
Mr Brindle was appointed to the Board on 16 November 
2020.  Mr Brindle has extensive experience in the 
acquisition, development and management of landmark 
property assets. His executive career included 21 years 
with QIC where he served in various senior positions 
including a long-term member of QIC’s Investment 
Strategy Committee and Head of Global Real Estate where 
he was responsible for a $9 billion portfolio. 

Mr Brindle is currently the Chairman of Waypoint REIT. 
He is a former Chairman of both National Storage 
REIT and Shopping Centre Council of Australia and 

60

Stockland Annual Report 2023

 
The Stockland 
Leadership Team

Tarun Gupta

Louise Mason

Managing Director and Chief 
Executive Officer
Refer to biography on page 58.

Katherine Grace

Chief Legal & Risk Officer
Katherine Grace was appointed General Counsel and 
Company Secretary on 21 August 2014 and in her current 
role as Chief Legal and Risk Officer has responsibility 
for Stockland’s legal and risk functions. As the Company 
Secretary Ms Grace is directly accountable to the Board, 
through the Chairman, for all matters relating to governance 
and the proper functioning of the Board. 

Ms Grace has practised as a solicitor for over 20 years 
with extensive experience in corporate, property, debt 
and capital markets transactions working with a wide 
range of stakeholders including listed board directors, 
equity investors, regulators, media and financiers. 

Prior to joining Stockland, Ms Grace held roles as General 
Counsel and Company Secretary for Westfield Retail Trust 
and Valad Property Group. 

Ms Grace is a key management person for the purposes of 
the Remuneration Report. 

Qualifications
BA (Hons), LLB (Hons), MPP, GAICD

CEO Commercial Property
Louise Mason was appointed Group Executive & CEO 
Commercial Property on 18 May 2018. Ms Mason has more 
than 30 years’ experience in real estate and is responsible 
for all aspects of Stockland’s extensive Commercial 
Property portfolio of Retail Town Centres, Workplace and 
Logistics assets with a combined value of $10.5 billion as at 
30 June 2023. 

Prior to joining Stockland, Ms Mason was Chief Operating 
Officer of AMP Capital Real Estate. She has also held several 
senior executive operational and development roles at AMP 
in retail, office, and industrial, as well as retail management 
positions at Lendlease. 

Ms Mason is a past President of the NSW Division of the 
Property Council of Australia. 

Ms Mason is a key management person for the purposes of 
the Remuneration Report. 

Qualifications
BA, LLB (Hons), GAICD

Alison Harrop

Chief Financial Officer
Alison Harrop joined Stockland as Chief Financial Officer on 
10 January 2022. Ms Harrop has over 25 years’ experience in 
finance and operations in Australia and overseas across 
a diverse range of sectors including property, financial
services and government.  Ms Harrop has previously held 
senior finance roles at Macquarie Group, Australia Post and 
Westpac, and prior to joining Stockland was Chief Financial 
Officer at Dexus. 

Ms Harrop is a key management person for the purposes of 
the Remuneration Report. 

Qualifications
BSc (Hons), FCA, GAICD

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Year ended 30 June 2023

61

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governance

Andrew Whitson

CEO Communities
Andrew Whitson was appointed Group Executive & 
CEO Communities on 1 July 2013. Mr Whitson 
oversees Stockland’s 51 residential masterplanned 
communities with a portfolio of approximately 68,000 lots 
and an approximate end value of  $21.4 billion. At as 30 June 
2023, Mr Whitson is also responsible for 33 land lease 
communities with a development pipeline of approximately 
7,100 lots. 

Mr Whitson joined Stockland in early 2008 as Regional 
Manager for Greater Brisbane and Far North Queensland. He 
was appointed General Manager Residential, Victoria in July 
2009 and in November 2012, his role expanded to include 
NSW. He was Group Executive and CEO of the Residential 
business in 2013 before his role was expanded to lead both 
the Residential and Retirement Living businesses as the 
combined Communities function in August 2018. Andrew is 
the former Chair of the Residential Development Council 
of Australia and a Director of the Green Building Council 
of Australia. 

Mr Whitson is a key management person for the purposes 
of the Remuneration Report. 

Qualifications
BE (Civil)

Karen Lonergan

Chief People & Stakeholder 
Engagement Officer
Karen Lonergan joined Stockland as Group Executive, 
People and Culture on 11 March 2019. Ms Lonergan has 
over 25 years’ experience working in senior roles in HR 
strategy development, organisational development, and 
leading transformation and change in the Transportation, 
FMCG, and Retail sectors across Australia, Asia, the USA 
and Europe. She was previously the Chief People Officer at 
David Jones and Country Road Group, after being a People 
Director at Woolworths Group Limited. Prior to her role 
at Woolworths, Ms Lonergan was the Executive Manager, 
Human Resources for Qantas International. 

Qualifications
BBus, MMgt, GAICD, FAHRI

Sharmila Tsourdalakis

Chief Innovation, Marketing and 
Technology Officer
Sharmila Tsourdalakis was appointed Chief 
Innovation, Marketing and Technology Officer on 27 April 
2020 and leads our Innovation, Marketing, Technology 
and Customer teams. She has over 20 years’ 
experience working in senior roles in technology, innovation, 
customer and digital transformation for ASX-listed 
companies. She was previously the Executive General 
Manager for Suncorp’s Banking and Wealth Technology 
and Portfolio Management responsible for the strategic 
direction and operational leadership of technology. Prior to 
Suncorp, Ms Tsourdalakis was Chief Information Officer at 
The GPT Group. 

Qualifications
BComm, LLB, GAICD

Justin Louis

Chief Investment Officer
Justin Louis joined Stockland as Chief Investment Officer
on 1 November 2021.  Mr Louis has more than 20 years’ 
experience working in senior roles in real estate investment 
and development across a number of sectors.  With a mix 
of sell-side and buy-side experience, Mr Louis has worked 
with a number of leading Australian real estate companies 
and global investors. Mr Louis was previously Australian 
Managing Director, Real Estate, Real Assets at the Canada 
Pension Plan Investment Board (CPPIB). Prior to CPPIB, Mr 
Louis was General Manager Investment Operations, Asia 
for Lendlease.

Mr Louis is a key management person for the purposes of 
the Remuneration Report. 

Qualifications
BComm (Property Economics), MBA, MAICD

62

Stockland Annual Report 2023

 
 
Our approach to 
corporate governance

Stockland Corporation Limited, Stockland Trust Management Limitd as Responsible Entity 
for Stockland Trust and their related entities (collectively, Stockland) are committed to 
achieving and demonstrating the highest standards of corporate governance.

Stockland has reviewed its corporate governance practices against the Corporate Governance Principles and 
Recommendations (4th edition) published by the ASX Corporate Governance Council.  The Board places a high importance 
on its corporate governance responsibilities and in FY23 was in compliance with all of the recommendations in the ASX 
Corporate Governance Principles and Recommendations (4th edition).

This Corporate Governance Statement reflects the corporate governance practices in place throughout the 2023 financial
year, is current as at 24 August 2023, and has been approved by the Board.  

Stockland's governance and risk management documentation including key policies, charters, and Stockland’s Appendix 
4G Key to Disclosures under the Corporate Governance Principles and Recommendations for the year ended 30 June 2023 
can be viewed at www.stockland.com.au/about-stockland/corporate-governance.

Corporate Governance Framework

The roles, responsibilities and accountabilities of the Board, Board Committees and Stockland Leadership Team are set 
out in the Board and Board Committee charters, which have been summarised below.

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Year ended 30 June 2023

63

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Board Charter describes the matters reserved for 
the Board and its Committees, and determines the 
level of authority delegated to the Managing Director 
and Stockland Leadership Team for the day-to-day 
management of Stockland. A copy of the Board Charter 
can be found on our website at www.stockland.com.au/
about-stockland/corporate-governance. 

The Board has delegated certain responsibilities to standing 
Committees which operate in accordance with the 
Committee Charters approved by the Board.

The Board actively engages with management in overseeing 
the operations of the Group. In addition to Board and 
Committee meetings held across Stockland offices, the 
Board meets with employees at operational sites and 
undertakes asset tours across the portfolio on a regular 
basis.  A number of asset tours were conducted by 
members of the Board and Stockland Leadership Team 
in the last 12 months including to development and 
operational assets in Brisbane, Melbourne, Sydney and the 
Sunshine Coast. 

A copy of the Board Charter can be 
found on our website www.stockland.com.au/about-
stockland/corporate-governance.

Governance

The Board

The constitutions of Stockland Corporation Limited and 
Stockland Trust Management Limited each establish 
a Board of Directors (collectively referred to as the 
Board) which has overall responsibility for the governance 
of Stockland.

Our Board is accountable to securityholders and 
responsible for demonstrating leadership and oversight so 
that the operations of Stockland are effectively managed in 
a manner that is properly focused on its economic, social 
and community objectives.  

The roles, responsibilities and accountabilities of the Board 
are set out in the Board Charter, which confirms that the 
Board is responsible for: 

• Overseeing the development and implementation of 

Stockland’s corporate strategy, operational performance 
objectives, Group environmental and social targets, and 
management policies with a view to creating sustainable 
long-term value for securityholders; 

• Overseeing the development and implementation of 
Stockland’s overall framework of governance, risk 
management, internal control and compliance which 
underpins the integrity of management information 
systems, financial reporting and fosters high ethical 
standards throughout Stockland; 

• Appointing the Directors (subject to Stockland’s 

constitution), appointing the Managing Director, approving 
the appointment of the Company Secretary and 
Stockland Leadership Team members reporting to the 
Managing Director and determining the level of authority 
delegated to the Managing Director; 

• Setting Executive remuneration policy, monitoring 

Stockland Leadership Team members’ performance and 
approving the performance objectives and remuneration 
of the Managing Director and his or her direct reports and 
reviewing Executive and Board succession planning and 
Board performance; 

• Approving and monitoring the annual budget, business 

plans, financial statements, financial policies and 
financial reporting and major capital expenditure, 
acquisitions and divestitures; 

• Determining and adopting dividend and distribution 

policies; Overseeing compliance with applicable laws and 
regulations; and 

• Appointing and monitoring the independence of 

Stockland’s external auditors. 

64

Stockland Annual Report 2023

Board committees

Four permanent Board Committees covering Audit, Risk, People & Culture and Sustainability have been established to 
assist in the execution of the Board’s responsibilities.

The Board’s policy is that a majority of the members of each Board Committee are independent Directors. For the reporting 
period each of the Audit Committee, People & Culture Committee, Risk Committee and Sustainability Committee comprise 
only independent Directors. 

The Board reviews the composition of each Board Committee periodically, balancing the benefits of rotation with those 
of maintaining continuity of experience and knowledge, and to ensure Board Committee members have skills appropriate 
to their roles. Committee Chairs provide reports to the Board on key matters and Committee memberships provide for 
overlap of membership between the different Committees to facilitate connections across the respective areas of 
responsibility. 

Current members of the Board Committees

Audit Committee

Stephen Newton (Chair)
Laurence Brindle
Christine O’Reilly
Kate McKenzie
Adam Tindall

People & Culture Committee

The Audit Committee is responsible for the oversight of the integrity of Stockland’s consolidated financial statements and 
disclosures, and the maintenance of a sound financial control environment. The purpose of the Audit Committee is to 
assist the Board to discharge its responsibilities for:  

• The integrity of Stockland’s financial reports and external audit 
• The appropriateness of Stockland’s accounting policies and processes 
• The effectiveness of Stockland’s financial reporting controls and procedures  
• The effectiveness of Stockland’s internal control environment 
• Compliance with Stockland’s Australian Financial Services Licenses and Compliance Plans 

• Compliance with relevant laws and regulations including any prudential supervision procedures.

Melinda Conrad (Chair)
Tom Pockett
Andrew Stevens

The People & Culture Committee incorporates the functions of two board committees recommended by the ASX Corporate 
Governance Principles and Recommendations: a Nominations Committee and a Remuneration Committee. The purpose 
of the People & Culture Committee is to consider and make recommendations to the Board on: 

• The size, composition and desired competencies of the Board 
• Director independence, performance, remuneration and succession arrangements 

• The content of the annual remuneration report and remuneration details contained within other statutory reports, 

including financial statements 

• Stockland’s policies for employment, performance planning and assessment, training and development, promotion and 

people management. 

• In August 2023, the Board approved the establishment of a stand alone Nominations Committee to be chaired by Ms 
Conrad. The Nominations Committee will have responsibility for making recommendations to the Board on succession, 
and Board and Committee appointments.

The purpose of the Risk Committee is to assist the Board to discharge its responsibilities in relation to: 

• Assessing the effectiveness of Stockland’s overall risk management framework 
• Supporting a prudent and risk aware approach to business decisions across Stockland. 

In FY23 the Risk Committee was involved in discussions and reviews relating to a variety of matters including Stockland's 
risk management framework, regulatory compliance obligations, work health and safety, cyber security management and 
data governance.

The purpose of the Sustainability Committee is to consider and make recommendations to the Board on: 

• The sustainability impacts of Stockland’s business activities including social and environmental.  
• Approve specific external stakeholder communications. 
• Major corporate responsibility and sustainability initiatives and changes in policy  
• The Group’s external sustainability policies and publicly disclosed sustainability targets and policies. 

In FY23,  the Sustainability Committee undertook a review of Stockland's Modern Slavery Statement and Climate Transition 
Action Plan prior to consideration by the Board.

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Risk Committee

Christine O’Reilly (Chair)
Stephen Newton
Andrew Stevens

Sustainability Committee

Andrew Stevens (Chair)
Kate McKenzie
Adam Tindall

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Further information about our Board Committees can be 
found in the Committee Charters, available on our website 
www.stockland.com.au/about-stockland/corporate-
governance.

Year ended 30 June 2023

65

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governance

Board and Committees Meetings

The number of Board and standing Board Committee meetings held during the financial year that each Director was 
eligible to attend, and the number of meetings attended by each Director is set out in the table below. In addition to the 
meetings below from time to time, ad-hoc briefings are also held with Board members.

Scheduled 
Board

Audit 
Committee

People & Culture 
Committee

Sustainability
Committee

Risk 
Committee

A

10

11

11

11

11

11

10

10

11

B

11

11

11

11

11

11

11

11

11

A

–

6

–

–

6

6

6

–

6

B

–

6

–

–

6

6

6

–

6

A

4

–

4

–

–

–

–

4

–

B

4

–

4

–

–

–

–

4

–

A

B

-

-

-

-

6

-

-

6

6

-

-

-

-

6

-

-

6

6

A

–

–

–

–

–

4

4

4

–

B

–

–

–

–

–

4

4

4

–

Director

Mr T Pockett

Mr L Brindle

Ms M Conrad

Mr T Gupta

Ms K McKenzie

Mr S Newton

Ms C O’Reilly

Mr A Stevens

Mr A Tindall

A – Meetings attended / B – Meetings eligible to attend

66

Stockland Annual Report 2023

Board effectiveness

Stockland is committed to having a Board composition which is informed by the principles 
set out in the ASX Corporate Governance Principles and Recommendations.

Board composition

Stockland is committed to ensuring that its Board is comprised of a majority of independent Non-Executive Directors, 
with the diversity of experience, skills and expertise necessary to deliver long-term sustainable returns to securityholders. 
The Board currently comprises one Executive Director and eight Non-Executive Directors. The membership of the Board 
is reviewed periodically having regard to the ongoing and evolving needs of Stockland. The Board considers a number of 
factors when filling a vacancy including: 

Qualifications, skills 
and experience
The right mix of skills, expertise 
and experience to enable it to deal 
with current and emerging risks 
and opportunities, and to effectively 
review and challenge the effectiveness
of management. 

Tenure
The Board balances longer-serving 
directors with a deep knowledge of 
Stockland’s business, policies and 
history, and newer directors with 
fresh perspectives and different but 
complementary experience. 

Independence
The Board will comprise a majority of 
Non-Executive Independent Directors 
and the Chair of the Board must be 
an independent director in accordance 
with the Board Charter. 

Diversity
The Board recognises the benefits 
of diversity both across the 
organisation as well as in relation to 
Board composition. 

Tenure

As at 30 June 2023, the tenure profile of the Board is shown 
in the below diagram.

Tenure profile

55% 1-4 years =
5 Directors

45% 5-10 years =

4 Directors

The Board believes that it is important to maintain a range 
of director tenures to facilitate orderly Board renewal while 
maintaining valuable continuity and corporate knowledge 
among directors. 

The Group has an induction program for new Directors 
including detailed briefings from management, meetings 
with external advisors and asset tours. This complements 
the existing program of site tours, topic deep dives, 
portfolio and strategy briefings presented to the Board 
under an annual program agreed with the Chairman. 
In FY23 deep dive presentations to the Board included 
detailed consideration of the Group’s strategic priorities 
including key underlying thematics regarding the future 
of workplace and mixed-use development, retail and 
technology, innovation and continued evolution of ESG 
including decarbonisation, social impact and nature.

Ultimately, the full Board determines who is invited to fill a 
casual vacancy after extensive one-on-one and collective 
interviews with candidates and thorough due diligence and 
reference checking. Written agreements setting out the 
terms of their engagement are entered into for all Directors 
and senior executives. Directors coming up for re-election 
are also reviewed by the People & Culture Committee and 
the Board considers whether to support their re-election. 
It is the Board’s policy that Directors offer themselves for 
re-election only with the agreement of the Board.

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Year ended 30 June 2023

67

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governance

Board skills matrix

Stockland is committed to having a Board whose members have the capacity to act independently of management, 
and have the collective skills and diversity of experience necessary to optimise the long-term financial performance of 
Stockland to deliver long-term sustainable returns to securityholders.

68

Stockland Annual Report 2023

Board composition

The Board has identified a range of core skills and 
experience that will assist the Board collectively to fulfil
its oversight role effectively. 

These include: 

• Experience with property investment and management 
• Property and community development 
• Construction and project management 
• Retailing and consumer marketing 
• Technology and digital innovation 
• Data analytics and insights 
• Industrial supply chain logistics 
• Funds management 
• Banking and finance 
• Government and regulatory relations 
• Environmental, social and governance matters 
• Strategy development 
• Significant senior executive experience 

It is also advantageous for some Directors to have 
experience in the audit and risk management field, 

Independence criteria

The Board regularly assesses the independence of each 
director in light of the interests that they have disclosed 
and such other factors as the Board determines are 
appropriate. In FY23 each Non-Executive Director satisfied
the requirements for independence. 

The criteria applied to determine whether a director 
is independent is set out in the Board Charter 
available on our website www.stockland.com.au/about-
stockland/corporate-governance.

capital management, mergers and acquisitions, people 
management and executive remuneration. Climate risk is 
a key focus for Stockland. Directors have a wide range 
of experience in assessing, managing and responding 
to environmental risk with insights and learnings from 
different sectors and industries which complement the 
skills set identified in the matrix.  During FY23 the Board 
received various presentations and briefings on a range of 
topics tailored for professional development, key thematics 
for Stockland and the ongoing responsibilities of the Board.

The Board believes that it has the right experience and 
skills to oversee the high standard of corporate governance, 
integrity and accountability required of a professional and 
ethical organisation as shown in the Skills Matrix diagram.

The Board has a process for regularly evaluating its 
performance with an external review undertaken every 
three years and internal feedback provided annually 
between each external survey. In FY23, the Board undertook 
an external review of performance with feedback from 
the review provided to the Board and individual directors. 
The review provided an opportunity to evolve the meeting 
cadence and format for the Board and Committees as well 
as further leverage the existing asset tour program. 

37.5%

Female Non-Executive Directors

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Year ended 30 June 2023

69

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governance

Our approach to tax

Stockland’s tax strategy is to conduct all its tax affairs in a transparent, equitable and 
commercially responsible manner, having regard to all relevant tax laws, regulations and tax 
governance processes, to demonstrate good corporate citizenship.

Tax disclosures and information

For information and detailed reconciliations of Stockland’s 
tax expense, effective tax rate and deferred tax balances 
please refer to notes 21 (Income Tax) and 22 (Deferred Tax) 
in the Financial Report.

Tax contribution summary

As one of Australia’s largest diversified property groups, 
which owns, develops and manages commercial property 
assets and residential communities, Stockland contributes 
to the Australia economy, through the various taxes levied 
at the federal, state and local government level. 

In FY23 these taxes totalled more than $356 million, and 
were either borne by Stockland as a cost of our business or 
collected and remitted as part of our broader contribution 
to the Australian tax system. 

The chart below illustrates the types of taxes that 
contributed to the taxes paid and/or collected and remitted 
for the 2023 tax year. 

Total tax contribution (%)

33.33% Net GST Paid
23.84% PAYG Withholding
24.33% State Taxes (includes
Land Tax and Payroll
Tax)

18.35% Other Duties & Levies
Fringe Benefit Tax and
0.15%
Income Tax

Tax control and governance 
policy framework

Stockland maintains a Tax Control and Governance 
Framework (TCGF), reviewed and approved by the Audit 
Committee, which outlines the principles governing 
Stockland’s tax strategy and risk management policy.

The TCGF is consistent with the guidelines published 
by the Australian Taxation Office (ATO) regarding tax 
risk management and governance processes for large 
business taxpayers. 

We undertake periodic reviews of the TCGF to 
test the robustness of the design of the framework 
against ATO benchmarks and to demonstrate 
the operating effectiveness of internal controls 
to stakeholders. 

The key principles of the TCGF are summarised 
as follows:
• A tax strategy to conduct all tax affairs in a transparent, 
equitable and commercially responsible manner, whilst 
having full regard to all relevant tax laws, regulations 
and tax governance processes, to demonstrate good 
corporate citizenship; 

• A balanced tax risk appetite that is consistent with 

the Board approved risk appetite, to ensure Stockland 
remains a sustainable business and a reputable and 
attractive investment proposition; 

• A commitment to engage and maintain relationships 
with tax authorities that are open, transparent and 
co- operative, consistent with Stockland’s Code of 
Conduct; and 

• An operating and trading business based in Australia, 
with no strategic intentions of engaging in any tax 
planning involving the use of offshore entities or low- 
tax jurisdictions. 

Voluntary Tax Transparency Code

As part of Stockland’s commitment to tax transparency 
and demonstrating good corporate citizenship, Stockland 
has adopted the Australian Federal Government’s Voluntary 
Tax Transparency Code (TTC), which provides a set of 
principles and minimum standards to guide medium and 
large businesses on public disclosure of tax information. 

70

Stockland Annual Report 2023

General information

Directors' securityholdings

Particulars of securities held by Directors are set out in the 
Remuneration Report that forms part of this Report. No 
options have been granted to Directors during the period. 

No proceedings

No application has been made under section 237 of the 
Corporations Act 2001 (Cth) in respect of Stockland, and 
there are no proceedings that a person has brought or 
intervened in on behalf of Stockland under that section. 

Indemnities and insurance of officers 
and auditor

Subject to the following, no indemnity was given or 
insurance premium paid during or since the end of the 
Financial Year for a person who is or has been an officer or 
auditor of the Group. 

The Group has paid an insurance premium in respect 
of Directors and Officers liability insurance contracts as 
permitted by the Corporations Act 2001. The terms of 
the insurance policy prohibit disclosure of details of the 
nature of the liabilities covered by, and the amounts of the 
premiums payable under, that insurance policy. Premiums 
are also paid for fidelity insurance and professional 
indemnity insurance to cover certain risks for a broad range 
of employees including Directors and senior executives. 

In addition, each Director and some Key Management 
Personnel have entered into a Deed of Access, Indemnity 
and Insurance which provides for indemnity against liability 
as a Director or officer of the Group, except to the extent 
of indemnity under an insurance policy or where prohibited 
by statute. The deed also entitles the Directors and officers 
to access company documents and records subject to 
undertakings as to confidentiality.

Non-audit services

During the financial year the Group’s auditor, PwC, provided 
certain other services to the Group in addition to their 
statutory duties as auditor. 

The Board has considered the non-audit services provided 
during the financial year by the auditor and is satisfied that 
the provision of those services is compatible with, and did 
not compromise, the auditor independence requirements 
of the Corporations Act 2001 (Cth). 

The non audited services included services relating to:  

• Traffic planning for Aura Town Centre and reviewing 
planning assumptions and updating traffic model 
• Review of model and capital partnership strategy for 

confidential pipeline development project

The Audit Committee resolved that the provision of 
non-audit services during the financial year by PwC as 
auditor is compatible with, and did not compromise, the 
auditor independence requirements of the Corporations 
Act 2001 (Cth). 

The Board’s own review conducted in conjunction with the 
Audit Committee, having regard to the Board policy set out 
in this Report, concluded that it is satisfied the non-audit 
services did not impact the integrity and objectivity of the 
auditor; and the declaration of independence provided by 
PwC, as auditor of Stockland. 

Details of the amounts paid to the auditor of the Group, 
PwC, and its related practices for audit and non-audit 
services provided during the financial year are set out in 
note34 of the accompanying financial statements. 

Lead Auditor’s Independence Declaration 
under section 307C of the Corporations 
Act 2001

The external auditor’s independence declaration is set out 
on page77 and forms part of the Directors’ Report for the 
year ended 30 June 2023. 

Rounding off

Stockland is an entity of the kind referred to in ASIC 
Corporations (Rounding in Financial/Directors’ Reports) 
Instrument 2016/191 and in accordance with that 
Instrument, amounts in the Financial Report and Directors’ 
Report have been rounded to the nearest million dollars, 
unless otherwise stated. 

Other Information

Associates and joint ventures, which the Company and 
Trust do not control, are not dealt with for the purposes 
of this statement, however management confirms that 
procedures are in place to assess the integrity of the 
financial information from these associates and joint 
ventures for the purposes of consolidating information into 
the financial accounts for the Company and the Trust. 

To support the Executive Confirmations a robust framework 
exists to verify the integrity of the reporting provided to 
securityholders. For financial reporting periods this includes 
a structured series of management questionnaires, sign 
offs, direct interviews and engagement with auditors. All 
information released to the market is reviewed for accuracy, 
supported by a verification and management approval 
process and approved by the Continuous Disclosure 
Committee and, where required, the Board, as set out in 
the Continuous Disclosure and External Communications 
Policy available on our website www.stockland.com.au/
about-stockland/corporate-governance.

The Board is promptly provided with a copy of all material 
market announcements after they have been made. Signed 
on behalf of the Board in accordance with a resolution of 
the Directors.

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Tom Pockett
 Chairman
Dated at Sydney, 24 August 2023

Tarun Gupta
 Managing Director

Year ended 30 June 2023

71

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governance

Executive confirmations

The Managing Director and the Chief Financial Officer have provided a written statement to the Board that: 

1. With regard to the integrity of the financial statements of Stockland Corporation Limited (the “Company”) and its 

controlled entities and Stockland Trust (the “Trust”) and its controlled entities for the financial year, being the year ended 
30 June 2023, that having made appropriate enquiries, in our opinion: 

a. The financial records of the Company and the Trust and of the entities whose financial statements are required to be 
included in their respective consolidated financial statements (the consolidated entities) for the financial period, have 
been properly maintained in accordance with section 286 of the Corporations Act 2001 (Cth) 

b. The financial reports of the Company, the Trust and the respective consolidated entities, for the financial period, being  
the financial statements and notes thereto, comply with relevant accounting standards in accordance with section 
296 of the Corporations Act 2001 (Cth) and give a true and fair view of the financial position and performance of the 
Company, the Trust and the respective consolidated entities, in accordance with section 297 of the Corporations Act 
2001 (Cth). 

2. With regard to the risk management and internal compliance and control systems of the Company, the Trust and 
the respective consolidated entities in operation for the year ended 30 June 2023, that having made appropriate 
enquiries to the best of our knowledge and belief: 

a. The statements made in (1b) above regarding the integrity of the financial reports are founded on a sound system of 
risk management and internal compliance and control systems which, in all material respects, implement the policies 
which have been adopted by the Board of Directors either directly or through delegation to senior executives.

b. The risk management and internal compliance and control systems are operating effectively, in all material 

respects, based on the risk management model adopted by the Company and Trust.

c. While these statements are comprehensive in nature, they provide a reasonable but not absolute level of assurance 
about risk management and control systems and do not imply a guarantee against adverse events or more volatile 
outcomes occurring in the future.

d. Nothing has come to our attention since 30 June 2023 that would indicate any material change to the 

statements made above. 

Associates and joint ventures, which the Company and Trust do not control, are not dealt with for the purposes of this 
statement, however management confirms that procedures are in place to assess the integrity of the financial information 
from these associates and joint ventures for the purposes of consolidating information into the financial accounts for the 
Company and the Trust. 

72

Stockland Annual Report 2023

Our approach to 
risk management

Stockland adopts a rigorous approach to understanding and proactively managing the 
material risks and opportunities we face in our business. We recognise that making 
business decisions which involve calculated risks and managing these risks within sensible 
tolerances is fundamental to creating long-term value for securityholders and meeting the 
expectations of all Stockland’s stakeholders.

Stockland’s risk appetite is the degree to which we are 
prepared to accept risk in pursuit of our strategic priorities. 
We continuously engage with our stakeholders and use 
these views, together with research and evidence, to 
maintain a register of the material risks and opportunities 
that influence our ability to deliver on our vision and 
purpose. The Board has determined that Stockland will 
maintain a balanced risk profile so that we remain 
a sustainable business and an attractive investment 
proposition over the long term.

We also recognise the importance of building and fostering 
a risk aware culture so that every individual takes 
responsibility for risks and controls in their area of authority. 
Our Code of Conduct applies to all employees and provides 
clear guidance on how we expect our people to accept, 
engage and respond to each other and our stakeholders. 
The performance scorecard for our employees, including 
our Managing Director and CEO and the Stockland 
Leadership Team also contains key performance indicators 
linked to effective risk management. The Board provides 
oversight of Stockland’s risk management framework 
which is underpinned by our risk management framework 
and Three Lines of Defence model. Our governance 
framework is provided on page 57.

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Year ended 30 June 2023

73

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governance

Our materiality assessment

Stockland has adopted the materiality definition from the International Integrated 
Reporting Framework (Integrated Reporting) to disclose information about matters that 
may substantively affect the organisation’s ability to create value over the short, medium, 
and long term. Our Leadership Team and Board regularly review these key risks and disclose 
them on a bi-annual basis.

We identify material matters using the following process:

1. Identify

2. Evaluate and prioritise

Each year we conduct an operational and strategic 
risk assessment and identify draft material matters by 
capturing internal and external perspectives. Stakeholder 
perspectives included:

• Investor research and engagement

• Customer and tenant feedback and insights

• Supplier and partner feedback

• Employee surveys

• Political and regulatory developments

• Industry engagement and advocacy

• Social and mainstream media. 

Members of our Leadership Team and participated in 
structured workshops to evaluate the material matters, 
assess them in terms of greatest significance and prioritise 
them based on their ability to affect and impact on value 
creation over the short, medium and long term.

As part of the development of our refreshed ESG 
strategy, we assessed environmental, social, and economic 
matters that are material from an 'impact' perspective, 
commonly referred to as ‘double materiality’. The 
areas we identified where we have an actual or 
potential positive and/or negative impact include housing 
affordability, decarbonisation, climate resilience, indigenous 
engagement, social inclusion, health and wellbeing, 
biodiversity, and the transition to a circular economy. 
These matters are being incorporated in our risks and 
opportunities and other key work streams underway across 
our business. 

3. Review and disclose

The following risks and opportunities are considered 
the most relevant current material matters which are 
developed and mapped over time; (S) short, (M) medium, 
and (L) long term. There are a number of material matters 
which have an enduring impact across the time horizon 
which may require a phased response.

These have been reviewed and approved by Stockland’s 
Leadership Team and Board. The process and associated 
disclosures have been assured by Ernst & Young (EY).

74

Stockland Annual Report 2023

Risks and opportunities

Our ability to adapt to new ways of working and maintain a strong corporate culture

The ability to attract, engage and retain our employees is critical to our ongoing success. We have continued to adapt post COVID-19 ways 
of working by accelerating the adoption of new technology enabling greater workplace flexibility and new ways of working. Our strong 
employee engagement scores reflect our culture. We will continue to use this to mitigate compliance risk and the challenges posted by new 
ways of working.

We continue to focus on how we support employees by:

• maintaining a focus on fostering a strong and constructive culture to deliver value to all stakeholders;

• evolving our enterprise approach to flexibility. Our hybrid working model involves a mix of working in asset, office and at home or remote 

locations. This allows all employees to work flexibly, be productive, collaborative and supports their wellbeing;

• training our senior leaders to be more agile and resilient through Stockland leadership programs;

• communicating regularly with all our people across Stockland;

• continuing to invest in new ways of working to drive efficiency and improve our practices to increase accountability and build on core 

strengths; and

• supporting Employee Advocacy Groups focused on enhancing diversity, inclusion, flexibility and wellbeing.

Our ability to provide environments that support the health, safety, and wellbeing of our employees, tenants, residents, customers 
and suppliers

The health and wellbeing of our people, suppliers and customers has always been and continues to be our priority. Health and safety 
incidents, including security threats can have long term impacts on our stakeholders. We are proactively reviewing our risk appetite on safety 
to align with the execution of our Group strategy.

We are committed to delivering communities and assets where our employees, tenants, residents, customers and suppliers always feel safe. 
We will continue to:

• foster a culture where health, safety and wellbeing are core values and continuous improvement of our safety performance is part of our 

normal business practice;

• Proactively review our safety management framework to align with the execution of our Group strategy;

• Further evolve our ‘Sights on Safety’ contractors, consultants and suppliers which has assisted in reducing incidents in key focus areas 

on our projects;

• train our employees and increase their risk awareness including undertaking regular scenario testing relevant to our business and 

operations; and

• deliver liveable communities for our residents, customers, and tenants, with a focus on embedding health safety and wellbeing into the 

design and operation of our assets.

Our ability to respond to geopolitical conditions that lead to economic uncertainty or volatility

Changing geopolitical conditions that impact the global economy have led to and may continue to result in extended periods of increased 
uncertainty and volatility in the global financial markets and supply chains, which could adversely affect our business. This includes ongoing 
Russia/Ukraine conflict, macro-economic conditions (inflationary pressures and interest rate movements), changes in government, trade 
tensions, climate change, and technology and data.

We will continue to closely monitor political and economic risks and opportunities and continue enhancing our enterprise resilience.

We adopt a Group-wide strategic approach to managing our procurement and supply chain activities. Our Supply Chain Framework 
continues to support us in managing our suppliers and addressing supply chain risks as they arise. This includes a robust process for the 
selection, management, and oversight of our contracting partners to manage solvency risks.

Climate change may have adverse affects on our business

Climate-related risks will persist and escalate for the foreseeable future and the nature of these risks depends on complex factors such 
as policy change, technology development and market forces (transition risk). This is coupled with physical risk associated with changes 
in climatic conditions. These risks have the potential to damage our assets, disrupt operations and impact the health and wellbeing of our 
customers and communities.

