Annual report 2024 A better way to live. Artwork naming “Nakiliko Booran – ‘See the Dream’. This name eventuated as I looked at the opportunity to interpret ‘Possibilities’ into Aboriginal language. The words Nakiliko and Booran come from the Awabakal Language, which I felt appropriate, as this artwork was created on Awakabal Country, of which I am a member. Nakiliko (See) To see, to look, to observe with the eye. Booran (Dream). Also a vision.” — Saretta Fielding, artist Nakiliko Booran - ‘See the Dream’ shares Stockland’s passion and commitment to reconciliation. It highlights the vision to journey forward together, building strong respectful relationships that acknowledge and embrace Indigenous people. Bringing an invitation to all to ‘See the Dream’, possibilities and opportunities of a reconciled future. The three people symbols are reflective of the Stockland RAP and the three pillars of reconciliation being respect, relationships and opportunities. The three pillars of reconciliation imagery also flow outward to the Stockland community across the organisation’s footprint on Country. Acknowledgment of Traditional Custodians Stockland acknowledges the Traditional Custodians and knowledge-holders of the land on which we live, work and play. We recognise and value their continued and inherent connection to land, sea, culture and community. We pay our respects to their Elders past and present and extend that respect to all Aboriginal & Torres Strait Islander peoples today. 02 Stockland Annual Report 2024 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 2024 (FY24). 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 FY24 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 FY24 has been prepared in accordance with the requirements of the Corporations Act 2001 (Cth). A better way to live. 03 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Artists’ impression, Stockland Momenta, NSW 6 8 20 FY24 Highlights A letter from the Chairman and CEO FY24 performance and outlook 04 Stockland Annual Report 2024 95 Financial statements Contents FY24 highlights 06 A letter from the Chairman and CEO 08 How we create value 12 The value we create 14 Financial 16 Assets and land 18 FY24 performance and outlook 20 Sustainability 25 People and capability 39 Quality relationships 46 Governance 51 Our approach to corporate governance 57 Our approach to tax 64 Our approach to risk management 67 Lead auditor’s independence declaration 71 Remuneration Report 73 Financial report for the year ended 30 June 2024 95 Consolidated statement of comprehensive income 96 Consolidated balance sheet 97 Consolidated statement of changes in equity 98 Consolidated statement of cash flows 100 Notes to the financial report 101 Consolidated Entity Disclosure Statement of Stockland Corporation Limited 172 Directors’ declaration 176 Independent auditor’s report 177 Securityholder information and key dates 183 Glossary 187 05 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 FY24 highlights FY24 highlights Pre-tax Funds From Operations (FFO) $843m down 4.5% on FY23 Pre-tax FFO per security 35.4c at the top end of our guidance range Distribution per security (DPS) 24.6c compared with 26.2c in FY23 Net tangible assets (NTA) per security $4.12 vs $4.24 at 30 June 2023 Statutory profit $305m vs $440m in FY23 06 Stockland Annual Report 2024 Our focus remains on delivering strong, sustainable returns for our investors. Development return on invested capital (ROIC)1 15% within the 14-18% target range Recurring return on invested capital (ROIC)1 2% below target range of 6-9%, impacted by market cap rate movements Gearing 24.1% vs 21.9% at 30 June 2023 Employee engagement 87% above Australian National Norm2 Scope 1 & 2 emissions down 4% on FY23 Customer satisfaction3 >80% in line with FY23 Renewable energy partnership agreement to deliver ~29MW of solar PV by end of 20254 Ranked 4th on S&P DJSI Global Index for Equity REITs 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. 4 By 31 December 2025, in addition to the ~17MW of solar PV already installed and under development. 07 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 A letter from the Chairman and CEO Letter from the Chairman and CEO Dear Securityholders, FY24 was another year of solid achievement and continued progress for Stockland. We were pleased to deliver a FY24 financial result at the top end of our guidance range while retaining a strong balance sheet position and progressing our strategic priorities. We have maintained our operational focus while accelerating the execution of our strategy with the ~$1.06 billion1 acquisition of 12 Masterplanned Communities (MPC) projects, the ~$210 million acquisition of five Land Lease Communities (LLC) projects and the execution of ~$690 million non-core Town Centre asset disposals2. We have also executed on three new capital partnerships3, which we expect to contribute to earnings over time, and further evolved our operating model to enhance our end- to-end delivery capability. Economic and real estate market conditions remain uncertain. However, we have observed an increase in enquiries and sales for our MPC product across most markets during 2H24, and demand for our LLC product has proven resilient. We remain confident in the underlying demand drivers for Australian residential real estate and have positioned ourselves for a step-change in production rates with the launch of 15 new MPC and LLC communities during FY24 and a further eight new communities from our existing pipeline expected to launch during FY254,5. The quality of our Investment Management portfolio is evidenced by its strong operational performance over FY24, and we remain focused on unlocking the development upside embedded in the portfolio in a disciplined manner. FY24 Financial and operational performance Our statutory profit was $305 million compared with $440 million in FY23. The statutory result for FY24 includes $(310) million6 of net commercial property devaluations, which also contributed to a decline in our net tangible asset backing (NTA) per security from $4.24 to $4.12. Statutory profit in the previous corresponding period included net devaluations of ($250) million6. Our pre-tax Funds From Operations (FFO)7 was $843 million or 35.4 cents per security. This was at the top end of our guidance range of 34.5-35.5 cents and represents a 4.5% decline compared with FY23. This primarily reflects a higher weighted average cost of debt, the impact of non-core asset disposals over FY23 and FY24, and lower contributions from our Commercial Development activities, offset by increased FFO from our Investment Management portfolio and residential development. Our Investment Management segment delivered a strong FY24 result, with FFO of $630 million, up 4.5% relative to FY23. This reflected comparable growth of 3.5%8 from the ~$10.2 billion Investment Management portfolio, contributions from completed Logistics and Workplace developments, as well as ongoing investment management fee income from our partnerships. 1 Masterplanned Communities (MPC) acquisition via SSRCP, announced in December 2023. Subject to Foreign Investment Review Board (FIRB) and associated regulatory approvals, including the ACCC. Settlement of certain Project Delivery Agreement (PDA) projects are also conditional on the vendor obtaining relevant landowner Change of Control (CoC) consents. SSRCP may also negotiate to acquire certain additional parcels of land for an additional payment of up to $239 million. 2 Disposal of Stockland Townsville in QLD and Stockland Nowra, Stockland Glendale, and Stockland Balgowlah in NSW. 3 Stockland Communities Partnership (SCP), Stockland Supalai Residential Communities Partnership (SSRCP) and Stockland Land Lease Partnership (SLLP1). 4 Subject to relevant approvals. Active defined as communities that have launched and are selling. 5 Expecting to launch three in MPC and five in LLC during FY25. 6 Excludes sundry properties and stapling adjustment, includes investment properties under construction (IPUC) and Stockland’s share of equity accounted investments. Includes movements relating to build-to-hold projects that sit in the development segment. 7 Funds from operations (FFO) is determined with reference to the PCA guidelines. 8 Includes comparable assets; excluding acquisitions, divestments and assets under development. Town Centres comparable basket of assets as per the Shopping Centre Council of Australia (SCCA) guidelines, which excludes assets which have been redeveloped within the past 24 months. 08 Stockland Annual Report 2024 FY24 was another year of solid achievement and continued progress. Our Development segment contributed FFO of $412 million, compared with $445 million in FY23. Performance was underpinned by an increase in the earnings contribution from residential development, with strong settlement volumes and development operating profit margins across both the MPC and LLC businesses. This was offset by a decline in Commercial development profits and related management income, reflecting a lower level of development activity on behalf of third parties during FY24. On a post-tax basis, FFO of $786 million or 33.0 cents per security was down 7.2% from FY23, reflecting the utilisation of remaining tax losses during FY23. The distribution for FY24 is 24.6 cents per security, compared with 26.2 cents per security in FY23. The distribution payout ratio of 75% is at the lower end of our target range of 75% to 85% of FFO. We finished the year in a strong capital position, with gearing of 24.1%, comfortably within our target range of 20% to 30% and providing funding capacity for investment in our strategic priorities. Progressing our strategic priorities In December 2023, we announced the $1.06 billion acquisition of 12 high-quality, actively trading MPC projects via the establishment of the Stockland Supalai Residential Communities Partnership (SSRCP) with Supalai Australia Holdings Pty Ltd (Supalai)9. The acquisition, which remains subject to regulatory approval, represents a step-change in the reshaping of our portfolio and accelerates the execution of our strategy by increasing our capital allocation towards residential sectors while scaling our capital partnership platform and generating new sources of recurring income. We were also pleased to welcome another high quality, globally recognised investor, Invesco Real Estate, to our platform through the formation of the Stockland Land Lease Partnership (SLLP1) during the year. SLLP1 is a strategic open-ended partnership to develop and hold an initial portfolio of three LLC assets that are expected to generate approximately $1.1 billion10 in gross development revenue11. SLLP1 is our second partnership in the LLC sector, following the successful establishment of the Stockland Residential Rental Partnership (SRRP) with Mitsubishi Estate Asia (MEA) in February 2022. In July 2023, we extended our relationship with MEA through the formation of a new capital partnership with a non-exclusive mandate to invest in Stockland owned and market-originated MPC opportunities. While driving a targeted increase in our exposure to residential sectors, we have also continued to reshape our Investment Management portfolio through the disciplined conversion of our development pipeline and disposal of non-core assets. During the period, we delivered the first two buildings in MPark Stage 1 and commenced construction on the final two buildings. In Logistics, we commenced ~$0.6 billion12 of developments over FY24, with a further ~$0.3 billion12 expected to commence during FY25. The disposal of ~$690 million13 of non-core Town Centre assets over the year has allowed us to recycle capital into these high-returning opportunities in the residential and logistics sectors while also helping to position our Town Centre portfolio to continue to deliver solid returns into the future. The positive strategic momentum of FY24 has continued into the new financial year. Earlier this month, we and our consortium partners Link Wentworth, City West Housing and Birribee Housing were confirmed as the preferred proponent to deliver the Waterloo Renewal Project with Homes NSW. This project will be one of Australia’s largest and most significant inner city renewal initiatives, delivering a sustainable mixed tenure community of over 3,000 apartments including 50% social and affordable housing. The project is expected to be delivered over multiple stages with anticipated commencement of works in 2027, subject to all relevant planning and approvals14. Driving sustainable growth Our focus remains on delivering strong, sustainable returns for our investors. Return on Invested Capital (ROIC) discipline is essential to achieving this outcome. For FY24, our development activities generated a ROIC of 15%, within our through-cycle target range of 14% to 18%. 9 Masterplanned Communities (MPC) acquisition via SSRCP, announced in December 2023. Subject to Foreign Investment Review Board (FIRB) and associated regulatory approvals, including the ACCC. Settlement of certain Project Delivery Agreement (PDA) projects are also conditional on the vendor obtaining relevant landowner Change of Control (CoC) consents. SSRCP may also negotiate to acquire certain additional parcels of land for an additional payment of up to $239 million. 10 Excluding Australian Goods and Services Tax. 11 There is no guarantee that the expectation will be achieved. 12 Forecast end value on completion, subject to relevant approvals. 13 Disposal of Stockland Townsville in QLD and Stockland Nowra, Stockland Glendale, and Stockland Balgowlah in NSW. 14 Confirmation received post balance date. 09 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 A letter from the Chairman and CEO As we expand our capital partnership platform, we’re focused on driving returns for the partnerships and creating new sources of high-quality recurring fee income for the Group. The ROIC for our recurring activities (including management income and returns from our real estate investments) of 2%1 was below our target range of 6% to 9%2, reflecting the impact of adverse market capitalisation rates on real estate values over the period. While valuation movements can have a material impact on our ROIC at various stages of the real estate cycle, we believe our target ranges remain appropriate on a through-cycle basis. To deliver sustainable returns, it is also imperative that ESG considerations remain at the core of everything that we do. Our ESG strategy is focused on making a positive impact through the delivery of innovative and commercially sustainable solutions in the areas of social impact, circularity, climate resilience and decarbonisation. We have established strategic partnerships across our value chain to drive down emissions. In our operations, leveraging large scale, onsite renewable energy generation is a critical component of our decarbonisation pathway. In December 2023, we announced our innovative partnership with distributed energy resources company Energy Bay to achieve 100% renewable energy across our portfolio and net zero scope 2 emissions3. We are tackling the challenge of embodied carbon within our development pipeline partnering with Boral on lower- carbon concrete and working with ArcelorMittal Steligence® and JSteel to introduce electric arc furnace steel for our logistics developments. And our customers and tenants will soon have access to a large network of fast and ultra-fast electric vehicle charging bays across our Town Centres as part of our partnership with Ampol. These initiatives are practical examples of our ESG strategy in action. Throughout the year, we have also made meaningful progress toward achieving our targets for social value creation4, implementing our Stretch Reconciliation Action Plan, and identifying and mitigating climate risks across our portfolio. Further detail on our ESG strategy and its implementation is provided throughout this report. Evolving our operating model to drive strategic execution During the year we evolved the Stockland operating model to power the next stage of our growth and sharpen our focus on end-to-end, enterprise-wide delivery. The alignment of our business under two new areas – Investment Management and Development – positions us to capitalise on opportunities and reinforces our competitive advantages in origination, development and investment management. With the change in organisational structure, Louise Mason took the opportunity to pursue the next phase of her career. We would like to acknowledge Louise’s significant contribution to Stockland’s performance over her six years as the CEO of our Commercial Property business including the repositioning of the retail and workplace portfolios and the substantial growth of the logistics portfolio. Under the new operating model, Andrew Whitson’s remit has been expanded in his new role of CEO, Development. He has end-to-end responsibility for Development across all asset classes as well as Project Management and Sales. We were also pleased to welcome Kylie O’Connor to Stockland in November 2023 in her role of CEO, Investment Management with responsibility for Stockland-owned investments and growing the capital partnership platform. 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 SGP interest expense and tax. Recurring and Development returns include SGP’s equity-accounted share of partnership profits. 2 Indicative long-term target for return on invested capital. 3 Stockland’s emissions reduction targets have been prepared with reference to criteria set out by the Science Based Targets Initiative (SBTi) with limited assurance from Ernst & Young (EY). 100% renewable electricity will be achieved using a combination of onsite solar consumption and large generation certificates (LGCs). 4 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. 10 Stockland Annual Report 2024 As part of our operating model refinements, we will be partnering with best-in-class third-party providers for certain business support functions that we have previously performed in-house. The establishment of these strategic partnerships will lead to some upfront initial costs. However, we expect this change to drive meaningful productivity benefits in future periods. Progressing Board renewal The Board was pleased to appoint Robert (Bob) Johnston to the Stockland Board, effective 1 October 2024. Mr Johnson has over 30 years of experience in the property sector including investment, development, project management and construction across Australia and internationally. His appointment reflects our ongoing focus on Board succession, with his experience complementing and strengthening the Board’s experience and expertise. Mr Johnston will offer himself for election by securityholders at the 2024 Stockland Annual General Meeting. In addition, Christine O'Reilly has advised the Board that she will not be seeking re-election at the AGM in October 2024. Christine has made a significant contribution to the Board over the last six years including as Chair of the Risk Committee. We continue to maintain a strong focus on director succession planning with oversight from the Nominations Committee. Investing in our people and strengthening our culture Our strategy is underpinned by the efforts of our people and the strength of our innovative and inclusive culture. Our ongoing dialogue with our people helps to shape the organisation and is at the heart of our culture. Our independently administered ‘Our Voice' survey provides regular opportunities for our people to provide feedback. In FY24, we were pleased to achieve an overall employee- engagement score of 87%, eight points above the Australian Norm, and for some categories above the Global High Performing Norm5. The “Our Voice” survey also helps us to measure key indicators of innovation culture, capability and outcomes, including perceptions of how quickly we move from idea to implementation, and our propensity to take calculated risks. Since 2021, we’ve achieved a 20% increase in these scores, demonstrating our strong progress in embedding innovation culture across our business. We recognise the gender pay gap as a key measure of gender equity at Stockland. Since mid-2021, we have reduced the gap for average base pay from 25.9% to 19.2%, and we continue to work to bridge it. Our analysis suggests that we do not pay people differently because of their gender. However, the gap arises from an overrepresentation of women in certain job families such as administration and customer-care and under-representation in some higher- paid areas. Looking ahead We are entering FY25 in a strong position. The ongoing redeployment of capital into our targeted growth areas is meaningfully reshaping our portfolio, and we are positioned for an increase in production rates across our residential businesses. Our MPC and LLC businesses have strong starting positions with 3,415 and 351 contracts on hand respectively. We have launched 15 new communities in FY24 and expect to launch a further eight from our existing pipeline during FY25 to position ourselves for a recovery in residential market conditions6,7. The high quality of our Investment Management portfolio continues to underpin its performance. Our Town Centres portfolio is benefiting from a high weighting to essentials categories, and we remain focused on capturing income generation opportunities presented by our well-located Logistics portfolio and pipeline. As we expand our capital partnership platform, we’re focused on driving returns for the partnerships and creating new sources of high-quality recurring fee income for the Group. We continue to actively engage with capital partners and explore further opportunities for capital partnerships across our platform. On behalf of the Board and the Leadership Team, we would like to extend our thanks to the Stockland team for their contribution to this year’s results, and to our securityholders for your continued support and investment in Stockland. Tom Pockett Chairman Tarun Gupta Managing Director and CEO 5 Willis Tower Watson. 6 Subject to relevant approvals. Active defined as communities that have launched and are selling. 7 Expecting to launch three in MPC and five in LLC during FY25. 11 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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. Our operating model During FY24, we evolved the Stockland operating model to more directly support how we create value for our stakeholders and to power the next stage of our growth and focus on end-to-end, enterprise-wide delivery. The alignment of our business under two new areas – Investment Management and Development – positions us to better leverage our value creation capability in origination, development and, as we extend our capital partnerships, investment management. Investment Management Comprises investments and asset management across all asset classes (with the exception of build-to-rent product and land lease communities under development), property management, leasing and funds management of our expanding capital partnership platform. Development End-to-end responsibility for development across all Stockland asset classes as well as project management and sales. This provides greater organisational clarity, enhanced ability to unlock the value of our development pipeline and enable us to build best-in-class capabilities in origination, development and investment management and provide industry-leading career opportunities for our people. Environment, Social and Governance (ESG) approach Our ESG strategy is supported by targets grounded in science and driven by possibilities1 • Net zero scope 1 & 2 in 2025 • Most material scope 3 emissions intensity halved by 2030 • Net zero scope 1, 2 & 3 by 2050 Social value2 target • Over $1 billion of social value creation by 2030. For more information, see page 25. 1 Further detail on our ESG strategy is set out in pages 25 to 39 of this Annual Report and our Climate Transition Action Plan which includes our decarbonisation pathway and assumptions used to set targets. 2 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. 12 Stockland Annual Report 2024 Our vision and purpose are brought to life by our employees who are guided by Stockland’s values of Community, Accountability, Respect and Excellence (CARE). 13 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Strategic pillars Major trends Key inputs Operating environment Context Dynamically reshape portfolio Scale capital partnerships Sustainable long term growth Accelerate delivery in our core business Risks and Opportunities See our approach to risk management page 67 Exponential growth in institutional capital Urbanisation and urban renewal Financial capital Assets and land Resources and materials People and capability Relationships and partnerships Digital acceleration Growing momentum on ESG Our purpose “A better way to live” Our vision “Leading creator and curator of connected communities” Our strategy Community Accountability Respect Excellence O ri gi n at io n D ev el o p m e nt In ve st m e nt M a n a ge m e nt E S G D i g it a l I n n o v a ti o n C u s t o m e r e x c e ll e n c e 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 pipeline 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 fulfilment. 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. 14 Stockland Annual Report 2024 Financial capital: • High quality business with sustainable growth • Diversified income streams and increased return on invested capital • Strong balance sheet with sufficient liquidity and optionality to invest appropriately In existing and emerging opportunities Assets and land: • High quality, curated portfolio of connected communities and resilient assets • Optimised landbank to highest value uses • Delivery of development pipeline Resources and materials: • Leadership in sustainability: • Decarbonisation • Circularity • Social impact • Resilience People and capability: • Purpose driven, connected teams • End-to-end, multi-sector capability and talent • Diverse career opportunities • A culture of collaboration and inclusiveness Relationships and partnerships: • Customer and stakeholder excellence • Preferred capital partner • Strong relationships with suppliers, builder partners The value we create Targets Outcomes • Development ROIC 14%–18% • Recurring ROIC 6%–9% • Gearing 20%–30% • Income mix: • Recurring 60% • Development 40% • Capital allocation: • Recurring 70%–80% • Development 20%–30% • 1.5 degree aligned decarbonisation pathway: • Net zero scopes 1 & 2 in 2025 • Most material scope 3 emissions intensity halved by 2030 • Net zero scopes 1, 2 & 3 by 2050 • Create over $1bn in social value by 2030 • Employee engagement score >80% • Leadership impact exceeding the Australian national average1 • Retailer tenant satisfaction 75% • Retailer shopper satisfaction 78% • Workplace & logistics tenant satisfaction 80% • Resident satisfaction 80% • Liveability index 75% 1. Willis Towers Watson Our people Capital partners Community Stockland is focused on providing a safe, respectful and inclusive environment where all its employees can bring their whole selves to work and thrive. Our people are at the centre of our high performing, innovative and customer-focused culture. We invest in the future of our people and offer diverse career opportunities, providing flexibility, connection and a passion for learning in our workplaces. 