We are committed to creating resilient assets that operate with minimal disruption in the event of increased climate events, as well as 
building strong communities that are equipped to adapt to long-term climate change risks and opportunities.

To do this, we will continue to:

• assess our portfolio for climate and community resilience and implement action plans;

• embed climate resilience within our standard asset risk assessment and investment governance;

• invest in asset upgrades and adapt community designs;

• work with our communities to build awareness of climate risks including cyclone, flood and bushfire risk to provide safe environments 

for people in and around our assets;

• assess and implement wholesale energy strategies and renewable energy installations, to provide alternative sources of energy to 

mitigate the risk of price shocks;

• actively manage our corporate insurance program to provide adequate protection against insurable risks; and

• continue to incorporate scenario analysis into our climate risk process to understand how physical and transition climate-related risks 

and opportunities may evolve over time.

We refreshed the climate scenarios used to assess the physical and transition risks and opportunities that could emerge from a changing 
climate. Insight from this analysis, which uses data from the International Energy Agency (IEA) and the latest climate science and models 
from the Intergovernmental Panel on Climate Change (IPCC), was used to inform the strategic priorities of our Climate Transition Action 
Plan.The Plan details our decarbonisation commitment to reduce and align our business carbon emissions with a science based 1.5°C 
trajectory and pathway as well as our approach to climate adaptation and resilience.

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75

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governance

Information and technology system continuity and cybersecurity breaches mayimpact our business

Our business leverages IT systems, networks, and data to operate efficiently. Managing potential IT system failures and cybersecurity 
breaches is a focus area to ensure we manage the risk of loss of sensitive information, operational disruption, reputational damage, 
fines and penalties. We also use technology and data to create a leading edge and differentiated customer offering through innovation 
and partnerships.

Technology and data security are integral to our overall working environment and there are measures in place to help protect our business 
and employees from cyber security related threats, including:

• providing a digitally safe working environment both in the office and for remote working;

• protecting systems, networks and end-point devices;

• embedding policies to safely control, access and manage data and privacy, for both employees and third parties;

• Equipping and training our people to identify and manage potential threats;

• vulnerability testing and security event monitoring to identify and respond to threats; and

• simulated cyber attacks and recovery exercises to enhance resilience and identify potential improvement opportunities.

Housing affordability continues to impact the dynamics of the Australian housing market 

Relative affordability of housing continues to be challenged in the Australian market. To help address affordability we will continue to:

• partner with government and industry to drive solutions including innovative construction processes to lower costs; proactively engage 

with industry bodies and governments in implementing support measures for the housing and construction sector;

• provide a broad mix of value for money, quality housing options including house and land packages, completed housing, medium density, 

apartments and Land Lease Communities.

• balance the demand from owner occupiers and investors so that our Masterplanned Communities remain attractive to future buyers.

Differences between community and customer expectations or beliefs and our current or planned actions could harm our reputation 
and business

Standards for interaction with customer and the community have been under intense scrutiny in Australia for some time. It is important 
that we engage with our customers in a considered manner consistent with our Stockland CARE values.

At Stockland, we have prioritised our focus on customer engagement including regular customer surveys, extra training for our customer-
facing employees, development of a framework to guide our people in making ethical decisions and introduction of the ‘Stockland Listens’ 
initiative which connects our people to our customers to listen and learn from their experience. In addition, we have implemented a 
customer feedback framework with reporting through to our Board and Committees. There are consequences for behaviours that do not 
reflect Stockland’s values including potential remuneration and employment impacts.

Our ability to anticipate and respond to changing consumer preferences for our products and services

We will continue to:

• foster a culture of innovation to identify and take advantage of opportunities to leverage movements in stakeholder preferences;

• evolve our market-leading product innovation and deepen our customer insights using our proprietary Liveability Index research, 

Stockland Exchange (our online research community) and other data sources;

• create sustainable and liveable communities and assets, resilient to changes in climate;

• enhance our design excellence, providing greater functionality and value for money that meet the demands of Australia’s changing 

socio-demographics, including an ageing population and more socially conscious millennials; and

• continue to optimise our portfolio to meet changing conditions and customer and stakeholder preferences.

Regulatory and policy changes impact our business and customers

Failure to anticipate and respond to regulatory and policy change could have an adverse effect on our ability to conduct business. We will 
continue to:

• implement forward-looking practices to remain well positioned for regulatory change;

• engage with industry and government on policy areas including taxation and planning reform;

• focus our development activity in areas where governments support growth; and

• carry out mandatory training for all employees in relation to the compliance areas and obligations relevant to our business.

Our ability to deliver on strategic priorities in challenging market conditions

We will continue to monitor the impact of macro-economic conditions and its implications for our strategy and business. We will continue 
to carefully assess market conditions in the delivery of our strategic priorities. In addition, we will:

• dynamically reshape the portfolio towards sectors supported by long term trends;

• accelerate delivery in our core business;

• scale institutional capital partnerships in each sector;

• maintain a rigorous execution focus and pace while building enterprise capabilities; and

• maintain a strong financial position and capital discipline.

Capital market volatility impacts our ability to transact and access suitable capital

We will continue to drive growth in our business and deliver on our strategic priorities by:

• allocating capital strategically across our diversified portfolio in response to changing markets;

• progressing capital partnering opportunities across all sectors;

• acquiring new assets on capital efficient terms;

• retain a strong balance sheet at appropriate levels of gearing within our target range of between 20 to 30 per cent;

• access diverse funding sources across global capital markets on competitive terms and tenors;

• maintain our disciplined and prudent capital management approach;

• retain investment grade ratings across multiple credit agencies to demonstrate our strong credit value proposition; and

• engage with existing and potential debt and equity investors to regularly update them about the business.

76

Stockland Annual Report 2023

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Year ended 30 June 2023

77

PricewaterhouseCoopers, ABN 52 780 433 757 One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY  NSW  2001 T: +61 2 8266 0000, F: +61 2 8266 9999 Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124 T: +61 2 9659 2476, F: +61 2 8266 9999  Liability limited by a scheme approved under Professional Standards Legislation. Auditor’s Independence Declaration As lead auditor for the audit of Stockland Corporation Limited and Stockland Trust for the year ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been:  (a)no contraventions of the auditor independence requirements of the Corporations Act 2001 inrelation to the audit; and(b)no contraventions of any applicable code of professional conduct in relation to the audit.This declaration is in respect of Stockland Corporation Limited and the entities it controlled during the year and Stockland Trust and the entities it controlled during the year. Jane Reilly Sydney Partner PricewaterhouseCoopers 24 August 2023  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report

Remuneration 
Report

78

Stockland Annual Report 2023

Image caption:Willowdale, NSWMessage from the Chair 
of the People & 
Culture Committee

On behalf of the Board, I am pleased to present the Remuneration Report for FY23

FY23 was a year of ongoing macroeconomic and 
geopolitical uncertainty. Against this backdrop, Stockland 
has delivered a solid FY23 result reflecting the continued 
execution of our strategy and focus on driving operational 
and financial performance while maintaining a strong 
capital position.

Guided by our strong connection to purpose, safety and 
our CARE values, Stockland’s people have delivered positive 
outcomes for our stakeholders.

Our people & culture

At Stockland, we recognise our people are our most 
valuable asset.  We foster a culture of connection and 
collaboration where our people can be themselves and 
thrive.  Our diverse career opportunities and passion for 
learning means our people can grow as we grow, and make 
a real contribution towards our strategic objectives, creating 
a better future for our people, communities and the planet.

We are proud of our achievements in FY23 including:

• maintaining high levels of employee engagement during 

the year

• continuing to enhance our flexible approach to working 

and supporting the wellbeing of our teams

• investing in the capability of our leaders through 

programs designed to improve strategic alignment and 
building skills to lead our people through change

• the recognition of our graduate program in the Australian 
Financial Review annual survey as one of Australia’s top 
100 graduate employers

• supporting Chief Executive Women to launch its report 

exploring the experiences of culturally and racially 
diverse women in some of Australia’s biggest companies. 
This builds on the work of our employee advocacy groups 
to drive gender equity and cultural diversity; and

• reducing our organization-wide gender pay gap by four 
percentage points. We have also maintained parity in 
like-for-like roles through the creation of pathways for 
women to enter and thrive in more senior, higher paying 
roles traditionally filled by men.

Performance and remuneration outcomes

The Board spends considerable time each year assessing 
performance and remuneration outcomes for the Managing 
Director and CEO and other members of the Stockland 
Leadership Team (SLT). The Board considers a range of 
quantitative and qualitative factors in its decisions. The 
remuneration outcomes for FY23 reflect:

• Stockland’s performance against a range of measures of 
financial performance and financial value-drivers in our 
Short-Term Incentive (STI) Corporate Scorecard

• the quality of Stockland’s performance in the context of 
the operating environment, peer financial performance 
and feedback from our stakeholders

• the importance of retaining our people and the talent 

required to execute our strategy and achieve our 
purpose; and

• how well we have managed risk, compliance and 

both the financial and non-financial issues that impact 
our reputation.

In determining the overall STI pool and individual STI awards 
for the Managing Director and CEO and other members 
of the SLT, the Board has taken care to balance the 
expectations of our stakeholders and the wider community. 
In doing so, the Board has used relevant data points, 
along with its judgement, and taken into consideration the 
following factors:

• Our focus on operational excellence continues to deliver 

strong performance across our diversified portfolio.

• We have achieved a strong FY23 financial result in 

a challenging environment, with pre-tax Funds From 
Operations (FFO) of $883 million reflecting a 3.8 per cent 
growth on FY22, and FFO per security towards the upper 
end of guidance at 37.1 cents.

• The increasing interest rate environment through FY23 

has led to cap rate expansion across Commercial 
Property, which in turn has contributed to valuation 
declines. This has impacted Recurring Return On Invested 
Capital (ROIC) which at 3 per cent has fallen below the 
through the cycle long-term target range of 6-9 per cent.

• Development ROIC of 18 per cent, is at the top end of our 

target range of 14-18 per cent.

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79

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report

• We have retained a clear focus on financial discipline 

in response to the current macroeconomic uncertainty. 
By maintaining a strong balance sheet, and actively 
managing our gearing level and hedging profile to provide 
substantial liquidity, we have retained the option to invest 
in existing and emerging opportunities.

After careful consideration of these factors, we consider the 
following outcomes in FY23 to be appropriate:

• an STI award for the Managing Director and CEO equal to 

77 per cent of his maximum STI opportunity; and

• awards to Other Executive Key Management Personnel 

(KMP) in the range of 62-79 per cent of maximum 
STI opportunity.

The grant of performance rights made to the Managing 
Director and CEO on commencement as compensation 
for incentives forfeited on ceasing employment with his 
previous employer to join Stockland has vested at 67.51 
per cent and the 2020 Long-Term Incentive (LTI) Plan 
has vested at 100 per cent. These outcomes reflect
Stockland’s strong relative performance versus our peer 
index comparator group over multiple years.

Aligning remuneration to our strategy

As we stated in last year’s Remuneration Report, the 
Board conducted a review of the executive remuneration 
framework for FY23 to optimise how it supports and aligns 
with the strategy.

The review incorporated feedback from securityholders and 
their representatives and identified opportunities to further 
evolve the framework’s design and execution. These were 
set out in the Notice of Meetings for the 2022 Annual 
General Meeting and included:

1. Strengthening the performance focus by further 

simplifying the STI scorecard and aligning measures to 
the refreshed business strategy, such as introducing 
‘through the cycle’ target ranges for Recurring and 
Development ROIC for FY23; and

2. Improving the alignment of LTI to the strategy and to 

support transformative growth.

To further align the interests of executives and 
securityholders and provide executives with a clear line 
of sight over LTI outcomes while driving security price 
growth, the Board introduced a second LTI measure in 
the form of absolute Total Securityholder Return (TSR) 
measure for 40 per cent of the LTI. The combination of 
Relative TSR and Absolute TSR creates strong alignment 
between our executives’ performance and the experience 
of our securityholders.

To continue our focus on growing sustainable, high-quality 
earnings and delivering strong returns to securityholders, 
we also increased the maximum vesting opportunity for LTI 
in FY23 from 100 per cent to 150 per cent. Outcomes at 
this level will require significant out-performance on both 
an absolute and relative basis.

80

Stockland Annual Report 2023

Melinda Conrad, Chair, People & Culture Committee

We consider that the refreshed executive remuneration 
framework to be aligned to Stockland’s strategy during this 
period of transformative growth. We are also conscious that 
as we deliver on our strategy, retaining our best people will 
be increasingly critical. The ability to reward them more 
competitively for delivering strong securityholder returns 
provides a compelling proposition to remain in place during 
the execution of the strategy.

Looking ahead

While we continue to review our executive remuneration 
framework for ongoing alignment with our business 
strategy, no changes to the structure or the target level 
of remuneration (including fixed pay) for Executive KMP are 
planned for FY24. We continue to simplify our STI scorecard 
and have set challenging but achievable targets aligned to 
our strategic priorities.

We have made a small increase to the fees of non-
executive directors who are members of the People & 
Culture, Risk, and Sustainability Committees to better 
reflect the workload of these committees and market 
practice. From 1 July 2023, the member fees for these 
committees increased from $17,500 p.a. to $20,000 p.a.

Thank you for your support. We look forward to 
your feedback.

Melinda Conrad
Chair, People & Culture Committee

This report forms part of the Directors’ Report and has 
been audited in accordance with section 308(3C) of the 
Corporations Act 2001. The Remuneration Report covers 
Stockland and the Trust.

 
Remuneration Report

Contents

1 Remuneration framework at a glance

2 Performance and remuneration outcomes

3 Remuneration governance

4 Executive remuneration in detail

5 Executive KMP remuneration tables

6 Non-Executive Director remuneration

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Key Management Personnel

Individuals who were KMP at any time during the financial year were as follows:

Name

Non-Executive Directors

Mr Tom Pockett

Mr Laurence Brindle

Ms Melinda Conrad

Ms Kate McKenzie

Mr Stephen Newton

Ms Christine O’Reilly

Mr Andrew Stevens

Mr Adam Tindall

Executive Director

Mr Tarun Gupta

Other Executive KMP

Ms Katherine Grace

Ms Alison Harrop

Mr Justin Louis1

Ms Louise Mason

Managing Director and Chief Executive Officer

Chief Legal & Risk Officer

Chief Financial Officer

Chief Investment Officer (from 1 July 2022)

CEO Commercial Property

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Mr Andrew Whitson

CEO Communities

1 While Justin Louis commenced employment with Stockland as Chief Investment Officer on 1 November 2021, he was assessed as KMP with effect from 

1 July 2022 following changes to Stockland's decision making framework to align with its key strategic priorities.

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Remuneration Report

1. Remuneration framework at a glance

Our executive remuneration framework is designed to reflect our purpose and strategy.

82

Stockland Annual Report 2023

2. Performance and remuneration outcomes

2.1. STI Corporate Scorecard assessment

The Board takes a robust approach to determining the STI pool and executive remuneration outcomes using judgement 
and oversight to consider a range of quantitative and qualitative factors. As a first step, an assessment is made of 
performance against the STI Corporate Scorecard shown below.

KPI

Commentary

Overall Assessment

Financial Performance (60%)

Financial

Drive Group Financial 
Performance through
• FFO of 36.4 to 37.4 cents per security

• FFO was $883 million (37.1 cents per security) towards the upper end 

of guidance

Min

Max

• FFO of $867 million to $891 million

• Recurring ROIC was 3 per cent, below the target range

• Recurring ROIC through-cycle target 

range of 6-9 per cent

• Development ROIC through-cycle 

target range of 14-18 per cent

Financial Value Drivers (40%)

Strategy

• Development ROIC was 18 per cent, at the upper end of our target range

Min

Max

Delivering on our strategic pillars
• Dynamically reshape portfolio

• continued to upweight our capital exposure towards our high conviction 

sectors of logistics, land lease and residential

• Accelerate delivery in our 

• continued to reshape our portfolio in line with our strategy. We 

core businesses

• Scale capital partnerships

• Sustainable long-term growth

Customers and Partners

Find, create and capture customer 
value by enhancing and embedding a 
customer-centric culture

completed the divestment of our Retirement Living business in July 2022 
and executed on ~$266 million of non-core Town Centre asset sales

• extended our existing relationship with Mitsubishi Estate Asia through an 

agreement to invest in masterplanned communities

• increased our land lease portfolio to more than 10,5001 home sites 

and accelerated the creation of high quality Land Lease Communities 
investment assets

• completed the integration of the Halcyon Group’s land lease business

• progressed master planning and authority approvals on our existing land 

bank, with apartments projects in advanced planning and design

• refreshed our ESG strategy which is underpinned by a focus on 

innovation, scale and economically sustainable solutions

• continued our focus on elevating the risk and safety performance of 

the Group

• while progressing our strategic initiatives, we have remained focused on 

balance sheet strength and financial flexibility

• continued to drive customer-centric culture. The results from our 
employee survey that measure customer focus show significant 
progress and are well above the Willis Towers Watson Australian 
National Norms

• launched a new learning pathway tailored to Stockland's business 

model, focusing on linking customer experience to commercial value

• exceeded targets for five out of seven customer experience metrics

• continued focus on building strong relationships with capital partners

Min

Max

People and Capability

Min

Max

Position Stockland as an employer 
of choice by providing leadership in 
attracting, integrating and retaining 
talent and continuing to drive an 
inclusive and diverse workplace

• the implementation of our people and culture strategy is delivering a 
highly engaged workforce, improved leadership capability and strong 
talent retention

• achieved an employee engagement score of 88 per cent which places us 

8 points above the Willis Towers Watson Australian National Norm

• launched our Bold Futures leadership program designed to improve 
strategic alignment and build skills to lead our people through our 
ambitious change agenda

• achieved 41 per cent of women in our leadership team

• recognised in the Australian Financial Review annual survey as one of 

Australia’s top 100 graduate employers

1

Includes post balance date acquisition of five Land Lease Communities projects.

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83

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report

How the Board uses discretion

To deliver an STI outcome which is a fair reflection of the quality of our overall performance and aligned to the experience 
of our stakeholders, the Board undertakes a second step which involves reviewing a range of other data points, agreed and 
identified at the start of the year, to consider factors not explicitly included in the STI Scorecard:

• the perspectives of our stakeholders, including securityholders, customers and employees

• the alignment of incentive outcomes with market and community expectations

• any one-off or unusual items and the impact of unforeseen events on the business and securityholder outcomes

• our operational and sustainability performance

• prudent management of capital

• how effectively we have managed risk and safety, and any other issues that may affect our brand and reputation.

Following an assessment of the STI Scorecard and all other relevant factors, the Board approved an STI pool for FY23 
funded at 105 per cent of target opportunity.

The Board places great weight when determining incentive outcomes on how effectively risk, safety and other matters 
that may impact our brand and reputation have been managed. After careful consideration, the Board made no further 
adjustments to the STI outcomes for the Managing Director and CEO, other SLT members or the overall STI pool for FY23.

The Board considers an STI pool funded at 105 per cent of target opportunity appropriate in the context of a solid result 
and reflects the strength of our diversified platform and the cumulative results of several years’ worth of focused and 
disciplined efforts by the team to create a high quality, resilient portfolio and development pipeline.

Incorporating ESG performance into incentive outcomes

It is our responsibility to find the right balance between economic, social and environmental outcomes for our 
communities and stakeholders by proactively responding to global and industry matters that are impacting us today and 
into the future.

Stockland's ESG performance, in alignment with our 2030 Sustainability Strategy that was active in FY23, is considered in 
both the STI Corporate Scorecard (i.e. the first step) as a strategic business priority and as part of the discretionary overlay 
(i.e. the second step) in determining short term incentive outcomes. Incorporating ESG performance in this way means 
that all measures in the scorecard, including financial, are impacted by ESG performance.

By way of example, our Investment Governance framework includes initial filters to identify and assess ESG risks and 
opportunities across categories such as physical climate risk, nature / biodiversity risk and First Nations engagement. 
This framework supports decision-making at the commencement of our projects and creates a solid foundation for the 
delivery of commercially sound ESG outcomes as well as embedding a culture of awareness of ESG considerations within 
business development teams.

With the launch of our new ESG Strategy and work to embed ESG into our business-as-usual activities, we will continue 
to consider how performance against our strategy and targets is incorporated in executive remuneration going forward.

84

Stockland Annual Report 2023

 
2.2. Executive KMP STI outcomes

The table below sets out the STI awards for FY23. STI incentives are awarded in both cash and Stockland securities with 
deferred vesting. In accordance with the normal operation of the STI plan, half of the STI award for the Managing Director 
and CEO will be paid in cash (two-thirds of the STI award for Other Executive KMP will be paid in cash) with the remaining 
amount delivered in deferred securities. Half of the deferred STI securities will vest 12 months after the award, with the 
remaining half vesting 24 months after the award, subject to service conditions and clawback provisions.

In determining individual STI awards, the Board took into account Stockland's overall performance as well as performance 
of the individual in meeting business unit / functional and personal objectives, including risk and safety behaviours 
and conduct.

Target
STI
(as % of
Fixed 
Pay)

Maximum
STI
(as % of
Fixed 
Pay)

STI
awarded
(as % of
Target)

STI
awarded
(as % of
Maximum 
STI)

STI
awarded 
for FY23 STI paid in cash1

DSTI 
securities
to be 
granted3

STI deferred 
into equity2

Executive Director

Tarun Gupta

Other Executive KMP

Katherine Grace

Alison Harrop

Justin Louis

Louise Mason

Andrew Whitson

%

100

90

90

90

90

90

%

150

135

135

135

135

135

%

115

105

93

105

118

105

%

$

$

%

$

77

1,725,000

862,500

50

862,500

70

62

70

79

70

614,250

409,500

702,513

468,342

708,750

472,500

903,656

602,438

803,250

535,500

67

67

67

67

67

204,750

234,171

236,250

301,218

267,750

%

50

33

33

33

33

33

212,822

50,522

57,782

58,295

74,326

66,068

1 The portion of STI awarded for the FY23 performance year which is paid as cash.
2 The portion of STI awarded for the FY23 performance year that is deferred into Stockland securities which will vest over the next two years.
3 The number of securities granted for deferred STI is based on the Volume Weighted Average Price for the ten business days after 30 June 2023. This price 

was $4.0527.

2.3. Performance against LTI measures

The table below shows Stockland’s performance against the relative TSR performance hurdle for awards for which the 
performance period ended on 30 June 2023. This includes the 2020 LTI award which will vest at 100 per cent subject 
to further serivce conditions and the special grant of performance rights granted to Tarun Gupta on 1 July 2021 as 
compensation for incentives forfeited on ceasing employment with his previous employer to join Stockland which will vest 
at 67.51 per cent subject to further service conditions.

The table below also shows the 2021 and 2022 LTI awards for which the performance period is ongoing.

LTI award

Performance 
period

Performance 
condition

Target/ 
benchmark 
performance

Actual 
performance

Out/(Under) 
performance % vesting Weight

Vesting 
outcome

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2020 LTI

1 July 2020 – 
30 June 2023

2021 Special 
Grant

1 July 2021 – 
30 June 2023

2021 LTI

2022 LTI

1 July 2021 – 
30 June 2024

1 July 2022 – 
30 June 2025

Relative TSR1

16.81%

37.00%

20.19%

100.00%

100%

100.00%

Relative TSR1

-1.71%

0.04%

1.75%

67.51%

100%

67.51%

Relative TSR1

Performance period ongoing

Relative TSR1

Performance period ongoing

Absolute TSR

Performance period ongoing

100%

60%

40%

3
0

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1 For LTI awards, the relative TSR performance benchmark is a tailored A-REIT 200 index comprising the largest five companies forming 80% and a number 

of smaller companies forming 20%.

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2.4. Realised remuneration table (NON-IFRS DISCLOSURE)

The table below outlines the cash remuneration that was received in relation to FY23 which includes Fixed Pay and the 
non-deferred portion of any FY23 STI. The table also includes the value of deferred STI awards from FY21 and FY22 which 
vested during FY23, prior year LTI awards which vested during FY23 and any other payments made.

This information differs from that provided in the remuneration table for executives set out in section 5.1 which was 
calculated in accordance with statutory rules and applicable Accounting Standards.

STI 
awarded 
and 
received 
as cash2

Previous 
years’ 
DSTI 
which 
were 
realised3

Previous 
years’ LTI 
which 
were 
realised4

Total 
Remuneration 
(received 
and/or 
realised)

Other 
Payments5

Awards 
which 
lapsed or 
were 
forfeited6

$

Fixed Pay1

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

1,500,042

1,557,340

862,500

1,087,500

878,633

-

-

-

-

3,241,175

650,000

3,294,840

649,932

674,603

823,758

420,000

763,248

-

851,169

830,380

851,367

830,380

409,500

525,256

468,342

302,102

472,500

-

602,438

610,560

535,500

696,039

219,389

282,840

81,321

-

281,504

-

802,937

388,436

298,744

410,085

621,962

295,504

-

-

-

-

768,501

369,379

768,501

369,379

-

-

-

-

-

-

-

-

-

-

1,900,783

1,778,203

1,373,421

722,102

1,517,252

-

3,025,045

2,198,755

2,454,112

2,305,883

-

-

-

300,724

-

-

-

-

-

375,906

-

375,906

Executive Director

Tarun Gupta

Other Executive KMP

Katherine Grace

Alison Harrop7

Justin Louis8

Louise Mason

Andrew Whitson

1 Fixed Pay includes cash salary, superannuation and packaged benefits (and associated taxes). Following an internal and external benchmarking exercise, 

the Fixed Pay for both Louise Mason and Andrew Whitson increased from $800,000 to $850,000 for FY23.

2 FY23 STI awards are shown in section 2.2. Other Executive KMP received an STI split reflecting two thirds cash and one third equity. The Managing Director 

and CEO received an STI split reflecting half cash and half equity.

3 This represents the value of all prior years’ deferred STI which vested during FY23 using the 30 June 2023 closing security price of $4.03 (FY22: $3.61). For 
Tarun Gupta, this includes tranche 1 of the securities awarded as a one-off grant as compensation for incentives forfeited on ceasing employment with his 
previous employer to join Stockland which vested on 1 September 2022. For Justin Louis, this includes tranche 1 of a special grant of securities awarded 
as a one-off grant as compensation for incentives forfeited on ceasing employment with his previous employer to join Stockland which vested on 30 June 
2023. For Louise Mason, this includes securities awarded as a one-off retention award which vested on 30 June 2023.

4 This represents the value of all prior years’ LTI which vested during FY23 using the 30 June 2023 closing security price of $4.03 (FY22: $3.61).
5 This represents the cash payment paid to Tarun Gupta in September 2021 as compensation for incentives forfeited to join Stockland.
6 The value shown represents the value of any previous years’ equity awards which lapsed or were forfeited during the financial year. The FY23 values are 

based on the closing 30 June 2023 security price of $4.03 (FY22: $3.61).

7 Alison Harrop commenced with Stockland on 10 January 2022, as a result her prior year remuneration represents a portion of the year.
8 Justin Louis became KMP on 1 July 2022.

86

Stockland Annual Report 2023

2.5. Financial performance over the past five years

The remuneration outcomes for our executives vary with short-term and long-term performance outcomes. The table 
below summarises Stockland's performance for the past five years and shows the link to incentive outcomes.

FY19

FY20

FY21

FY22

FY23

Financial performance

Pre-tax FFO ($m)1

Post-tax FFO ($m)2

Statutory profit ($m)

Pre-tax FFO per security (cents)

Statutory EPS (cents)

Recurring ROIC (%)3

Development ROIC (%)

Returns to securityholders

Security price as at 30 June ($)

Distribution per security (cents)

Stockland TSR – 1 year (%)

Tailored index TSR (%)4

Incentive outcomes

Cash STI ($m)5

DSTI ($m)

Company-wide STI pool ($m)

Managing Director and CEO STI (% of target)

LTI vested (% of grant)6

Managing Director and CEO total incentive outcome
(% of maximum opportunity)

897

897

311

37.4

13.0

4.17

27.6

13.9

27.0

22.1

6.6

28.7

80.0

47.1

49.8

825

825

-21

34.7

(0.9)

3.31

24.1

(15.8)

(21.3)

16.0

7.4

23.4

76.6

0.0

21.9

788

788

1,105

33.1

46.4

4.66

24.6

48.5

19.9

24.2

5.4

29.6

100.0

48.4

56.27

851

851

1,381

35.7

57.9

10

16

3.61

26.6

(17.2)

(3.6)

36.6

9.4

46.0

145.0

48.3

883

847

440

37.1

18.5

3

18

4.03

26.2

19.4

(0.6)

33.1

8.8

41.9

115.0

100.0

96.78

76.78

1 This is the measure for incentive purposes
2 FFO is a non-IFRS measure and recognises the importance of FFO in managing our business and its use as a comparable performance measurement tool 

in the Australian property industry. The reconciliation of FFO to statutory profit after tax is presented in note 2A of the Financial Report.

3 Not measured prior to FY22.
4 Tailored A-REIT 200 index comprised five large companies forming 80% and several smaller companies forming 20% as detailed in Section 4.5. Used since 

FY17 as a LTI hurdle.

5 Includes applicable superannuation.
6 Represents the achievement of performance hurdles tested during the year.
7 Applies to the former Managing Director and CEO, Mark Steinert. The current Managing Director and CEO was not eligible to receive an STI or LTI award 

for FY21.

8 There was no LTI tested in FY22 or FY23 for the current Managing Director and CEO.

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Year ended 30 June 2023

87

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report

3. Remuneration governance

3.1. Governance framework

Stockland has a robust remuneration governance framework overseen by the Board. This ensures remuneration 
arrangements are appropriately managed and the agreed frameworks and policies are applied across Stockland.

3.2. The role of the People & Culture Committee

The People & Culture Committee is responsible for reviewing, monitoring, and making recommendations in relation to the 
appointment, performance and remuneration of the Managing Director and CEO and senior executives. Where decisions 
are being made on the variable remuneration outcomes of executives, the executives being discussed are not present at 
the meeting.

The Committee also oversees the implementation of all major employment and remuneration policies, at all levels in the 
organisation to seek fairness and balance between reward, cost, and value to Stockland, whilst also reflecting risk, safety 
and compliance performance using input from the Audit Committee and Risk Committee, and ESG performance using 
input from the Sustainability Committee.

The Committee approves the remuneration framework for all employees, including risk and financial control personnel 
and employees whose total remuneration includes a significant variable component.

88

Stockland Annual Report 2023

 
3.3. The use of external advisors

Remuneration consultants are engaged from time to time to provide independent information and guidance on 
remuneration for executives, facilitate discussion, conduct benchmarking and provide commentary on a number of 
remuneration issues. Any advice provided by external advisors is used as a guide and is not a substitute for the 
considerations and procedures of the Board and People & Culture Committee.

During the year, the People & Culture Committee engaged Ernst & Young (EY) as needed on executive remuneration 
matters. EY provided market practice, remuneration data, trends and assistance with stakeholder engagement matters. 
Stockland also subscribes to a number of independent salary and remuneration surveys, including property sector specific
surveys run by AON Hewitt, Avdiev, PwC and Mercer.

During FY23, no recommendations in relation to the remuneration of KMP were provided as part of these engagements.

3.4. Other governance practices

Managing risk

Stockland’s remuneration structure is underpinned by our CARE values and prudent risk management. The way 
executives manage risk and conduct themselves are key considerations of the Board in determining incentive 
outcomes. Specific practices include:

Use of discretion

Consequence 
management

• a joint meeting of the People & Culture Committee and Risk Committee is held to discuss input from the Group 

Risk Officer on material risk and safety issues, behaviours and / or compliance breaches which are considered when 
determining remuneration outcomes;

• incentive plans that balance both short and long-term performance against a range of financial metrics and financial

value drivers aligned to Stockland’s long-term strategic priorities;

• the deferral of a significant portion of the STI award in Stockland securities which vests over an extended time frame;

• plan rules which provide the Board with discretion to take other factors not included in the corporate scorecard into 

account when determining incentive outcomes; and

• the use of a clawback (malus) provision

The Board retains the right to apply discretion over remuneration decisions to ensure outcomes for executives 
appropriately reflect the performance of the individuals and Stockland and reflect the expectations and experience 
of stakeholders. In this regard, Stockland has established a framework for applying discretion to adjust remuneration 
outcomes upwards or downwards, including to zero, where appropriate.

Our consequence management framework considers two key aspects:

1. The materiality of matters using an agreed materiality scale taking into account the seriousness of the matter and 

impact to the business, customers and other stakeholders, and

2. An assessment against our CARE values to assess that the intent, behaviours and response aligns to our expected 

cultural behaviours. For example,

• Were the associated behaviours inconsistent with our Code of Conduct?

• Was the response appropriate, considered and timely?

• Was there appropriate accountability from relevant stakeholders?

Change in control

A change in control is defined in the plan rules governing Stockland’s incentive plans as a circumstance where any 
person together with their associates acquire Stockland securities which when aggregated with securities already held 
by that person and their associates, comprises more than 50 per cent of the issued securities of Stockland. The Board 
will not accelerate the vesting of unvested incentives in the event of a change in control, except to the extent that 
applicable performance conditions (determined as at the date of the change of control) have been satisfied.

Minimum securityholding

The Managing Director and CEO is required to build and maintain a minimum holding of Stockland securities equivalent 
to at least two times fixed pay (one times fixed pay for Other Executive KMP) for any securities granted after 1 July 2010. 
This aligns the interests of executives to those of securityholders and encourages a mindset of business ownership.

Securities Trading Policy

The Stockland Securities Trading Policy prohibits employees from dealing in Stockland securities while in possession 
of price-sensitive information that is not generally available to the public.

Clawback (malus)

The Managing Director and CEO and senior executives may otherwise only deal in Stockland securities during permitted 
trading windows after first obtaining consent of the Chairman of the Board.

The policy also prohibits employees entering into any derivative or margin lending arrangements over Stockland 
securities at any time.

The Board may in its absolute discretion determine that some or all of an employee's unvested STI and/or LTI awards 
be forfeited if, in the Board’s reasonable opinion, adverse circumstances affecting the performance or reputation of the 
company have come to the Board’s attention which had they known at the time when the incentive award was being 
made, would have caused the Board to make a different decision. Clawback may apply both while the employee is 
employed or after termination of employment.

Loans to KMP and related 
party transactions

There were no loans provided to KMP during the year ended 30 June 2023.

There are no related party transactions between KMP and the Company during the current year and the previous year. 

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89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report

4. Executive remuneration in detail

4.1. Remuneration delivery

To deliver our strategy, our executive remuneration framework needs to reflect Stockland’s desire to attract and retain the 
best people. Stockland’s executive remuneration framework is structured so that a substantial portion of remuneration is 
delivered as Stockland securities through STI and LTI. This section sets out our approach in FY23.

4.2. Remuneration mix

Generally, Stockland’s executives have a greater proportion of remuneration subject to performance conditions than their 
counterparts in comparable companies, with 75 per cent of the Managing Director and CEO and 68 per cent of Other 
Executive KMP remuneration performance based. We believe this provides strong alignment between executive outcomes 
and performance.

90

Stockland Annual Report 2023

 
4.3. Key changes for FY23

We introduced four changes to the executive remuneration framework for FY23 as follows:

Elements

Change

Rationale

STI scorecard 
performance 
measures

LTI measures

Introduced Recurring ROIC and Development 
ROIC targets (replacing Return on Equity)

Improves alignment to the refreshed strategy and strengthens performance orientation.

Introduced absolute TSR as a second measure 
alongside relative TSR

Through the combination of relative and absolute TSR, executives are strongly aligned 
to the interests and experience of securityholders. The inclusion of absolute TSR 
increases the line of sight for executives between the delivery of strategy and 
reward outcomes.

LTI vesting 
schedule

Extended the maximum vesting opportunity to 
150 per cent for the FY23 LTI award

Incentivises executives for accelerating the execution of the strategy and 
delivering strong returns to securityholders through the creation of transformative, 
sustainable growth.

Provides a compelling proposition for executives to remain in place for the execution of 
the strategy.

Leaver 
provisions

Removed acceleration of unvested time-based 
incentives on 'good leaver' termination

Strengthens risk management and aligns to best practice.

4.4. Fixed Pay

Elements

How Fixed Pay Works

Purpose

Includes

Changes during 
the year

Benchmarking 
approach

To attract and retain the executives capable of leading and delivering the strategy

• Comprises cash salary, superannuation contributions and packaged benefits (including associated taxes)

• Package benefits may include novated leases on vehicles and parking

• Following an internal and external benchmarking exercise, the Fixed Pay for both Louise Mason and Andrew Whitson increased from 

$800,000 to $850,000 for FY23.

• Quantum and remuneration mix are benchmarked to test that total remuneration remains market competitive Remuneration is 
reviewed annually against independently provided external data sources and market benchmarks and considers the relative size, 
scale and complexity of roles

• A target fixed and total remuneration position is established with reference to the market median and 75th percentile

• Aim to provide total remuneration above the market median if outstanding performance is achieved.

Sources of data

The People & Culture Committee typically uses several sources for benchmarking for the Managing Director and CEO and Other 
Executive KMP members including publicly available data for similar roles in companies of a similar size, such as:

• Market Capitalisation Group: ASX listed companies that are ranked between 11 and 100 by market capitalisation (excluding companies 

domiciled outside Australia)

• Publicly available data for comparable roles at our Property sector peers

• Companies where we compete for talent

• Published remuneration surveys, remuneration trends and other data sourced from external providers.

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91

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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4.5. Short-Term Incentives

Elements

Purpose

How Short-Term Incentives work

To reward the achievement of annual targets aligned to the delivery of sustainable stakeholder outcomes

Target and maximum 
STI opportunity

Per cent of fixed pay

Managing Director and CEO

STI 
performance measures

Other Executive KMP

Performance measures

Target

100%

90%

Maximum

150%

135%

Reason for choosing this measure

Financial outcomes (60%)

• Funds from operations

• Key measures of progress against our 

• Recurring ROIC

• Development ROIC

Financial value-drivers (40%)

• Strategy

• Customers and partners

strategy to grow asset returns

• Reflects how well Stockland is investing 

capital to generate high quality, 
sustainable earnings

• Drives focus on the delivery of 

important initiatives aligned to our 
strategic priorities

• A measure of how well we are meeting 
the expectations of our customers 
and partners

• People and capability

• Recognises that organisations with a 

diverse, inclusive and engaged workforce 
deliver superior returns

Performance 
assessment

The Board takes a robust approach to determining executive remuneration outcomes, using judgement and oversight to consider 
a range of quantitative and qualitative factors. As a first step, a bottom-up assessment of the STI Corporate Scorecard is 
conducted to provide an initial view of the potential pool. A discretionary overlay is then applied to allow for other factors 
affecting performance that were not reflected in the scorecard.

Individual awards are proposed by the Managing Director and CEO, endorsed by the People & Culture Committee and approved 
by the Board. For the Managing Director and CEO, the People & Culture Committee proposes the STI award for Board approval.

Delivery

Managing Director and CEO

Other Executive KMP

Cash

50%

Two thirds

Deferred Securities

50%

One third

Leaver provisions

• On voluntary termination or termination for cause or due to poor performance, all awards are forfeited.

• In the circumstances of death, disability, retirement, redundancy or mutually agreed separation, the Board has discretion to 

retain deferred awards.

92

Stockland Annual Report 2023

4.6. Long-Term incentives

Elements

How Long-Term Incentives work

Purpose

To align executive outcomes with long term securityholder returns

Instrument

• LTI awards are made in the form of performance rights to Stockland securities granted under the Stockland Performance 

Rights Plan.

• A performance right is a right to acquire, at no cost to the executive, one fully paid Stockland security subject to certain 

performance and service conditions.

• No distributions are paid on performance rights

Target and 
maximum 
LTI opportunity

Per cent of fixed pay

Managing Director and CEO

Other Executive KMP

Target

200%

120%

Maximum

300%

180%

Stockland uses a ‘face-value’ methodology for allocating performance rights, being the volume weighted average price of Stockland 
securities for the 10 trading days post 30 June. For the FY23 award, this price was $3.7429.

Performance period 1 July 2022 – 30 June 2025

LTI performance 
measures

• The 2020 and 2021 Grants are subject to relative TSR as the sole performance condition with maximum vesting at 100 per cent.

• From 2022, vesting of LTI awards are subject to relative TSR and absolute TSR as the performance conditions. The Board believes 

that these measures provide a suitable link to long term securityholder value creation.

Relative total securityholder return (RTSR) – 60%

Absolute total securityholder return (ATSR) – 40%

Rationale

Through the combination of relative and absolute TSR, executives are strongly aligned to the interests and experience 
of securityholders. The inclusion of absolute TSR increases the line of sight for executives between the delivery of 
strategy and reward outcomes.

Definition

TSR measures the growth in the price of securities plus cash distributions notionally reinvested in securities.

Target 
Setting

TSR is measured against a composite index of 15 A-REIT 
200 peers excluding Arena, Charter Hall Group, Cromwell 
Property Group, Goodman Group, Home Consortium 
Limited and Waypoint (as either their revenues are driven 
by funds management fees or are organisations who 
have assets predominantly outside of Australia or are 
misaligned to Stockland's assets).

Each of the five largest capitalised companies from the 
peer group has been allocated a 16 per cent weighting, 
while each of the other 10 smaller capitalised companies 
has been allocated a 2.2 per cent weighting

The absolute TSR targets (for 50 per cent and 100 per 
cent vesting) are aligned to low and top end of stated 
ROIC ranges. Vesting in excess of 100 per cent requires 
further outperformance.

Relative TSR

Absolute TSR (from 2022)

TSR performance

Vesting

TSR performance

Vesting

Less than or equal to 
Peer Index

Nil

Less than 8% pa

Greater than Peer Index

50%

Equal to 8% pa

Nil

50%

Up to 10% greater than 
Peer Index

50%-100%

Between 8% pa and 11% pa 50% - 100%

10% - 15% greater than Peer 
Index (from 2022)

100%-150%

15% or more than the Peer 
Index (from 2022)

150%

Between 11% pa and 13% pa 100% - 150%

13% pa or more

150%

Vesting date

Performance rights that meet the performance conditions at the end of the performance period are converted to Stockland 
securities and vest in two equal tranches, subject to service conditions and clawback provisions.

Tranche 1:                  30 June 2025              Tranche 2:                  30 June 2026

Leaver provisions

Circumstance

Treatment

Death, disability, retirement, redundancy or mutually agreed separation At the discretion of the Board, a pro-rata number 

of performance rights may be retained with vesting 
determined in accordance with the original performance 
conditions and clawback provisions

All other circumstances

Forfeited

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Year ended 30 June 2023

93

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report

4.7. Employment terms

The Managing Director and CEO and Other Executive KMP are on rolling contracts until notice of termination is given by 
either Stockland or the senior executive. The notice period for the Managing Director and CEO is twelve months and six 
months for Other Executive KMP. In appropriate circumstances, payment may be made in lieu of notice. Where Stockland 
initiates termination, including mutually agreed resignation, the executive would receive a termination payment of up to 
twelve months’ Fixed Pay (including applicable notice) and be considered for a cash pro-rata payment in respect of STI in 
the year of termination, subject to the Board’s assessment of performance against KPIs.

Where the termination occurs as a result of misconduct or a serious or persistent breach of contract (termination 
for cause), Stockland may terminate employment immediately without notice, payment in lieu of notice or any other 
termination payment.

In cases of termination for cause or resignation, all unvested employee securities or rights lapse. In other circumstances, 
the Board has the discretion to adjust the vesting conditions. Typically, this discretion is applied as outlined below.

Death or total and 
permanent disablement

Full vesting of any unvested equity awards.

For termination other than for 
cause or resignation

Unvested Deferred STI (DSTI) is retained and vests in accordance with the terms of the STI plan and original 
vesting schedule.

For LTI, unvested rights are vested prorated based on service to the date of termination. Any applicable prorated 
hurdled rights remain subject to the applicable performance hurdles over the full performance period. Any 
applicable restricted rights vest in accordance with the terms of the LTI plan and original vesting schedule. Other 
unvested LTI awards are forfeited.

94

Stockland Annual Report 2023

 
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o
w
w
e

G
o
v
e
r
n
a
n
c
e

R
e
p
o
r
t

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e
m
u
n
e
r
a
t
i
o
n

3
0

J
u
n
e

2
0
2
3

f
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t
h
e
y
e
a
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Year ended 30 June 2023

95

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report

5.2. Performance rights movements

LTI awards are made in the form of performance rights which are subject to performance conditions as detailed in section 
4.6. The number of performance rights held during the year are set out below.

Granted during year Vested and exercised

Balance 
at 1 July 
2022

Value

Number

$1 Number

Value
$2

Exercised into 
securities & 
remain 
subject to 
service 
conditions

Balance 
at 
30 June 
2023

Forfeited / 
Lapsed

Executive Director

Tarun Gupta

959,338

801,518

1,049,989

-

-

-

-

1,760,856

Other Executive KMP

Katherine Grace

562,033

208,395

272,997

(38,835)

140,194

(38,835)

(83,303)

609,455

Alison Harrop

Justin Louis

Louise Mason

-

-

269,310

352,796

240,456

314,997

-

-

694,829

272,516

356,996

(48,544)

Andrew Whitson

694,829

272,516

356,996

(48,544)

-

-

175,244

175,244

-

-

-

-

(48,544)

(104,129)

(48,544)

(104,129)

269,310

240,456

766,128

766,128

1 The value as at the grant date calculated in accordance with AASB 2 Share-based Payment.
2 The closing price as at the vest date.

5.3. Executive securityholdings

The table below details movements during the year in the number of Stockland securities held by executives, including 
their personally related parties. Unvested securities which are time based only will count towards the balance of 
securities held.

Executive Director

Tarun Gupta

Other Executive KMP

Katherine Grace

Alison Harrop

Justin Louis

Louise Mason

Andrew Whitson

Balance at 
1 July 20221 DSTI granted2

LTI performance 
rights exercised

Purchased / 
(Sold or 
Forfeited)

Balance at 
30 June 2023

346,414

290,551

370,983

-

89,006

319,835

642,792

70,167

40,357

50,698

81,563

92,982

-

77,670

-

-

97,088

97,088

-

-

-

-

(180,000)

-

636,965

518,820

40,357

139,704

318,486

832,862

1 For Tarun Gupta, this includes the securities awarded as a one-off grant as compensation for incentives forfeited on ceasing employment with his previous 
employer to join Stockland. 100% of tranche 1 of this award (72,747 securities) vested on 1 September 2022. Tranches 2-5 will vest over the next four 
years subject to further service conditions. For Justin Louis, this includes 89,006 securities awarded as a one-off grant as compensation for incentives 
forfeited on ceasing employment with his previous employer to join Stockland, tranche 1 of which vested on 30 June 2023. Tranche 2 will vest on 30 June 
2024 subject to further service conditions. For Louise Mason, this includes 130,819 securities awarded as a one-off retention award. The award, which 
was subject to a two-year vesting period that required her ongoing employment with Stockland as at 30 June 2023, vested at 100% on 30 June 2023. For 
Andrew Whitson, this includes 188,569 securities awarded as a one-off retention award. The award is subject to a two-year vesting period that requires 
his ongoing employment with Stockland as at 31 December 2023. 100% of the 2021 STI tranche 2 and 100% of the 2022 STI tranche 1 which were due to 
vest in 2023 vested.

2 The number of securities granted 1 July 2022 for the 2022 STI that vest over one and two years (i.e., 50% at 30 June 2023 and 50% at 30 June 2024).

96

Stockland Annual Report 2023

 
5.4. Unvested equity holdings

The table below details unvested Stockland securities and performance rights granted to executives as part of their 
remuneration in the previous, current or future reporting periods.

Performance 
period 
start date

Grant 
date

Vesting 
date1

Unvested 
equity at 
30 June 
2023

Maximum 
value of 
award 
to vest $2

Fair value per Instrument3

Relative 
TSR

Absolute 
TSR

DSTI

Grant
Executive Director

Tarun Gupta

FY22 LTI Tranche 1

FY22 LTI Tranche 2

Instrument

Rights

Rights

Special Grant Tranche 1

Rights

Special Grant Tranche 2

Rights

Special Grant Tranche 3

Rights

Special Grant Tranche 4

Rights

Special Grant Tranche 2

Securities

Special Grant Tranche 3

Securities

Special Grant Tranche 4

Securities

Special Grant Tranche 5

Securities

DSTI FY22 Tranche 2

Securities

FY23 LTI Tranche 1

FY23 LTI Tranche 2

Rights

Rights

Other Executive KMP

Katherine Grace

20-Oct-21

20-Oct-21

23-Aug-21

23-Aug-21

23-Aug-21

23-Aug-21

21-Jun-21

21-Jun-21

21-Jun-21

21-Jun-21

18-Oct-22

18-Oct-22

18-Oct-22

1-Jul-21

30-Jun-24

1-Jul-21

30-Jun-25

1-Jul-21

1-Sep-23

1-Jul-21

1-Sep-24

1-Jul-21

1-Sep-25

1-Jul-21

1-Sep-26

1-Jun-21

1-Sep-23

1-Jun-21

1-Sep-24

1-Jun-21

1-Sep-25

1-Jun-21

1-Sep-26

1-Jul-21

30-Jun-24

1-Jul-22

30-Jun-25

1-Jul-22

30-Jun-26

FY21 LTI Tranche 2

Securities

25-Feb-21

1-Jul-20

30-Jun-24

FY22 LTI Tranche 1

FY22 LTI Tranche 2

Rights

Rights

DSTI FY22 Tranche 2

Securities

FY23 LTI Tranche 1

FY23 LTI Tranche 2

Alison Harrop

Rights

Rights

DSTI FY22 Tranche 2

Securities

FY23 LTI Tranche 1

FY23 LTI Tranche 2

Justin Louis

Rights

Rights

DSTI FY22 Tranche 2

Securities

FY23 LTI Tranche 1

FY23 LTI Tranche 2

Rights

Rights

18-Oct-21

18-Oct-21

18-Oct-22

18-Oct-22

18-Oct-22

18-Oct-22

18-Oct-22

18-Oct-22

18-Oct-22

18-Oct-22

18-Oct-22

1-Jul-21

30-Jun-24

1-Jul-21

30-Jun-25

1-Jul-21

30-Jun-24

1-Jul-22

30-Jun-25

1-Jul-22

30-Jun-26

1-Jul-21

30-Jun-24

1-Jul-22

30-Jun-25

1-Jul-22

30-Jun-26

1-Jul-21

30-Jun-24

1-Jul-22

30-Jun-25

1-Jul-22

30-Jun-26

Special Grant Tranche 2

Securities

24-Nov-21

1-Nov-21

30-Jun-24

Louise Mason

327,047

327,047

51,518

51,518

51,518

51,517

83,140

83,140

72,747

34,640

145,275

400,759

400,759

115,497

85,033

85,032

35,083

104,198

104,197

20,178

134,655

134,655

25,349

120,228

120,228

44,503

578,873

578,873

111,279

111,279

111,279

111,277

387,432

387,432

339,001

161,422

483,766

524,994

524,994

312,997

151,359

151,357

116,826

136,499

136,498

67,193

176,398

176,398

84,412

157,499

157,499

198,483

FY21 LTI Tranche 2

Securities

25-Feb-21

1-Jul-20

30-Jun-24

142,151

385,229

FY22 LTI Tranche 1

FY22 LTI Tranche 2

Rights

Rights

DSTI FY22 Tranche 2

Securities

FY23 LTI Tranche 1

FY23 LTI Tranche 2

Andrew Whitson

Rights

Rights

18-Oct-21

18-Oct-21

18-Oct-22

18-Oct-22

18-Oct-22

1-Jul-21

30-Jun-24

1-Jul-21

30-Jun-25

1-Jul-21

30-Jun-24

1-Jul-22

30-Jun-25

1-Jul-22

30-Jun-26

104,655

104,655

40,781

136,258

136,258

186,286

186,286

135,801

178,498

178,498

FY21 LTI Tranche 2

Securities

25-Feb-21

1-Jul-20

30-Jun-24

142,151

385,229

FY22 LTI Tranche 1

FY22 LTI Tranche 2

DSTI FY22 Tranche 2

Retention Grant

FY23 LTI Tranche 1

FY23 LTI Tranche 2

Rights

Rights

Securities

Securities

Rights

Rights

18-Oct-21

18-Oct-21

18-Oct-22

1-Feb-21

18-Oct-22

18-Oct-22

1-Jul-21

30-Jun-24

1-Jul-21

30-Jun-25

1-Jul-21

30-Jun-24

1-Jan-21

31-Dec-23

1-Jul-22

30-Jun-25

1-Jul-22

30-Jun-26

104,655

104,655

46,491

188,569

136,258

136,258

186,286

186,286

154,815

850,446

178,498

178,498

C
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p
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e
m
u
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e
r
a
t
i
o
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3
0

J
u
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2
0
2
3

f
o
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t
h
e
y
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a
r
e
n
d
e
d

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F
n
a
n
c
a
l

i

r
e
p
o
r
t

1.77

1.77

2.16

2.16

2.16

2.16

1.47

1.47

2.71

1.78

1.78

1.47

1.47

1.47

1.47

1.47

1.47

2.71

1.78

1.78

1.47

1.47

2.71

1.78

1.78

1.47

1.47

4.66

4.66

4.66

4.66

3.33

3.33

3.33

3.33

4.46

3.33

3.33

4.51

1.07

1.07

1.07

1.07

1.07

1.07

1.07

1.07

1.07

1.07

1.07

1.07

1 For LTI grants, vesting date refers to the date at which the performance and service conditions are met. The rights convert to securities subject to the 
three-year performance period. Any rights that convert to securities then vest at the dates shown. The securities remain under a holding lock until the 
10th anniversary of the grant date except at Board discretion. The rights issued have an expiry date that is the later of the date of announcement of the 
full-year results following the end of the performance period or 31 August of that year.

2 The maximum value to vest represents the fair value at grant date for all unvested conditional rights. The minimum amount Executive KMP may receive 

will be zero if awards do not vest for any reason.

3 The fair value of performance rights at the grant date is determined using appropriate models including Monte Carlo simulations, depending on the vesting 
conditions. The value of each performance right is recognised evenly over the service period ending at the vesting date. The fair value of DSTI securities 
is determined as the close price of Stockland securities on the offer acceptance date of the relevant award.

Year ended 30 June 2023

97

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report

6. Non-Executive Director remuneration

6.1. Policy and approach

Stockland’s remuneration policy for Non-Executive Directors aims to help Stockland attract and retain suitably skilled, 
experienced and committed individuals to serve on the Board and remunerate them appropriately for their time and 
expertise and for their responsibilities and liabilities as public company directors.

The People & Culture Committee is responsible for reviewing and recommending to the Board any changes to Board and 
committee remuneration, taking into account the size and scope of Stockland’s activities, the responsibilities and liabilities 
of Directors and the demands placed upon them. In developing its recommendations, the People & Culture Committee 
may take advice from external consultants.

With the exception of the Chairman, Non-Executive Directors receive additional fees for their work on Board committees. 
Where a special purpose Board committee is established by the Board, committee members may receive a fee in line with 
those paid for existing Board committees. Non-Executive Directors do not receive performance-related remuneration or 
termination benefits other than accumulated superannuation.

The Member fees for the Risk Committee, People & Culture Committee and Sustainability Committee were increased from 
$17,500 to $20,000 with effect from 1 July 2023 to align internally with the Member fees of the Audit Committee and 
to market.

Stockland Board

Chairman

Non-Executive Director

Stockland Board Committees

Audit

Risk

People & Culture

Sustainability

FY24

FY23

$500,000

$175,000

$500,000

$175,000

$45,000

$20,000

$45,000

$20,000

$45,000

$20,000

$45,000

$20,000

$45,000

$20,000

$45,000

$17,500

$45,000

$17,500

$45,000

$17,500

Chair

Member

Chair

Member

Chair

Member

Chair

Member

Total remuneration available to Non-Executive Directors is approved by securityholders and is currently $2,500,000 
(including superannuation payments) as approved at the 2007 Annual General Meeting. No increase in the total fee pool 
is proposed for FY24.

Total fees of $2,072,500 (83 per cent of the approved limit) were paid to Non-Executive Directors in FY23. This amount was 
consistent with the total fees paid in FY22.

98

Stockland Annual Report 2023

6.2. Remuneration details for non-executive directors

The nature and amount of each element of remuneration for each Non-Executive Director is detailed below.

Short-term

Board and 
Committee Fees

Non-
monetary benefits

Post-employment

Superannuation 
contributions

Non-Executive Directors

Tom Pockett

Laurence Brindle

Melinda Conrad

Kate McKenzie

Stephen Newton

Christine O'Reilly

Andrew Stevens

Adam Tindall

Consolidated 
remuneration

Year

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

20222

474,708

476,432

195,000

190,568

199,095

193,182

212,500

201,222

224,216

231,975

240,000

211,364

230,769

206,123

192,308

182,929

1,968,596

1,893,794

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

1 The fees for each Director are paid on a total cost basis which includes any applicable compulsory superannuation (the amount of superannuation 

included in the total fees will vary depending on the timing of payments and in line with applicable legislation).

2 The total disclosed in the FY22 Remuneration Report ($2,082,826) includes remuneration of former non-executive director, Barry Neil, which is excluded 

from the above ($67,526).

6.3 Non-executive Director securityholdings

To align the personal financial interests of Non-Executive Directors with securityholder interests, the Board believes 
that Non-Executive Directors should hold a meaningful number of Stockland securities. Each Non-Executive Director is 
required to acquire 40,000 securities within three years of commencing as a Non-Executive Director. The relevant interest 
of each Non-Executive Director in Stockland securities at the date of this Report are as follows:

Balance at 1 July 2022

Purchased / (Sold) Balance at 30 June 2023

Non-Executive Directors

Tom Pockett

Laurence Brindle

Melinda Conrad

Kate McKenzie

Stephen Newton

Christine O'Reilly

Andrew Stevens

Adam Tindall

50,000

40,000

60,000

40,000

40,000

50,000

40,000

40,000

-

-

-

-

30,000

-

-

-

50,000

40,000

60,000

40,000

70,000

50,000

40,000

40,000

Total1

500,000

500,000

195,000

195,000

25,292

23,568

–

4,432

20,905

220,000

19,318

–

–

13,284

14,547

212,500

212,500

201,222

237,500

246,522

–

240,000

21,136

24,231

20,211

20,192

18,293

232,500

255,000

226,334

212,500

201,222

103,904

2,072,500

121,506

2,015,300

C
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0

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2
0
2
3

f
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Year ended 30 June 2023

99

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Financial report
for the year ended
30 June 2023

100 Stockland Annual Report 2023

Image caption:Stockland head office, NSWConsolidated statement of comprehensive income

Year ended 30 June

$M

Revenue

Cost of property developments sold:

• land and development

• capitalised interest

• utilisation of provision for impairment of inventories

Investment property expenses

Share of profits/(losses) of equity–accounted investments

Management, administration, marketing and selling expenses

Impairment loss on trade and other receivables

Net change in fair value of investment properties

Net (impairment)/reversal of impairment of inventories

Net gain on other financial assets

Net gain on sale of other non–current assets

Finance income

Finance expense

Net gain on financial instruments

Transaction costs

Profit before tax

Income tax expense

Profit from continuing operations

Profit/(loss) from discontinued operation net of income tax

Profit after tax attributable to securityholders of Stockland

Items that are or may be reclassified to profit or loss, net of tax

Cash flow hedges – net change in fair value of effective portion

Cash flow hedges – reclassified to profit or loss

Other comprehensive (loss)/income

Total comprehensive income

Basic earnings per security (cents)

Diluted earnings per security (cents)

Continuing operations

Basic earnings per security (cents)

Diluted earnings per security (cents)

Stockland

Trust

Note

1

2023

2,808

2022

2,844

2023

666

2022

657

(1,317)

(1,448)

(82)

7

(225)

84

(406)

–

(256)

(26)

1

13

10

(84)

9

(21)

515

(77)

438

2

440

(5)

3

(2)

438

18.5

18.3

18.4

18.2

(78)

7

(220)

40

(378)

(23)

702

6

–

22

3

(75)

191

(106)

1,487

(62)

1,425

(44)

1,381

30

5

35

1,416

57.9

57.7

59.8

59.6

–

–

–

(231)

(22)

(3)

–

(288)

–

–

5

226

(161)

9

–

201

–

201

–

201

(5)

3

(2)

199

8.4

8.4

8.4

8.4

C
o
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t
e
n
t
s

F
Y
2
3
H
g
h

i

l
i

g
h
t
s

C
E
O

l
e
t
t
e
r
s

C
h
a
i
r

m
a
n

a
n
d

c
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e
a
t
e

v
a
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u
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H
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c
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R
e
p
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t

R
e
m
u
n
e
r
a
t
i
o
n

–

–

–

(226)

40

(7)

(23)

682

–

–

20

194

(138)

191

–

1,390

–

1,390

–

1,390

30

5

35

1,425

58.3

58.1

58.3

58.1

6

23

8

7

6

16

16

16

21

14

3

3

14

14

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

3
0
J
u
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e

2
0
2
3

f
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y
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Year ended 30 June 2023

101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Consolidated balance sheet

As at 30 June

$M

Cash and cash equivalents

Receivables

Inventories

Other financial assets

Other assets

Discontinued operations, disposal group and non-current assets held for sale

Current assets

Receivables

Inventories

Investment properties

Equity–accounted investments

Other financial assets

Property, plant and equipment

Intangible assets

Deferred tax assets

Other assets

Non–current assets

Assets

Payables

Borrowings

Development provisions

Other financial liabilities

Other liabilities

Current tax liabilities

Discontinued operations and disposal group liabilities held for sale

Current liabilities

Payables

Borrowings

Development provisions

Other financial liabilities

Deferred tax liabilities

Other liabilities

Non–current liabilities

Liabilities

Net assets

Issued capital

Reserves

12

8

6

17

14

8

6

7

23

17

13

22

9

15

6

17

10

21

14

9

15

6

17

22

10

20

Stockland

Trust

Note

2023

2022

271

330

1,289

35

138

4

2,067

169

2,584

10,532

675

285

137

62

–

129

14,573

16,640

885

200

453

20

121

30

–

1,709

178

3,707

201

151

42

476

4,755

6,464

10,176

8,652

29

1,495

10,176

378

120

1,076

21

159

4,075

5,829

159

2,660

10,491

592

290

164

65

6

158

14,585

20,414

980

936

261

10

86

–

2,774

5,047

313

3,536

465

188

–

504

5,006

10,053

10,361

8,655

25

1,681

10,361

2023

102

22

–

35

93

–

252

2,389

–

2022

219

2,987

–

21

97

248

3,572

116

–

10,169

10,169

662

270

–

–

–

115

13,605

13,857

443

200

196

20

20

–

–

879

–

3,707

–

151

–

27

3,885

4,764

9,093

7,355

85

1,653

9,093

553

280

–

–

–

138

11,256

14,828

459

936

40

–

27

–

–

1,462

–

3,536

158

184

–

27

3,905

5,367

9,461

7,358

25

2,078

9,461

Retained earnings/undistributed income

Securityholders’ equity

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

102 Stockland Annual Report 2023

Consolidated statement of changes in equity

Attributable to securityholders of Stockland

Reserves

$M

Balance at 30 June 2021

Profit for the year

Other comprehensive income, net of tax

Total comprehensive income

Dividends and distributions

Security based payment expense

Acquisition of treasury securities

Securities vested under Security Plans

Other movements

Balance at 30 June 2022

Profit for the year

Other comprehensive loss, net of tax

Total comprehensive income

Dividends and distributions

Security based payment expense

Acquisition of treasury securities

Securities vested under Security Plans

Other movements

Balance at 30 June 2023

Note

Issued
capital

8,663

4

32

20

20

4

32

20

20

–

–

–

–

–

(17)

9

(8)

8,655

–

–

–

–

–

(15)

12

(3)

8,652

Security 
based 
payments

35

–

–

–

–

13

–

(9)

4

39

–

–

–

–

18

–

(12)

6

45

Cash 
flow 
hedges

(49)

–

35

35

–

–

–

–

–

(14)

–

(2)

(2)

–

–

–

–

–

(16)

Retained
earnings

Equity

935

1,381

–

1,381

(635)

–

–

–

(635)

1,681

440

–

440

(626)

–

–

–

(626)

1,495

9,584

1,381

35

1,416

(635)

13

(17)

–

(639)

10,361

440

(2)

438

(626)

18

(15)

–

(623)

10,176

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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Year ended 30 June 2023

103

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Consolidated statement of changes in equity

Attributable to securityholders of Trust

$M

Balance at 30 June 2021

Profit for the year

Other comprehensive income, net of tax

Total comprehensive income

Distributions

Security based payment expense

Acquisition of treasury securities

Securities vested under Security Plans

Other movements

Balance at 30 June 2022

Profit for the year

Other comprehensive loss, net of tax

Total comprehensive income

Distributions

Capital contribution

Security based payment expense

Acquisition of treasury securities

Securities vested under Security Plans

Other movements

Balance at 30 June 2023

Reserves

Issued
capital

Security 
based 
payments

Cash 
flow 
hedges

Undistri-
buted
income

Other

Equity

Note

7,365

34

(49)

–

–

–

–

–

(15)

8

(7)

7,358

–

–

–

–

–

–

(14)

11

(3)

7,355

–

–

–

–

13

–

(8)

5

39

–

–

–

–

–

16

–

(11)

5

44

–

35

35

–

–

–

–

–

(14)

–

(2)

(2)

–

–

–

–

–

–

(16)

–

–

–

–

–

–

–

–

–

–

–

–

–

–

57

–

–

–

57

57

1,323

1,390

–

1,390

(635)

–

–

–

(635)

2,078

201

–

201

8,673

1,390

35

1,425

(635)

13

(15)

–

(637)

9,461

201

(2)

199

(626)

(626)

–

–

–

–

(626)

1,653

57

16

(14)

–

(567)

9,093

4

20

20

4

20

20

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

104 Stockland Annual Report 2023

Consolidated statement of cash flows

Year ended 30 June

$M

Receipts in the course of operations (including GST)

Payments in the course of operations (including GST)

Payments for land

Distributions received from equity–accounted investments

Receipts from Retirement Living residents

Payments to Retirement Living residents, net of DMF

Interest received

Interest paid

Net cash flows from operating activities

Proceeds from sale of investment properties

Payments for and development of investment properties

Payments for plant, equipment and software

Payments for investments (including equity–accounted)

Repayments from/(extension of) loans to related entities

Receipts from sale of/(payments to acquire) a business

Net cash flows from investing activities

Payments for treasury securities under Security Plans

Proceeds from borrowings

Repayments of borrowings

Payments for derivatives and financial instruments

Dividends and distributions paid

Net cash flows from financing activities

Net movement in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

Less: amounts classified as held for sale

Cash and cash equivalents at the end of the year from continuing operations

Note

28

20

28

28

4

14

Stockland

Trust

20231

2,918

(1,871)

(649)

97

10

(11)

10

(172)

332

346

(363)

(23)

(111)

–

914

763

(15)

3,062

(3,639)

–

(631)

(1,223)

(128)

399

271

–

271

20221

2023

2022

3,001

(1,511)

(618)

25

311

(145)

3

(148)

918

491

(605)

(22)

(185)

–

(655)

(976)

(17)

3,980

(4,058)

(7)

(603)

(705)

(763)

1,162

399

(21)

378

835

(291)

–

69

–

–

226

(172)

667

253

(389)

–

(110)

684

–

438

(14)

3,062

(3,639)

–

(631)

(1,222)

(117)

219

102

–

102

750

(272)

–

24

–

–

194

(148)

548

313

(520)

–

(138)

(320)

–

(665)

(15)

3,980

(4,058)

(7)

(603)

(703)

(820)

1,039

219

–

219

1

Includes cash flows relating to both continuing and discontinued operations. Net cash flows relating to discontinued operation has been disclosed in 
note 14A.

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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Year ended 30 June 2023

105

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21. Income tax

22. Deferred tax

Group structure

23. Equity-accounted investments

24. Joint operations

25. Controlled entities

26. Deed of cross guarantee

27. Parent entity disclosures

154
154

155

157
157

161

161

164

166

Other items

167
28. Notes to the consolidated statement of cash flows 167

29. Commitments

30. Contingent liabilities

31. Related party disclosures

32. Personnel expenses

33. Key management personnel disclosures

34. Auditor's remuneration

35. Accounting policies

36. Adoption of new and amended accounting 

standards

168

168

169

170

170

171

171

172

Financial report for the year ended 30 June 2023

Notes to the financial report

Basis of preparation

107

Taxation

Results for the year

1. Revenue

2. Operating segments

3. EPS

4. Dividends and distributions

5. Events subsequent to the end of the year

Operating assets and liabilities

6. Inventories

7. Investment properties

8. Receivables

9. Payables

10. Other liabilities

11. Leases

12. Cash and cash equivalents

13. Intangible assets

14. Discontinued operations, disposal groups and 

assets held for sale

Capital structure and financial
risk management

15. Borrowings

16. Net financing costs

17. Other financial assets and liabilities

109
109

111

115

115

116

117
117

121

128

129

129

130

132

133

134

137

138

140

141

18. Fair value measurement of financial instruments

144

19. Financial risk factors

20. Issued capital

146

151

106 Stockland Annual Report 2023

 
Basis of preparation

In this section

This section sets out the basis upon which Stockland’s financial report is prepared as a whole. Specific accounting 
policies are described in the section to which they relate.