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. 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 more than 70-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. 15 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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 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 returns that drive sustainable growth. We target 60% recurring income and 40% development income, and capital allocation to those sectors of 70-80%, and 20-30%, 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% of pre-tax FFO to support growth opportunities across our business. 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% combined with look-through gearing of no greater than 35% and maintains credit ratings from S&P and Moody's of A-/stable and A3/ stable, 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. Stockland Piccadilly, NSW 16 Stockland Annual Report 2024 Target FY24 Sector capital allocation1 Logistics and Workplace 30–50% 42% Residential (for sale and ownership) 20–35% 25% Town Centres 20–30% 32% Alternate2 0–5% 1% Capital allocation by activity1 Recurring 70–80% 78% Development 20–30% 22% Income mix1 Recurring3 60% 66% Development3 40% 34% Return on invested capital Recurring4 6–9% 2% Development4 14–18% 15% Capital structure1 Gearing (% Debt/TTA) 20–30% 24.1% Look-through gearing5 <35% 25% Credit Rating (S&P/Moody’s) A-/A3 A-/A3 Distributions (% FFO) 75–85% 75% 1. Indicative five-year target. All forward looking statements remain subject to no material change in market conditions. 2. Includes Communities Real Estate (stand-alone medical and childcare centres within Stockland communities). 3. Aligns with FFO pre Group net interest expense and tax. Recurring FFO inclusive of (4)% overheads, Development FFO inclusive of (6)% overheads. 4. 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. Recurring and Development returns include SGP's equity-accounted share of partnership profits. 5. Ratio of net borrowings to total assets adjusted for the borrowings of investment vehicles. 17 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Asha townhomes, Newport, Qld 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 ~$50 billion1, as at 30 June 2024. 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 development pipeline to deliver the highest value uses. 1 Total development pipeline, includes projects in early planning stages, projects with planning approval and projects under construction. Includes MPark Stage 1 at a 100% share, and the $1.06 billion acquisition of MPC assets. 18 Stockland Annual Report 2024 Our portfolio as at 30 June 2024 Logistics Strategically positioned assets in key locations for logistics, infrastructure and employment. • 30% portfolio weighting2 • 27 assets • $4.2bn net funds employed Workplace High-quality portfolio with an attractive development pipeline, providing the opportunity to create vibrant workplaces focused on innovation, well-being and sustainability. • 12% portfolio weighting2 • 10 assets • $1.7bn net funds employed Town Centres We're focused on suburban and regional locations, providing a curated and convenient essentials-based mix to our communities. • 32% portfolio weighting2 • 16 assets • $4.6bn net funds employed Masterplanned Communities We're building thriving, connected communities across our nationally diversified pipeline. • 17% portfolio weighting2 • ~63,700 lots remaining • $2.4bn net funds employed Land Lease Communities Creating and managing Land Lease Communities that offer lifestyle, amenity, and social connectivity. • 8% portfolio weighting2 • ~8,600 home sites in pipeline • $1.1bn net funds employed 2 Includes WIP and sundry properties of $0.8bn. Cost to completion provision, deferred land payments and option payments are excluded. CRE represents ~1% portfolio weighting. 19 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value FY24 performance and outlook Group performance Over the twelve months to 30 June 2024 (FY24), we accelerated the execution of our strategy and continued to reshape our portfolio while delivering solid financial results and maintaining a disciplined approach to our capital position. Pre-tax Funds From Operations (FFO)1 was $843 million, down 4.5% compared with FY23. FY24 pre-tax FFO per security was 35.4 cents, at the top end of the FY24 guidance range of 34.5 to 35.5 cents but representing a 4.5% decline compared with FY23. This primarily reflects a higher weighted average cost of debt, the impact of non-core asset disposals2 as part of our capital recycling strategy, and lower contributions from our Commercial Development activities, offset by increased FFO from our Investment Management portfolio and residential development. Post-tax FFO for FY24 was $786 million, with post-tax FFO per security of 33.0 cents, down 7.2% from FY23. Our ~$10.2 billion Investment Management portfolio delivered increased FFO over FY24, at $630 million up 4.5% compared with $603 million in FY23. Comparable FFO growth was 3.5%3, underpinned by positive leasing spreads across our Town Centres and Logistics portfolios. Recent completions of our build-to-hold Workplace and Logistics developments have also flowed through to higher FFO. The Development business achieved solid results in FY24, with FFO of $412 million compared with $445 million in FY23. This reflects lower contributions from our Commercial Development activities, offset by an improved result from Masterplanned Communities (MPC) and Land Lease (LLC) development. We achieved MPC settlement volumes of 5,637 lots4, above our target guidance range, and LLC settlements of 444 homes. Whilst the pace of market recovery has varied across the states, underlying residential market fundamentals remain strong, and we saw an increase in both sales and enquiry levels in the second half of the financial year as the interest rate outlook stabilised. We are well-positioned to capitalise on improving residential market conditions and deliver increased settlement volumes across both MPC and LLC over the medium term, with 15 new communities launched over FY24 and a further eight new communities expected to launch from our existing pipeline during FY255,6. $843m Pre-tax Funds From Operations During FY24, we have continued to reshape our portfolio in line with our strategic priorities, executing on the ~$1.06 billion acquisition of 12 MPC projects 7, the ~$210 million acquisition of five LLC projects and ~$690 million 2 of non-core Town Centre asset disposals. We have expanded our capital partnership platform, establishing three new partnerships which we expect to contribute meaningfully to earnings over time. Our strong positive momentum has continued into the new financial year, and we are pleased to have been confirmed alongside our consortium partners, Link Wentworth, City West Housing and Birribee Housing, as the preferred proponent to deliver the Waterloo Renewal Project with Homes NSW8. This is an exciting milestone for us in the execution of the Stockland strategy and diversification of our business, as the Waterloo Renewal Project will be one of Australia's largest and most significant inner city renewal initiatives. It is a long-term project to be delivered over multiple stages, and subject to relevant planning and approvals, is expected to comprise a sustainable, mixed-tenure community of over 3,000 apartments. 1 Funds from operations (FFO) is determined with reference to the PCA guidelines. 2 Disposal of Stockland Townsville in QLD and Stockland Nowra, Stockland Glendale, and Stockland Balgowlah in NS. 3 Includes comparable assets; excluding acquisitions, divestments and assets under development. 4 Includes 2,005 settlements under joint venture/project development agreements (FY23: 1,944). 5 Subject to relevant approvals. Active defined as communities that have launched and are selling. 6 Expecting to launch three in MPC and five in LLC during FY25. 7 Masterplanned Communities (MPC) acquisition via SSRCP, announced in December 2023. Subject to Foreign Investment Review Board (FIRB) and associated regulatory approvals, including the ACCC. Settlement of certain Project Delivery Agreement (PDA) projects are also conditional on the vendor obtaining relevant landowner Change of Control (CoC) consents. SSRCP may also negotiate to acquire certain additional parcels of land for an additional payment of up to $239 million. 8 Confirmation received post balance date. 20 Stockland Annual Report 2024 We feel privileged to be selected by Homes NSW to deliver the Waterloo Renewal Project, and look forward to building on our legacy as a leading creator and curator of connected communities and working with our partners to deliver vibrant and thriving spaces. Statutory profit was $305 million for FY24, compared with $440 million in FY23. The statutory result for this period includes $(310) million 9 of net investment property devaluations. This reflected a softening of market capitalisation rates, with the valuation decline primarily relating to our Workplace portfolio. Strong income growth saw the value of our Logistics portfolio increase, while valuations for our Town Centre assets were down slightly. Statutory profit in the previous corresponding period included net devaluations of $(250) million. While actively deploying capital towards our targeted growth areas, we have remained disciplined, with gearing well within our target range, a prudent hedging profile and substantial liquidity. Our balance sheet is well-positioned, with the capacity and flexibility to take advantage of opportunities that may emerge while increasing production rates across the residential businesses. Capital management We are entering FY25 in a strong financial position. At 30 June 2024, the Group’s gearing was 24.1% (versus 21.9% at 20 June 2023), within the Group’s target range of 20% to 30%, with substantial available liquidity of $3.1 billion. We maintained significant headroom under our financial covenants 10, 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 was 5.3% 11 for FY24 (versus 4.3% in FY23) and is expected to average ~5.4% 12 for FY25. The weighted average debt maturity sits at 5.2 years (verus 5.0 years at 30 June 2023), and the fixed hedge ratio averaged 58% 11 over FY24 (versus 62% over FY23). The combination of our balance sheet strength, disciplined approach to capital management, good access to debt capital markets, and strong relationships with capital partners positions us well to continue executing on our strategy. Cashflow management Net cash flows from operating activities for the year of $114 million were down from $332 million in FY23. This primarily reflects to a higher level of development expenditure (including land acquisitions) in our LLC business as we expand our LLC development pipeline and prepare for new project launches. Before land acquisitions, operating cash flow was $900 million, comfortably above FFO and the distribution for the period. Net cash flows from investing activities were $101 million, compared to $763 million in FY23. Investing cash flows in FY23 included the receipts from the disposal of our Retirement Living business in July 2022. For FY24, investing cash flows reflect the active reshaping of our portfolio, with payments for LLC investment assets and expenditure on our build-to-hold commercial development pipeline more than offset by proceeds from non-core asset disposals. Financing activities produced a net cash inflow of $233 million, reflecting a net increase to our borrowings offset by the payment of previously announced dividends and distributions. We finished FY24 with $719 million of cash and cash equivalents compared to $271 million at the end of FY23. Distributions The distribution for FY24 is 24.6 cents per security, compared with 26.2 cents per security in FY23. The distribution payout ratio of 75% is at the lower end of our target range of 75% to 85% of FFO. 24.6c Distribution per security 9 Excludes sundry properties and stapling adjustment, includes investment properties under construction (IPUC) and Stockland’s share of equity accounted investments. 10 Covenant levels: less than 50% Financial Indebtedness / Total Tangible Assets (FI / TTA), and Interest Coverage Ratio (ICR) of more than 2:1. FI / TTA as at 30 June 2024 was 28.6%, and the ICR was 4.3x (12-month rolling average to 30 June 2024). 