A glossary containing acronyms and defined terms is included at the back of this report.

Stapling arrangement

Stockland represents the consolidation of Stockland Corporation Limited (Corporation) and Stockland Trust (Trust) 
and their respective controlled entities. Stockland Corporation Limited and Stockland Trust were both incorporated 
or formed and are domiciled in Australia.

Stockland is structured as a stapled entity: a combination of a share in Stockland Corporation Limited and a unit 
in Stockland Trust that are together traded as one security on the ASX. The constitutions of Stockland Corporation 
Limited and Stockland Trust provide that, for so long as the two entities remain jointly quoted, the number of 
shares in Stockland Corporation Limited and the number of units in Stockland Trust shall be equal and that 
the shareholders and unitholders be identical. Both Stockland Corporation Limited and the Responsible Entity of 
Stockland Trust must at all times act in the best interest of Stockland. The stapling arrangement will cease upon the 
earlier of either the winding up of Stockland Corporation Limited or Stockland Trust or either entity terminating the 
stapling arrangement.

As permitted by Class Order 13/1050, issued by ASIC, this financial report is a combined financial report that presents 
the financial statements and accompanying notes of both Stockland and the Trust as at and for the year ended 
30 June 2023.

Statement of compliance

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and 
Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Stockland Corporation 
Limited and Stockland Trust are both for-profit entities for the purpose of preparing the financial statements.

The financial statements are presented in Australian dollars, which is Stockland Corporation Limited’s and Stockland 
Trust’s functional currency and the functional currency of Stockland and Stockland Trust’s subsidiaries.

Historical cost convention

The financial statements have been prepared on a going concern basis using historical cost conventions, except for 
investment properties (including non-current assets held for sale), derivative financial instruments and certain financial
assets and liabilities which are stated at fair value.

Compliance with International Financial Reporting Standards

The financial statements of both Stockland and the Trust comply with International Financial Reporting Standards (IFRS) 
as issued by the International Accounting Standards Board.

Comparative figures have been restated where appropriate to ensure consistency of presentation throughout the 
financial report.

Change in accounting policies and new and amended accounting standards

Stockland's financial position as at 30 June 2023 and its performance for the year ended on that date have not been 
impacted as a result of the adoption of new and amended Accounting Standards and Interpretations effective for annual 
reporting periods beginning on or after 1 July 2022. Refer to note 36 for further details of the amended Accounting 
Standards adopted during the year.

Net current asset deficiency position

The Trust has a prima facie net current asset deficiency of $627 million (2022: $2,110 million surplus). The net current asset 
deficiency in the Trust primarily arises due to the intergroup loan receivable which is classified as a non-current asset.

The Trust generated positive cash flows from operations of $667 million during the year. Undrawn bank facilities of 
$1,425 million (refer to note 15) are also available should they need to be drawn. In addition, Stockland and the Trust have 
successfully refinanced external borrowings and raised new external debt when required. Based on the cash flow forecast 
for the next 12 months, which reflects an assessment of the current economic and operating environment, Stockland and 
the Trust will be able to pay their debts as and when they become due and payable. Stockland also has a robust capital 
management framework and available liquidity, allowing flexibility in foreseeable business environments. Accordingly, the 
financial statements have been prepared on a going concern basis.

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Year ended 30 June 2023

107

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Rounding

In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, amounts in the 
financial report have been rounded to the nearest million dollars, unless otherwise stated.

Significant accounting estimates and judgements

Stockland makes estimates and assumptions concerning the future. The estimates and assumptions that have a 
significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial
year are discussed in this financial report.

Estimates and judgements are continually evaluated and are based on historical experience as adjusted for current 
market conditions and other factors, including expectations of future events that are believed to be reasonable under 
the circumstances.

Assumptions underlying management’s estimates of fair value and recoverability are:

• Inventories – net realisable value, profit margin recognition and Whole of Life (WOL) accounting – Note 6

• Investment Properties – fair value – Note 7

• Derivatives – fair value – Note 17

• Valuation of security based payments – fair value – Note 20

108 Stockland Annual Report 2023

 
Results for the year

In this section

This section explains the results and performance of Stockland.

It provides additional information about those individual line items in the financial statements that the Directors 
consider most relevant in the context of the operations of Stockland, including:

• accounting policies that are relevant for understanding the items recognised in the financial report; and

• analysis of the results for the year by reference to key areas, including revenue, results by operating segment 

and taxation.

1. Revenue

As at 30 June
$M
30 June 2023

Development revenue2

Management revenue3

Property revenue - outgoings recoveries4

Revenue from contracts with customers

Property revenue5

Statutory revenue from continuing operations

Amounts classified as discontinued operations

Statutory revenue

Amortisation of lease incentives

Straight–line rent

Share of revenue from equity 
accounted investments6

Unrealised DMF revenue5

Segment revenue

Less: amounts classified as discontinued operations1

Segment revenue from continuing operations

30 June 2022

Development revenue2

Management revenue3

Property revenue - outgoings recoveries4

Revenue from contracts with customers

Property revenue5

Statutory revenue from continuing operations

Amounts classified as discontinued operations

Statutory revenue

Amortisation of lease incentives

Straight–line rent

Share of revenue from equity 
accounted investments6

Unrealised DMF revenue5

Segment revenue

Less: amounts classified as discontinued operations1

Segment revenue from continuing operations

Communities

Commercial
Property

Other1

Stockland

Trust

1,866

48

–

1,914

19

1,933

–

1,933

–

–

127

–

2,060

–

2,060

1,940

32

–

1,972

20

1,992

–

1,992

–

–

12

–

2,004

–

2,004

136

32

68

236

626

862

–

862

90

10

26

–

988

–

988

107

12

61

180

622

802

–

802

87

2

28

–

919

–

919

3

8

–

11

2

13

10

23

–

–

–

(7)

16

(10)

6

6

1

–

7

43

50

129

179

–

–

–

(28)

151

(129)

22

2,005

88

68

2,161

647

2,808

10

2,818

90

10

153

(7)

3,064

(10)

3,054

2,053

45

61

2,159

685

2,844

129

2,973

87

2

40

(28)

3,074

(129)

2,945

–

–

66

66

600

666

–

666

–

–

70

70

587

657

–

657

1

Includes the results of the Retirement Living business for the period from 1 to 29 July 2022 when the business was sold (2022: 12 months to 30 June 2022). 
Refer to note 14A for further details.

2 Development revenue is recognised under AASB 15 Revenue from Contracts with Customers at the point in time when control of the asset passes to the 

customer, or over time as the performance obligations are met.

3 Management revenue is recognised under AASB 15 Revenue from Contracts with Customers at the point in time when the service is provided, or over time 

as the service is provided.

4 Revenue related to outgoings recoveries is recognised under AASB 15 over time in the accounting period in which the performance obligations are met.
5 Property revenue, which includes Commercial Property and Communities rental income, and Retirement Living DMF revenue meets the definition of a 

lease arrangement. Therefore, they fall outside the scope of AASB 15 and are accounted for in accordance with AASB 16 Leases.

6 Operating segment information in note 2 for equity accounted investments is reported in each line item proportional to the Group’s interest in 

the investments.

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Year ended 30 June 2023

109

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Development revenue

Development revenue is revenue earned from development projects. It comprises revenue from sales of properties to 
external customers and associated revenues. Development revenue is recognised in accordance with AASB 15 Revenue 
from Contracts with Customers, either at the point in time at which services are performed, or over time where the related 
services are performed over time.

The revenue recognised for the performance of services is the agreed fee for the services. Where multiple agreements are 
entered into at the same time with the same parties as part of a single commercial transaction, the total consideration 
under the combined contracts is allocated to each unique performance obligation, with revenue recognised as Stockland 
performs each obligation either at a point in time or over time. Where a fee is charged to a joint venture or capital 
partnership, Stockland only recognises revenue from fees charged to the joint venture or partnership to the extent that it 
relates to the partner's ownership interest.

For development revenue recognised at a point in time, such as residential lot sales to customers, revenue is recognised 
when the customer gains control over the asset. The customer is deemed to have control over the asset where Stockland 
has a present right to payment for the asset, where the customer is exposed to the risks and rewards of ownership of the 
asset, and where the customer is deemed to have accepted the asset.

For development revenue recognised over time, such as through fund-through developments, Stockland recognises 
revenue based on a measure of completion. Stockland assesses the most appropriate recognition method for each 
contract type, with the input method based on costs incurred typically applied to development contracts.

There may be timing differences between the recognition of revenue and the receipt of cash. Where cash is received in 
advance of the revenue being recognised, a contract liability is recognised within payables. Where revenue is recognised 
in advance of the receipt of cash, a contract asset is recognised within receivables.

Management revenue

Management revenue is revenue earned from services performed by Stockland relating to the establishment and 
management of investment structures, established and development assets, and developments. It includes fees for 
related administrative, sales, leasing and marketing activities. Management revenue is recognised in accordance with AASB 
15, either at the point in time at which services are performed, or over time where the related services are performed 
over time.

The revenue recognised for the performance of services is the agreed fee for the services. Where multiple agreements are 
entered into at the same time with the same parties as part of a single commercial transaction, the total consideration 
under the combined contracts is allocated to each unique performance obligation, with revenue recognised as Stockland 
performs each obligation either at a point in time or over time. Where a fee is charged to a joint venture or capital 
partnership, Stockland only recognises revenue from fees charged to the joint venture or partnership to the extent that it 
relates to the partner's ownership interest.

There may be timing differences between the recognition of revenue and the receipt of cash. Where cash is received in 
advance of the revenue being recognised, a contract liability is recognised within payables. Where revenue is recognised 
in advance of the receipt of cash, a contract asset is recognised within receivables.

Property revenue

Property revenue is revenue earned from operating assets, and includes lease revenue, outgoings recoveries and 
contingent rent associated with general building and tenancy operation from lessees in accordance with specific clauses 
within lease agreements.

Lease revenue is recognised in accordance with AASB 16 Leases on a straight-line basis over the lease term, net of 
any incentives.

Outgoings recoveries are recognised in accordance with AASB 15 and are typically invoiced monthly based on an annual 
estimate. The consideration for the current month is typically due on the first day of the month. Revenue related to 
outgoings recoveries is recognised over time as the estimated costs are consumed by the tenant. Should any adjustment 
be required based on actual costs incurred, this is recognised in the balance sheet within the same reporting period and 
billed annually.

Property revenue includes $10 million (2022: $7 million) of contingent rents billed to tenants. Contingent rents are derived 
from the tenants’ revenues and represent 1.4% (2022: 1.0%) of gross lease income.

Dividends and distributions

Revenue from dividends and distributions are recognised in other revenue on the date they are declared by the relevant 
entity but are only recognised in the statement of cash flows upon receipt.

110 Stockland Annual Report 2023

2. Operating segments

To reflect Stockland's new strategy, the disposal of the Retirement Living business, and changes in the way the business is 
managed, Stockland has updated its assessment of the Chief Operating Decision Maker (CODM) and reportable operating 
segments in the current year. The operating segment information relating to the prior comparative periods in notes 1 and 
2 has been updated to reflect the revised disclosures.

Chief Operating Decision Maker

The CODM is a management function which makes decisions regarding the allocation of resources and assesses the 
performance of the operating segments of an entity.

Stockland's CODM is comprised of five members of the Stockland senior leadership team who collectively perform this 
function, being the Managing Director and Chief Executive Officer, the Chief Financial Officer, the CEO - Communities, the 
CEO - Commercial Property, and the Chief Investment Officer.

Reportable Segments

Stockland has three reportable segments:

• Commercial Property – invests in, develops, and manages Retail Town Centres, Workplace, and Logistics properties;

• Communities – invests in, develops, sells, and manages a range of Masterplanned Communities, Land Lease 

Communities, and Apartments; and

• Other – includes the Retirement Living business which was disposed on 29 July 2022, and other items which are not 

able to be classified within any of the other defined segments.

Measurement of segment results

Funds From Operations

FFO is a non-IFRS measure that is designed to present, in the opinion of the CODM, the results from ongoing operating 
activities in a way that appropriately reflects Stockland's underlying performance.

FFO is the primary basis on which dividends and distributions are determined, and together with expected capital returns 
and AFFO impacts, reflects the way the business is managed and how the CODM assesses the performance of Stockland. 
It excludes certain items which are non-cash, unrealised or of a capital nature, and profit or loss made from realised 
transactions occurring infrequently and those that are outside the course of Stockland’s core ongoing business activities. 
FFO includes income tax expense relating to FFO, less any tax losses utilised in the year. A reconciliation from FFO to profit 
after tax is presented in note 2.A.

Adjusted Funds From Operations

AFFO is an alternative, secondary, non-IFRS measure used by the CODM to assist in the assessment of the underlying 
performance of Stockland. AFFO is calculated by deducting maintenance capital expenditure, incentives and leasing costs 
from FFO.

Segment revenue

Segment revenue is used by the CODM to assist in the assessment of each segment's execution of the Group's strategy. 
Segment revenue is comprised of Property revenue, Development revenue, and Management revenue.

Material customers

There is no customer who accounts for more than 10% of the gross revenue of Stockland or the Trust.

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R
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3
0
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2
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Year ended 30 June 2023

111

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

2A. Reconciliation of FFO to profit after tax

Year ended 30 June

$M

FFO

Adjust for:

Amortisation of lease incentives

Amortisation of lease fees

Straight–line rent

Net change in fair value of investment properties2

Unrealised DMF revenue

Net gain on financial instruments

Net gain on other financial assets

Net gain/(loss) on sale of other non–current assets

Net (impairment)/reversal of impairment of inventories

Non-FFO income tax

Other one–off costs3

Profit after tax

(Profit)/Loss from discontinued operations net of income tax

Profit after tax from continuing operations

Stockland

20231

847

20221

851

(90)

(14)

(10)

(230)

7

9

1

12

(26)

(41)

(25)

440

(2)

438

(87)

(14)

(2)

575

28

191

–

19

6

(43)

(143)

1,381

44

1,425

1

Includes the results of the Retirement Living business for the period from 1 to 29 July 2022 when the sale of the business was completed (2022: 12 
months to 30 June 2022). The Retirement Living business was classified as a discontinued operation held for sale at 30 June 2022. Refer to note 14A for 
further details.

2 Includes Stockland’s share of revaluation relating to properties held through joint ventures (2023: $26 million gain; 2022: $32 million gain) and fair value 

unwinding of ground leases recognised under AASB 16 (2023: $1 million; 2022: $1 million).

3 Other one-off costs predominantly include costs relating to the acquisition and integration of Halcyon's land lease communities business and one-off 

capital partnering transaction costs. In the prior period they also related to the disposal of the Retirement Living business, one-off capital partnering costs, 
restructuring costs, and provisions for expected onerous contract costs. To be classified as a one-off, these costs were assessed to be highly unlikely to 
reoccur in future years.

112 Stockland Annual Report 2023

2B. FFO and AFFO

The contribution of each reportable segment to FFO and AFFO for Stockland is summarised as follows:

Year ended
$M

30 June 2023

Development revenue

Management revenue

Property revenue2,3

Segment revenue

Segment EBIT2,3

Amortisation of lease fees

Interest expense in cost of sales4

Finance income

Finance expense

Unallocated corporate and other expenses

FFO Tax expense

FFO5,1

Maintenance capital expenditure6

Incentives and leasing costs7

AFFO1

30 June 2022

Development revenue

Management revenue

Property revenue2,3

Segment revenue

Segment EBIT2,3

Amortisation of lease fees

Interest expense in cost of sales4

Finance income

Finance expense

Unallocated corporate and other expenses

FFO5,1

Maintenance capital expenditure6

Incentives and leasing costs7

AFFO1

Communities

Commercial
Property

Other1

Stockland

1,989

48

23

2,060

492

–

(80)

–

–

–

–

136

32

820

988

626

14

(4)

–

–

–

–

412

636

1,954

32

18

2,004

428

–

(74)

–

–

–

354

107

12

800

919

553

14

(3)

–

–

–

564

3

8

5

16

3

–

–

13

(88)

(93)

(36)

(201)

6

1

144

151

96

–

(2)

3

(75)

(89)

(67)

2,128

88

848

3,064

1,121

14

(84)

13

(88)

(93)

(36)

847

(56)

(58)

733

2,067

45

962

3,074

1,077

14

(79)

3

(75)

(89)

851

(53)

(69)

729

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1

Includes the results of the Retirement Living business for the period from 1 to 29 July 2022 when the sale of the business was completed (2022: 12 
months to 30 June 2022). The Retirement Living business was classified as a discontinued operation held for sale at 30 June 2022. Refer to note 14A for 
further details.

2 Commercial Property property revenue and EBIT adds back $90 million (2022: $87 million) of amortisation of lease incentives and excludes $10 million 

(2022: $2 million) of straight–line rent adjustments.

3 Other property revenue and EBIT excludes $7 million (2022: $28 million) of unrealised Retirement Living DMF revenue.
4 Interest expense in cost of sales in Communities includes Stockland's share of interest expense in cost of sales from equity accounted investments of 

$2 million (2022: $nil).

5 Commercial Property FFO includes share of profits from equity-accounted investments of $17 million (2022: $21 million) and Communities FFO includes 

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share of profits from equity-accounted investments of $41 million (2022: $14 million).

6 2022 included Retirement Living maintenance capital expenditure of $7 million (2023: $nil).
7 Expenditure incurred on incentives and leasing costs during the year excluding assets under construction.

i

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Year ended 30 June 2023

113

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

2C. Balance sheet by operating segment

The balance sheet of each reportable segment for Stockland is summarised as follows:

As at
$M

30 June 2023

Real estate related assets2,3

Other assets

Assets

Borrowings

Other liabilities

Liabilities

Net assets/(liabilities)

30 June 2022

Real estate related assets2,3

Other assets

Assets

Borrowings

Other liabilities

Liabilities

Net assets/(liabilities)

Communities

Commercial
Property

Other1

Stockland

4,242

412

4,654

–

1,658

1,658

2,996

4,179

356

4,535

–

1,904

1,904

2,631

11,070

115

11,185

–

686

686

10,499

11,314

95

11,409

–

548

548

10,861

142

659

801

3,907

213

4,120

(3,319)

3,781

689

4,470

4,472

3,129

7,601

(3,131)

15,454

1,186

16,640

3,907

2,557

6,464

10,176

19,274

1,140

20,414

4,472

5,581

10,053

10,361

1 The comparative period includes the assets and liabilities of the Retirement Living business, which was classified as a discontinued operation held for sale 

at 30 June 2022. Refer to note 14A for further details.

2 Includes non–current assets held for sale, inventories, investment properties, equity–accounted investments and certain other assets.
3 Includes equity–accounted investments of $570 million (2022: $476 million) in Commercial Property and $105 million (2022: $116 million) in Communities. 

Refer to note 23 for further details.

114 Stockland Annual Report 2023

3. EPS

Keeping it simple

EPS is the amount of post–tax profit attributable to each security.

Basic EPS is calculated as statutory profit for the period divided by the weighted average number of securities 
(WANOS) outstanding. This is highly variable as it includes unrealised fair value movements in investment properties 
and financial instruments.

Diluted EPS adjusts the basic EPS for the dilutive effect of any instruments, such as Security Plan rights, that could 
be converted into securities.

Basic FFO per security is disclosed in the Directors’ report and more directly reflects the underlying income 
performance of the portfolio.

Year ended 30 June

Profit after tax attributable to shareholders ($M)

Stockland

2023

440

2022

1,381

Trust

2023

201

2022

1,390

WANOS used in calculating basic EPS

2,382,387,660

2,383,353,753

2,382,387,660

2,383,353,753

Basic EPS (cents)1

18.5

57.9

8.4

58.3

Effect of rights and securities granted under Security Plans2

17,523,015

8,212,562

17,523,015

8,212,562

WANOS used in calculating diluted EPS

2,399,910,675

2,391,566,315

2,399,910,675

2,391,566,315

Diluted EPS (cents)1

18.3

57.7

8.4

58.1

1 Amounts include both continuing and discontinued operations. Earnings per security for continuing and discontinued operations have been separately 

disclosed in note 14A.

2 Rights and securities granted under security plans are only included in diluted EPS where Stockland is meeting performance hurdles for contingently 

issuable security based payment rights.

4. Dividends and distributions

Stockland Corporation Limited

There were no dividends from Stockland Corporation Limited during the current or previous financial years. The dividend 
franking account balance as at 30 June 2023 is $14 million based on a 30% tax rate (2022: $14 million).

Stockland Trust

For the current year, the interim and final distributions are paid solely out of the Trust and therefore the franking 
percentage is not relevant.

Date of payment

Cents per security

Total amount ($M)

Non attributable (%)

2023

2022

2023

2022

2023

2022

2023

2022

Interim distribution

28 February

28 February

Final distribution

31 August

31 August

Total distribution

11.8

14.4

26.2

12.0

14.6

26.6

282

344

626

286

349

635

25.3

37.6

32.1

39.2

36.7

37.8

The non-attributable component represents the amount distributed in excess of Stockland Trust’s taxable income (with 
trust taxable income calculated to include the impact of the 50% CGT discount which would apply, for example, to 
Australian tax resident individuals who have held their securities on capital account for more than 12 months).

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Year ended 30 June 2023

115

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Basis for distribution

Stockland’s distribution policy is to pay the higher of 100% of Trust taxable income or 75% to 85% of FFO on an annual basis 
over time. The payout ratio for the current and comparative periods is summarised as follows:

Year ended 30 June

FFO ($M)1

Weighted average number of securities used in calculating basic EPS

FFO per security (cents)

Distribution per security for the year (cents)

Payout ratio

Note

2

3

2023

847

2022

851

2,382,387,660

2,383,353,753

35.6

26.2

74%

35.7

26.6

75%

1 FFO is a non–IFRS measure. A reconciliation from FFO to statutory profit after tax is presented in note 2A.

5. Events subsequent to the end of the year

On 26 July 2023 Stockland entered into binding agreements to acquire five LLC projects in Queensland from the 
Living Gems Group for $210 million, comprising four development communities and one established community with 
development opportunities.

Other than disclosed in this note or elsewhere in this report, no transaction or event of a material or unusual nature has 
arisen in the interval between the end of the current reporting year and the date of this report that, in the opinion of 
the Directors, is highly probable to significantly affect the operations, the results of operations, or the state of affairs of 
Stockland and the Trust in future years.

116 Stockland Annual Report 2023

Operating assets and liabilities

In this section

This section shows the real estate and other operating assets used to generate Stockland’s trading performance and 
the liabilities incurred as a result.

6. Inventories

Keeping it simple

A Whole of Life (WOL) methodology is applied to calculate the margin percentage over the life of each project. All 
costs, including those costs spent to date and those forecast in the future, are allocated proportionally in line with 
net revenue for each lot to achieve a WOL margin percentage. The WOL margin percentage, and therefore allocation 
of costs, can change over the life of the project as revenue and cost forecasts are updated.

The determination of the WOL margin percentage requires significant judgement in estimating future revenues and 
costs and can change over the life of the project as revenue and cost forecasts are updated. The WOL margin 
percentages are regularly reviewed and updated in project forecasts across the reporting period to ensure these 
estimates reflect market conditions through the cycle.

As at 30 June

$M
Completed inventory

Cost of acquisition

Development and other costs

Interest capitalised

Completed inventory1

Development work in progress

Cost of acquisition

Development and other costs

Interest capitalised

Impairment provision

Masterplanned Communities

Cost of acquisition

Development and other costs

Apartments

Cost of acquisition

Development and other costs

Land Lease Communities

Cost of acquisition

Development and other costs

Interest capitalised

Logistics

Development work in progress

Less: amounts classified as held for sale

Stockland

2023

2022

Current Non–current

Total

Current Non–current

Total

145

414

15

574

384

111

37

(7)

525

–

–

–

144

16

160

29

–

1

30

715

–

–

–

–

–

2,015

150

245

(94)

2,316

76

14

90

60

6

66

112

–

–

112

2,584

–

2,584

145

414

15

574

2,399

261

282

(101)

2,841

76

14

90

204

22

226

141

–

1

142

3,299

–

3,873

139

135

5

279

418

185

54

(5)

652

–

–

–

28

27

55

88

42

6

136

843

(46)

1,076

–

–

–

–

139

135

5

279

2,028

2,446

244

265

(77)

2,460

76

12

88

99

13

112

–

–

–

–

2,660

–

2,660

429

319

(82)

3,112

76

12

88

127

40

167

88

42

6

136

3,503

(46)

3,736

Inventories

1,289

1 Comprises Communities inventory of $546 million (30 June 2022: $274 million), logistics inventory of $26 million (30 June 2022: $nil), and Other inventory 

of $2 million (30 June 2022: $5 million). No apartments projects are included in completed inventory in the current or prior year.

Year ended 30 June 2023

117

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t

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

The following impairment provisions are included in the inventory balance with movements for the period recognised in 
profit or loss:

$M

Balance at 1 July 2022

Amounts utilised

Reversal of provisions previously recorded

Additional provisions created

Balance at 30 June 2023

Stockland

82

(7)

(5)

31

101

Properties held for development and resale are stated at the lower of cost and NRV. Cost includes the costs of acquisition, 
development and holding costs such as borrowing costs, rates and taxes. Holding costs incurred after completion of 
development activities are expensed. Inventory is classified as current if it is completed or work in progress expected to 
be settled within 12 months, otherwise it is classified as non-current.

Cost of acquisition

The cost of acquisition comprises the purchase price of the land, including land under option, along with any direct costs 
incurred as part of the acquisition including legal, valuation and stamp duty costs.

The payments for land of $649 million (2022: $618 million) reported in the statement of cash flows are in respect of land 
that will be developed over time.

Land under option

Stockland has a number of option arrangements with third parties to purchase land on capital efficient terms.

Where the arrangement uses call options only, the decision to proceed with a purchase is controlled by Stockland and 
therefore Stockland has no obligation until it exercises the call option. As a result, no asset or liability for the land under 
option is recognised on the balance sheet until the option has been exercised. The call option is not disclosed as a capital 
commitment as there is no commitment to purchase until the option is exercised.

Where the arrangement includes both put and call options and the put option requires Stockland to purchase the land 
at the discretion of the seller, it creates a present obligation once the option is exercised by the holder and the land is 
then recognised in inventories with a corresponding liability. If Stockland also presently exhibits control over the future 
economic benefits of the asset such as via a presently exercisable call option or physical control of the asset, the land is 
recognised in inventories with a corresponding liability recognised in provisions for development costs at the exercise price 
of the option.

Any costs incurred in relation to the options, including option fees, are included in inventories.

Development and other costs

Costs include variable and fixed costs directly related to specific contracts, costs related to general contract activity which 
can be allocated to specific projects on a reasonable basis, and other costs specifically chargeable under the contract 
including under rectification provisions.

Interest capitalised

Financing costs on qualifying assets are also included in the cost of inventories. Finance costs were capitalised at interest 
rates ranging from 3.3 to 4.7% during the financial year (2022: 3.1 to 3.7%).

Allocation of inventories to cost of sales

A WOL methodology is applied to calculate the margin percentage for each project. On settlement, all costs, including 
those spent to date and those forecast in the future, are proportionally allocated to each lot in line with net revenue and 
released from inventories to cost of sales. The allocation of costs can change throughout the life of the project, as revenue 
and cost forecasts are updated to reflect market conditions through the cycle.

Impairment provision

The NRV of inventories is the estimated selling price in the ordinary course of business less estimated costs of completion 
and costs to sell. NRV is based on the most reliable evidence available at 30 June 2023 of the amount the inventories are 
expected to be realised at (using estimates such as revenue escalations) and the estimate of total costs (including costs to 
complete). These estimates take into consideration fluctuations of price or cost directly relating to events occurring after 
the end of the period to the extent that such events confirm conditions existing at the end of the period. This is an area 
of accounting estimation and judgement for Stockland.

118 Stockland Annual Report 2023

In accordance with AASB 102 Inventories, key estimates are reviewed each period, including the costs of completion, 
sales rates and revenue escalations, to determine whether an impairment provision is required where cost (including 
costs to complete) exceeds NRV. Management undertook an extensive impairment review of all development projects, 
taking into account the current economic and operating environment. Based on information available at 30 June 2023 and 
the information arising since that date about conditions at that date, the Directors have determined that the inventory 
balances reported are held at the lower of cost or NRV.

The sensitivity of key inventory recoverability drivers to the evolving economic and operating conditions has been analysed 
across all inventory projects. Production options continue to be available to Stockland to mitigate the risk of future 
impairments. While it is unlikely that these drivers would move in isolation, these sensitivities have been performed 
independently to illustrate the impact each individual driver has on the reported NRV of inventory and they do not 
represent management's estimate at 30 June 2023.

Stockland

$M

Additional impairment charge on inventories:

• Masterplanned Communities and Apartments

• Land Lease Communities

• Logistics

Sales price

Average 3 
year price 
growth1

5% decrease

0%

1 year sales 
rate

25% 
reduction

Cost

5% increase

(48)

–

–

(110)

–

–

(1)

–

–

(14)

–

–

1 The average 3 year price growth underpinning the 30 June 2023 impairment assessment is 3.0% (2022: 3.4%).

Key inputs used to assess impairment of inventories are:

Item

Sales rates

Current sales price

Description

Assumptions on the number of lot sales expected to be achieved each month.

Sales prices are generally reviewed semi-annually by the sales and development teams in light of internal 
benchmarking and market performance and are ultimately approved by the CEO, Communities.

Revenue escalation rates

The annual growth rate by which a lot is expected to increase in value until point of sale.

Costs to complete

The cost expected to be incurred to bring remaining lots to practical completion, including rectification provisions 
and other costs.

Cost escalation rates

The annual increase in base costs applied up to the period in which the costs are incurred.

Financing costs

Selling costs

Assumptions on the annual interest rates underpinning future finance costs capitalised to the cost of inventories.

The costs expected to be incurred to complete the sale of inventories.

Impact of climate-related events on inventory impairments

Climate change may affect inventory impairment considerations in two main ways. Firstly, adverse climate conditions and 
events, such as floods and bushfires, may cause damage and result in reduced demand in affected developments. Risk 
factors for this include property location and whether the property has been designed to mitigate the impacts of adverse 
events. Secondly, elevated design standards to enhance resilience and the decarbonisation of the supply chain may lead 
to increased build costs.

When conducting impairment assessments, management incorporates an assessment of the cost to develop inventory 
to required design standards, and factors in project-specific factors such as building design and locations when assessing 
sales volumes and pricing.

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Year ended 30 June 2023

119

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Development cost provisions

As at 30 June

$M

Development cost provisions1

Less: amounts classified as held for sale

Development cost provisions from 
continuing operations

2023

Non–
current

201

–

201

Current

453

–

453

Total

Current

654

–

654

300

(39)

261

2022

Non–
current

465

–

465

Total

765

(39)

726

1

Includes $256 million (2022: $241 million) of provisions relating to Commercial Property investment property assets. $196 million (2022: $198 million) of 
the Commercial Property provisions are recorded in Stockland Trust.

$M

Balance at 1 July 2022

Additional provisions

Amounts utilised

Amounts derecognised

Balance at 30 June 2023

Stockland

726

39

(110)

(1)

654

The development cost provisions reflect obligations as at 30 June 2023 that arose as a result of past events. This 
balance includes deferred land options, and cost to complete provisions for both active and traded out projects. They are 
determined by discounting the expected future cash outflows at a pre-tax rate that reflects current market assessments 
of the time value of money and, where appropriate, the risks specific to the liability.

120 Stockland Annual Report 2023

7. Investment properties

Keeping it simple

Investment properties comprise investment interests in land and buildings, including integral plant and equipment 
held for the purpose of producing rental income, capital appreciation, or both.

Investment properties are initially recognised at cost, including any acquisition costs, and are subsequently stated at 
fair value at each balance date. Investment properties under development are classified as investment property and 
stated at fair value at each balance date.

Any gain or loss arising from a change in fair value is recognised in profit or loss in the year.

As at 30 June

$M

Commercial Property investment properties

Communities investment properties

Other investment properties

Investment properties

Subsequent costs

Note

7.A

7.B

7.C

Stockland

Trust

2023

10,083

449

–

10,532

2022

10,118

373

–

10,491

2023

10,097

72

–

2022

10,169

–

–

10,169

10,169

Stockland recognises in the carrying amount of an investment property the cost of replacing part of that investment 
property if it is probable that the future economic benefits embodied within the item will flow to Stockland and the cost 
can be measured reliably. All other costs are recognised in profit or loss as an expense as incurred.

If an investment property becomes owner-occupied, it is reclassified as property, plant and equipment and its fair value 
at the date of reclassification becomes its cost for accounting purposes.

A property interest under a lease is classified and accounted for as an investment property on a property-by-property 
basis when Stockland holds it to earn rental income or for capital appreciation or both.

Lease incentives

Lease incentives provided by Stockland to lessees are included in the measurement of fair value of investment property 
and are treated as separate assets. Such assets are amortised over the respective periods to which the lease incentives 
apply using a straight-line basis.

Disposal of revalued assets

The gain or loss on disposal of revalued assets is calculated as the difference between the carrying amount of the asset 
at the time of disposal and the net proceeds on disposal and is recognised in profit or loss in the year of disposal.

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Year ended 30 June 2023

121

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

7A. Commercial Property investment properties

Stockland owns, operates, and develops a portfolio of Commercial Properties across the Retail Town Centre, Logistics and 
Workplace sectors.

As at 30 June

$M

Town Centres

Logistics

Workplace

Capital works in progress and sundry properties

Book value of commercial property

Less amounts classified as:

• cost to complete provision

• property, plant and equipment

• non–current assets held for sale

• other assets (including lease incentives and fees)

• other assets (including lease incentives and fees) attributable to 

equity–accounted investments

• other receivables (straight–lining of rental income)

• other receivables (straight–lining of rental income) attributable to 

equity–accounted investments

Investment properties (including Stockland’s share of investment 
properties held by equity–accounted investments)

Less: Stockland’s share of investment properties held by equity–
accounted investments

Investment properties

Net carrying value movements

Opening balance

Acquisitions

Expenditure capitalised

Transfers to non–current assets held for sale

Movement in ground leases of investment properties

Disposals

Net change in fair value

Balance at 30 June

Stockland

Trust

2023

5,152

3,382

2,023

627

11,184

(2)

(131)

–

(193)

(5)

(48)

(10)

2022

5,492

3,065

2,170

522

11,249

(13)

(133)

(248)

(220)

(5)

(63)

(7)

2023

5,089

3,382

2,023

570

11,064

(2)

–

–

(191)

(5)

(47)

(10)

2022

5,426

3,065

2,203

467

11,161

(13)

–

(248)

(218)

(5)

(59)

(7)

10,795

10,560

10,809

10,611

(712)

10,083

10,118

58

294

–

(1)

(130)

(256)

(442)

10,118

9,286

193

333

(241)

(1)

(143)

691

(712)

10,097

10,169

58

289

–

(1)

(130)

(288)

(442)

10,169

9,352

193

327

(241)

(1)

(143)

682

10,083

10,118

10,097

10,169

122 Stockland Annual Report 2023

7B. Communities investment properties

Stockland owns, operates and develops a portfolio of Land Lease Communities (LLC) and Community real estate 
investment properties.

LLC are an over-50s affordable lifestyle residential offering, where residents pay an initial purchase price for the home 
and ongoing site rental costs (without departure costs), and are entitled to the total capital gain or loss upon sale of the 
home. Stockland operates and retains ownership of the land on which the homes sit and the common amenity at each 
community, while the homes, which are built on site, are engineered to be relocatable and remain the property of the 
residents. The costs to build the homes are recognised within inventory and allocated to cost of sales using the WOL 
methodology described in note 6. The land retained by Stockland at each community is recognised at fair value within 
investment property. Any change in the fair value of the land on initial settlement of the homes is recognised as a net 
change in fair value of investment properties and is included in FFO. Any subsequent changes in fair value are excluded 
from FFO. The clubhouse facilities are initially recognised at cost in investment property, and are included in the fair value.

Community real estate investment properties comprise non-residential properties retained from Communities 
developments which are leased to tenants, and includes childcare and medical centres.

As at 30 June

$M

Land Lease Communities investment properties:

• Established communities

• Communities under development

Community real estate investment properties

Communities investment properties (including investment properties 
held for sale)

Less: amounts classified as held for sale

Communities investment properties

Net carrying value movement

Opening balance

Acquisitions

Expenditure capitalised

Disposals1

Transfers to disposal group assets held for sale

Transfer in

Net change in fair value

Balance at 30 June

Stockland

Trust

2023

2022

2023

2022

197

166

86

449

–

449

373

44

17

–

–

15

–

449

183

218

70

471

(98)

373

90

522

22

(177)

(98)

–

14

373

–

–

72

72

–

72

–

72

–

–

–

–

–

72

–

–

–

–

–

–

–

–

–

–

–

–

–

–

1 Disposals relate to the communities acquired in the acquisition of Halcyon which were subsequently sold to the Stockland Residential Rental 

Partnership (SRRP).

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Year ended 30 June 2023

123

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

7C.  Other investment properties

Stockland announced the sale of the Retirement Living business on 23 February 2022 and the sale completed on 29 July 
2022. Refer to note 14.A for further details. Stockland retained ownership of the Affinity, WA retirement village and that 
property, along with its resident obligations, is held for sale at 30 June 2023. Refer to note 14.C for further details.

As at 30 June

$M

Retirement Living operating villages

Retirement Living villages under development

Other investment properties1

Existing Retirement Living resident obligations2

Net carrying value of Other investment properties

Plus: retained Retirement Living resident obligations

Less: amounts classified as held for sale

Net carrying value of Other investment properties from continuing operations

Net carrying value movement

Opening balance

Expenditure capitalised

Cash received on first sales

Realised investment properties fair value movements

Unrealised investment properties fair value movements

Unrealised Retirement Living resident obligations fair value movements

Other movements

Transfer to discontinued operations and assets held for sale

Balance at 30 June

Stockland

2023

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

2022

3,572

118

3,690

(2,704)

986

2

(988)

–

1,055

57

(64)

9

(29)

(126)

86

(988)

–

1 At 30 June 2023, $46 million (2022: $47 million) was classified as investment properties held for sale. At 30 June 2022, $3,643 million of Retirement Living 
investment property was classified as discontinued operation assets held for sale. The sale of the Retirement Living business was completed on 29 July 
2022 and the related assets have therefore been derecognised. Refer to notes 14A and 14C for further details.

2 At 30 June 2023, $42 million (2022: $40 million) of existing resident obligations has been included in investment properties held for sale. At 30 June 2022, 
$2,662 million of existing resident obligations was classified as discontinued operation liabilities held for sale. The sale of the Retirement Living business 
was completed on 29 July 2022 and the related liabilities have therefore been derecognised. Refer to notes 14A and 14C for further details.

124 Stockland Annual Report 2023

7D. Fair value measurement, valuation techniques and inputs

The adopted valuations (both internal and external) for investment properties are a combination of the valuations 
determined using the discounted cash flow (DCF) method, the income capitalisation method, the direct comparison 
method, and transaction prices where relevant.

Based on available information at 30 June 2023 and information arising since that date about conditions at that date, 
and the economic and operating conditions evolving since, the Directors have determined that all relevant and available 
information has been incorporated into the reported valuations.

Valuation process

The valuation team is responsible for managing the valuation process across Stockland’s investment properties portfolio. 
The aim of the valuation process is to ensure that assets are held at fair value in Stockland’s accounts and facilitate 
compliance with applicable regulations (for example the Corporations Act 2001 and ASIC regulations) and the STML 
Responsible Entity Constitution and Compliance Plan.

Stockland’s external valuations are performed by independent professionally qualified valuers who hold a recognised 
relevant professional qualification and have specialised expertise in the investment properties valued. Internal tolerance 
checks have been performed by Stockland’s internal valuers who hold recognised relevant professional qualifications.

External valuations

The STML Responsible Entity Compliance Plan requires that each asset in the portfolio must be valued by an independent 
external valuer at least once every three years.

In practice, assets are generally independently valued more than once every three years primarily as a result of:

• A variation between book value and internal tolerance check. Refer to the internal tolerance check section below.

• The asset undergoing major development or significant capital expenditure.

• An opportunity to undertake a valuation in line with a joint owners’ valuation.

• Ensuring an appropriate cross-section of assets are externally assessed at each reporting period.

Internal tolerance check

An internal tolerance check is performed every six months with the exception of those properties being independently 
valued during the current reporting period. Stockland’s internal valuers perform tolerance checks by utilising the 
information from a combination of asset plans and forecasting tools prepared by the asset management teams. 
Appropriate capitalisation rates, terminal yields and discount rates based on comparable market evidence and recent 
external valuation parameters are used to produce an income capitalisation and DCF valuation. The internal tolerance 
check gives consideration to both the income capitalisation and DCF valuations.

The current book value, which is the value per the asset’s most recent external valuation adjusted for capital expenditure 
and capitalisation and amortisation of lease incentives since the independent valuation date, is compared to the internal 
tolerance check.

• If the internal tolerance check is within 5% of the current book value (higher or lower), then the current book value is 

retained, and judgement is taken that this remains the fair value of the property.

• If the internal tolerance check varies by more than 5% to the current book value (higher or lower), then an external 

independent valuation will be undertaken and adopted as the fair value of the property.

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The internal tolerance checks are reviewed by senior management who recommend the adopted valuation to the Audit 
Committee and Board in accordance with Stockland’s internal valuation protocol above.

A development feasibility is prepared for each of the investment properties under development. The feasibility includes 
an estimated valuation upon project completion based on the income capitalisation method. During the development 
period, fair value is assessed with reference to reliable estimates of future cash flows, status of the development and the 
associated risk profile. Finance costs incurred on properties undergoing development or redevelopment are included in 
the cost of the development. The fair value is compared to the current book value as follows:

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• If the internal tolerance check is within 5% of the current book value (higher or lower), then the current book value is 

retained, and judgement is taken that this remains the fair value of the property under development

• If the internal tolerance check varies by more than 5% to the current book value (higher or lower), then an internal 

valuation will be adopted with an external valuation obtained on completion of the development.

The valuation of investment properties is a key area of accounting estimation and judgement for Stockland.

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Year ended 30 June 2023

125

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Key inputs and methodologies

Key inputs and methodologies used to measure fair value for investment properties are:

Item

DCF method

Description

Under the DCF method, a property’s fair value is estimated using explicit assumptions regarding the benefits 
and liabilities of ownership over the asset’s life including an exit or terminal value. The DCF method involves the 
projection of a series of cash flows on a real property interest. To this projected cash flow series, an appropriate, 
market-derived discount rate is applied to establish the present value of the income stream associated with the 
real property.

Income capitalisation method

This method involves assessing the total net market income receivable from the property and capitalising this in 
perpetuity to derive a capital value, with allowances for capital expenditure reversions.

Net market rent

A net market rent is the estimated amount for which a property or space within a property should lease between a 
willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing 
and where the parties have each acted knowledgeably, prudently and without compulsion. In a net rent, the owner 
recovers outgoings from the tenant on a pro rata basis (where applicable).

10 year average market rental growth The expected annual rate of change in market rent over a 10 year forecast period in alignment with expected 

market movements.

10 year average specialty market 
rental growth

An average of a 10 year period of forecast annual percentage growth rates in Retail specialty tenancy rents. Specialty 
tenants are those tenancies with a gross lettable area of less than 400 square metres (excludes ATMs and kiosks).

Adopted capitalisation rate

The rate at which net market income is capitalised to determine the value of a property. The rate is determined with 
regards to market evidence and relevant external valuations.

Adopted terminal yield

Adopted discount rate

The capitalisation rate used to convert income into an indication of the anticipated value of the property at the end 
of the holding period when carrying out the DCF method. The rate is determined with regards to market evidence 
and relevant external valuations.

The rate of return used to convert a monetary sum, payable or receivable in the future, into present value. It reflects
the opportunity cost of capital, that is, the rate of return the capital can earn if put to other uses having similar risk. 
The rate is determined with regards to market evidence and relevant external valuations.

The following table shows the valuation techniques used in measuring the fair value of each class of investment property, 
excluding assets held for sale, as well as the significant unobservable inputs used:

Class of property

Fair value 
hierarchy

Valuation 
technique

Significant unobservable Inputs 
used to measure fair value

2023

2022

Retail Town Centres

Level 3

DCF and income 
capitalisation method

Logistics

Level 3

DCF and income 
capitalisation method

Workplace

Level 3

DCF and income 
capitalisation method

Net market rent (per sqm p.a.)

$193 - $692

$186 - $700

10 year average specialty market 
rental growth

2.34 - 3.51%

2.44 - 3.40%

Adopted capitalisation rate

5.25 - 7.00%

5.00 - 6.75%

Adopted terminal yield

Adopted discount rate

5.75 - 7.25%

5.25 - 7.00%

6.25 - 8.00%

5.75 - 7.75%

Net market rent (per sqm p.a.)

$86 - $235

$77 - $195

10 year average market rental growth

3.20 - 4.32%

2.99 - 3.75%

Adopted capitalisation rate

4.25 - 5.50%

3.63 - 5.00%

Adopted terminal yield

Adopted discount rate

4.50 - 5.75%

3.75 - 5.25%

5.75 - 7.00%

5.25 - 6.00%

Net market rent (per sqm p.a.)

$337 - $922

$332 - $934

10 year average market rental growth

3.18 - 3.74%

3.01 - 3.69%

Adopted capitalisation rate

4.88 - 9.00%

4.75 - 8.25%

Adopted terminal yield

Adopted discount rate

5.25 - 9.25%

5.00 - 8.50%

6.00 - 9.00%

5.75 - 8.50%

Commercial properties 
under development

Level 3

Income 
capitalisation method

Net market rent (per sqm p.a.)

$105 - $493

$85 - $474

Adopted capitalisation rate

3.88 - 5.25%

3.30 - 4.80%

Land 
Lease Communities

Level 3

DCF and income 
capitalisation method

Communities 
Real Estate

Level 3

DCF and income 
capitalisation method

Net market rent (per lot p.a.)

$7,682 - $9,930

$7,510 -$8,981

Capitalisation rate

Terminal yield

Discount rate

4.75%

5.00 - 5.25%

6.25%

Net market rent (per place p.a.)

$2,700 - $3,803

Capitalisation rate

Terminal yield

Discount rate

4.75 - 5.50%

5.15 - 5.75%

6.0 - 7.75%

4.75%

5.25%

6.00%

n/a

n/a

n/a

n/a

126 Stockland Annual Report 2023

 
Sensitivity information

Significant unobservable input

Net Operating Income (NOI)

• Net market rent

• 10 year average market rental growth

• 10 year specialty market rental growth

Adopted capitalisation rate

Adopted terminal yield

Adopted discount rate

Impact on fair value of
an increase in input

Impact on fair value of
a decrease in input

Increase

Increase

Increase

Decrease

Decrease

Decrease

Decrease

Decrease

Decrease

Increase

Increase

Increase

Generally, a change in the assumption made for the adopted capitalisation rate is accompanied by a directionally similar 
change in the adopted terminal yield. The adopted capitalisation rate forms part of the income capitalisation approach and 
the adopted terminal yield forms part of the DCF method.

When calculating the income capitalisation approach, the NOI has a strong interrelationship with the adopted 
capitalisation rate given the methodology involves assessing the total NOI receivable from the property and capitalising 
this in perpetuity to derive a capital value. In theory, an increase in the NOI and an increase (softening) in the adopted 
capitalisation rate could potentially offset the impact to the fair value. The same can be said for a decrease in the NOI 
and a decrease (tightening) in the adopted capitalisation rate. A directionally opposite change in the NOI and the adopted 
capitalisation rate could potentially magnify the impact to the fair value.

When assessing a DCF valuation, the adopted discount rate and adopted terminal yield have a strong interrelationship 
in deriving a fair value given the discount rate will determine the rate at which the terminal value is discounted to the 
present value.

In theory, an increase (softening) in the adopted discount rate and a decrease (tightening) in the adopted terminal yield 
could potentially offset the impact to the fair value. The same can be said for a decrease (tightening) in the discount rate 
and an increase (softening) in the adopted terminal yield. A directionally similar change in the adopted discount rate and 
the adopted terminal yield could potentially magnify the impact to the fair value.

The sensitivity of key drivers to further fair value movements has been analysed across the carrying value of investment 
properties at 30 June 2023. Investment properties valuations remain subject to market-based assumptions on discount 
rates, capitalisation rates, market rents and incentives. While it is unlikely that these reported drivers would move in 
isolation, these sensitivities have been performed independently to illustrate the impact each individual driver has on the 
reported fair value. They do not represent management's estimate of likely movements at 30 June 2023.

Stockland

$M

Fair value gain/(loss) on:

• Retail Town Centres

• Logistics

• Workplace

• Land Lease Communities

• Communities Real Estate

Fair value gain/(loss) on investment properties

Capitalisation rate

Discount rate

Net operating income

0.25% 
decrease

0.25% 
increase

0.25% 
decrease

0.25% 
increase

5% 
decrease

5% 
increase

236

206

81

11

4

538

(217)

(213)

(74)

(10)

(4)

(518)

98

64

33

4

1

(96)

(87)

(32)

(3)

(1)

(276)

(204)

(94)

(10)

(4)

200

(219)

(588)

276

204

94

10

4

588

Impact of climate-related events on property valuations

Climate change, and associated regulations, may affect property values in two main ways. Firstly, adverse weather 
conditions may cause damage, lost income, and/or reduced useful lives at affected properties. Risk factors for this include 
property location and whether the property has been designed to mitigate the impacts of adverse weather. Secondly, there 
is a growing trend amongst investors to pay premiums, and for regulators to require additional measures, for buildings 
which minimise their impact on the environment, both during construction and throughout their operating life. Properties 
which minimise their impact will usually have lower operating expenses due to operational efficiency and attract premium 
rents which may support higher valuations, however increased regulation is likely to lead to an increase in compliance 
costs which may reduce valuations.

Valuers incorporate an assessment of the impact of specific identified risk items, such as flooding or bushfires, on the 
value of each property when conducting their valuations, applying both property-specific overlays and benchmarking to 
market transactions that evidence premiums and discounts for low- and high-risk properties.

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Year ended 30 June 2023

127

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

8. Receivables

As at 30 June

$M

Trade receivables1

Allowance for expected credit loss

Net current trade receivables

Other receivables

Receivables due from related companies

Allowance for expected credit loss

Net other receivables

Straight–lining of rental income

Current receivables

Less: amounts classified as held for sale

Current receivables from continuing operations

Straight–lining of rental income

Other receivables

Receivables due from related companies

Allowance for expected credit loss

Non–current receivables

Stockland

Trust

2023

2022

2023

2022

124

(4)

120

61

146

(9)

198

12

330

–

330

40

129

–

–

169

75

(6)

69

53

–

(7)

46

11

126

(6)

120

52

107

–

–

159

7

(4)

3

14

–

(7)

7

12

22

–

22

39

72

2,283

(5)

2,389

7

(4)

3

18

2,967

(12)

2,973

11

2,987

–

2,987

48

68

–

–

116

1 Lease receivables from tenants total $8 million (2022: $20 million).

Expected credit losses

Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective 
interest method, less any allowance under the Expected Credit Loss (ECL) model. Stockland applies the simplified
approach to the ECL calculation used for trade receivables, lease receivables and contract assets, and measures 
the ECL allowance at an amount equal to lifetime ECL. The lifetime ECL calculation is based on an unbiased and 
probability-weighted amount determined by evaluating a range of possible outcomes, the time value of money, and 
reasonable and supportable information that is available at the reporting date about past events, current conditions and 
forecasts of future economic conditions.

Given the possible extended timeframe over which receivables will be collected, the receivables balance has been split 
between current and non-current based on the expected timing of cash receipts, with cash receipts expected beyond 12 
months booked as non-current. This ensures adequate emphasis is placed on the risk of default as the debt ages and the 
time value of money.

The loss allowances for trade receivables and the intergroup loan as at 30 June 2023 reconcile to the opening loss 
allowances as follows:

As at 30 June

$M

Opening ECL balance

Provision raised during the year

Provision released during the year

Bad debts written off in the year1

Closing ECL balance

Stockland

Trust

2023

2022

2023

2022

13

4

(4)

–

13

28

9

(17)

(7)

13

16

4

(4)

–

16

34

9

(20)

(7)

16

1 Rent abatements driven by COVID-19 of $nil were also expensed in the current year (2022: $28 million).

Receivables due from related entities

The Trust has applied the ECL model under AASB 9 Financial Instruments to its unsecured intergroup loan receivable from 
Stockland, repayable in 2030. While there has been no history of defaults, and the loan is considered to be low credit risk, 
an impairment provision determined as the 12-month ECL has been recorded at balance date. During the year the loan was 
refinanced. Management has determined that there has not been a significant increase in credit risk on the intergroup loan 
since its inception as the Corporation maintains a strong capital position, forecasts positive cash flows, and has sufficient 
assets that are capable of generating cash inflows above their carrying value in order to repay the loan to the Trust in 
accordance with agreed repayment terms. There is no impact on Stockland as this loan eliminates on consolidation.

128 Stockland Annual Report 2023

 
9. Payables

As at 30 June

$M

Trade payables and accruals

Land purchases

Distributions payable

GST payable/(receivable)

Current payables

Less: amounts classified as held for sale1

Current payables from continuing operations

Other payables

Land purchases

Non–current payables

Stockland

Trust

Note

2023

2022

2023

2022

4

349

213

344

(21)

885

–

885

19

159

178

439

253

349

(47)

994

(14)

980

19

294

313

100

–

344

(1)

443

–

443

–

–

–

106

12

349

(8)

459

–

459

–

–

–

1 At 30 June 2022, $2 million of current payables was classified as disposal group liabilities held for sale and $12 million of current payables was classified

as discontinued operations held for sale. Refer to notes 14A and 14B for further details.

Trade and other payables are initially recognised at fair value less transaction costs and are subsequently carried at 
amortised cost.

The carrying values of payables at balance date represent a reasonable approximation of their fair value.

10. Other liabilities

As at 30 June

$M

Land purchases

Other liabilities

Current other liabilities

Less: amounts classified as held for sale

Current other liabilities from continuing operations

Land purchases

Other liabilities

Non–current other liabilities

Land purchases

Stockland

Trust

2023

2022

2023

2022

49

72

121

–

121

421

55

476

54

91

145

(59)

86

453

51

504

–

20

20

–

20

–

27

27

–

27

27

–

27

–

27

27

As part of its normal restocking process, Stockland acquires land on deferred terms from vendors who enter into reverse 
factoring arrangements with a financier in order to receive their aggregated deferred payments early. All future amounts 
payable under these arrangements have been recognised on the balance sheet within other liabilities rather than trade 
payables as is the case for land creditor transactions not subject to a reverse factoring arrangement.

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Year ended 30 June 2023

129

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

11. Leases

Stockland as a lessee

Amounts recognised in the consolidated balance sheet

The consolidated balance sheet contains the following amounts relating to leases:

As at 30 June

$M

Right–of–use assets

Investment properties (non–current)1

Other assets (non–current)2

Total right–of–use assets

Lease liabilities

Other liabilities (current)

Other liabilities (non-current)

Total lease liabilities

Stockland

Trust

2023

2022

2023

2022

24

10

34

3

36

39

25

11

36

2

38

40

24

–

24

–

27

27

25

–

25

–

27

27

1 Right–of–use assets capitalised to investment properties include ground leases for Durack Centre, WA.
2 Right–of–use assets capitalised to other assets includes the lease for Stockland's Brisbane office, Stockland's Melbourne office and a number of other 

individually immaterial operating leases.

Additions to the right-of-use assets during the year were $nil (2022: $nil).

Amounts recognised in the consolidated statement of comprehensive income

The consolidated statement of comprehensive income contains the following amounts relating to leases:

Year ended 30 June

$M

Depreciation charge of right–of–use assets

Investment properties

Other assets

Total depreciation charge of right–of–use assets

Other expenses relating to leases

Interest expense (included in finance expense)

Expense relating to short–term leases (included in management, 
administration, marketing and selling expenses)

Total other expenses relating to leases

Stockland

Trust

2023

2022

2023

2022

1

3

4

2

–

2

1

2

3

2

2

4

1

–

1

1

–

1

1

–

1

1

–

1

The total cash outflow for leases in the year was $5 million (2022: $5 million).

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the 
lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Right-of-use assets

Right–of–use assets are measured at cost less depreciation and impairment and are adjusted for any remeasurement of 
the lease liability. The cost of the asset includes the amount of the initial measurement of lease liability and any lease 
payments made at or before the commencement date, less any lease incentives received, any initial direct costs, and 
restoration cost.

Right–of–use assets are depreciated on a straight–line basis from the commencement date of the lease to the earlier of 
the end of the useful life of the right–of–use asset or the end of the lease term, unless they meet the definition of an 
investment property. Right–of–use assets which meet the definition of an investment property form part of the investment 
property balance and are measured at fair value in accordance with AASB 140 Investment Property (refer to note 7 and 
below section on ground leases).

The lease term is the non–cancellable period of a lease together with the lease period under reasonably certain extension 
options and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise 
that option.

Management considers all the facts and circumstances that create an economic incentive to exercise an extension 
option or not exercise a termination option. This assessment is reviewed if a significant event or a significant change in 

130 Stockland Annual Report 2023

circumstances occurs which affects this assessment and is within the control of the lessee. No lease terms were revised 
during the year.

Stockland tests right–of–use assets for impairment where there is an indicator that the asset may be impaired. An asset’s 
carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its 
estimated recoverable amount.

Payments associated with lease terms of 12 months or less and leases of low value assets are recognised in profit or loss.

Lease liabilities

Lease liabilities are initially measured at the present value of the lease payments discounted using the interest rate implicit 
in the lease. If that rate cannot be determined, Stockland’s incremental borrowing rate is used. Lease payments used in 
calculating the lease liability include:

• fixed payments less incentives receivable;

• variable lease payments that are based on an index or a rate, initially measured using the index or rate at 

commencement date;

• payments of penalties for terminating the lease if the lease term reflects Stockland exercising that option; and

• lease payments to be made under options for extension which are reasonably certain to be exercised.

Lease liabilities are subsequently measured by increasing the carrying amount to reflect interest on the lease liability, 
reducing the carrying amount to reflect the lease payments made, and remeasuring the carrying amount to reflect any 
reassessment or lease modifications. Interest on the lease liability and any variable lease payments not included in the 
measurement of the lease liability are recognised in profit or loss in the period in which they relate.

Stockland is exposed to potential future increases in variable lease payments based on an index or rate, which are not 
included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take 
effect, the lease liability is reassessed and adjusted against the right-of-use asset.

Incremental borrowing rate

The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow over a similar term, 
and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a 
similar economic environment. To determine the incremental borrowing rate, Stockland uses interest rates from recent 
third-party financing or a risk-free interest rate, which is then adjusted for lease-specific factors, including security and 
lease term.

Investment properties with Ground Leases

A lease liability reflecting the leasehold arrangements of investment properties is disclosed in other liabilities in the 
balance sheet and the carrying value of the investment properties are adjusted so that the net of these two amounts 
equals the fair value of the investment properties. The lease liabilities are calculated as the net present value of the future 
lease payments discounted at the incremental borrowing rate.

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Year ended 30 June 2023

131

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Stockland as a lessor

Information relating to Stockland's accounting for revenue from operating leases is contained in note 1. Information relating 
to Stockland's accounting for lease incentives is contained in note 7.

Maturity analysis of future lease receipts

The following table shows a maturity analysis of undiscounted, contracted lease payments to be received under 
operating leases:

$M

Undiscounted lease payments due to Stockland or the Trust in the years ending 30 June:

2023

2024

2025

2026

2027

2028

Beyond 2028 (2022: Beyond 2027)

Total undiscounted lease payments due

Lease modifications

Stockland

Trust

2023

2022

2023

2022

n/a

594

461

369

281

204

753

580

460

351

281

200

n/a

720

n/a

592

455

364

278

201

737

583

458

346

277

197

n/a

702

2,662

2,592

2,627

2,563

Lease modifications arise when there is a change in the scope of a lease or a change in the consideration for a lease that 
was not part of its original terms and conditions. Stockland accounts for lease modifications from the effective date of 
the modification. Existing unamortised lease incentives capitalised to investment property will continue to be amortised 
over the remaining lease term. Any amounts prepaid or owing relating to the original lease are treated as payments for the 
new lease. During the year, Stockland granted a combination of rent abatements and deferrals to tenants.

Rent abatements

Where an abatement is granted retrospectively on uncollected past due rent, the abatement is expensed as an impairment 
of trade receivables. Where an agreement on past due receivables has not been reached by 30 June 2023, an estimate of 
the expected abatement on the outstanding balance is made and incorporated into the expected credit loss calculation.

Where an abatement has been agreed between Stockland and the tenant and is considered under the lease agreement, 
there is no lease modification. Instead, the abatement is treated as a variable lease payment whereby Stockland 
recognises a reduction in rental revenue in the current year.

For abatements or other lease modifications accompanied by extensions of lease terms or other changes in lease scope, 
Stockland has accounted for these as a lease modification. The abated portion will be capitalised as a lease incentive and 
amortised on a straight-line basis over the remaining life of the lease.

12. Cash and cash equivalents

Cash and cash equivalents comprise cash balances, at call deposits and other short-term investments. Included in the 
cash and cash equivalents balance of $271 million is $137 million (2022: $147 million) in cash that is relating to joint 
operations and/or held to satisfy real estate and financial services licensing requirements, and is not immediately available 
for use by Stockland.

132 Stockland Annual Report 2023

13. Intangible assets

The consolidated balance sheet contains the following amounts relating to intangible assets:

As at 30 June

2023

Stockland

Software

Under 
development

Total

Software

2022

Under 
development

Total

$M

Cost

Opening balance

Additions

Retirements

Transfer

Closing balance

Accumulated amortisation and impairment

Opening balance

Retirements

Amortisation

Closing balance

Intangible assets

Software

81

9

–

–

90

(26)

–

(8)

(34)

56

10

5

–

(9)

6

–

–

–

–

6

91

14

–

(9)

96

(26)

–

(8)

(34)

62

92

3

(14)

–

81

(21)

4

(9)

(26)

55

6

7

–

(3)

10

–

–

–

–

10

98

10

(14)

(3)

91

(21)

4

(9)

(26)

65

Software is carried at cost less accumulated amortisation and impairment losses. Amounts incurred in design and testing 
of software are capitalised, including employee costs and an appropriate part of directly attributable overhead costs, 
where the software will generate probable future economic benefits.

Costs associated with maintaining software are recognised as an expense as incurred.

All software is amortised using the straight-line method at rates between 10 to 100% (2022: 10 to 100%) from the point 
at which the asset is ready for use. Amortisation is recognised in profit or loss. The residual value, the useful life and the 
amortisation method applied to an asset are reviewed at least annually.

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Year ended 30 June 2023

133

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

14. Discontinued operations, disposal groups and assets held for sale

KEEPING IT SIMPLE

Discontinued operations relate to a component of the Group, including its corresponding assets and liabilities, 
that have been classified as held for sale and represent a separate major line of business or geographical area of 
operation. The group of assets and their corresponding liabilities (together referred to as a 'disposal group'), may only 
be classified as held for sale once the following criteria are met:

• The carrying amount will be recovered principally through a sale transaction rather than through continuing 

use; and

• The sale must be highly probable.

A disposal group is measured at the lower of its carrying amount and fair value. Where fair value is lower than the 
carrying amount, the difference is recognised as an impairment loss in profit or loss. The results of discontinued 
operations are presented separately in the Statement of Comprehensive Income and corresponding notes in both 
the current and prior periods.

14A. Discontinued operations held for sale

On 23 February 2022, the Group entered into an agreement with EQT Infrastructure (EQT) whereby EQT acquired 
ownership of Stockland’s Retirement Living business for $934 million. The transaction completed on 29 July 2022, and 
the associated assets and liabilities were consequently derecognised by Stockland. At 30 June 2022, the Retirement Living 
business was presented as a discontinued operation held for sale.

The financial performance of the discontinued operation, representing the Retirement Living business sold, for the current 
and prior year is as follows:

Results of discontinued operations1

$M

Revenue

Investment property expenses

Management, administration, marketing and selling expenses

Net change in fair value of investment properties

Net change in fair value of resident obligations

Net (loss) on sale of non–current assets

Profit/(loss) before tax

Income tax (expense)/benefit

Profit/(loss) after tax from discontinued operation

Stockland

2023

10

(1)

(4)

(2)

–

–

3

(1)

2

1 Excludes the results of Aspire villages and sundry assets not included in the transaction.

The impact of the discontinued operation on EPS is as follows:

Stockland

Year ended 30 June

2023

2022

Profit after tax attributable to 
securityholders ($M)

Basic EPS (cents)

Diluted EPS (cents)

Continuing 
operations

Discontinued 
operations

438

18.4

18.2

2

0.1

0.1

Total

440

18.5

18.3

Continuing 
operations

Discontinued 
operations

1,425

59.8

59.6

(44)

(1.8)

(1.8)

2022

129

(10)

(36)

(17)

(126)

(3)

(63)

19

(44)

Total

1,381

57.9

57.7

134 Stockland Annual Report 2023

The cash flow information of the discontinued operation, representing the Retirement Living business sold, for the current 
and prior years is as follows:

Year ended 30 June

$M

Net cash inflow from operating activities

Net cash outflow from investing activities

Net cash (utilised)/provided by discontinued operation

Stockland

2023

2

(6)

(4)

2022

198

(60)

138

The carrying amounts of the major classes of assets and liabilities, representing the Retirement Living business sold, are 
as follows:

As at 30 June

$M

Cash and cash equivalents

Receivables

Current assets

Investment properties

Non–current assets

Assets

Payables

Retirement Living resident obligations

Development provisions

Other liabilities

Transaction cost provision

Current liabilities

Retirement Living resident obligations

Non–current liabilities

Liabilities

Net carrying value

Stockland

2023

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

2022

21

6

27

3,643

3,643

3,670

12

2,610

39

21

38

2,720

52

52

2,772

898

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Year ended 30 June 2023

135

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

14B. Disposal group held for sale

On 23 February 2022, the Group announced it entered into a binding agreement with Mitsubishi Estates Asia (MEA) 
to establish SRRP, a long-term partnership to develop and own land lease communities. Stockland has taken a 50.1% 
ownership stake in SRRP, refer to note 23 Joint Ventures for more information.

The initial portfolio comprised six land lease communities. Three of these communities settled into SRRP on 31 May 2022. 
The remaining three communities were held for disposal by Stockland at 30 June 2022 and settled into SRRP during the 
current year.

As at 30 June

$M

Disposal group assets held for sale

Disposal group liabilities held for sale

Disposal group held for sale

Stockland

2023

–

–

–

2022

150

(2)

148

The major classes of assets and liabilities classified as disposal group held for sale in the current and prior periods are 
as follows:

As at 30 June

$M

Inventories

Property, plant and equipment

Investment properties

Assets

Payables

Liabilities

Stockland

2023

–

–

–

–

–

–

2022

46

6

98

150

2

2

14C. Non-current assets held for sale

As at 30 June

$M

Investment properties transferred from Commercial Property

Investment properties transferred from Other1

Non–current assets held for sale

Stockland

Trust

2023

2022

2023

2022

–

4

4

248

7

255

–

–

–

248

–

248

1

Includes $46 million Retirement Living investment property net of $42 million Retirement Living resident obligations.

The following investment properties were held for sale at 30 June 2023:

• Stockland Affinity retirement village, WA

During the current year, Stockland completed the sale of the following properties which were classified as non-current 
assets held for sale at 30 June 2022:

• 49% of The M_Park Trust, which holds the M_Park technology development at Macquarie Park, NSW

• Stockland Bull Creek, Bull Creek WA

• Stockland Gladstone, Gladstone QLD

• Sundry properties at Caloundra, QLD

Investment properties are classified as held for sale if their carrying amounts will be recovered principally through a sale 
transaction rather than through continuing use. This condition is met only when the sale is highly probable and the asset 
is available for immediate sale in its present condition. Management must be committed to the sale, which should be 
expected to qualify for recognition as a completed sale within one year from the date of classification.

Investment properties held for sale remain measured at fair value.

136 Stockland Annual Report 2023

Capital structure and financial risk management

In this section

This section outlines how Stockland manages the market, credit and liquidity risk associated with its capital structure 
and related financing costs.

Capital management

The Board determines the appropriate capital structure of Stockland, specifically, how much is raised from 
securityholders (equity) and how much is borrowed from financial institutions and global capital markets (debt), in 
order to finance Stockland’s activities both now and in the future. The Board considers Stockland’s capital structure 
and its dividend and distribution policy at least twice a year ahead of announcing results, in the context of its ability 
to continue as a going concern, to deliver its business plan, and execute its strategy.

Stockland’s capital structure is monitored through its gearing ratio, together with other key financial metrics, and 
the Board maintains a capital structure to minimise the overall cost of capital in line with the Board’s risk appetite. 
Stockland has a stated target gearing ratio range of 20% to 30%, together with a look-through gearing ratio of up to 
35%, and credit ratings of A-/stable and A3/stable from S&P and Moody’s respectively.