11 Average over the 12 months to 30 June 2024. 12 Assuming average BBSW of ~4.4% over FY25. 21 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Investment Management The Investment Management segment delivered a strong FY24 result, with FFO of $630 million, up 4.5% relative to FY23. This reflected comparable growth of 3.5% 1 from the ~$10.2 billion Investment Management portfolio, contributions from completed Logistics and Workplace developments, as well as ongoing investment management fee income from our capital partnerships. Approximately 86% (by value) of the Investment Management portfolio was independently revalued over FY24, resulting in a $310 million, or 2.8% decrease on previous book values 2. This reflected continued softness in the capitalisation rate environment, partially offset by sustained income growth across the portfolio. Logistics The ~$3.7 billion Logistics portfolio delivered FFO of $168 million over the period, up 20.8% relative to FY23. The portfolio delivered strong comparable FFO growth of 6.8%1 for FY24, which reflected rent growth across the portfolio. Rental increases relating to new leases and renewals negotiated during the period (including those yet to be executed) rose to 37.9% over FY24, from 21.1% in FY23. We continue to focus on capturing positive rental reversion opportunities presented by the portfolio’s 3.2 year 3 WALE and securing strong market rents on the delivery of our Logistics development pipeline. In FY24, Logistics FFO benefited from the initial earnings contributions from development completions at Ingleburn Logistics Park and Leppington Business Park in NSW and 90 Melbourne Drive in VIC. Occupancy was 98.2% 3, with active asset management to position the portfolio for future development, such as at Brooklyn Distribution Centre in VIC and Yennora Distribution Centre in NSW. The Logistics portfolio delivered a net valuation gain over the period of $71 million, or 2.1%, with the 70 basis point softening in the portfolio’s weighted average cap rate more than offset by strong market rent growth. Workplace Our ~$1.7 billion Workplace portfolio delivered FFO of $115 million in FY24, compared with $108 million in FY23. Comparable FFO rose by 3.2%1, reflecting fixed rental escalations on existing leases. The limited scale of the Workplace portfolio in combination with its positioning for future redevelopment opportunities, including mixed-use, is reflected in its operating metrics. Re-leasing spreads on new leases and renewals negotiated over the period was (1.7)% 4,5, impacted by reversion to market rent at one asset, while the portfolio occupancy of 91.0%3,4 and weighted average lease duration of 5.3 years3,4 reflect the completion of the first two buildings at MPark Stage 1 during FY24. The valuation of our Workplace portfolio declined by $334 million, or 17.1%, reflecting 46 basis points of cap rate expansion. Town Centres The Town Centres portfolio delivered a solid financial and operational performance over FY24. FFO of $359 million was down 5.1% relative to FY23, primarily driven by ~$690 million 6 of non-core asset disposals in FY24 in line with our capital recycling strategy. Comparable FFO was up 2.1% 1 with re-leasing spreads improving to 3.3% from 3.1% in FY23 7, while specialty occupancy costs of 15.2% 8 remain at sustainable levels. On a MAT basis, total comparable sales grew by 3.2%9 and comparable specialty sales was up by 1.1% 10, versus the prior corresponding period. Portfolio MAT growth rates are stabilising from previously elevated levels that reflected the post-COVID-19 sales recovery. Rising cost-of-living pressures are impacting retail performance. However, while sales in discretionary categories such as apparel, jewellery and homewares continue to see slower sales, essentials categories such as food retailing and catering have been more resilient and delivered positive sales growth over the period. Our portfolio is well-placed to continue delivering resilient performance through a challenging consumer environment, benefiting from the active repositioning in recent years that has driven solid operating metrics and an over 70% MAT skew to essential-based categories. The valuation of the Town Centre portfolio declined by $46 million, or 0.9%, with market rent growth partly offsetting 27 basis points of cap rate softening. 1 Includes comparable assets; excluding acquisitions, divestments and assets under development. 2 In June 2024, majors had a five-week reporting period. Adjusting for this additional week, comparable MAT growth for the portfolio was 2.5%. 3 By income. 4 Excludes Walker Street Complex and 601 Pacific Highway in NSW. 5 Re-leasing spreads on new leases and renewals negotiated over the period. Workplace releasing spreads were +3.7% in FY24, excluding deals at Durack Centre, WA that were rebased to market rent. 6 Disposal of Stockland Townsville in QLD and Stockland Nowra, Stockland Glendale, and Stockland Balgowlah in NSW. 7 Rental growth on stable portfolio on an annualised basis. 8 Occupancy cost reflects stable assets, adjusted to reflect tenants trading more than 24 months. 9 In June 2024, majors had a five-week reporting period instead of four-weeks, skewing the data positively. Adjusting for this benefit, comparable MAT growth for the portfolio was 2.5%. 10 Comparable basket of assets as per SCCA guidelines, which excludes assets which have been redeveloped within the past 24 months. 22 Stockland Annual Report 2024 Communities Rental Income Communities Rental Income rose to $18 million in FY24 versus $15 million in FY23, driven by an increasing number of occupied LLC homesites within the portfolio, as well as contributions from Community Real Estate (CRE) assets. Investment Management Fee Income The Investment Management portfolio generated $30 million of fee income in FY24, up 7.5% from FY23. This reflects ongoing fees from established partnerships and third-party property management services provided across the portfolio, as well as fee income from our renewable energy partnership with Energy Bay. Development FY24 Development FFO was $412 million, compared with $445 million in FY23. Performance was underpinned by an increase in the earnings contribution from residential development, with strong settlement volumes and development operating profit margins across both the MPC and LLC businesses. The strong performance in residential development was offset by lower development-related contributions from MPark Stage 1, following the completion of the first two buildings in 1H24, while the final two buildings are still under construction. This is reflected in lower Commercial Development Income ($8 million in FY24 versus $43 million in FY23) and Development Management Fee Income ($46 million in FY24 versus $51 million in FY23). Net overheads for the Development business increased over the period, reflecting our positioning for increased production rates in residential development and the launch of 15 new communities across MPC and LLC during FY24. Masterplanned Communities The MPC business delivered Development FFO of $481 million for FY24, up from $464 million in FY23. Over FY24, the business achieved 5,63711 lot settlements (versus 5,403 settlements in FY23), above our expectations for settlement volumes of between 5,300 to 5,500 lots. The development operating profit margin for FY24 was 23.2% (versus 26.0% in FY23), which reflected geographic mix and the completion of several high-margin projects in FY23. Net sales for the period totalled 4,777 lots (compared with 3,770 lots in FY23), reflecting more favourable residential market conditions, particularly over 2H24. Enquiry levels reflected a similar trend, up in 2H24 vs 1H24. While default and cancellation rates are still running slightly above historical averages, these remain below cyclical peaks 12. Residential market conditions and consumer confidence has shown signs of improvement over 2H24. However, further improvements in conversion rates and sales volumes will depend on the interest rate environment and the pace of market recovery in Victoria, which has lagged the rest of the Eastern seaboard to date. We have also seen solid underlying price growth in all markets except Victoria - with WA particularly strong after several years of very limited price movement. This revenue upside is being partly offset by higher construction cost escalation in WA and South East QLD as volumes pick up. Sale-to-settlement timeframes have also improved over FY24, but remain elongated in comparison with pre- COVID-19 averages. We remain confident in the medium-term fundamentals of the residential market as net overseas migration and the labour market remain strong amid a chronic undersupply of new housing product. We’re focused on increasing production volumes to expand the supply of affordably- priced housing in our active corridors. Over FY24, we launched six new communities and we expect to launch up to three new communities from our existing pipeline during FY2513. The business ended the period with 3,415 contracts on hand, providing good visibility into FY25. However, we expect 1Q25 net sales to be impacted by elevated cancellations as a result of a high number of VIC settlements called in June 2024. For FY25, we expect the MPC business to achieve development operating profit margins in the low 20% range and settlements of 5,300 - 5700 lots, with a skew to 2H25. Land Lease Communities The LLC business delivered Development FFO of $67 million (versus $58 million in FY23). FY24 also included cash-backed profit of ~$30 million from the transfer of LLC projects 14 into the newly established SLLP1 partnership in 2H24. In FY24, we delivered 444 LLC home settlements, at the upper end of the target range of 400-450 settlements, and up from 382 homes in FY23. Development operating profit margin for FY24 was 23.0% 15, positively impacted by the deferral of launch costs for three projects to FY25. Net sales for the period were up strongly, at 481 homes (versus 270 for FY23). This reflects a combination of stable demand for LLC development product and the activation of our pipeline, with the launch of nine new LLC projects during FY24. Our Land Lease platform is positioned for further growth. We have established two high-quality capital partnerships during the period, and are now actively selling from 14 communities 16, up from five at the end of FY23. During FY25, we expect to launch a further five new communities13. We ended the period with good visibility into FY25, with 351 contracts on hand at a slightly higher average price point compared with FY24 settlement pricing17. For FY25, the LLC business is targeting 600 - 650 settlements and development operating profit margins in the low 20% range. 11 Includes 2,005 settlements under joint venture/project development agreements (FY23: 1,944). 12 On a rolling 12-month basis. 13 Subject to relevant approvals. 14 Includes Halcyon Gables, NSW, and Halcyon Coves, QLD in 2H24 and Halcyon Redlands, QLD in FY25, on deferred terms. 15 Excluding transfer of sites into capital partnerships. 16 Subject to relevant approvals. Active defined as communities that have launched and are selling. 17 Average price per home of contracts on hand vs FY24 settlements (FY24 average settlement price per home: ~$708,000). 23 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Commercial Development We have a deep Commercial Development pipeline with an estimated end value of ~$13 billion 1, primarily comprising ~$6.5 billion2 in Logistics, ~$5.3 billion2 in Workplace and ~$0.7 billion2 in Town Centres. During the period, we delivered the first two buildings in MPark Stage 1 and commenced construction on the final two buildings. In Logistics, ~$0.6 billion2 of developments commenced over FY24, with a further ~$0.3 billion2 expected to commence during FY25. Our pipeline is sourced from the existing asset base and through well-timed restocking, providing us with strong embedded value. We are focused on the disciplined activation and execution of the pipeline, targeting an appropriate spread between yield on cost and valuation cap rate. We are utilising our cross-sector masterplanning capabilities to maximise the value of our development sites, while also exploring future capital partnerships to facilitate the activation of longer-dated, large development opportunities. Development Management Fee Income Development Management Fee Income comprises fee income from development-related activities undertaken on behalf of third parties in our joint ventures and partnerships across Commercial Development, MPC and LLC. In FY24, we generated $46 million in development-related fees, primarily driven by fees associated with MPC and LLC development. This compares with $51 million in FY23, due to a lower contribution from MPark Stage 1 over FY24. Outlook We are entering FY25 in a strong position. The ongoing redeployment of capital into our targeted growth areas is meaningfully reshaping our portfolio, and we are positioned for an increase in production rates across the residential sector. Our MPC and LLC businesses have strong starting positions with 3,415 and 351 contracts on hand, respectively. We have launched 15 new communities in FY24 and expect to launch a further eight from our existing pipeline during FY253,4 to position ourselves for a recovery in residential market conditions. The high quality of our Investment Management portfolio continues to underpin its performance. Our Town Centres portfolio is benefiting from a high weighting to essentials categories, and we remain focused on capturing income generation opportunities presented by our well-located Logistics portfolio and pipeline. As we expand our capital partnership platform, we’re focused on enhancing the scalability of our operations to support the growing platform to drive returns for the partnerships and generate high quality recurring fee income for the Group. We continue to actively engage with capital partners and explore further opportunities for capital partnerships across our platform. FY25 FFO per security is expected to be in the range of 32.0 to 33.0 cents on a post-tax basis, excluding any benefit from the acquisition of the 12 MPC projects announced in late 2023, which remains subject to regulatory approval 5. FY25 distribution per security is expected to be within Stockland’s targeted payout ratio of 75 to 85% of FFO. Current market conditions remain uncertain. All forward looking statements, including FY25 earnings guidance, remain subject to no material deterioration in market conditions. 