Financial risk

Capital and financial risk management is carried out by a central treasury department. The Board reviews and 
approves written principles of overall risk management, as well as written policies covering specific areas such as 
capital management, financial risks, interest rates, foreign exchange and credit risks, the use of derivatives, and the 
Group's liquidity. The Audit Committee assists the Board in monitoring the implementation of these treasury policies.

Borrowings

The Trust borrows money from financial institutions and debt investors globally in the form of bonds, bank debt, 
and other financial instruments. As a result, Stockland is exposed to changes in interest rates on its net borrowings 
and to changes in foreign exchange rates on its transactions, assets and liabilities denominated in foreign currencies. 
In accordance with risk management policies, Stockland uses derivatives to appropriately hedge these underlying 
exposures. Furthermore, there has been no change in the Group's hedging policy for interest rates or currencies, with 
the resulting derivative portfolios operating as expected and in line with market movements.

The Group continues to meet both the general and financial undertakings required under its financing arrangements.

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Year ended 30 June 2023

137

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

15. Borrowings

Interest-bearing loans and borrowings are recognised initially at fair value less attributable transaction costs and are 
subsequently stated at amortised cost. Any difference between amortised cost and redemption value is recognised in 
profit or loss over the period of the borrowings using the effective interest method. However, where a qualifying fair value 
hedge is in place, borrowings are stated at the carrying amount adjusted for changes in fair value of the hedged risk. The 
changes are recognised in profit or loss.

The table below shows the fair value of each of these instruments measured at Level 2 in the fair value hierarchy. Fair value 
reflects the principal amount and remaining duration of these notes based on current market interest rates and conditions 
at balance date. Stockland has complied with all covenants throughout the year ended 30 June 2023 and up to the date 
of authorisation of these accounts.

The weighted average cost of debt for the year was 4.3% (2022: 3.4%).

As at 30 June

$M

Stockland and Trust

2023

2022

Note Current

Non–
current

Carrying
value

Fair 

value Current

Non–
current

Carrying
value

Fair 
value

Offshore medium term notes

Domestic medium term notes and 
commercial paper

Drawn bank facilities

Borrowings

15.A

15.B

15.C

–

3,085

3,085

2,980

200

–

200

547

75

747

75

3,707

3,907

696

75

3,751

123

343

470

936

2,964

3,087

3,075

497

75

840

545

810

545

3,536

4,472

4,430

The difference of $156 million (2022: $42 million) between the carrying amount and fair value of the offshore medium 
term notes (MTNs), domestic MTNs and commercial paper is due to notes being carried at amortised cost under AASB 9 
Financial Instruments.

15A. Offshore medium term notes

The Trust has issued fixed coupon notes in the US private placement market and under its Euro MTN program in Europe 
and Asia. These notes have been issued in USD, EUR and HKD and converted back to Australian dollars (AUD or $) principal 
and AUD floating coupons through cross currency interest rate swaps (CCIRS).

As at 30 June 2023, the fair value of the US private placements and European and Asian MTNs is $1,177 million (2022: 
$1,988 million) and $1,803 million (2022: $1,087 million) respectively.

15B. Domestic medium term notes and commercial paper

Domestic MTNs and commercial paper have been issued at either face value or at a discount to face value and are carried 
at amortised cost. The discount or premium is amortised to finance costs over the term of the notes. The MTNs are issued 
on either fixed or floating interest rate terms.

15C. Bank facilities

Bank facilities are unsecured, working capital facilities held at amortised cost. As at 30 June 2023, Stockland and the Trust 
have undrawn bank facilities of $1,425 million (2022: $730 million) of which $500 million is due to expire within 12 months 
of balance sheet date.

138 Stockland Annual Report 2023

15D. Drawn debt

The composition and maturity profile for the Group's drawn debt of $3.8 billion is shown below at face value

Drawn debt maturity profile1

Drawn debt composition %1 

78% Offshore MTNs

20% Domestic MTNs

2%

Bank debt

Offshore MTNs
Domestic MTNs
Bank debt

250250

1,489
1,489

890890

300300

228228

7575

220220

200200

112112

FY24

FY25

FY26

FY27

FY28

FY29+

1 Face value in AUD at 30 June 2023 after the effect of the CCIRS.

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Year ended 30 June 2023

139

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

16. Net financing costs

Keeping it simple

Stockland generates interest income on cash and other financial assets and incurs interest expense on borrowings 
and other financial liabilities. The presentation of the net financing costs in this note reflects income and expenses 
according to the classification of the financial instruments.

Fair value movements reflect the change in fair value of Stockland’s derivative instruments between the later of 
inception or 1 July 2022 and 30 June 2023. The fair value at year end is not necessarily the same as the settlement 
value at maturity.

Net financing costs are as follows:

Year ended 30 June

$M

Interest income from related parties

Interest income from other parties

Finance income

Interest expense relating to borrowings

Interest paid or payable on other financial liabilities at amortised cost

Finance expense on lease liabilities

Less: interest capitalised to inventories

Less: interest capitalised to investment properties

Finance expense

Designated hedge accounting relationships

Fair value hedges – gain/(loss) on change in fair value of derivatives

Fair value hedges – (loss)/gain on change in fair value of borrowings

Net (loss)/gain on designated hedge accounting relationships

Non-designated hedge accounting relationships

(Loss)/gain on foreign exchange movements

Gain on fair value movements

Net gain on non–designated hedge accounting relationships

Net gain on financial instruments

Stockland

Trust

2023

2022

2023

2022

–

10

10

(178)

(37)

(2)

114

19

(84)

4

(14)

(10)

(1)

20

19

9

–

3

3

(148)

(35)

(2)

96

14

(75)

(199)

201

2

6

183

189

191

219

7

226

(178)

–

(1)

–

18

(161)

4

(14)

(10)

(1)

20

19

9

191

3

194

(149)

–

(1)

–

12

(138)

(199)

201

2

6

183

189

191

Finance income is recognised in profit or loss as it accrues using the effective interest method.

Finance expense includes interest payable on short-term and long-term borrowings calculated using the effective interest 
method and payments of interest on derivatives. These borrowing costs are expensed as incurred except to the extent 
that they are directly attributable to the acquisition, construction, or production of a qualifying asset, such as investment 
properties or inventories. Qualifying assets are assets that necessarily take a substantial period of time to reach the stage 
of their intended use or sale.

In these circumstances, borrowing costs are capitalised to the cost of the assets while in active development until the 
assets are ready for their intended use or sale. Total interest capitalised does not exceed the net interest expense in 
any period. Project carrying values, including all capitalised interest attributable to projects, continue to be recoverable 
based on the latest project feasibilities. In the event that development is suspended for an extended period of time, or 
the decision is taken to dispose of the asset, the capitalisation of borrowing costs is also suspended. Borrowing costs 
are capitalised using a weighted average capitalisation rate applied to the expenditures on the asset excluding specific
borrowings. The rate at which interest has been capitalised to qualifying assets is disclosed in note 6.

The accounting policy for fair value of derivatives are discussed in notes 17 and 18.

140 Stockland Annual Report 2023

 
17. Other financial assets and liabilities

Keeping it simple

A derivative is a type of financial instrument and is typically used to manage an underlying risk. A derivative’s value 
changes over time in response to underlying variables, such as exchange rates or interest rates, and is entered into 
for a fixed period. A hedge is where a derivative is used to manage underlying exposures. Stockland uses derivatives 
to manage exposure to foreign exchange and interest rate risk.

Based on the nature of the assets and their purpose, movements in the fair value of other financial assets are 
recognised either through profit or loss or other comprehensive income.

As at 30 June

Other 
financial assets

Other 
financial liabilities

Other 
financial assets

Other 
financial liabilities

$M

2023

2022

2023

2022

2023

2022

2023

2022

Stockland

Trust

Instruments in a designated fair value hedge1

CCIRS

–

Instruments in a designated cash flow hedge1

CCIRS

–

Instruments held at fair value through profit or loss

CCIRS

IRS

Other

Current

–

35

–

35

–

19

–

2

–

21

–

–

–

(20)

–

(20)

–

–

–

–

(10)

(10)

–

–

–

35

–

35

–

19

–

2

–

21

–

–

–

(20)

–

(20)

–

–

–

–

–

–

Instruments in a designated fair value hedge1

CCIRS

121

126

(111)

(117)

121

126

(111)

(117)

Instruments in a designated cash flow hedge1

CCIRS

48

41

(6)

(14)

Instruments held at fair value through profit or loss

CCIRS

IRS

Other2

Non–current3

12

90

14

285

12

102

9

290

–

(34)

–

(151)

–

(53)

(4)

(188)

48

12

90

–

270

41

(6)

(14)

12

102

–

280

–

(34)

–

(151)

–

(53)

–

(184)

1 No interest rate swaps are in designated hedge relationships.
2 Other financial assets include investments by the Corporation in Stockland Care Foundation Trust and other third party digital start-up entities.
3 Totals may not add due to rounding.

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Derivative financial instruments

Derivative financial instruments are recognised initially at fair value and are remeasured at each balance date. The 
valuation of derivatives is an area of accounting estimation and judgement for Stockland. Third party valuations are used to 
determine the fair value of Stockland’s derivatives. The valuation techniques use inputs such as interest rate yield curves 
and currency prices/yields, volatilities of underlying instruments and correlations between inputs.

The gain or loss on remeasurement to fair value is recognised in profit or loss. However, where derivatives qualify for hedge 
accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged.

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Stockland enters into ISDA Master Agreements with its derivative counterparties. Under the terms of these arrangements, 
where certain credit events occur, the net position owing/receivable with a single counterparty in relation to all outstanding 
derivatives with that counterparty will be taken as owing/receivable and all the relevant arrangements terminated. As 
Stockland does not presently have a legally enforceable right of set-off, these amounts have not been offset in the balance 
sheet. If a credit event had occurred, the ISDA Master Agreement would have the effect of netting, allowing a reduction to 
derivative assets and derivative liabilities of the same amount of $162 million (2022: $153 million).

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Year ended 30 June 2023

141

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Derivatives that qualify for hedge accounting

Stockland holds a number of derivative instruments including interest rate swaps, forward exchange contracts and CCIRS. 
Stockland assesses whether the derivative designated in each hedging relationship is expected to be and has been 
effective in offsetting changes in the fair value or cash flows of the hedged item using the hypothetical derivative method.

In order to qualify for hedge accounting, prospective hedge effectiveness testing must meet all of the following criteria:

• an economic relationship exists between the hedged item and hedging instrument;

• the effect of credit risk does not dominate the value changes resulting from the economic relationship; and

• the hedge ratio is the same as that resulting from actual amounts of hedged items and hedging instruments for 

risk management.

In these hedge relationships, the main sources of ineffectiveness are:

• the effect of the counterparty and Stockland’s own credit risk on the fair value of the swaps, which is not reflected in 

the fair value of the hedged item; and

• changes in interest rates will impact the fair value of the Australian dollar margin and implied foreign currency 

margin respectively.

At the inception of the transaction, Stockland designates and documents these derivative instruments into a hedging 
relationship with the hedged items, as well as its risk management objective and strategy for undertaking various 
hedge transactions.

Stockland documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives used 
in hedging transactions have been and will continue to be effective in offsetting changes in fair value or cash flows of 
hedged items.

CCIRS hedging foreign currency borrowings are designated in either dual fair value and cash flow hedges or fair value 
hedges only.

Fair value hedge

A fair value hedge is a hedge of the exposure to changes in fair value of an asset or liability that is attributable to a 
particular risk.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss, 
together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Hedge accounting is discontinued when the hedging instrument matures or is sold, terminated or exercised, or until such 
time where the hedging relationship ceases to meet the qualifying criteria. Any adjustment between the carrying amount 
and the face value of a hedged financial instrument is amortised to profit or loss using the effective interest method. 
Amortisation begins when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk 
being hedged.

Cash flow hedge

A cash flow hedge is a hedge of the exposure to variability in cash flows attributable to a particular risk associated with 
an asset, liability, or highly probable forecast transaction that could affect profit or loss.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are 
recognised in equity in the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognised 
immediately in profit or loss within finance income or expense.

Amounts in the cash flow hedge reserve are recognised in profit or loss in the periods when the hedged item is recognised 
in profit or loss.

Hedge accounting is discontinued when the hedging instrument matures or is sold, terminated or exercised, no longer 
qualifies for hedge accounting, or when Stockland revokes designation. Any cumulative gain or loss recognised in equity 
at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. 
When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was recognised in equity is 
recognised immediately in profit or loss.

Additionally, there are a number of derivatives that are not designated as fair value and/or cash flow hedges. These are 
used to hedge economic exposures and the gains or losses on remeasurement to fair value of these instruments are 
recognised immediately in profit or loss.

142 Stockland Annual Report 2023

Stockland and Trust

Borrowings

Derivatives

Carrying amount

Mark to market

2023

2022

Move
ments

(Repaid) 
Drawn

(122)

(105)

(60)

(64)

16

103

(40)

(65)

–

91

1,864

1,535

328

471

758

1,986

1,595

392

455

655

3,093

3,096

(3)

(14)

75

750

–

(11)

545

843

–

(12)

(470)

(470)

(93)

(93)

–

1

–

–

Gain/
(loss) 
on FV 
of 
debt

19

20

(1)

(16)

(12)

(9)

–

–

–

2023

2022

Cash 
flow 
hedge 
reserve 
impact

Gain/ 
(loss) 
on FV 
of 
deriva-
tives

Move
ments

124

113

11

(29)

(31)

64

–

–

71

149

137

12

(44)

(38)

67

–

–

50

(25)

(24)

(1)

15

7

(3)

–

–

21

18

(5)

(4)

–

2

1

(2)

–

–

–

(2)

(21)

(20)

(1)

13

6

(2)

–

–

21

19

3,907

4,472

(565)

(577)

(9)

135

117

As at 30 June
$M

US Dollar

• Effective

• Other2

Euro3

HK Dollar3

Foreign exposure

AUD bank debt

AUD MTNs and commercial paper

AUD IRS

Borrowing costs

Total1

Net 
gain/ 
(loss) 
recog-
nised 
in 
profit 
or 
loss1

(2)

–

(2)

(4)

(6)

(12)

–

–

21

9

1 Totals may not add due to rounding.
2 Relates to instruments which are in economic hedge relationships but do not qualify for hedge accounting or have not been designated in hedge 

accounting relationships.

3 These hedge relationships were deemed effective accounting hedges in the current and prior years.

Reconciliation of cash flow hedge reserve

Year ended 30 June

$M

Opening cash flow hedge reserve

Net change in fair value of cash flow hedges

Reclassified to profit or loss

Closing cash flow hedge reserve

Stockland

Trust

2023

2022

2023

2022

(14)

(5)

3

(16)

(49)

30

5

(14)

(14)

(5)

3

(16)

(49)

30

5

(14)

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Year ended 30 June 2023

143

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

18. Fair value measurement of financial instruments

Keeping it simple

The financial instruments included on the balance sheet are measured at either fair value or amortised cost. The 
measurement of fair value may in some cases be subjective and may depend on the inputs used in the calculations. 
Stockland generally uses external valuations based on market inputs or market values (e.g. external share prices). The 
different valuation methods are called hierarchies and are described below:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either 

directly (i.e. as prices) or indirectly (i.e. derived from prices); and

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

There were no transfers between levels during the year.

Determination of fair value

The fair value of financial instruments, including offshore MTNs and derivatives, is determined in accordance with generally 
accepted pricing models by discounting the expected future cash flows using assumptions supported by observable 
market rates. While certain derivatives are not quoted in an active market, Stockland has determined the fair value of these 
derivatives using quoted market inputs (e.g., interest rates, volatility, and exchange rates) adjusted for specific features 
of the instruments and debit or credit value adjustments based on the current creditworthiness of Stockland or the 
derivative counterparty.

The following tables set out the financial instruments included on the balance sheet at fair value:

As at 30 June

$M

Derivative assets

Other investments

Financial assets carried at 
fair value

Offshore MTNs1

Derivative liabilities

Other financial liabilities2

Financial liabilities carried 
at fair value

Stockland

2023

2022

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

–

14

14

–

–

–

–

306

–

306

(2,765)

(171)

–

(2,936)

–

–

–

–

–

(42)

(42)

(42)

306

14

320

(2,765)

(171)

(42)

(2,978)

(2,658)

–

13

13

–

–

–

–

13

302

–

302

(2,704)

(184)

–

–

–

–

–

–

(2,716)

302

13

315

(2,704)

(184)

(2,716)

(2,888)

(2,716)

(5,604)

(2,586)

(2,716)

(5,289)

Net position

14

(2,630)

1 Offshore MTNs not in an accounting hedge relationship are carried at amortised cost. This table only reflects offshore MTNs carried at fair value according 

to their hedge designation.

2 At 30 June 2023, $42 million of existing resident obligations has been included in investment properties held for sale (2022: $40 million). At 30 June 2022, 
$2,662 million of existing resident obligations was classified as discontinued operation liabilities held for sale (30 June 2023: $nil). Refer to notes 14A and 
14C for further details.

As at 30 June

$M

Derivative assets

Financial assets carried at 
fair value

Offshore MTNs1

Derivative liabilities

Financial liabilities carried 
at fair value

Net position

Trust

2023

2022

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

–

–

–

–

–

–

306

306

(2,765)

(171)

(2,936)

(2,630)

–

–

–

–

–

–

306

306

(2,765)

(171)

(2,936)

(2,630)

–

–

–

–

–

–

302

302

(2,704)

(184)

(2,888)

(2,586)

–

–

–

–

–

–

302

302

(2,704)

(184)

(2,888)

(2,586)

1 Offshore MTNs not in an accounting hedge relationship are carried at amortised cost. This table only reflects offshore MTNs carried at fair value according 

to their hedge designation.

144 Stockland Annual Report 2023

The following table shows a reconciliation from the opening to closing balances for fair value measurements in Level 3 of 
the fair value hierarchy:

$M

Opening balance

(Losses)/gains recognised in profit or loss

Cash receipts from incoming residents on turnover

Cash payments to outgoing residents on turnover, net of DMF

Amount disposed in the sale of the Retirement Living Business

Balance at 30 June1

Stockland

2023

2022

Retirement 
Living 
resident 
obligations

(2,716)

–

(3)

6

2,671

(42)

Retirement 
Living 
resident 
obligations

(2,512)

(38)

(311)

145

–

Total

(2,512)

(38)

(311)

145

–

(2,716)

(2,716)

Total

(2,716)

–

(3)

6

2,671

(42)

1 At 30 June 2023, $42 million of existing resident obligations has been included in investment properties held for sale (30 June 2022: $40 million). At 30 June 
2022, $2,662 million of existing resident obligations was classified as discontinued operation liabilities held for sale (30 June 2023: $nil). Refer to notes 
14A and 14C for further details.

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Year ended 30 June 2023

145

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

19. Financial risk factors

Keeping it simple

Stockland’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. Stockland’s 
overall risk management program focuses on the unpredictability of financial markets and seeks to minimise 
potential adverse effects on financial performance.

The sensitivity analysis included in this note shows the impact that a shift in the financial risks would have on 
the financial statements at balance date, but is not a forecast or prediction. In addition, it does not include any 
management action that might take place to mitigate these risks, were they to eventuate.

19A. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will 
affect Stockland’s financial performance or the value of its financial instrument holdings. The objective of market risk 
management is to manage and control market risk exposures within acceptable parameters, while optimising returns.

Currency risk

Currency risk arises when anticipated transactions or recognised assets and liabilities are denominated in a currency that 
is not Stockland’s functional currency, being Australian Dollars (AUD). Stockland manages its currency risk by using CCIRS 
and forward exchange contracts.

Stockland’s offshore MTNs create both an interest rate and a currency risk exposure. Stockland’s policy is to minimise its 
exposure to both interest rate and exchange rate movements. Accordingly, Stockland has entered into a series of CCIRS 
which cover 100% of the principals outstanding and are timed to expire when each note matures. These CCIRS also swap 
the obligation to pay fixed interest to floating interest. When these swaps are no longer effective in hedging the interest 
rate and currency risk exposure, management will reassess the value in continuing to hold the swap.

These CCIRS have been designated as fair value and cash flow hedges and are accounted for in line with the accounting 
principles in note 17.

The effects of foreign currency-related hedging instruments on the Group's financial position and performance are 
as follows:

As at 30 June

Carrying amount

Notional amount

Maturity date

Hedge ratio

Change in discounted spot value of outstanding hedging instruments since inception of 
the hedge

Change in value of hedged item used to determine hedge ineffectiveness

Weighted average hedged rate for outstanding hedged instruments against AUD$1

Stockland and Trust

2023

2,765

2,623

2022

2,704

2,572

Aug 2024 – Mar 2036

Aug 2022 – Mar 2036

1:1

53

(65)

USD 0.77

HKD 5.57

EUR 0.63

1:1

54

(53)

USD 0.78

HKD 5.59

EUR 0.63

146 Stockland Annual Report 2023

Sensitivity analysis – currency risk

The following sensitivity analysis shows the impact on the profit or loss and equity if there was an increase/decrease 
in AUD exchange rates of 10% at balance date with all other variables held constant, being the movement Stockland 
determines is reasonably possible (2022: 10%). In determining what constitutes a reasonably possible movement, 
management gives consideration to their best estimate at balance date of the range of possible future exchange 
rate movements.

Stockland and Trust

2023

2022

As at 30 June

Profit or loss

Equity

Profit or loss

Equity

$M

EUR

HKD

USD

Impact

Increase Decrease

Increase Decrease

Increase Decrease

Increase Decrease

–

–

–

–

–

–

–

–

(2)

(5)

(10)

(17)

2

6

12

20

–

–

–

–

–

–

–

–

(2)

(5)

(11)

(18)

3

6

14

23

Interest rate risk

Interest rate risk is the risk that the fair value or cash flows of financial instruments will fluctuate due to changes in 
interest rates.

The Trust’s interest rate risk arises from borrowings. Borrowings issued at variable rates expose the Trust to cash flow 
interest rate risk. Borrowings issued at fixed rates expose the Trust to fair value interest rate risk. Stockland’s treasury 
policy allows it to enter into approved derivative instruments to manage the risk profile of the total debt portfolio to 
achieve an appropriate mix of fixed and floating interest rate exposures. The Trust manages its interest rate risk through 
CCIRS and fixed-to-floating interest rate swaps.

Sensitivity analysis – interest rate risk

The following sensitivity analysis shows the impact on profit or loss and equity if there was an increase/decrease in 
market interest rates of 200 basis points (bps) at balance date with all other variables held constant, being the movement 
Stockland determines is reasonably possible (2022: 100bps). In determining what constitutes a reasonably possible 
movement, management gives consideration to their best estimate at balance date of the range of possible future interest 
rate movements.

As at 30 June

2023

2022

2023

2022

Stockland

Trust

$M

Impact on interest 
income/(expense)

Impact on net gain/(loss) on 
derivatives – through profit 
or loss

Impact on profit or loss

Impact on equity

Increase Decrease

Increase Decrease

Increase Decrease

Increase Decrease

5

113

118

27

(5)

(122)

(127)

(28)

4

50

54

17

(4)

(53)

(57)

(18)

48

113

161

27

(48)

(122)

(170)

(28)

32

50

82

17

(32)

(53)

(85)

(18)

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Year ended 30 June 2023

147

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

19B. Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to meet its contractual obligations 
resulting in a financial loss to Stockland.

Risk management

Stockland has no significant concentrations of credit risk with any single counterparty and has policies to review the 
aggregate exposure of tenancies across its portfolio. Stockland also has policies to ensure that sales of properties with 
deferred payment terms and development services are made to customers with an appropriate credit history.

Derivative counterparties and cash deposits are currently limited to financial institutions approved by the Audit 
Committee. As at 30 June 2023, these financial institutions had an Investment Grade rating greater than A- provided by 
S&P. There are also policies that limit the amount of credit risk exposure to any one of the approved financial institutions 
based on their credit rating and country of origin.

The maximum exposure to credit risk at the end of the reporting period is the gross carrying amount of each class of 
financial assets mentioned in this report.

Bank guarantees and mortgages over land are held as security over certain receivables balances.

Impairment of financial assets

As at 30 June 2023 and 30 June 2022, there were no significant financial assets that were past due. Financial assets are 
subject to the expected credit loss model as per AASB 9. Refer to note 8 for details of the loss allowances recognised on 
trade receivables and the intercompany loan.

19C.  Liquidity risk

Liquidity risk is the risk that Stockland will not be able to meet its financial obligations as they fall due. Due to the dynamic 
nature of the underlying businesses, Stockland aims to maintain flexibility in liquidity and funding sources by keeping 
sufficient cash and cash equivalents and/or undrawn committed credit lines available, while maintaining a low cost of 
holding these facilities. Management prepares and monitors rolling forecasts of liquidity requirements on the basis of 
expected cash flow.

Stockland manages liquidity risk through monitoring the maturity profile of its debt portfolio. At 30 June 2023, the current 
weighted average debt maturity is 5 years (2022: 4.8 years).

148 Stockland Annual Report 2023

Keeping it simple

The following tables summarise Stockland’s financial liabilities including derivatives into relevant maturity groupings 
based on the period remaining until the contractual maturity date. The amounts disclosed in the table are 
the contractual undiscounted cash flows (including interest) and therefore may not reconcile with the amounts 
disclosed on the balance sheet.

Refer to note 18 for the fair value of derivative assets to provide an analysis of Stockland and Trust total derivatives.

As at

$M

30 June 2023

Non–derivative

Payables (excl. GST)

Other liabilities

Lease liabilities

Distributions payable

Borrowings

Other financial liabilities1

Derivative

Interest rate derivatives

CCIRS

• Inflows

• Outflows

Financial liabilities

30 June 2022

Non–derivative

Payables (excl. GST)

Other liabilities

Lease liabilities

Distributions payable

Borrowings

Other financial liabilities1

Derivative

Interest rate derivatives

CCIRS

• Inflows

• Outflows

Carrying 
amount

Contractual 
cash flows

1 year or 
less

1 – 2 years

2 – 5 years Over 5 years

Stockland

(740)

(470)

(39)

(344)

(3,907)

(42)

(54)

(117)

–

–

(5,713)

(740)

(470)

(39)

(344)

(4,843)

(42)

(59)

1,698

(1,889)

(6,728)

(1,003)

(1,003)

(507)

(40)

(349)

(4,472)

(2,716)

(53)

(131)

(507)

(40)

(349)

(5,292)

(2,716)

(60)

1,628

(1,899)

(10,238)

(562)

(49)

(3)

(344)

(348)

(42)

(20)

40

(86)

(1,414)

(689)

(54)

(2)

(349)

(617)

(2,660)

(6)

37

(59)

(4,399)

(58)

(48)

(2)

–

(302)

–

(10)

40

(85)

(465)

(125)

(48)

(2)

–

(322)

–

(15)

37

(76)

(551)

(101)

(373)

(7)

–

(19)

–

(27)

–

(2,157)

(2,036)

–

(21)

595

(659)

(2,723)

(147)

(405)

(7)

–

(2,147)

–

–

(8)

1,023

(1,059)

(2,126)

(42)

–

(29)

–

(2,206)

(56)

(24)

(15)

656

(777)

(2,851)

898

(987)

(2,437)

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Financial liabilities

(9,271)

1 At 30 June 2022, $2,662 million of existing resident obligations was classified as discontinued operation liabilities held for sale. $42 million of existing 
resident obligations has been included in investment properties held for sale at 30 June 2023 (2022: $40 million). Refer to notes 14A and 14C for 
further details.

Year ended 30 June 2023

149

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Financial liabilities

(4,549)

Carrying 
amount

Contractual 
cash flows

1 year or 
less

1 – 2 years

2 – 5 years Over 5 years

Trust

(100)

(27)

(344)

(100)

(27)

(344)

(3,907)

(4,843)

(100)

–

(344)

(348)

–

–

–

–

(2)

–

–

(25)

–

(302)

(2,157)

(2,036)

(54)

(117)

(59)

(20)

(10)

(21)

(8)

1,698

(1,889)

(5,564)

(118)

(28)

(349)

(118)

(28)

(349)

(4,472)

(5,292)

40

(86)

(858)

(118)

–

(349)

(617)

40

(85)

(357)

–

(1)

–

595

(659)

(2,244)

–

(1)

–

1,023

(1,059)

(2,105)

–

(26)

–

(322)

(2,147)

(2,206)

(53)

(131)

(5,151)

(60)

(6)

(15)

(24)

(15)

1,628

(1,899)

(6,118)

37

(59)

(1,112)

37

(76)

(377)

656

(777)

(2,293)

898

(987)

(2,336)

As at

$M

30 June 2023

Non–derivative

Payables (excl. GST)

Lease liabilities

Distributions payable

Borrowings

Derivative

Interest rate derivatives

CCIRS

• Inflows

• Outflows

30 June 2022

Non–derivative

Payables (excl. GST)

Lease liabilities

Distributions payable

Borrowings

Derivative

Interest rate derivatives

CCIRS

• Inflows

• Outflows

Financial liabilities

150 Stockland Annual Report 2023

20. Issued capital

Keeping it simple

Issued capital represents the amount of consideration received for securities issued by Stockland. Transaction costs 
of an equity transaction are accounted for as a deduction from equity, net of any related income tax benefit.

The balances and movements in equity of Stockland are presented in the consolidated statement of changes 
in equity.

For so long as Stockland remains jointly quoted, the number of shares in Stockland Corporation Limited and the 
number of units in Stockland Trust shall be equal and the securityholders and unitholders shall be identical.

Holders of stapled securities are entitled to receive dividends and distributions as declared from time to time and 
are entitled to one vote per stapled security at securityholder meetings. The liability of a member is limited to the 
amount, if any, remaining unpaid in relation to a member’s subscription for securities. A member is entitled to receive a 
distribution following termination of the stapling arrangement (for whatever reason). The net proceeds of realisation must 
be distributed to members, after making an allowance for payment of all liabilities (actual and anticipated) and meeting 
any actual or anticipated expenses of termination.

The following table provides details of securities issued by Stockland:

Stockland and Trust

Stockland

Number of securities

$M

Trust

$M

As at 30 June

2023

2022

2023

2022

2023

2022

Ordinary securities on issue

Issued and fully paid

2,387,171,662

2,387,171,662

8,692

8,692

7,393

7,393

Other equity securities

Treasury securities

(5,275,982)

(4,197,304)

Issued capital

2,381,895,680

2,382,974,358

(40)

8,652

(37)

8,655

(38)

7,355

(35)

7,358

20A. Movements in ordinary securities

Stockland and Trust

Stockland

Number of securities

$M

As at 30 June

Opening balance

2023

2022

2,387,171,662

2,387,171,662

Securities issued during the year

–

–

Closing balance

2,387,171,662

2,387,171,662

2023

8,692

–

8,692

2022

8,692

–

8,692

Stockland did not issue any ordinary staples securities during the year.

Trust

$M

2023

7,393

–

7,393

2022

7,393

–

7,393

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20B. Other equity securities

Treasury securities

Treasury securities are securities in Stockland that are held by the Stockland Employee Securities Plan Trust. Securities are 
held until the end of the vesting period affixed to the securities. As the securities are held on behalf of eligible employees, 
the employees are entitled to the dividends and distributions.

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Year ended 30 June 2023

151

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Movement of other equity securities

Stockland and Trust

Stockland

Number of securities

$M

Trust

$M

Opening balance

Securities acquired1

Securities transferred to 
employees on vesting

2023

4,197,304

4,494,605

2022

3,517,364

3,619,294

(3,415,927)

(2,939,354)

Closing balance

5,275,982

4,197,304

2023

2022

2023

2022

(37)

(15)

12

(40)

(29)

(17)

9

(37)

(35)

(14)

11

(38)

(28)

(15)

8

(35)

1 Average price: $3.44 per security (2022: $4.67).

20C. Security based payments

Keeping it simple

Stockland operates three Security Plans at its discretion for eligible employees which are described below:

Long term incentives (LTI)

Under the LTI plan, employees have the right to acquire Stockland securities at nil consideration when certain 
performance conditions are met. Since FY21, grants may vest based on a relative or absolute TSR performance 
measure over a three-year performance period, provided employment continues to the applicable vesting date. Prior 
to FY21, two equally-weighted performance measures were used, being underlying EPS growth and relative TSR. 
Eligibility is by invitation of the Board and is reviewed annually.

Deferred short term incentives (DSTI)

For Executives and Senior Management there is a compulsory deferral of at least one third of STI incentives 
into Stockland securities to further align remuneration outcomes with securityholders. Half of the awarded DSTI 
securities will vest 12 months after award with the remaining half vesting 24 months after award, provided 
employment continues to the applicable vesting date.

Tax exempt employee security plan

Under this plan, eligible employees receive up to $1,000 worth of Stockland securities.

The security options granted under the three Security Plans are held at fair value. The valuation of security options 
is a key area of accounting estimation and judgement for Stockland.

The number and weighted average fair value of LTI rights and DSTI securities under the Security Plans are as follows:

Details

Opening balance

Granted during the year

Forfeited and lapsed during the year

Rights converted to vested Stockland stapled securities

Outstanding at the end of the year

LTI

Weighted average price
per right/security

Number of
rights/securities

2023

$3.19

$2.34

$2.91

$3.67

$2.69

2022

2023

2022

$3.16

$3.23

$2.65

$3.48

$3.19

13,331,666

11,958,396

8,373,415

5,792,383

(1,499,664)

(1,672,246)

(3,429,633)

(2,746,867)

16,775,784

13,331,666

The fair value of LTI rights is measured at grant date using the Monte Carlo Simulation option pricing model taking into 
account the terms and conditions upon which the rights were granted. The fair value is expensed on a straight-line 
basis over the vesting period, the period over which the rights are subject to performance and service conditions, with a 
corresponding increase in reserves.

Where the individual forfeits the rights due to failure to meet a service or performance condition, the cumulative expense 
is reversed through profit or loss in the current year. The cumulative expenditure for rights forfeited due to market 
conditions are not reversed.

Where amendments are made to the terms and conditions subsequent to the grant, the value of the grant immediately 
prior to and following the modification is determined. This occurs upon resignation or termination where the amendment 

152 Stockland Annual Report 2023

relates to rights becoming vested in terms of beneficial ownership, which would otherwise have been forfeited due to the 
failure to meet future service conditions. In this situation, the value that would have been recognised in future periods in 
respect of the rights not forfeited is recognised in the period that the rights vest.

The number of rights granted to employees under the plan for the year ended 30 June 2023 was 5,504,051 (2022: 
3,738,527). The number of LTI rights awarded is based on the Volume Weighted Average Price of Stockland securities for the 
ten working days post 30 June (face value methodology). This is consistent with the approach for determining the number 
of DSTI awards.