6 1 Forecast end value on completion, subject to relevant approvals. Includes ~$0.5bn in CRE. 2 Forecast end value on completion, subject to relevant approvals. 3 Subject to relevant approvals. Active defned as communities that have launched and are selling. 4 Expecting to launch three in MPC and five in LLC during FY25. 5 The acquisition of 12 MPC projects by SSRCP from Lendlease Communities remains subject to Foreign Investment Review Board (FIRB) and associated regulatory approvals, including the ACCC. Settlement of certain Project Delivery Agreement (PDA) projects are also conditional on the vendor obtaining relevant landowner Change of Control (CoC) consents. SSRCP may also negotiate to acquire certain additional parcels of land for an additional payment of up to $239 million. 6 All forward looking statements including FY25 earnings guidance, remain subject to no material change in market conditions. 24 Stockland Annual Report 2024 Sustainability 25 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Stockland Newport, Qld How we create value ESG strategy1 – inspired by a better way to live Our ESG strategy is focused on areas where we can make a positive impact through the delivery of innovative and commercially sustainable solutions at scale. Underpinning the strategy are four pillars: • Decarbonisation – a practical, 1.5 degree aligned2pathway to net zero emissions • Circularity – principles to make resources stay useful, longer • Social impact – enhancing our social impact by design • Resilience – adapt and regenerate for community resilience These are supported by enterprise targets that are grounded in science2 and driven by possibilities: • Net zero emissions targets1 • Net zero scope 1 & 2 in 20252 • Most material scope 3 emissions intensity halved by 2030 • Net zero scope 1, 2 & 3 by 2050 • Social value3 target • Over $1 billion of social value creation by 2030. Decarbonisation A practical, 1.5 degree aligned2 pathway to zero emissions Circularity Principles to make resources stay useful, longer Social impact Enhancing our social impact by design Resilience Adapt and regenerate for community resilience Net zero targets • Net zero scope 1 & 2 in 20252 • Most material scope 3 emissions intensity halved by 2030 • Net zero scope 1, 2 & 3 by 2050 Social value target • Over $1.0bn of social value creation by 20303 1 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. 2 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), who have has provided limited assurance in relation to their alignment with the published SBTi criteria. 3 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. 26 Stockland Annual Report 2024 Implementation To enable the successful delivery of our ESG Strategy we are implementing an enterprise-wide operating model to drive ownership and delivery by the business. We have converted our overall ESG strategy into an implementation roadmap with dedicated workstreams, strategic projects and initiatives to embed ESG into business-as-usual practices. This is supported by a series of ESG standards (minimum performance and design criteria) reflected in our processes and systems, and business unit and project-level asset plans. Governance arrangements include performance metrics to track and evaluate initiatives and key decision-making forums. Uplifting key ESG enablers is also fundamental to the success of our strategy and long-term sustainable growth. We are focused on building ESG awareness and capability in our people through training and reward and recognition programs as well as through strategic partnerships. The following chapter highlights our FY24 progress and performance in alignment with our strategy. More detail on our ESG performance is available in our ESG Supplements on the Stockland website: • ESG Data Pack • ESG Management Approaches • Modern Slavery Statement • Climate Transition Action Plan FY24 ESG credentials S&P Global ESG Rating/ Dow Jones Sustainability Index Rated 4th Globally for Equity REITs MSCI ESG Rating AA ‘Leadership’ Rating Sustainalytics ESG Risk Rating Negligible – Top 4% of global REITs GRESB Real Estate Green Star Rating 27 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Decarbonisation Our Climate Transition Action Plan1 In 2023, we released our Climate Transition Action Plan (CTAP) detailing our approach to addressing climate change risk and opportunities and delivering on our purpose. Our CTAP 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). A summary of our response to TCFD has been provided on page 31. Core to our CTAP is a decarbonisation pathway which outlines how we will enable our business, our supply chain, and our tenants and communities to move towards net zero greenhouse gas emissions. We have set science-based targets (aligned to SBTi criteria) across Stockland’s scope 1, 2 and 3 emissions over the short, medium and long-term. • Net zero scope 1 & 2 in 2025 • Most material scope 3 emissions intensity halved by 2030 • Net zero scope 1, 2 & 3 by 2050 2 Our FY24 actions focused on leveraging Stockland’s capability and market innovation to realise both commercial benefits and emissions reductions that will support the long-term sustainable growth of our business as well as the creation of more resilient and lower carbon communities. FY24 performance • 4% reduction in Scope 1 and 2 emissions on FY23, largely due to divestments, lower gas consumption and a change in refrigerant reporting3. • 20% portfolio electricity consumption sourced from onsite solar. • NABERS Energy portfolio average ratings: • Town Centres 4.8 Stars up from 4.7 Stars in FY23 • Workplace 5.2 Stars up from 5.0 Stars in FY23 • In FY25, we expect scope 2 emissions to significantly improve in line with Energy Bay rooftop solar rollout1. Scope 1 & 2 emissions Scope 1 (gas, fuels and refrigerants) and scope 2 (grid electricity) emissions are where Stockland has direct control via investment, procurement or building design. We actively seek to reduce these emissions by including energy saving features at our developments as standard, using rooftop solar and transitioning to all-electric assets for new developments and existing commercial assets. Fundamental to our emissions reduction efforts is the use of systems and technology to accurately and efficiently monitor the performance of our portfolio. In FY24, we replaced our environmental data management system. Our new system assists us in keeping pace with regulatory and investor reporting requirements, leverages automation and connectivity, and supports enhanced scope 3 emissions reporting and target tracking. We also use technology to continuously optimise our building services operations. This allows us to monitor and adjust energy usage, HVAC systems, and other critical infrastructure in real-time. Throughout FY24, building optimisation has avoided ~1,600 MWh of energy consumption, translating to an estimated cost avoidance of $400,000. These savings have contributed to our improved NABERS ratings across our Town Centre and Workplace portfolios. Leveraging large scale, onsite renewable energy generation is a critical component of our decarbonisation pathway. In December 2023, we announced our innovative partnership with distributed energy resources company Energy Bay to achieve 100% renewable energy across our operating portfolio and net zero scope 2 emissions (see case study). In addition, we installed 2.7MW of rooftop solar at our developments to support cost savings for our tenants. This is expected to produce approximately 3,500 MWh of solar energy annually, translating to an estimated $500,000 in annual electricity savings at a rate of $0.16 per kWh, and securing a substantial portion of our tenants' power needs at these sites. 1 Our CTAP 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). 2 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. 3 Refrigerants reporting updated in FY24 capture actuals reported by service providers. Prior years included estimates. 28 Stockland Annual Report 2024 Market leading renewables partnership Through our innovative partnership with distributed energy resources company, Energy Bay, we are using inter-asset energy trading to allow the solar energy generated on the rooftops of our shopping centres and logistics assets to be used across our portfolio. The use of our existing commercial property assets combined with our ~$6.5 billion logistics pipeline will mean Energy Bay can develop, install and operate approximately 225,000 square metres of solar panels on our rooftops - the equivalent of around 32 football fields. Under the partnership, Energy Bay purchased Stockland’s existing ~17 MWp of solar and will install and own an additional ~29 MWp of solar infrastructure across Stockland’s assets. We receive recurring income from licensing our roof space to support the solar panel infrastructure. The partnership will enable net zero scope 2 emissions in 2025 by aiming to generate as much power as our portfolio consumes each year. The partnership will generate large generation certificates (LGCs) from the rooftop solar which will be retired by Stockland for the equivalent energy consumption. As the partnership progresses, we will explore opportunities for our tenants to also join the scheme. Scope 3 emissions – value chain Stockland’s most significant scope 3 emissions come from our development activities (including embodied emissions in materials and construction fuel) and from the energy that tenants use in our leased assets. Within our CTAP we committed to reporting our annual scope 3 emissions commencing FY24. However, with the ongoing independent SBTi target validation review, and the proposed mandatory climate reporting and embodied carbon standards in Australia, we have deferred our scope 3 reporting to FY25 to align with the relevant standards and market comparability. This change in the reporting timeline has not delayed our action. In preparation for scope 3 reporting we have developed upfront carbon assessment guidance for assets and measured the upfront carbon emission on representative development asset types reaching practical completion in FY24. To further improve consistency in project measurements, we are testing carbon quantification tools including Madaster (a digital tool to measure lifecycle embodied and operational carbon), and will be participating in pilot testing of the NABERS Embodied Carbon Tool. Throughout the year, we also developed and commenced implementation of upfront carbon reduction roadmaps across each asset class to outline initiatives that can be introduced to reduce the upfront carbon emissions intensity of our developments. We have made progress on key areas using commercially sustainable lower carbon materials (see case study) and providing lower carbon options for our customers (see materials case study). Leppington Business Park, NSW 29 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Shop smart and charge fast This year, we announced a strategic long-term partnership with Ampol to roll out one of Australia’s largest shopping centre networks of electric vehicle charging infrastructure. Stockland customers and retail tenants will have access to over 100 AmpCharge fast and ultra-fast charging bays across 15 of Stockland’s retail town centres in Queensland, New South Wales, Victoria and Western Australia, allowing them to fully charge their cars in 60 minutes or less. The partnership also provides us with an opportunity to expand the roll-out of electric vehicle charging across our workplaces and communities in the future, making it easier for people to charge their vehicles wherever they live, work, socialise, or shop. Stockland Wetherill Park, NSW Construction material partnerships and substitutions advance scope 3 reductions Throughout the year, we have progressed opportunities to reduce the embodied carbon footprint of our development pipeline. Lower carbon concrete Through a strategic partnership with Boral, we are using lower-carbon concrete products at some of our projects at no additional cost. The partnership allows Stockland contractors to source Boral Envirocrete, Envirocrete+ and Envisia at an agreed market rate improving its commercial viability and potential uptake at our developments. These lower-carbon products reduce embodied carbon by approximately 30%1. We continue to engage early with industry and our suppliers to encourage higher cement replacement to enter the mass market at low or no incremental cost as we work towards our 55-65% cement replacement goal. Electric arc furnace steel We are working with ArcelorMittal Steligence® and JSteel on the introduction of lower embodied carbon structural steel for logistics warehousing. We will initially use XCarb® at Momenta, our flagship multi-storey logistics development in Banksmeadow, NSW, due to begin construction in FY25, providing embodied carbon savings of about 82%1 compared with typical blast furnace manufactured steel. XCarb® is recycled and renewably produced beams manufactured using entirely recycled content, via an electric arc furnace which is powered by certified renewable electricity. Steel to timber substitution We’re transitioning from steel to Forest Stewardship Council (FSC) certified timber frames and trusses at our Land Lease Communities (LLC). In FY24, we substituted steel trusses with timber trusses on LLC homes in Victoria, providing a 97%1 embodied carbon reduction compared with conventional steel. This substitution has reduced the overall upfront carbon emissions intensity of these homes by 11%. We have also developed a timber wall frame and truss system which removes all the structural requirements for steel within our Halycon Land Lease Communities. This system will be utilised for new projects and new stages at existing projects from FY25. 