Assumptions made in determining the fair value of rights granted under the security plans are:

Details

Grant date

Fair value of rights granted under plan

Securities spot price at grant date

Exercise price

Distribution yield

Risk–free rate at grant date

Expected remaining life at grant date

Expected volatility of Stockland's securities

Expected volatility of index price

2023

2022

18 October 2022

18 October 2022

18 October 2021

$1.47

$3.33

–

7.06%

3.40%

$1.07

$3.33

–

7.06%

3.40%

$1.78

$4.60

–

6.09%

0.52%

2.70 years

2.70 years

2.70 years

33%

23%

33%

0%

32%

22%

The LTI rights outstanding as at 30 June 2023 of 12,411,904 (2022: 9,729,369), have a fair value ranging from $1.07 to $4.59 
(2022: $1.11 to $4.59) per right and a weighted average restricted period remaining of 1.6 years (2022: 1.1 years).

During the year, 1,393,163 rights (2022: 987,175) vested and will convert to securities with a weighted average fair value of 
$3.20 per security (2022: $3.02).

DSTI

The fair value of securities granted under the DSTI plan has been calculated based on the weighted average share price 
on grant date of $3.34 (2022: $4.22).

The DSTI outstanding as at 30 June 2023, included in the table above, are 3,734,093 (2022: 3,088,229). The DSTI outstanding 
have a fair value ranging from $3.33 to $4.76 (2022: $2.72 to $5.12) per security.

Employee Security Plan

Stockland securities issued to eligible employees under the Tax Exempt Employee Security Plan ($1,000 Plan) are 
recognised as an expense with a corresponding increase in issued capital. The value recognised is the market price of the 
securities granted at grant date.

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Year ended 30 June 2023

153

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Taxation

In this section

This section sets out Stockland’s tax accounting policies and provides an analysis of the income tax expense/benefit 
and deferred tax balances, including a reconciliation of tax expense to accounting profit. Accounting income is not 
always the same as taxable income, creating temporary differences. These differences usually reverse over time. 
Until they reverse, a deferred tax asset or liability must be recognised on the balance sheet, to the extent that it is 
probable that a reversal will take place. This is known as the balance sheet liability method.

21. Income tax

21A.  Income tax recognised in profit or loss

Year ended 30 June

$M

Current tax

Adjustments for prior years

Current tax

Deferred tax recognised during the year

Origination and reversal of temporary differences

Deferred tax

Income tax in profit or loss

Less: income tax (expense)/benefit relating to discontinued operations

Income tax in profit or loss from continuing operations

Stockland

2023

2022

(30)

–

(30)

–

(48)

(48)

(78)

(1)

(77)

–

–

–

–

(43)

(43)

(43)

19

(62)

2022

1,424

(1,390)

(5)

29

(9)

(69)

(5)

42

(2)

(43)

147%

66%

21B. Reconciliation of profit before tax to income tax recognised in profit or loss

Year ended 30 June

$M

Profit before tax

Less: Trust (profit)/loss before tax

Adjust for: intergroup eliminations

Profit before tax of Stockland Corporation Group

Prima facie income tax calculated at 30%

Impact on income tax recognised in profit or loss due to:

Permanent adjustments

Amounts which are non-deductible in the year

Cost base not previously able to be recognised in relation to goodwill of Retirement Living business

Under–provided in prior years

Income tax in profit or loss

Effective tax rate1

Effective tax rate (excluding discontinued operations)

Stockland

2023

518

(201)

(64)

253

(76)

1

(1)

–

(2)

(78)

31%

31%

1 The effective tax rate for the year ended 30 June 2022 is higher than the 30% statutory tax rate because of the permanent components of the gains on 

the sale of the Retirement Living business (both the capital gain and the recognition of cost base on goodwill).

Stockland

Income tax expense is recognised in profit or loss except to the extent that it relates to items recognised in other 
comprehensive income (OCI) or directly in equity. Income tax expense is calculated at the applicable corporate tax rate of 
30%, and is comprised of current and deferred tax expense.

Current tax expense represents the expense relating to the expected taxable income at the applicable tax rate for the 
financial year. Deferred tax expense represents the tax expense in respect of the future tax consequences of recovering 
or settling the carrying amount of an asset or liability.

154 Stockland Annual Report 2023

Tax consolidation

Stockland Corporation Limited is head of the tax consolidated group which includes its wholly-owned Australian resident 
subsidiaries. As a consequence, all members of the tax consolidated group are taxed as a single entity.

Members of the tax consolidated group have entered into a tax sharing agreement and a tax funding arrangement. The 
arrangement requires that Stockland Corporation Limited assumes the current tax liabilities and deferred tax assets 
arising from unused tax losses, with payments to or from subsidiaries settled via intergroup loans. Any subsequent period 
adjustments are recognised by Stockland Corporation Limited only and do not result in further amounts being payable or 
receivable under the tax funding arrangement. The tax liabilities of the entities included in the tax consolidated group will 
be governed by the tax sharing agreement should Stockland Corporation Limited default on its tax obligations.

Trust

Under current Australian income tax legislation, Stockland Trust and its sub-trusts are not liable for income tax on their 
taxable income (including any assessable component of net capital gains) provided that the unitholders are attributed the 
taxable income of the Trust. Securityholders are liable to pay tax at their effective tax rate on the amounts attributed.

22. Deferred tax

As at 30 June

$M

Inventories

Investment properties

Property, plant and equipment

Payables

Retirement Living resident obligations

Provisions

Leases

Reserves

Tax losses carried forward

Tax assets/(liabilities)1

1 Totals may not add due to rounding.

Movement in temporary differences

Assets

Liabilities

Net

2023

2022

2023

2022

2023

2022

40

37

18

16

–

30

1

8

–

150

32

18

21

10

–

44

–

7

233

365

(68)

(115)

–

(9)

–

–

–

–

–

(60)

(112)

–

(1)

(185)

–

(1)

–

–

(28)

(78)

18

7

–

30

1

8

–

(192)

(359)

(42)

As at 30 June

Recognised in

Recognised in

$M

Inventories

Investment properties

Property, plant and equipment

Payables

Retirement Living resident obligations

Provisions

Leases

Reserves

Tax losses carried forward

Tax assets/(liabilities)1

1 Totals may not add due to rounding.

Stockland

2021

(132)

(341)

32

26

11

15

–

7

431

49

Retained
earnings

Profit or 
loss

2022

Retained
earnings

Profit or 
loss

–

–

–

–

–

–

–

–

–

–

104

247

(11)

(17)

(196)

29

(1)

–

(198)

(43)

(28)

(94)

21

9

(185)

44

(1)

7

233

6

–

–

–

–

–

–

–

–

–

–

–

16

(3)

(2)

185

(14)

2

1

(233)

(48)

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which 
the temporary differences can be utilised. Deferred tax is based on the expected manner of realisation or settlement of 
the carrying amount of assets and liabilities using the applicable tax rates.

Deferred tax arises due to temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following 
temporary differences:

Year ended 30 June 2023

155

C
o
n
t
e
n
t
s

F
Y
2
3
H
g
h

i

l
i

g
h
t
s

C
E
O

l
e
t
t
e
r
s

C
h
a
i
r

m
a
n

a
n
d

c
r
e
a
t
e

v
a
l
u
e

H
o
w
w
e

G
o
v
e
r
n
a
n
c
e

R
e
p
o
r
t

R
e
m
u
n
e
r
a
t
i
o
n

3
0
J
u
n
e

2
0
2
3

f
o
r

t
h
e
y
e
a
r
e
n
d
e
d

i

F
n
a
n
c
a
l

i

r
e
p
o
r
t

(28)

(94)

21

9

(185)

44

(1)

7

233

6

2023

(28)

(78)

18

7

–

30

1

8

–

(42)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

• initial recognition of goodwill;

• the initial recognition of assets or liabilities that affect neither accounting nor taxable profit (for example acquisition of

customer lists); and

• differences relating to investments in subsidiaries to the extent that they are unlikely to reverse in the foreseeable future.

Trust

There are no deferred tax assets or liabilities in the Trust. As the Trust limits its activities to deriving income from leasing 
Commercial Property and interest on the cross staple loan with Stockland Corporation, all of the Trust's taxable income 
each year is attributed to its investors and the Trust is not subject to tax. However, all of the annual taxable income is 
subject to tax in the hands of Stockland’s investors. The Trustee of Stockland Trust would be liable to pay tax to the extent 
that Stockland Trust does not distribute all of its ‘net income’, as determined under Stockland Trust’s trust deed.

156 Stockland Annual Report 2023

Group structure

In this section

This section provides information which will help users understand how Stockland's structure affects the financial
position and performance of Stockland as a whole. Stockland includes entities that are classified as joint ventures 
and joint operations.

Joint ventures are accounted for using the equity method, while joint operations are proportionately consolidated.

This section of the notes contains information about:

1. Interests in joint arrangements; and

2. Changes to the structure that occurred during the year as a result of business combinations or the disposal of a 

discontinued operation.

23. Equity-accounted investments

Stockland has interests in a number of joint ventures that are accounted for using the equity method. Stockland did not 
have investments in associates at 30 June 2023 or 30 June 2022.

A joint venture is an arrangement over whose activities Stockland has joint control, established by contractual agreement, 
where Stockland has rights to the net assets of the arrangement. Investments in joint ventures are accounted for on an 
equity-accounted basis. Investments in joint ventures are assessed for impairment when indicators of impairment are 
present and if required, written down to the recoverable amount.

Stockland’s share of the joint venture’s profit or loss and other comprehensive income is from the date joint control 
commences until the date joint control ceases. If Stockland’s share of losses exceeds its interest in a joint venture, the 
carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that Stockland has 
incurred legal or constructive obligations or made payments on behalf of the joint venture.

Transactions with the joint venture are eliminated to the extent of Stockland’s interest in the joint venture until such time 
as they are realised by the joint venture on consumption or sale. Additionally, Stockland's carrying amount and share 
of total comprehensive income from joint ventures are adjusted as required to align the accounting policies of the joint 
venture to Stockland's accounting policies.

A summary of Stockland's joint ventures and their primary activities are as follows:

Joint venture

Primary activities

Macquarie Park Trust

Also known as MPT, this joint venture owns and operates the Optus Centre in Macquarie Park, NSW. The Optus Centre is 
a 6-building campus style workplace asset.

Riverton Forum Pty Limited and 
Willeri Drive Trust

Riverton Forum Pty Ltd is the trustee of Willeri Drive Trust. Willeri Drive Trust owned Stockland Riverton, Riverton, WA. 
During the year the property was sold.

Stockland Fife Kemps 
Creek Trust

Also known as Fife Kemps Creek Trust, this joint venture is developing industrial build to hold assets in Kemps Creek, NSW.

Stockland FIfe Willawong Trust Also known as Fife Willawong Trust, this joint venture is developing industrial build to hold assets in Willawong, QLD.

Stockland Residential Rental 
Partnership Trust and SRRP 
Development Trust

Also known as SRRP, this joint venture is developing and operating Land Lease Communities. The Development Trust is 
responsible for the development activities and sale of houses, while the Partnership Trust owns the land on which the 
communities are being development and is responsible for operating the communities and collecting rental income.

The M_Park Trust

Also known as TMPT, this joint venture is developing the M_Park Stage One project at Macquarie Park, NSW as a build to 
hold asset. The project contains one data centre and three commercial office buildings.

C
o
n
t
e
n
t
s

F
Y
2
3
H
g
h

i

l
i

g
h
t
s

C
E
O

l
e
t
t
e
r
s

C
h
a
i
r

m
a
n

a
n
d

c
r
e
a
t
e

v
a
l
u
e

H
o
w
w
e

G
o
v
e
r
n
a
n
c
e

R
e
p
o
r
t

R
e
m
u
n
e
r
a
t
i
o
n

3
0
J
u
n
e

2
0
2
3

f
o
r

t
h
e
y
e
a
r
e
n
d
e
d

i

F
n
a
n
c
a
l

i

r
e
p
o
r
t

Year ended 30 June 2023

157

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

23A. Interest in joint ventures

The ownership interest and carrying amount in each joint venture is presented below:

Stockland

Ownership interest as at

Carrying amount as at

Share of total 
comprehensive income / 
(loss) for the period ended

Macquarie Park Trust

Riverton Forum Pty Limited

SRRP Development Trust

Stockland Fife Kemps 
Creek Trust

Stockland Fife Willawong Trust

Stockland Residential Rental 
Partnership Trust

The M_Park Trust

Willeri Drive Trust

Total

%

2023

51.0

50.0

50.1

50.0

50.0

50.1

51.0

50.0

%

2022

51.0

50.0

50.1

50.0

50.0

50.1

100.0

50.0

$M

2022

333

–

46

61

27

70

n/a

55

592

$M

2023

330

–

21

121

28

84

88

3

675

Trust

Ownership interest as at

Carrying amount as at

%

2023

51.0

50.0

50.0

50.0

50.1

51.0

50.0

%

2022

51.0

50.0

50.0

50.0

50.1

100.0

50.0

$M

2023

336

–

121

28

85

88

3

662

$M

2022

339

–

61

27

70

n/a

55

553

Macquarie Park Trust

Riverton Forum Pty Limited

Stockland Fife Kemps 
Creek Trust

Stockland Fife Willawong Trust

Stockland Residential Rental 
Partnership Trust

The M_Park Trust

Willeri Drive Trust

Total1

1 Totals may not add due to rounding.

Changes to joint ventures

$M

2023

15

–

43

–

1

(13)

36

2

84

$M

2022

49

–

–

–

–

(13)

n/a

4

40

Share of total 
comprehensive income / 
(loss) for the period ended

$M

2023

$M

2022

15

–

–

1

(12)

(28)

2

(22)

49

–

–

–

(13)

n/a

4

40

During the year, Stockland sold 49.0% of its interest in The M_Park Trust (TMPT) to Ivanhoé Cambridge.

There were no other changes to the above list of investments in joint ventures during the year.

158 Stockland Annual Report 2023

23B. Summary of financial information for joint ventures and associates

The tables below provide summarised financial information for all joint ventures in the Group. The information disclosed reflects the amounts presented in the financial statements of 
the relevant joint ventures and not Stockland’s share of those amounts. They have been amended to reflect adjustments made by Stockland when using the equity method, including 
fair value adjustments and modifications for differences in accounting policies.

As at 30 June

$M
Cash and cash equivalents

Inventories

Other current assets

Current assets

Inventories

Investment properties

Other non-current assets

Non–current assets

Assets

Other current liabilities

Current liabilities

Borrowings

Other non-current liabilities

Non–current liabilities

Liabilities

Net assets

Reconciliation to carrying amounts

Opening balance

Capital contributions

Total comprehensive profit/(loss) for the year

Distributions paid

Net assets at 30 June2

% ownership

Group's share of net assets2

Adjustments on consolidation with Trust

Carrying amount Trust2

Adjustments on consolidation with Stockland

Carrying amount Stockland2

Macquarie 
Park Trust

Fife Kemps 
Creek Trust

SRRP Trust1

2023
9

2022
2

2023
2

2022
24

2023
15

2022
4

–

1

10

–

724

28

752

762

5

5

–

99

99

104

658

665

–

30

(37)

658

51.0

336

–

336

(6)

330

–

–

2

–

720

24

744

746

7

7

–

74

74

81

–

–

2

–

241

–

241

243

1

1

–

–

–

1

665

242

608

–

96

(39)

665

51.0

339

–

339

(6)

333

122

120

–

–

242

50.0

121

–

121

–

121

–

16

40

–

240

–

240

280

158

158

–

–

–

158

122

21

101

–

–

122

50.0

61

–

61

–

61

–

2

17

–

291

98

389

406

21

21

216

–

216

237

169

142

53

(25)

(1)

169

50.1

85

–

85

(1)

84

–

27

31

–

170

–

170

201

4

4

55

–

55

59

142

–

168

(26)

–

142

50.1

70

–

70

–

70

SRRP 
Development 
Trust

TMPT

Other 
joint ventures

Total

2023
52

179

17

248

–

–

–

–

248

74

74

98

–

98

172

76

92

–

46

(62)

76

50.1

38

n/a

n/a

(17)

21

2022
55

2023
5

2022
n/a

2023
1

2022
1

2023
84

2022
86

105

9

169

–

–

–

–

169

78

78

–

–

–

78

91

n/a

92

–

–

92

50.1

46

n/a

n/a

–

46

–

–

5

–

391

–

391

396

93

93

130

–

130

223

173

–

228

(55)

–

173

51.0

88

–

88

–

88

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

–

14

15

–

37

18

55

70

1

1

–

–

–

1

69

162

–

5

(98)

69

n/a

35

(4)

31

(4)

31

–

12

13

–

149

1

150

163

1

1

–

–

–

1

162

154

8

8

(8)

162

n/a

82

–

82

–

82

179

34

297

–

1,684

144

1,828

2,125

195

195

444

99

543

738

1,387

1,183

401

1

(198)

1,387

n/a

703

(4)

662

(28)

675

105

64

255

–

1,279

25

1,304

1,559

248

248

55

74

129

377

1,182

783

369

78

(47)

1,183

n/a

598

–

553

(6)

592

1 Legal entity name is Stockland Residential Rental Partnership Trust.
2 Totals may not add due to rounding.

Year ended 30 June 2023

159

u

n

e

2

0

2

3

y

e

a

r

e

n

d

e

d

e

p

o

r

t

 
 
 
 
Financial report for the year ended 30 June 2023

Year ended 30 June

$M

Revenue

Cost of property developments sold

Net change in fair value of investment properties

Net finance income/(expense)

Other expenses

Profit/(loss) after tax2

Total comprehensive income/(loss)

% ownership

Group's share of total comprehensive income/(loss)2

Adjustments on consolidation with Trust

Trust's share of profits/(losses) from equity 
accounted investments

Adjustments on consolidation with Stockland

Stockland's share of profits/(losses) from equity 
accounted investments

1 Legal entity name is Stockland Residential Rental Partnership Trust.
2 Totals may not add due to rounding.

Macquarie 
Park Trust

Fife Kemps 
Creek Trust

SRRP Trust1

SRRP 
Development 
Trust

TMPT

Other joint 
ventures

Total

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

41

–

–

(5)

(6)

30

30

51.0

15

–

15

–

15

40

–

63

(1)

(6)

96

96

51.0

49

–

49

–

49

–

–

–

–

–

–

–

–

–

–

–

–

–

–

16

–

(24)

(7)

(10)

(25)

(25)

1

–

(15)

–

(12)

(26)

(26)

50.0

50.0

50.1

50.1

–

–

–

–

–

–

–

–

–

–

(12)

–

(12)

(1)

(13)

(13)

–

(13)

–

(13)

249

(187)

–

–

(16)

46

46

50.1

23

n/a

n/a

20

43

24

(18)

–

–

(7)

(1)

(1)

50.1

–

n/a

n/a

–

–

2

–

(55)

–

(2)

(55)

(55)

51.0

(28)

–

(28)

64

36

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

10

–

2

–

(7)

5

5

16

–

(1)

–

(6)

9

9

318

(187)

(77)

(12)

(41)

1

1

81

(18)

47

(1)

(31)

78

78

n/a

n/a

n/a

n/a

3

–

3

–

3

4

–

4

–

4

1

–

(22)

83

84

40

–

40

–

40

160 Stockland Annual Report 2023

24. Joint operations

A subsidiary of Stockland has a 50% interest in a joint arrangement called the Aura Co-Venture which was set up as a 
partnership to develop the Aura masterplanned residential community on the Sunshine Coast, QLD. It is a for-profit joint 
operation. This joint operation is unincorporated and domiciled in Australia.

Interests in unincorporated joint operations are consolidated by recognising Stockland’s proportionate share of the joint 
operations’ assets, liabilities, revenues and expenses on a line-by-line basis, from the date joint control commences to the 
date joint control ceases and are not included in the above table.

25. Controlled entities

The following entities were 100% controlled during the current and prior years:

Controlled entities of Stockland Corporation Limited

Albert & Co Pty Ltd1

Armstrong Creek Pty Ltd1

AW Bidco 1 Pty Limited1

AW Bidco 2 Pty Limited1

AW Bidco 4 Pty Limited1

AW Bidco 5 Pty Limited1

AW Bidco 6 Pty Limited1

AW Bidco No. 7 Pty Limited

AW Bidco No. 8 Pty Limited

AW Bidco No. 9 Pty Limited

AW Bidco No. 10 Pty Limited

AW Bidco No. 11 Pty Limited

AW Bidco No. 12 Pty Limited

Stockland Development (PR4) Pty Limited

Stockland Development (Sub3) Pty Limited

Stockland Development (Sub4) Pty Limited

Stockland Development (Sub5) Pty Limited

Stockland Development (Sub7) Pty Limited1

Stockland Development Holding Trust

Stockland Development Pty Limited1

Stockland Eurofinance Pty Limited1

Stockland Financial Services Pty Limited1

Stockland Highett Pty Limited

Stockland Highlands Pty Limited1

Stockland Kawana Waters Pty Limited1

Stockland Lake Doonella Pty Limited1

AW Bidco No. 13 (NSW) Pty Limited

Stockland Land Lease Communities Holdings Pty Limited1

Compam Property Management Pty Limited

Stockland Land Lease Landlord Pty Limited1

Eisha Pty Ltd

Enaard Pty Ltd

Endeavour (No. 2) Unit Trust

Glengar Capital Pty Limited

Glenmore Park Investments Pty Limited

Halcyon Constructions QLD Pty Ltd1

Halcyon Resales Pty Ltd1

Halcyon Resales Unit Trust

Halcyon TF Pty Ltd1

Jimboomba Trust

JT Bid Co No. 1 Pty Limited

JT Bid Co No. 2 Pty Limited

LAB-52 Bricklet Pty Limited

LAB-52 Holdings Pty Limited

LAB-52 SMRTR Pty Limited

LAB-52 Yodel Pty Limited

Mayflower Investments Pty Ltd1

Merrylands Court Pty Limited

Mulgoa Nominees Pty Limited

Northpoint No. 1 Trust

Northpoint No. 2 Trust

Northpoint No. 3 Trust

Northpoint No. 4 Trust

Stockland Land Lease Management Pty Limited1

Stockland Lensworth Glenmore Park Limited1

Stockland LLC Aura Pty Limited1

Stockland LLC B by Halcyon Trust

Stockland LLC Burpengary Trust

Stockland LLC Curlewis Trust

Stockland LLC Evergreen Trust

Stockland LLC General Pty Limited1

Stockland LLC Glades Trust

Stockland LLC Greens Trust

Stockland LLC Lakeside Trust

Stockland LLC Landing Trust

Stockland LLC No. 2 Pty Ltd1

Stockland LLC No. 3 Pty Ltd1

Stockland LLC No. 4 Pty Ltd1

Stockland LLC Parks Trust

Stockland LLC Peregian Beach Trust

Stockland LLC Piara Waters Trust

Stockland LLC Providence Pty Limited1

Stockland LLC Pty Limited1

Stockland LLC Rendezvous Road Trust

Stockland LLC Rise Trust

Stockland LLC SLC SPV Pty Limited1

C
o
n
t
e
n
t
s

F
Y
2
3
H
g
h

i

l
i

g
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Year ended 30 June 2023

161

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Northpoint No. 5 Trust

Northpoint No. 6 Trust

Nowra Property Unit Trust

S1 Commercial Property Pty Limited

S1 Communities Pty Limited

S2 Commercial Property Pty Limited

S2 Communities Pty Limited

S3 Commercial Property Pty Limited

S3 Communities Pty Limited

S4 Commercial Property Pty Limited

S4 Communities Pty Limited

Stockland LLC St Germain Trust

Stockland LLC Vision Trust

Stockland LLC Waters Trust

Stockland Management Limited

Stockland Mature Holding Trust

Stockland Miami (Fund) Unit Trust

Stockland Miami (Non–Fund) Unit Trust

Stockland Miami (QLD) Pty Limited1

Stockland MPC Hold Co Pty Ltd

Stockland MPC Mid Co Pty Ltd

Stockland North Boambee Valley LLC Trust

S5 Commercial Property Pty Limited

Stockland North Lakes Development Pty Limited1

S5 Communities Pty Limited

SCP Hold Co Pty Ltd

SCP Lyra Pty Ltd

SCP Victoria Pty Ltd

Stockland (Boardwalk Sub 2) Pty Limited

Stockland (Queensland) Pty. Limited1

Stockland (Russell Street) Pty Limited1

Stockland North Lakes Pty Limited1

Stockland Ormeau Trust

Stockland PR1 Trust

Stockland PR2 Trust

Stockland PR3 Trust

Stockland PR4 Trust

Stockland Property Management Pty Ltd1

Stockland A.C.N 116 788 713 Pty Limited1

Stockland Retail Services Pty Limited1

Stockland Aevum SPV Finance No. 1 Pty Limited

Stockland Retain (Retirement) Pty Limited1

Stockland Affinity Retirement Village Pty Limited

Stockland Richmond Retirement Village Pty Limited

Stockland Armstrong Creek LLC Trust

Stockland Bells Creek Pty Limited1

Stockland Berwick LLC Trust

Stockland RRP No. 1 Pty Limited1

Stockland Scrip Holdings Pty Limited

Stockland Services Pty Limited1

Stockland Birtinya Retirement Village Pty Limited1

Stockland Singapore Pte Ltd

Stockland Buddina Pty Limited1

Stockland South Beach Pty Limited1

Stockland Caboolture Waters Pty Limited1

Stockland Syndicate No. 1 Trust

Stockland Caloundra Downs Pty Limited1

Stockland The Grove Retirement Village Pty Limited

Stockland Capital Partners Limited

Stockland Town Centres Pty Ltd

Stockland Care Foundation Pty Limited

Stockland Trust Management Limited

Stockland Care Foundation Trust

Stockland CH Finance Pty Limited

Stockland Urban Development Pty Limited

Stockland WA (Estates) Pty Limited1

Stockland Communities Partnership Pty Ltd

Stockland WA Development (Realty) Pty Limited1

Stockland Development (Holdings) Pty Limited1

Stockland WA Development (Vertu Sub 1) Pty Limited

Stockland Development (NAPA NSW) Pty Limited1

Stockland WA Development Pty Limited1

Stockland Development (NAPA QLD) Pty Limited1

Stockland Wallarah Peninsula Management Pty Limited1

Stockland Development (NAPA VIC) Pty Limited1

Stockland Wallarah Peninsula Pty Limited1

Stockland Development (PHH) Pty Limited1

Stockland Wholesale Funds Management Pty Limited1

Stockland Development (PR1) Pty Limited

Stockland Willawong Industrial Pty Ltd

Stockland Development (PR2) Pty Limited

Toowong Place Pty Limited

Stockland Development (PR3) Pty Limited

1 These entities are parties to the Deed of Cross Guarantee and members of the Closed Group as at 30 June 2023.

Controlled entities of Stockland Trust

9 Castlereagh Street Unit Trust

Acimon Pty Ltd

ADP Trust

Advance Property Fund

Advance Property Fund No. 2

162 Stockland Annual Report 2023

Stockland CRE Medical Trust

Stockland Direct Diversified Fund

Stockland Direct Office Trust No. 4

Stockland Direct Retail Trust No. 3

Stockland Eastern Creek Trust

AVMW Pty Ltd

Baratheon Developments Pty Ltd

Capricornia Property Trust

Caitjan Pty Ltd

CP Trust No. 4 Trust

CP Trust No. 5 Trust

CP Trust No. 6 Trust

Endeavour (No. 1) Unit Trust

Eriwill Pty Limited

Faxrow Pty Limited

Flinders Industrial Property Trust

Stockland Finance Holdings Pty Limited1

Stockland Finance Pty Limited1

Stockland Gables Retail Trust

Stockland Harrisdale Trust

Stockland Industrial No. 1 Property 1 Trust

Stockland Industrial No. 1 Property 4 Trust

Stockland Industrial No. 1 Property 5 Trust

Stockland Industrial No. 1 Property 6 Trust

Stockland Industrial No. 1 Property 7 Trust

Stockland Industrial No. 1 Property 8 Trust

Stockland Industrial No. 1 Property 9 Trust

Flinders Industrial Property Subtrust (No. 1)

Stockland Industrial No. 1 Property 11 Trust

Hervey Bay Holding Trust

Hervey Bay Sub Trust

Horlyd Pty Ltd

Industrial Property Trust

Stockland JV Trust

Stockland Kemps Creek Industrial Trust

Stockland Leppington Industrial Trust

Stockland Logistics Capital Partnership Trust

Jimboomba Village Shopping Centre and Tavern Trust

Stockland Logistics Trust

Landdoc Pty Ltd

Marinatas Pty Ltd

Mariste Pty Ltd

Mattlix Pty Ltd

Moncas Pty Ltd

Pallawell Pty Ltd

Racjen Pty Ltd

Rigburn Pty Limited

Sandtor Pty Ltd

SDOT 4 Property # 1 Trust

SDOT 4 Property # 2 Trust

SDOT 4 Property # 3 Trust

SDRT1 Property # 3 Trust

SDRT3 Property # 1 Trust

SDRT3 Property # 2 Trust

SDRT3 Property # 3 Trust

Sequoia Victoria Trust

Sequoia Victoria Trust No. 2

Shellharbour Property Trust

Stockland 161 Walker Street Trust

Stockland Marrickville Unit Trust

Stockland Mornington Unit Trust

Stockland Mt Atkinson Industrial Trust

Stockland Mulgrave Unit Trust

Stockland North Ryde Unit Trust

Stockland Padstow Trust

Stockland Padstow Unit Trust

Stockland Parkinson Unit Trust

Stockland Quarry Road Trust

Stockland Retail Holding Sub-Trust No. 1

Stockland Retail Holding Trust No. 1

Stockland Richlands Unit Trust

Stockland RRP Holding Trust

Stockland Sienna Wood Retail Trust

Stockland St Marys Unit Trust

Stockland Tingalpa Unit Trust

Stockland Truganina Industrial Trust

Stockland Walker Street Trust

Stockland Wholesale Office Trust No. 1

Stockland Wholesale Office Trust No. 2

Stockland Baringa Shopping Centre Trust

Stockland Willawong Industrial Trust

Stockland Bayswater Unit Trust

Stockland Willawong Industrial Trust No. 2

Stockland Birtinya Shopping Centre Trust

Stockland Willawong Industrial Trust No. 3

Stockland Brooklyn Industrial Trust

Stockland Wonderland Drive Property Trust

Stockland Bundaberg Trust

Stockland Castlereagh Street Trust

Stockland Community Real Estate Trust

Stockland CP Acquisition Trust

Stockland CPR Industrial Trust

Stockland CRE Childcare Trust

Stockland CRE Holding Trust

Stockland Yatala Industrial Trust

Sugarland Shopping Centre Trust

SWOT2 Sub Trust No. 1

SWOT2 Sub Trust No. 2

SWOT2 Sub Trust No. 3

Tianmar Pty Ltd

1 These entities are parties to the Deed of Cross Guarantee (Finance) as at 30 June 2023.

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Year ended 30 June 2023

163

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

26. Deed of cross guarantee

Stockland Corporation Limited and certain wholly-owned companies (the Closed Group, also the Extended Closed Group) 
are parties to a Deed of Cross Guarantee (the Deed). The effect of the Deed is that the members of the Closed Group 
guarantee to each creditor payment in full of any debt in the event of winding-up of any of the members under certain 
provisions of the Corporations Act 2001.

ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 provides relief to parties to the Deed from the 
Corporations Act 2001 requirements for preparation, audit, and lodgement of Financial Reports and Directors’ reports, 
subject to certain conditions as set out therein.

Pursuant to the requirements of this instrument, a summarised consolidated balance sheet as at 30 June 2023 and 
consolidated statement of comprehensive income for the year ended 30 June 2023, comprising the members of the 
Closed Group after eliminating all transactions between members, are set out on the following pages.

Summarised consolidated balance sheet

As at 30 June

$M

Cash and cash equivalents

Receivables

Inventories

Other assets

Current assets

Receivables

Inventories

Investment properties

Equity–accounted investments

Other financial assets

Property, plant and equipment

Intangible assets

Deferred tax assets

Other assets

Non–current assets

Assets

Payables

Borrowings

Provisions

Other liabilities

Current tax liabilities

Current liabilities

Payables

Borrowings

Provisions

Other liabilities

Non–current liabilities

Liabilities

Net assets

Issued capital

Reserves

Accumulated losses

Securityholders’ equity

Closed Group

2023

20221

1

193

785

46

1,025

53

2,584

584

15

42

15

62

–

14

3,369

4,394

174

–

257

31

30

492

140

2,834

242

429

3,645

4,137

257

1,311

3

(1,057)

257

22

115

693

59

889

46

2,647

2,623

46

39

86

65

6

20

5,578

6,467

266

2,602

221

1,469

–

4,558

308

–

307

468

1,083

5,641

826

1,311

2

(487)

826

1 Balances at 30 June 2022 include the entities disposed in the sale of the Retirement Living Business on 29 July 2022 which were party to the Deed of 

Cross Guarantee for the year.

164 Stockland Annual Report 2023

Summarised consolidated statement of comprehensive income

Year ended 30 June

$M

Profit before tax

Income tax

Profit after tax

Other comprehensive income

Total comprehensive income

Closed Group

20231

20221

152

(78)

74

–

74

17

(43)

(26)

–

(26)

1 Balances include the entities disposed in the sale of the Retirement Living Business on 29 July 2022 which were party to the Deed of Cross Guarantee 

for the year.

Summarised movement in consolidated accumulated losses

As at 30 June

$M

Opening balance

Adjustment for entities added/removed

Profit after tax

Accumulated losses at 30 June

Closed Group

2023

(487)

(644)

74

(1,057)

20221

(307)

(144)

(36)

(487)

1 Balances at 30 June 2022 include the entities disposed in the sale of the Retirement Living Business on 29 July 2022 which were party to the Deed of 

Cross Guarantee for the year.

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Year ended 30 June 2023

165

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

27. Parent entity disclosures

$M

Results for the year ended 30 June

Profit/(loss) for the year

Other comprehensive income

Total comprehensive income

Financial position as at 30 June

Current assets

Assets1

Current liabilities

Liabilities

Net assets

Issued capital

Other Reserves

(Accumulated losses)/retained earnings

Equity

1 There were no intangible assets as at 30 June 2023 (2022: $nil).

Parent entity contingencies

Stockland 
Corporation Limited

Stockland Trust

2023

2022

2023

2022

(77)

–

(77)

3,781

3,834

1,423

2,941

893

1,298

(6)

(399)

893

(46)

–

(46)

3,895

4,745

1,730

3,764

981

1,298

5

(322)

981

206

(2)

204

363

24,472

10,918

14,763

9,709

7,342

93

2,274

9,709

1,398

34

1,432

3,473

24,801

11,665

15,355

9,446

7,348

28

2,070

9,446

There are no contingencies within either parent entity as at 30 June 2023 (2022: $nil).

Parent entity capital commitments

Neither parent entity has entered into any capital commitments as at 30 June 2023 (2022: $nil).

ASIC Deed of Cross Guarantee

Stockland Corporation Limited has entered into a Deed of Cross Guarantee with the effect that it has guaranteed debts 
in respect of its subsidiaries. Further details of the Deed of Cross Guarantee and the subsidiaries subject to the deed are 
disclosed in notes 25 and 26. Stockland did not enter into any other guarantees of debt in respect of subsidiaries during 
the year ended 30 June 2023.

166 Stockland Annual Report 2023

Other items

In this section

This section includes information about the financial performance and position of Stockland that must be disclosed 
to comply with the Accounting Standards, the Corporations Act 2001, or the Corporations Regulations 2001.

28. Notes to the consolidated statement of cash flows

28A. Reconciliation of profit after tax to net cash flows from operating activities

$M

Profit after tax

Adjustments for:

Net impact on fair value hedges

Net impact on derivatives

Interest capitalised to investment properties

Net impact on sale of non–current assets

Net (gain)/loss on other financial assets

DMF base fee earned, unrealised

Net additional/(release of) inventories impairment provision

Depreciation and amortisation

Straight–line rent adjustments

Net unrealised change in fair value of investment properties

Share of profits of equity-accounted investments, net of 
distributions received

Equity–settled security based payments

Other items

Adjustments for movements in:

Receivables

Other assets

Inventories

Deferred tax liabilities

Current tax liabilities

Payables and other liabilities

Resident obligations (net of impact of village disposals)

Other provisions

Net cash flows from operating activities

Less: cash flows relating to discontinued operations held for sale

Net cash flows from operating activities from continuing operations

Stockland

20231

440

20221

1,381

Trust

20231

201

20221

1,390

10

(19)

(19)

(13)

(1)

(7)

26

17

10

256

97

18

(2)

(225)

52

(91)

48

30

(263)

2

(34)

332

–

332

(2)

(178)

(14)

(22)

–

(28)

(6)

17

5

(685)

(15)

13

24

11

23

(414)

43

–

325

290

150

918

(198)

720

10

(19)

(18)

(5)

–

–

–

–

10

288

110

16

4

51

26

–

–

–

(6)

–

(1)

667

–

667

(2)

(178)

(12)

(20)

–

–

–

–

(2)

(682)

(16)

13

–

41

29

–

–

–

(33)

–

20

548

–

548

1 Amounts include cash flows relating to both continuing and discontinued operations. Net cash flows relating to discontinued operation has been disclosed 

in note 14A.

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Year ended 30 June 2023

167

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

28B. Reconciliation of movement in financial liabilities arising from financing activities

As at 30 June

$M

Offshore medium term notes

Domestic medium term notes and 
commercial paper

Bank facilities

2023

Offshore medium term notes

Domestic medium term notes and 
commercial paper

Bank facilities

2022

Stockland and Trust

Non cash movements

Opening 
balance

Net cash 
flow

Foreign 
exchange
movements

Fair value 
changes1

Closing 
balance

3,087

840

545

4,472

3,932

747

75

4,754

(14)

(93)

(470)

(577)

(641)

93

470

(78)

1

–

–

1

(6)

–

–

(6)

11

–

–

11

(198)

–

–

(198)

3,085

747

75

3,907

3,087

840

545

4,472

1

Includes amortisation of capitalised transaction costs.

29. Commitments

Capital expenditure commitments

Commitments for acquisition of land and future development costs not recognised on balance sheet at reporting date are 
as follows:

As at 30 June

$M

Inventories

Investment properties

Capital expenditure commitments

Stockland

Trust

2023

2022

2023

2022

569

286

855

427

334

761

–

286

286

–

311

311

Joint venture and associate capital expenditure commitments

The above commitments include capital expenditure commitments for joint Ventures of $92 million (2022: $163 million) 
relating to The M_Park Trust, $73 million (FY22: $nil) capital expenditure commitments relating to SRRP and $7 million 
(2022: $13 million) capital expenditure commitments relating to Macquarie Park Trust.

30. Contingent liabilities

Keeping it simple

A contingent liability is a liability that is not sufficiently certain to qualify for recognition as a provision where 
uncertainty may exist regarding the outcome of future events.

Contingent liabilities at 30 June 2023 comprise bank guarantees, letters of credit, property indemnities and insurance 
bonds issued to local government and other authorities against performance contracts. Stockland maintains a facility 
for contingent liabilities with a limit of $1,500 million (30 June 2022: $1,275 million). The amounts currently issued are 
as follows:

As at 30 June

$M

Contingent liabilities

168 Stockland Annual Report 2023

Stockland and Trust

2023

549

2022

605

31. Related party disclosures

Year ended 30 June

$’000s

Responsible Entity fees

Development management and service fee

Property management, tenancy design and leasing fees

Rental income

Finance income

Revenue from related parties

Responsible Entity fees

Property management, tenancy design and leasing fees

Recoupment of expenses

Development management fee capitalised to investment property

Expenses to related parties

Responsible Entity, management and other fees

Stockland

Trust

2023

126

71,626

1,113

–

–

2022

120

2,503

1,246

–

–

72,865

3,869

–

–

–

–

–

–

–

–

–

–

2023

2022

–

–

–

14,569

224,637

239,206

37,560

26,389

72,114

6,285

142,348

–

–

–

14,096

191,248

205,344

38,477

24,508

60,004

3,036

126,025

Stockland received Responsible Entity, management, and other fees from capital partnerships and joint ventures managed 
by Stockland during the financial year.

The Trust pays responsible entity fees to Stockland Trust Management Limited, calculated at 0.30 to 0.35% of gross assets 
of the Trust less intergroup loans (2022: 0.30 to 0.35%).

Property management expenses and tenancy design fees were paid by the Trust to Stockland Trust Management 
Limited (the Responsible Entity) or its related parties provided in the normal course of business and on normal terms 
and conditions.

Rental income

Rent was paid by Stockland Corporation Limited, a related party of the Responsible Entity, to Stockland Trust in the normal 
course of business and on normal terms and conditions.

Finance income

The Trust has an unsecured loan to Stockland Corporation Limited of $2,283 million (2022: $2,961 million) repayable in 
June 2030. Interest on the loan is payable monthly in arrears at interest rates within the range of 7.23% - 10.06% during the 
year ended 30 June 2023 (2022: 6.06% - 7.24%).

Interest was paid by Stockland Corporation Limited to Stockland Trust, a related party of the Responsible Entity, provided 
in the normal course of business and on normal terms and conditions.

Development Management Fee

A development management deed was executed between Stockland Trust and Stockland Development Pty Limited (a 
controlled entity of Stockland Corporation Limited) effective 1 July 2012 in relation to a management fee in respect 
of Commercial Property developments. The fee represents remuneration for the Corporation’s property development 
expertise and for developments which commenced after 1 July 2016. It is calculated based on a fixed 4% of total 
development costs in line with recent changes to benchmark methodologies (for developments which commenced prior 
to 1 July 2016, the fee is calculated as 50% of the total valuation gain or loss on the completion of a development). Fees 
are paid by Stockland Trust to Stockland Development Pty Limited.

Capital partnering fees

A number of Stockland consolidated entities provide services to capital partnerships which include the SRRP and TMPT 
partnerships. In exchange for those services Stockland is entitled to fees, including investment management, development 
management, and other capital partnership fees. During the year, fund through fees of $38 million (2022: $nil) and 
management fees of $34 million (2022: $1 million) were recognised from capital partnerships.

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Year ended 30 June 2023

169

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

32. Personnel expenses

Year ended 30 June

$M

Wages and salaries (including on–costs)

Equity–settled security based payment transactions

Contributions to defined contribution plans

Movement in annual and long service leave provisions

Personnel expenses

Personnel expenses

Stockland

Trust

2023

270

18

18

4

310

2022

247

13

17

6

283

2023

2022

–

–

–

–

–

–

–

–

–

–

The total personnel expenses for the year was $310 million (2022: $283 million), which includes $18 million of equity-
settled security based payment transactions (2022: $13 million).

Annual leave

Accrued annual leave is presented in current liabilities as Stockland does not have an unconditional right to defer 
settlement for any of these obligations. Based on past experience, Stockland expects all employees to take the full amount 
of accrued leave within the next 12 months.

Long service leave

The current portion of long service leave includes all unconditional entitlements where employees have completed the 
required period of service and also those where employees are entitled to pro rata payments in certain circumstances.

The liability for long service leave expected to be settled more than 12 months from the balance date is recognised in 
the provision for employee benefits and measured as the present value of expected payments to be made in respect of 
services provided by employees up to the balance date.

Consideration is given to expected future wage and salary levels, past experience of employee departures and periods of 
service. Expected future payments are discounted using market yields at the balance date on corporate bonds with terms 
to maturity that match, as closely as possible, the estimated future cash outflows.

Bonus entitlements

A liability is recognised in current trade and other payables for employee benefits in the form of employee bonus 
entitlements where there is a contractual obligation or where there is a past practice that has created a constructive 
obligation. Liabilities for employee bonus entitlements are expected to be settled within 12 months and are measured at 
the amounts expected to be paid when they are settled.

Superannuation plan

Stockland contributes to employee defined contribution superannuation plans. Contributions are recognised as a 
personnel expense as they are incurred.

33. Key management personnel disclosures

Year ended 30 June

$000’s

Short term employee benefits

Post–employment benefits

Other long term benefits

Termination benefits

Security based payments

Key management personnel compensation

Stockland

Trust

2023

10,632

256

72

–

5,343

16,303

2022

10,643

246

13

633

4,397

15,932

2023

2022

–

–

–

–

–

–

–

–

–

–

–

–

Information regarding individual Directors’ and Executives’ remuneration is provided in the remuneration report on pages 
78 to 99 of the Directors’ report.

Other transactions with key management personnel

There are transactions between Stockland and entities with which key management personnel have an association. These 
transactions do not meet the definition of related parties since the key management personnel as individuals are not 
considered to have control or significant influence over the financial or operating activities of the respective non-Stockland 
entities. Furthermore, the terms and conditions of those transactions were no more favourable than those available, or 

170 Stockland Annual Report 2023

might reasonably be available, on similar transactions to non-key management personnel related entities on an arm’s 
length basis.

34. Auditor's remuneration

Year ended 30 June

$000’s

PricewaterhouseCoopers Australia

Audit and review of financial report

Audit of unlisted property fund financial reports

Regulatory audit and assurance services

Remuneration for audit services

Other non–audit services

Remuneration for non–audit services

Auditor remuneration

Stockland

Trust

2023

2022

2023

2022

2,053

213

464

2,730

107

107

2,837

2,284

135

628

3,047

158

158

3,205

625

–

340

965

–

–

965

607

–

314

921

–

–

921

Auditor’s fees are paid by Stockland Development Pty Limited on behalf of Stockland, except for audit fees which are paid 
by certain unlisted property funds.

35. Accounting policies

Keeping it simple

Accounting policies that apply to a specific category in the profit or loss or balance sheet have been included within 
the relevant notes.

The accounting policies listed below are those that apply across a number of Stockland's profit or loss and balance 
sheet categories and are not specific to a single category.

35A. Principles of consolidation

Controlled entities

The consolidated financial statements of Stockland incorporate the assets, liabilities, and results of all controlled entities.

Controlled entities are all entities over which the parent entities, Stockland or the Trust, are exposed to, or have a right to, 
variable returns from their involvement with the entity and have the ability to affect those returns through their power to 
direct the relevant activities of the entity.

Intergroup transactions, balances, and unrealised gains on transactions between controlled entities are eliminated. 
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.

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Transactions

Foreign currency transactions are translated into the entity’s functional currency at the exchange rate on the 
transaction date.

Assets and liabilities denominated in foreign currencies are translated to Australian dollars at balance date using the 
following applicable exchange rates:

Foreign currency amount

Monetary assets and liabilities

Non-monetary assets and liabilities measured at historical cost

Applicable exchange rate

Balance date

Date of transaction

Non-monetary assets and liabilities measured at fair value

Date fair value is determined

Foreign exchange differences arising on translation are recognised in the profit or loss.

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Year ended 30 June 2023

171

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

35B. Reserves

Security based payments reserve

The security based payments reserve arises due to the rights and deferred securities awarded under the LTI and DSTI plans 
being accounted for as security based payments. The fair value of the rights and deferred securities is recognised as an 
employee expense in profit or loss with a corresponding increase in the reserve over the vesting period. On vesting, the LTI 
and DSTI awards are settled by either an issue of securities or by allocating treasury securities to the rights holder and the 
cost to acquire the treasury securities is recognised in the security based payments reserve by a transfer from treasury 
securities. Where rights are forfeited due to failure to satisfy a service or performance condition, the cumulative expense is 
reversed through profit or loss in the current year. The cumulative expenditure for rights forfeited due to market conditions 
is not reversed.

Hedging reserve

The hedging reserve captures both cash flow hedges and fair value hedges.

Cash flow hedging

The hedging reserve is used to record the effective portion of changes in the fair value of derivatives that are designated 
and qualify as cash flow hedges. Refer to note 17.

Fair value hedging

The hedging reserve comprises the cumulative net change in the fair value of available for sale financial assets until the 
assets are derecognised or impaired.

36. Adoption of new and amended accounting standards

A. New and amended accounting standards adopted

AASB 2020-3 Amendments to Australian Accounting Standards - Annual Improvements 2018-2020 and 
Other Amendments

AASB 2020-3 Amendments to Australian Accounting Standards - Annual Improvements 2018-2020 and Other 
Amendments sets out a number of amendments to existing Accounting Standards. The amendments are effective 
for annual reporting periods beginning on or after 1 January 2022. The amendments did not have any impact on the 
amounts recognised in prior or current periods, and are not expected to significantly affect future periods.

B. Accounting standards issued but not yet in effect

A number of accounting standards have been issued but are not yet in effect for the current reporting period. Stockland 
has not elected to early adopt any accounting standards during the year.

AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current 
or Non-current

AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current 
provides clarity on the classification of liabilities as either current or non–current. The amendment requires a liability to 
be classified as current when companies do not have a substantive right to defer settlement at the end of the reporting 
period. The amendment is effective for annual reporting periods beginning on or after 1 January 2023, as revised in 
AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current – 
Deferral of Effective Date. Stockland has assessed the revised definition and does not currently expect any material impact 
on adoption.

AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and 
Definition of Accounting Estimates

AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of 
Accounting Estimates updates the concept of materiality in the context of financial statement disclosures and the level 
of disclosure required as a result of changes in accounting policies and estimates. The amendment is effective for annual 
reporting periods beginning on or after 1 January 2023. Stockland has assessed the impact of the standard, and expects 
that the level of accounting policy disclosures may need to increase for the financial statements for the year ending 
30 June 2024.

AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax Related to Assets and 
Liabilities Arising from a Single Transaction

AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from 
a Single Transaction modifies AASB 112 Income Taxes to clarify the treatment of deferred tax on transactions that, at the 
time of the transaction, give rise to equal taxable and deductible temporary differences. The amendment is effective for 

172 Stockland Annual Report 2023

annual reporting periods beginning on or after 1 January 2023. Stockland has assessed the impact of the standard and 
does not expect any immediate material impact. Each future transaction will be assessed on a case by case basis.

International Sustainability Standards Board - IFRS S1 General Requirements for Disclosure of 
Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures

The International Sustainability Standards Board (ISSB) is an initiative of the IFRS Foundation to establish a global 
framework for the disclosure of climate and sustainability information in financial reports. In June 2023, the ISSB released 
their first two sustainability standards, being IFRS S1 General Requirements for Disclosure of Sustainability-related 
Financial Information and IFRS S2 Climate-related Disclosures.

Similar to the accounting standards issued by the International Accounting Standards Board (IASB) with which Stockland 
complies, these standards will not be mandatory until they are adopted by the Australian Accounting Standards Board. 
Stockland will assess the impact of these standards once the Australian Accounting Standards Board issues the Australian 
equivalent to the ISSBs. Refer to Stockland's Climate Transition Action Plan released alongside the 30 June 2023 Annual 
Report for Stockland's assessment of climate risks and decarbonisation.

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Year ended 30 June 2023

173

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

Directors’ declaration

1. In the opinion of the Directors of Stockland Corporation Limited, and the Directors of the Responsible Entity of Stockland 

Trust, Stockland Trust Management Limited (collectively referred to as the Directors):

• the financial report and notes of the consolidated stapled entity, comprising Stockland Corporation Limited and its 
controlled entities and Stockland Trust and its controlled entities (Stockland), and Stockland Trust and its controlled 
entities (the Trust), set out on pages 101 to 173, are in accordance with the Corporations Act 2001, including:
• giving a true and fair view of Stockland’s and the Trust’s financial position as at 30 June 2023 and of their 

performance for the financial year ended on that date; and

• complying with Australian Accounting Standards and the Corporations Regulations 2001; and

• there are reasonable grounds to believe that both Stockland and the Trust will be able to pay their debts as and when 

they become due and payable.

2. There are reasonable grounds to believe that Stockland Corporation Limited and the Stockland entities identified in 
note 25 will be able to meet any obligations or liabilities to which they are or may become subject to by virtue of 
the Deed of Cross Guarantee between those Group entities pursuant to ASIC Corporations (Wholly-owned Companies) 
Instrument 2016/785.

3. Stockland Trust has operated during the year ended 30 June 2023 in accordance with the provisions of the Trust 

Constitution of 29 October 2013, as amended from time to time.

4. The Register of Unitholders has, during the year ended 30 June 2023, been properly drawn up and maintained so as to 

give a true account of the unitholders of Stockland Trust.

5. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Managing 

Director and Chief Financial Officer for the year ended 30 June 2023.

6. The Directors draw attention to the basis of preparation section to the financial statements, which includes a Statement 

of Compliance with International Financial Reporting Standards.

Signed in accordance with a resolution of the Directors:

Tom Pockett
Chairman

Tarun Gupta
Managing Director and CEO

Dated at Sydney, 24 August 2023

174 Stockland Annual Report 2023

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Year ended 30 June 2023

175

 PricewaterhouseCoopers, ABN 52 780 433 757 One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY  NSW  2001 T: +61 2 8266 0000, F: +61 2 8266 9999 Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124 T: +61 2 9659 2476, F: +61 2 8266 9999 Liability limited by a scheme approved under Professional Standards Legislation. Independent auditor’s report To the stapled securityholders of Stockland and Stockland Trust Group Report on the audit of the financial report Our opinion In our opinion: The accompanying financial report of Stockland, being the consolidated stapled entity, which comprises Stockland Corporation Limited and its controlled entities, and Stockland Trust and its controlled entities (together the “Stockland Trust Group” or the “Trust”) are in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the financial position of Stockland and the Stockland Trust Group financial position as at 30 June 2023 and of their financial performance for the year then ended  (b) complying with Australian Accounting Standards and the Corporations Regulations 2001. What we have audited The financial reports of Stockland and the Stockland Trust Group (collectively referred to as the “financial report”) comprise: ● the consolidated balance sheet as at 30 June 2023 ● the consolidated statement of comprehensive income for the year then ended ● the consolidated statement of changes in equity for the year then ended ● the consolidated statement of cash flows for the year then ended ● the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information ● the directors’ declaration. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of Stockland and the Stockland Trust Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

176 Stockland Annual Report 2023

 Our audit approach An audit is designed to provide reasonable assurance about whether the financial report is free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial report as a whole, taking into account the geographic and management structure of Stockland and the Stockland Trust Group, their accounting processes and controls and the industry in which they operate.  Materiality Audit scope Key audit matters ● For the purpose of our audit of Stockland and the Stockland Trust Group we used overall materiality of $42.35 million and $30.5 million, respectively, which represents approximately 5% of Funds from Operations. The metric is defined in note 2 of the financial report. ● We applied this threshold, together with qualitative considerations, to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial report as a whole. ● We chose Funds from Operations because, in our view, it is the primary metric against which the performance of Stockland and the Stockland Trust Group are ● Our audit focused on where Stockland and the Stockland Trust Group made subjective judgements; for example, significant accounting estimates involving assumptions and inherently uncertain future events. ● The audit team consisted of individuals with the appropriate skills and competencies needed for the audits, and this included industry expertise in real estate, as well as IT specialists, economists, valuation, tax and treasury professionals. ● Amongst other relevant topics, we communicated the following key audit matters to the Audit Committee: − Valuation of Investment properties − Carrying value of inventory and cost of property developments sold ● These are further described in the Key audit matters section of our report. C
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Year ended 30 June 2023

177

 most commonly measured in the industry. ● We chose 5% based on our professional judgement, noting that it is within the common range relative to profit-based benchmarks. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period and were determined separately for Stockland and the Stockland Trust Group. Relevant amounts listed for each part of the stapled group represent balances as they are presented in the financial report and should not be aggregated. The key audit matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit procedure is made in that context.  Key audit matter How our audit addressed the key audit matter Valuation of Investment properties (Refer to note 7)   Stockland’s ($10,532 million) and the Trust’s ($10,169 million) Investment Property portfolio consisted primarily of Commercial Property investment properties and Communities investment properties at 30 June 2023. Investment properties were valued at fair value as at reporting date using a combination of the income capitalisation, discounted cash flow and the direct comparison methods, as well as transaction prices where relevant. The value of investment properties was dependent on the valuation methodology adopted and the significant assumptions and inputs into the valuation model. Factors such as economic and operating conditions inform the reported valuations.  Amongst others, the following assumptions were key in establishing fair value: • net market rent • average market rental growth • capitalisation rate • discount rate • terminal yield.  At the end of each reporting period, the directors determine the fair value of the investment properties in accordance with their valuation policy as described in note 7. This was a key audit matter given: Our procedures, amongst others, included: • we developed an understanding of Stockland and the Stockland Trust Group’s processes and controls for determining the valuation of investment properties; • we assessed the scope, competence and objectivity of the independent valuation experts engaged by Stockland and the Stockland Trust Group to provide independent external valuations at reporting date; • we met with a sample of the independent external valuation experts used by Stockland and the Stockland Trust Group to develop an understanding of their methodology, data and assumptions; • we compared the valuation methodology adopted by Stockland and the Stockland Trust Group with commonly accepted valuation methodologies used in the real estate industry for investment properties; • we assessed the appropriateness of the considerations related to the impact of climate-related events on investment property valuations; • we agreed the rental income used in a sample of investment property valuations to relevant lease agreements and assessed the  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

178 Stockland Annual Report 2023

 Key audit matter How our audit addressed the key audit matter • the relative size of the investment properties portfolio to the net assets and related valuation movements, and • the inherent subjectivity of the key assumptions that underpin the valuation and the general market uncertainty.  appropriateness of a sample of income related assumptions; • we assessed the appropriateness of adopted capitalisation rates and discount rates for a sample of investment properties with reference to market data and comparable transactions, where possible; • we tested the mathematical accuracy of a sample of the investment property valuations; • we agreed the fair value of each investment property to the independent external valuation or Stockland’s internal tolerance checks, as applicable; • we assessed the reasonableness of the disclosures against the requirements of Australian Accounting Standards.  Carrying value of inventory and cost of property developments sold (Refer to note 6) Stockland Trust Group - this KAM is not applicable as the Trust does not hold inventory assets   Carrying value of inventory Stockland has a portfolio of development projects that it develops for future sale which are classified as inventory ($3,873 million). Stockland’s inventory is accounted for at the lower of the cost and net realisable value for each inventory project, as assessed at each reporting date as outlined in note 6. The cost of the inventory includes the cost of acquisition, development and other costs and interest capitalised.  The net realisable value (NRV) of inventory is the estimated selling price in the ordinary course of business less estimated costs of completion and costs to sell. The NRV is impacted by the current economic and operating environment.  Where an inventory project’s net realisable value is lower than its cost, the inventory project is written down to its net realisable value under Australian Accounting Standards.  Cost of property developments sold On settlement, all costs, including those spent to date and those forecast in the future, are proportionally allocated to each lot in line with net revenue and released from inventory to cost of sales based on the margin percentage for the relevant project.    Our procedures, amongst others, included: • we developed an understanding of Stockland’s processes and controls for determining the net realisable value (NRV) of inventory and the related forecast margin percentage that informs the cost of property developments sold; • we agreed a sample of additions included in inventory that related to the cost of the project (e.g. project development costs) to the relevant invoice to check the nature and amount of the costs capitalised. We also assessed the appropriateness of the interest capitalised;  • we agreed the carrying value of each of the projects to the accounting records and compared the carrying value to each project’s NRV; • we assessed the appropriateness of significant assumptions for a sample of Inventory projects, including engaging PwC Economists to assess the appropriateness of revenue and cost escalation assumptions; • we agreed a sample of recorded settlements to the underlying sale contracts and recalculated the related margin percentage recognised; C
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Year ended 30 June 2023

179

 Key audit matter How our audit addressed the key audit matter These were key audit matters given: • the relative size of the inventory balance to the net assets, and • Inherent subjectivity of the key assumptions that underpin the net realisable value, and the margin percentage recognised. • we assessed the appropriateness of the considerations related to the impact of climate-related events on the determination of NRV; • we assessed the reasonableness of the disclosures against the requirements of Australian Accounting Standards. Other information The Directors of Stockland Corporation Limited and the Directors of Stockland Trust Management Limited, the Responsible Entity for Stockland Trust (collectively referred to as the “Directors”) are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2023, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon through our opinion on the financial report. We have issued a separate opinion on the remuneration report. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the financial report The Directors are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the ability of Stockland and the Stockland Trust Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate Stockland and the Stockland Trust Group or to cease operations, or have no realistic alternative but to do so.   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial report for the year ended 30 June 2023

180 Stockland Annual Report 2023

Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor's report. Report on the remuneration report Our opinion on the remuneration report We have audited the remuneration report included in pages 81 to 99 of the directors’ report for the year ended 30 June 2023. In our opinion, the remuneration report of Stockland and the Stockland Trust Group for the year ended 30 June 2023 complies with section 300A of the Corporations Act 2001. Responsibilities The Directors are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.  PricewaterhouseCoopers Jane Reilly Sydney Partner 24 August 2023 Securityholder 
information 
and key dates

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Year ended 30 June 2023

181

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securityholder information and key dates

Securityholders

As at 31 July 2023, there were 2,387,171,662 securities on issue and the top 20 are securityholders set out in the 
table below.

Securityholders

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

J P MORGAN NOMINEES AUSTRALIA PTY LIMITED

CITICORP NOMINEES PTY LIMITED

NATIONAL NOMINEES LIMITED

BNP PARIBAS NOMS PTY LTD 

CITICORP NOMINEES PTY LIMITED 

BNP PARIBAS NOMINEES PTY LTD 

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 

E G HOLDINGS PTY LIMITED

MUTUAL TRUST PTY LTD

CPU SHARE PLANS PTY LTD 

IOOF INVESTMENT SERVICES LIMITED 

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2

ARGO INVESTMENTS LIMITED

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

NETWEALTH INVESTMENTS LIMITED 

BNP PARIBAS NOM (NZ) LTD 

BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM

WOODROSS NOMINEES PTY LTD

BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD 

Distribution of securityholders as at 31 July 2023

Number of 
securities held

per centage (per cent) of 
total securities

989,369,818

502,570,231

278,826,970

89,591,508

84,076,750

25,548,132

24,283,241

16,470,512

6,411,632

6,047,500

5,517,825

4,462,121

4,256,998

4,017,934

3,698,175

3,694,585

3,522,938

3,419,957

2,984,413

2,710,135

41.45

21.05

11.68

3.75

3.52

1.07

1.02

0.69

0.27

0.25

0.23

0.19

0.18

0.17

0.15

0.15

0.15

0.14

0.13

0.11

Number of securities held

Number of 
securityholders

Number of 
securities

per centage (per cent) of 
total securityholders

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 – over

15,229

20,971

8,380

6,583

6,572,935

56,519,481

60,889,587

140,097,471

189

2,123,092,188

0.28

2.37

2.55

5.87

88.94

There were 2,073 securityholders holding less than a marketable parcel (119) at close of trading on 31 July 2023.

Substantial securityholders as at 31 July 2023

Number of securities held

BlackRock Group (BlackRock Inc and Subsidiaries)

Vanguard Investments Australia Limited/Vanguard Group Inc.

State Street Corporate and subsidiaries

246,764,513

233,132,528

202,820,940

182 Stockland Annual Report 2023

 
General securityholder information

Attribution managed investment trust 
member annual statement

After the announcement of Stockland’s full year results, 
you will receive a comprehensive attribution managed 
investment trust member annual statement (AMMA 
statement). This statement summarises the distributions 
and dividends paid to you during the year, and includes 
information required to complete your tax return.

Head office

Level 25, 133 Castlereagh Street
Sydney NSW 2000

Toll free: 1800 251 813
Telephone: (61 2) 9035 2000

Stockland entities

Annual report

Securityholders have a choice of whether they receive:

• an electronic version of the Annual Report

• a printed copy of the Annual Report.

Registry

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

Custodian

The Trust Company Limited ACN 004 027 749

Computershare Investor Services Pty Limited operates a 
freecall number on behalf of Stockland. 
Contact Computershare on 1800 804 985 for:

• change of address details

Level 13, 123 Pitt Street
Sydney NSW 2000

Directors

• request to receive communications online

• request to have payments made directly to a 

Non-Executive Directors
• Tom Pockett – Chairman

bank account

• provision of tax ﬁle numbers

• general queries about your securityholding.

Dividend/distribution periods

• 1 July – 31 December

• 1 January – 30 June

Key dates

16 October 2023
Annual General Meeting

31 December 2023
Record date

22 February 2024
Half-year results announcement

30 June 2024
Record date

22 August 2024
Full-year results announcement

• Melinda Conrad

• Kate McKenzie

• Stephen Newton

• Christine O’Reilly

• Andrew Stevens

• Laurence Brindle

• Adam Tindall

Executive Directors
• Tarun Gupta – Managing Director and Chief 

Executive Officer

Company Secretary

• Katherine Grace

Auditor

PricewaterhouseCoopers

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Year ended 30 June 2023

183

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securityholder information and key dates

Share/unit registry

Computershare Investor Services Pty Limited
Level 3, 60 Carrington Street Sydney NSW 2000
Freecall: 1800 804 985 
Telephone: (61 3) 9415 4000 
Email: stockland@computershare.com.au

Your securityholding

To update your personal details or change the way you 
receive communications from Stockland, please contact 
Computershare via the details provided. Computershare is 
also able to provide you with information on your holding.

Further information

For more information about Stockland, including 
the latest financial information, announcements and 
corporate governance information, visit our website 
at www.stockland.com.au

184 Stockland Annual Report 2023

Glossary

Term

$m

AASBs or 
Accounting Standards

AFFO

A-REIT

ASIC

Definition

$millions

Australian Accounting Standards as issued by the Australian Accounting Standards Board

Adjusted FFO

Australian Real Estate Investment Trust

Australian Securities and Investments Commission

Aspire Villages

Non–DMF product and a purpose–built neighbourhood exclusively for people aged over 55 years

ASX

ATO

Board

CCIRS

CODM

CPI

DCF

D-Life

DPS

DSTI

EBIT

ECL

EPS

Australian Securities Exchange

Australian Taxation Office

Board of Directors of Stockland Corporation and STML

Cross currency interest rate swaps

Chief Operating Decision Maker as defined by AASB 8 Operating Segments

Consumer Price Index

Discounted cashflow

Project development lifecycle

Distribution per security

Deferred STI

Earnings before interest and tax

Expected credit losses

Earnings per security

Executive Director

The Managing Director and Chief Executive Officer of Stockland, being Mr Tarun Gupta from 1 June 2021

FFO

FUM

Funds from operations. Determined with reference to the PCA guidelines.

Funds under management

Green Star

Green Star is a national rating system for buildings and fitouts from the Green Building Council of Australia

GST

IFRIC

IFRS

ILU

IPUC

IRR

IRS

KPI

LLC

LTI

MAT

MTN

Goods and services tax

IFRS Interpretation Committee

International Financial Reporting Standards as issued by the International Financial Reporting Standards Board

Independent living unit

Investment properties under construction

Internal rate of return

Interest Rate Swap

Key performance indicators

Land lease communities

Long term incentives

Moving annual turnover

Medium term note

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Nature positive

A systemic goal urging to halt and reverse nature loss measured from a baseline of 2020, through increasing the health, 
abundance, diversity and resilience of species, populations and ecosystems so that by 2030 nature is visibly and measurably 
on the path of recovery (Naturepositive.org).

NOI

NRV

PAYG

Report

Net operating income

Net realisable value

Pay as you go

This Stockland Annual Report 2023

Year ended 30 June 2023

185

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Glossary

Term

ROA

ROE

ROIC

SA

SaaS

Definition

Return on assets

Return on equity

Return on invested capital

Serviced apartment

Software as a service

Security

An ordinary stapled security in Stockland, comprising of one share in Stockland Corporation and one unit in Stockland Trust

Securities Plans

Employee securities plans which comprise the LTI, DSTI and $1,000 employee plans

Statutory profit

Profit as defined by Accounting Standards

SRRP

STI

STML

Stockland Residential Rental Partnership

Short term incentives

Stockland Trust Management Limited (ACN 001 900 741, AFSL 241190), the Responsible Entity of Stockland Trust

Stockland or Group

The consolidation of Stockland Corporation Group and Stockland Trust Group

Stockland Corporation 
or Company

Stockland 
Corporation Group

Stockland Corporation Limited (ACN 000 181 733)

Stockland Corporation and its controlled entities

Stockland Trust

Stockland Trust (ARSN 092 897 348)

Stockland Trust Group 
or Trust

Stockland Trust and its controlled entities

TCGF

TTC

TSR

WALE

WOL

Tax Control and Governance Framework

Tax Transparency Code

Total securityholder return

Weighted average lease expiry

Whole of Life accounting

Important notice

This Annual Report has been prepared and issued by Stockland Corporation Limited (A.C.N 000 181 733) and 
Stockland Trust Management Limited as Responsible Entity for Stockland Trust (ARSN 092 897 348) (“Stockland”). 
Figures stated in this report are as at 30 June 2023 unless stated otherwise. Whilst every effort is made to provide 
accurate and complete information, Stockland does not warrant or represent that the information included in this 
Report is free from errors or omissions or that is suitable for your intended use. This Report 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 Report.
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 or implied by the statements 
contained in this Report. Current market conditions remain uncertain. All forward looking statements, including FY23 
earnings guidance, remain subject to no material deterioration in market conditions.
The information provided in this Report may not be suitable for your specific needs and should not be relied upon by 
you in substitution of you obtaining independent advice. To the maximum extent permitted by law, Stockland and its 
respective directors, officers, employees and agents 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 Report. All 
information in this Report is subject to change without notice. This Report does not constitute 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.

186 Stockland Annual Report 2023

Stockland  Corporation LimitedACN 000 181 733Stockland Trust  Management LimitedACN 001 900 741; AFSL 241190As responsible entity  for Stockland TrustARSN 092 897 348Head OfficeLevel 25, 133 Castlereagh StreetSYDNEY NSW 2000