1 Embodied carbon reductions are estimates based on Environmental Product Disclosures (EPDs). 30 Stockland Annual Report 2024 Task Force on Climate Related Financial Disclosures References Recommended disclosures Reference Recommended disclosures Reference Governance Risk Management A. Describe the board’s oversight of climate- related risks and opportunities. CTAP - governance page 28 A. Describe the organisation’s processes for identifying and assessing climate-related risks. CTAP - risk management page 33 B. Describe management’s role in assessing and managing climate-related risks and opportunities. 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. Strategy Metrics and targets A. Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term. CTAP – decarbonisation pathway page 11; climate resilience page 25; scenario analysis page 36 A. Disclose the metrics used by the organisation to assess climate related risks and opportunities in line with its strategy and risk management process CTAP– decarbonisation pathway page 11; climate resilience page 36 B. Describe the impact of climate related risks and opportunities on the organisation’s businesses, strategy, and financial planning B. Disclose scope 1, scope 2, and, if appropriate, scope 3 greenhouse gas (GHG) emissions, and the related risks. CTAP – carbon footprint page 8; ESG data pack 'emissions' tab C. Describe the resilience of the organisation’s strategy, taking into consideration different climate related scenarios, including a 2°c or lower scenario. C. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets CTAP – decarbonisation pathway page 11; climate resilience page 25; ESG data pack 'emissions tab' 31 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Circularity 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. Principles to make resources stay useful, longer During FY24, we focused our efforts on embedding circularity principles throughout our portfolio and operations and identifying opportunities across our asset classes. We are piloting the Arup Circular Buildings Framework and Toolkit across precinct design, development and fitout projects working across its four principles to build only what we need, in an efficient manner and with the right materials and resources 1. Material passports are understood to be a key enabler of circularity. Passports enable registering of building components to provide insight into the degree to which an object can be reused after disassembly. We have partnered with one of our architects to pilot approaches to circularity using Madaster. Madaster is a digital material passport - a digital record that tracks building materials throughout their lifecycle. It enables a circular economy by facilitating reuse and minimising waste throughout the lifecycle of the building (construction, use and demolition or end of life). The tool is also being piloted as an option to more efficiently assess the upfront carbon of projects. Circularity requires whole of industry and supply chain transformation. To support this transition, we have also partnered with Building 4.0 Cooperative Research Centre. Building 4.0 is focused on the ecosystem of the sector to deliver: better buildings focused on sustainability, quality and safety, greater human capacity through education and jobs and new efficiency and markets. We are contributing to the study ‘Building the Future – Circular Economy’ to develop a roadmap to catalyse meaningful industry and government action. Resource management We continue to track and manage resource use, particularity waste diversion and water consumption and intensity, across our portfolio. Our key performance metrics for water (NABERS ratings, consumption and intensity) and waste (NABERS ratings and diversion rates) are available in our ESG Data Pack. FY24 performance • Waste diversion rates: • Development2: Commercial Property 92.5% compared with 92.7% in FY23 and Communities (MPC & LLC) 99%, up from 96% in FY23. • Operational: Workplaces 89%, up from 79% in FY23 and Town Centres 41%, up from 40% in FY23. NABERS Water portfolio averages: • Workplaces: 4.2 Stars compared with 4.7 Stars in FY23. • Town Centres: 3.25 Stars compard with from 3.5 Stars in FY23. 1 Arup Circular Buildings Toolkit https://ce-toolkit.dhub.arup.com/ 2 Stockland relies on third-party contractor reported data in order to report on Residential & LCC Contractor waste. 32 Stockland Annual Report 2024 Social 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. This includes both mandatory and voluntary efforts. In FY23, we committed to creating over $1 billion of social value by 2030. Measuring social value creation The measurement of social value creation is a key component of our approach. All data included in our reporting has an identifiable community benefit from both mandatory and voluntary business activity in alignment with the globally recognised Business for Societal Impact (B4SI) framework3. We also include environmental outcomes within our value creation model (for more information please refer to our Social Management Approach – Social Impact). Throughout the year, we have made good progress toward our 2030 target creating $219 million of social value. The most significant value contributions were from our delivery of social infrastructure and education facilities across our communities. Social IQ4 goes digital Our Social IQ tool uses third-party empirical data and research to forecast social value and factor social outcomes alongside commercial feasibility in our decision making.In FY24, we transformed Social IQ from static social value models into a digital data driven tool to bring social outcomes into our strategic decision making through a guided user experience. This enables long-term forecasting and reporting that can be shared with partners. Social value creation Economic 6% Environmental 17% Social 77% $219m of social value created in FY24 3 B4SI is the global standard in measuring and managing corporate social impact https://b4si.net/ 4 Stockland's social value target and Social IQ Tool has been informed by global and domestic frameworks. Limited assurance on the methodology for the social value model and target provided by our ESG Assurance Partner, EY, is available on our website: www.stockland.com.au/sustainability 33 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Social impact by design1 Our ‘Social Impact by Design’ Framework guides the delivery of our social value commitment. The Framework takes an enterprise-wide approach to identifying, designing and delivering solutions to optimise social impact and the social value that it creates to deliver our purpose of a “better way to live”. It provides tools and guard rails that enable impact-orientated investment and activity that can benefit individuals and communities. Our approach starts with social needs analysis and community collaboration, which enables us to respond to the unique needs of each community. The creation of social value is quantified and supported by our unique Social IQ tool which forecasts social value for each stakeholder group in financial terms. This enables social outcomes to be considered alongside commercial feasibility in investment decisions (see case study). Our Social Impact by Design framework has been integrated into our business unit ESG plans to support expenditure that delivers social, economic and/or environmental benefits. Social Impact by design Inputs Social Needs Analysis Community Collaboration Solution Design Delivery of Social Value Social IQ Social Value Reporting 1 6 2 M e a s u r e m e n t O u t c o m e s We believe in a better way to live 3 Outputs 4 5 Our Social Impact by Design Framework is designed to enable evidence based, impact orientated decision making. Quantification of social value created is supported by Stockland’s pioneering Social IQ tool, which forecasts social value for each stakeholder group in financial terms enabling Stockland to bring social outcomes alongside commercial feasibility in investment decisions along every stage of our value chain. 1. Social Needs Analysis Prepare a Social Needs Analysis for our communities using external research, community engagement reports and internal data so that we understand what matters most to our local communities and where there is unmet need. 2. Community Collaboration Involve our local communities more in designing solutions that address their local needs. The views of our community are part of our evidence base for solution design. 3. Solution Design Identify opportunities to build places, provide services and make procurement decisions that address unmet community needs using our Social Investment Framework and solutions matrix. 4. Delivery of Social Value Using steps 1 to 3 enables us to optimize social value creation at an asset and project level through evidence- based decision making guided by evaluation criteria within our Social Investment Framework. 5. Social IQ Quantifying the impact of our intentional investments and effort using our Social IQ tool at project, asset and/or enterprise level. 6. Social Value Reporting: Report publicly and transparently on our impact against our commitments. Learn to improve future investments. 1 Stockland's social value target and Social IQ Tool has been informed by global and domestic frameworks. Limited assurance on the methodology for the social value model and target provided by our ESG Assurance Partner, EY, is available on our website: www.stockland.com.au/sustainability 34 Stockland Annual Report 2024 Enhancing community wellbeing through social infrastructure Social infrastructure such as community centres, childcare and libraries, supports the quality of life and wellbeing of communities. During FY24, we created $48.2 million of social value through the provision of social infrastructure across our masterplanned communities2. Feedback from residents in our Liveability Survey and statistical research indicate that, by contributing to the provision of social infrastructure and intentionally designing communities to maximise access to existing social infrastructure, we can improve the subjective wellbeing of residents. Our community real estate projects use our Social Impact by Design Framework to build on our social value contribution and enhance community wellbeing by identifying and addressing unmet community needs. An example is leveraging RMIT’s Australian Urban Observatory (AUO - a digital liveability planning tool) data sets to determine distance thresholds and types of social infrastructure that will optimise individual and community wellbeing. This enables us to forecast the social value created when considering community real estate projects by determining the number of residents within certain distance thresholds that increase wellbeing (eg 1000m for community centres, 800m for childcare centres). We are also building methods to determine the number of individuals accessing social infrastructure across our town centres, workplace and logistics portfolios to again inform how we can optimise wellbeing outcomes and which in turn would uplift our social value creation from FY25. CARE Foundation This year, we continued to evolve our CARE Foundation beyond community investment to become a leader in social value creation by helping to build thriving, resilient communities. In line with our ESG strategy, the Foundation is focused on enabling social value creation through addressing the evolving needs of our communities and delivering community-led solutions through our new social innovation grants program, Community Catalyst. In FY24, five organisations that support areas including affordable housing, accessibility, circularity, decarbonisation and biodiversity received seed funding of $20,000 and support over three months. Up to three of these initiatives are then eligible for a further $100,000 Capacity Building Grant, which includes bespoke technical skills from our people through volunteering opportunities. Stockland Sienna Wood, WA 2 Stockland's social value target and Social IQ Tool has been informed by global and domestic frameworks. Limited assurance on the methodology for the social value model and target provided by our ESG Assurance Partner, EY, is available on our website: www.stockland.com.au/sustainability 35 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value First Nations engagement Stockland has a clear vision and commitment for reconciliation and aspires to contribute to a just, equitable and reconciled Australia. Our First Nations Strategy sets our strategic priorities towards Indigenous engagement and aims to embed our commitment to reconciliation into the way we operate our business. Our strategy is focused on those areas that we believe we can have a direct impact and contribute meaningfully to these areas including employment, procurement, cultural learning, designing with Country and cultural heritage and land management. We have clear objectives across our strategy and have made good progress throughout the year. Indigenous employment - creating social and economic inclusion across our workforce We have increased First Nations employees in our business to 13, up from nine in FY23. We continue to work toward our target of 3% of workforce representation. Our FY25 focus will be on attracting Indigenous graduates and summer interns by partnering with CareerTrackers Indigenous Internship Program as well as continuing our partnership with Indigenous Workstars for direct hire opportunities. Indigenous Procurement – enhancing economic development and independence of Indigenous people and communities. In FY24, our collective addressable spend with Aboriginal and Torres Strait Islander businesses1 was $8.5 million, an increase from $4.3 million in FY23. This increase in Indigenous procurement is due to our extended focus to two strategies: • Direct spend opportunities – we continued our formal partnership with Supply Nation and increased the number of Indigenous businesses we work with to 33 (24 in FY23) with a total spend of $3.1 million ($4.3 million in FY23). The spend decrease was due to a change of supplier for two large contracts. • Second-tier supplier opportunities – we have embedded our Stretch RAP targets into our tender and contract management process to encourage our key contractors to partner with Indigenous businesses. This has resulted in $5.5 million indirect spend in FY24. We also developed and launched our new ‘Footprints into Retail Program’ which was developed to increase the representation of Indigenous business across the retail sector as it supports First Nations retailers to enter our Stockland Marketplace and transition them through a retail opportunity pathway into potential leasing opportunities across our retail assets. Broader exposure to the Indigenous businesses sector is key as we are focused on significantly increasing spend directed to Indigenous businesses in FY25. Cultural learning – Increasing the cultural capability of our people and creating a culturally safe environment. 98% of employees completed our Cultural Induction Program, which is the first step in our First Nations Cultural Learning Framework. We then refreshed and launched our Stockland Songlines Program focused on sparking curious conversations which lead to action. This program involves six learning videos which form a LinkedIn Learning pathway followed by a series of embedding activities which help implement cultural knowledge, learning and practices. Designing with Country – reimagining and creating places and spaces which reflect, protect and celebrate Indigenous culture and history We have developed Designing with Country principles and practices to help guide our teams on the best practice approach to designing with country across their assets. There has been a great uptake of projects conducting connecting with Country events, meaningful engagement with traditional owners and knowledge-holders and, as a result, 17 assets (up from six in FY23) are currently delivering Designing with Country initiatives. In FY25, we aim to launch our Designing with Country Framework which is a business-specific guide to support our teams deliver positive co-design outcomes in collaboration with Indigenous communities. This will be further supported by the ongoing focus we have on cultural heritage and land management compliance which includes training and structured governance arrangements. 1 Indigenous procurement includes Supply Nation and Kinaway Chamber of Commerce businesses 36 Stockland Annual Report 2024 Our Stretch Reconciliation Action Plan (RAP) 2023–2026 In November 2023, Reconciliation Australia endorsed our Stretch RAP 2023–2026. Our Stretch RAP seeks to embed reconciliation initiatives into our business practices to ensure we are creating thriving communities that value, respect and celebrate Australia’s First Peoples. It also builds on our recent Innovate RAP 2020– 2022, whereby we achieved over 90% of our targets and commitments. Over the next three years, we will continue to grow our knowledge and take action as a culturally respectful, safe and responsive organisation that will make important changes to benefit all Australians. As community builders, we know our participation in the RAP process can help to create a future that values, respects, and celebrates Australia’s First Peoples and contributes to meaningful reconciliation. We are proud to recognise, embrace and celebrate Australia’s First Nations peoples and their deep connection to Australia and will continue to use our platform to spread reconciliation awareness. 37 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Resilience We recognise that climate change and nature loss are interconnected issues. We are advancing our approach to adaptation and regeneration to address these challenges and create more resilient communities. Climate resilience There is potential for climate-related physical risks to impact asset operability, affect the liveability of communities and bring about potential economic losses. These risks and their potential implications are in our enterprise risk framework. We periodically conduct a national mapping exercise based on the projected changes to climate variables. This helps us to identify the level of exposure for all assets in our portfolio, including those under development. This is supported by our bespoke climate resilience assessment methodology that sets out the criteria to assess the resilience of individual properties across all types of properties within our portfolio. Asset level assessments have been conducted for our entire portfolio applying the Intergovernmental Panel on Climate Change’s Representative Concentration Pathway 8.5 projections to 2030 and 2090. In FY24, we reassessed 24 existing assets to align them to the most up-to-date science to enable a consistent consideration of risk across the portfolio. A rating is applied to each asset to track resilience over time. The results of these assessments are available in our ESG Data Pack. All acquisitions are subject to a climate risk exposure assessment. A more detailed climate risk assessment is performed at a minimum by the design stage of a project to identify mitigation opportunties. Throughout the year, we focused our efforts on high level risks identified in our Investment Management portfolio and how these can translate into practical mitigation controls and actions such as shade structures, roof top solar and regular inspections roof gutters. For Development we are leveraging the data to develop consistent design standards across asset classes as part of our ESG Standards work, such as our Better Places Manual for each masterplanned community. Nature-related risks and opportunities Stockland is dependent on nature for commercial activity (for example, availability of water and climate stability). We also contribute to impacts on nature (for example, through biodiversity loss via land clearing). Addressing nature-related risk is complex and intersects with other sustainability concerns including climate, water, and waste. Understanding these dependencies and impacts enables further development of how we can contribute to a nature positive future. Our initial focus areas are the direct impact of our greenfield development on biodiversity loss and the nature-related dependencies in our supply chain. In FY24, we focused on our approach to biodiversity management. We continue to work closely with ecologists and industry groups and engage on proposed Environmental Protection and Biodiversity Conservation (EPBC) Act updates (a reform priority of the Australian Government’s Nature Positive Plan) and adopt best practice where possible. In lieu of clear industry metrics and methodologies we have reviewed various alternative approaches to gain an understanding of the potential approaches available. We are enhancing our management of biodiversity to: • Embed specific criteria and guidelines for best practice biodiversity management along our chain of decision- making (for example criteria to be assessed in site acquisition due diligence, assessment principles, and biodiversity sensitive urban design guidelines); • Develop systematic biodiversity data management ensuring that biodiversity data and information is collected, curated, stored, reported on and managed in a consistent and accessible manner across the business; and • Build upon governance structures to support biodiversity management to support decision-making, planning, on- ground actions, monitoring and reporting. We report our biodiversity management metrics in our ESG Data Pack. We continue to build awareness of nature-related risks and opportunities across the business including briefings for our senior leaders and the Board Sustainability Committee. 38 Stockland Annual Report 2024 B by Halcyon, Qld People and capability As our organisation grows, we continue to invest in strengthening our culture, capacity and capability to deliver on our strategy. Our approach to diversity and inclusion, new ways of working, learning and leadership, and rewarding performance supports our ability to attract, develop and retain talent. 39 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value End-to-end multi-sector capability Investing in our people Stockland continues to prioritise investment in talent development to accelerate the growth of our people and support our leaders to deliver on our strategy. We are focused on leveraging our specialist end-to-end, multi- sector capabilities to deliver value to our stakeholders and further developing the technical, behavioural and leadership skills required to ensure our people are ‘future ready’. Through our leadership development programs, we are growing our pool of internal talent at all levels of our organisation and equipping our people with the skills and experience to work across our integrated model, regardless of asset classes. The programs are tailored to various career stages, with our ‘Bright Futures’ program focused on people who are new to leadership roles and our ‘Bold Futures’ program designed for senior leaders. To support our pipeline of talent, in February 2024, we welcomed 26 graduates into our two-year Graduate Program. We achieved a diverse representation of graduates by gender and ethnicity. Our graduate program has been awarded a Top 100 program by GradConnection for eight consecutive years. We’re investing in talent development to accelerate the growth of our people and support the delivery of our strategy. Bright futures Stockland’s Bright Futures program is an investment in our first level of leadership with around 200 new leaders from across our organisation taking part in FY24. The 12-month learning experience is designed for people who are new to leadership roles and provides participants with a comprehensive learning experience focusing on practical people topics and processes. 2024 participant, Rosa Solomon, says: “The Bright Futures program has been a great opportunity to connect with other leaders at Stockland, share ideas, and ask questions we might not typically address within our own teams. As a manager, it quickly became apparent to me that expertise in my field and individual achievements alone do not make you a good leader, but rather the accomplishments of the team and the ability to facilitate those successes. "A surprising and valuable lesson was the importance of seeking honest and ongoing feedback from direct reports to strengthen relationships, improve collaboration, and enhance my leadership skills. Since completing the course, my approach to managing my team has evolved. While I remain true to my own leadership style, I now ask my team more questions, listen, and avoid immediately offering solutions as it fosters their ability to explore alternative solutions themselves and develop a growth mindset.” Rosa Solomon, Stockland Bright Futures participant 40 Stockland Annual Report 2024 Employer of choice Our organisation is shaped by our ongoing dialogue with our people. Our independently administered ‘Our Voice’ employee survey provides regular opportunities for our people to share their feedback about what it is like to work at Stockland and allows our leaders to listen and respond to that feedback. In FY24, we achieved an overall employee engagement score of 87, eight points above the Australian Norm and for some categories above the Global High Performing Norm1. We are recognised as a leading organisation: 2021-23 WGEA Employer of Choice citation for the 14th successive year. 2023 Top 100 Global Workplace ranking for Gender Equality by Equileap. Gold Employer in the Australian Workplace Equality Index (AWEI) 2023 Australian LGBTQ Inclusion Awards Our values and conduct Stockland believes in doing business in line with our CARE values. This serves as the guiding principle for our decision making and engagement with stakeholders. We ask all employees to confirm they have read and acknowledged our Code of Conduct as a demonstration of their commitment to the high standards we set, 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 FY24: • Employee Conduct – there were eight substantiated breaches in FY24, which resulted in two terminations of employment and three formal warnings. Of the three remaining breaches, one resulted in an expectations letter and two in employee resignations. • Privacy – there were no notifiable data breaches reported to the regulator, Office of the Australian Information Commissioner (OAIC). • Grievances – there were three formal grievances raised in FY24 relating to employee conduct above. • Whistleblower – Stockland’s Whistleblower Protection Officers (WPOs) received a total of nine concerns via our whistleblower escalation channels in FY24, with investigations carried out in accordance with our Whistleblower Policy including, where appropriate, actions taken to address matters raised. 1 Willis Towers Watson 41 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Building a diverse, safe and inclusive environment At Stockland, we believe creating a safe, inclusive and culturally diverse 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 inclusion, and wellbeing and disability. Sponsored by members of our executive, these groups include employees from across our organisation to encourage diversity of thought, equitable decision making and improved delivery on our initiatives. During FY24, our EAGs have led a series of initiatives to promote diversity and inclusion in our workplaces, including: • Harmonised a number of our policies into our new Respectful Workplaces Policy. This policy outlines our standards of behaviour and captures the recent legislative changes to Respect at Work seeking to create a safe, respectful workplace culture. • The introduction of a new ‘Flex Leave’ policy which allows our people to swap up to three public holidays for a day that is significant to them for individual cultural, religious or personal reasons. • Our 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, with Wear It Purple and Sydney WorldPride campaigns. Gender pay equity Stockland is committed to achieving gender balance of 40/40/20 at every level of our workforce and continued to meet this target in FY24. We are also striving for a zero gender pay gap, which we recognise as a key measure of gender equity at Stockland. A zero gender pay gap requires an environment in which all employees can thrive regardless of their gender, and by addressing areas where we know inequity can exist, such as recruitment and remuneration, and in opportunities for promotion and career development. Our analysis tells us that we don’t pay people differently based on their gender. However, women are overrepresented in certain job families such as administration and customer care and under-represented in some higher-paid areas. This results in the average and median pay of women at Stockland being lower than that of men. We are working hard to bridge the gap and have made significant progress through the initiatives that form part of our Gender Equity Strategy, with a reduction in our gender pay gap for average based pay1 from 25.9% to 19.2% since 2021. We are striving for a zero gender pay gap, which we recognise as a key measure of gender equity at Stockland. 1 Excluding the Managing Director and CEO, and including permanent employees, fixed term contractors and casuals. 42 Stockland Annual Report 2024 Ways of working During FY24, we have made significant progress on a range of initiatives designed to simplify and streamline our ways of working and build more capacity and efficiency in the organisation to support delivery and execution. This includes refining a number of our enabling activities such as meeting cadence, forecasting and budgeting, process improvement, and governance and enterprise projects. Stockland continues to value the benefits of flexible work to support collaboration, enhance social cohesion and, deliver performance. 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 and working rhythms aligned to our principles, 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. 43 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Health, safety and wellbeing We are committed to providing physically and psychologically safe and healthy environments for everyone who works with us or visits our communities, workspaces and places. To strengthen our commitment to providing a safe and respectful workplace, in FY24 we entered a partnership with Our Watch, an independent organisation focused on preventing violence against women and fostering gender equality. The partnership involves undertaking a deep dive of our peoples’ perceptions and experiences of gender equality at Stockland, including any experiences of sexual harassment. This included conducting an all-employee survey, focus groups and desktop analysis of policies, procedures and other data points. We have worked with Our Watch to co-create an action plan to prevent sexual harassment in the workplace. The action plan is a part of our overall diversity and inclusion strategy which aims to position us as a leader in gender equality. In FY24, our employee Lost Time Injury Frequency Rate (LTIFR) was 2.49, an increase from 1.6 in FY23. This increase is attributed to an increase in manual-handling roles such as labourers and caretakers in our LLC business. We have seen a notable improvement in our Medical Treatment Injury Frequency Rate (MTIFR) which has decreased from 3.9 in FY23 to 2.18 in FY24. We continue to focus on injury prevention programs to support our changing risk profile. We have seen a notable decrease in contractor serious incidents1 across our development projects in FY24 (32) compared to FY23 (44). This reduction can be attributed to a number of factors including improvements in general market conditions including skilled labour availability, as well as our ongoing focus on proactive safety management initiatives such as Stop Works for Safety and our Standards of Safety pilot. Our commitment to continuous improvement drives us to monitor incident patterns closely and respond appropriately. For example, in the lead up to the end of the year, the construction industry typically experiences an increase in incidents. As a proactive measure, we hosted a ‘Stop Work for Safety’ tool-box meeting across our active projects throughout November and December 2023 to keep safety front of mind and empower all workers to stop and think about the hazards that affect their work. This initiative was successful in driving down contractor serious incident rates across our development projects, with a 25% decrease in serious incidents in November and December 2023, compared to November and December 2022. 2.18 Medical Treatment Injury Frequency Rate (MTIFR) Down from 3.9 in FY23 More information on our safety performance is available in our ESG Data Pack. 1 Stockland relies on relies on third-party contractor reported data in order to report Development Contractor LTIFR performance. 44 Stockland Annual Report 2024 Driving a digital, innovative culture Innovation is central to our ability to deliver on our purpose: 'a better way to live'. Our strong focus on building a future-ready organisation is underpinned by a culture of continuous improvement and learning, enabling our people to drive operational excellence, create leading customer experiences, and accelerate the delivery of our ESG strategy. Through our employee engagement survey, Our Voice, we measure key indicators of innovation culture, capability and outcomes, including perceptions of how quickly we move from idea to implementation, and our propensity to take calculated risks. Since 2021, we’ve achieved a 20% increase in these scores, demonstrating our strong progress in embedding innovation culture across our business. In FY24, we have continued to elevate innovation as a key enterprise capability. This includes extending our people's digital and data capabilities. With the launch of Microsoft Copilot Chat to the whole organisation, we created a custom training program to support our employees in their learning about Generative AI. This training provides foundational knowledge about GenAI including key concepts and an introduction to prompting. It also puts a strong emphasis on how to engage with AI safely and responsibly with considerations about data privacy and connection to Stockland policies and guidelines. Our people have embraced innovation to deliver new services for our customers, enable strategic partnerships and leverage digital and data innovation to unlock capacity in our organisation and enable new opportunities for growth. Optus Centre, NSW Cyber security We remain focused on cyber resilience as 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. We have continued to elevate innovation as a key enterprise capability 45 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Stockland Aura, Qld How we create value Quality relationships The strength and quality of our customer, partner, supplier and business 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. 46 Stockland Annual Report 2024 Our commitment to customer excellence Our focus on delivering a superior customer experience allows us to cultivate trust, strengthen our relationships, 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 superior customer experience that sets us apart from our competitors. Measuring customer satisfaction and wellbeing We take a data-driven approach to understanding the values and aspirations of our customers, with a focus on: • Aligning our business strategy to deliver to current and emergent customer needs and trends. • Providing accurate, timely and actionable insights to inform or automate customer-centric and data-led decision making across the enterprise. • Leveraging predictive analytics to deliver personalisation and superior customer experiences. Our annual Liveability Index Survey measures what matters to our residents and helps inform our design and development processes, including strategic planning, placemaking guidelines, partnerships and sustainability initiatives. In FY24, our national Liveability score remained below our target of 75% and fell from 70% to 66%. The survey has identified some key pain points for customers regarding the delivery of amenity, home and community design and community infrastructure. We have identified opportunities to review our internal processes and partnerships around these key areas. Our Logistics and Workplace 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. For FY24, we lifted our tenant satisfaction metric to 90% significantly above our 80% target. We saw the main improvements in the areas of property satisfaction, staff and business relationships. Across our retail portfolio, shopper satisfaction was above our 78% target at 81.8%. Our retail tenant satisfaction was aligned with our target of 75%. Although this reflected a drop from FY23, this was solely due to a change in methodology that now better reflects Stockland’s key priority metrics for this stakeholder group including ‘ease of doing business’ and ‘likelihood to renew’. We take a data-driven approach to understanding the values and aspirations of our customers. 47 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Stockland Shellharbour, NSW Leveraging generative AI to drive customer centricity Our Stockland Automated Research Assistant (SARA) is a generative AI tool that empowers Stockland to deliver solutions that resonate with our customers. The automated bespoke assistant was developed leveraging our internal data science capabilities, drawing on our library of historical customer insights research reports. Our people can ask questions such as “What features do people expect in inclusive playgrounds?” or “Which age demographics are most interested in medium- density living in the Sunshine Coast?” and SARA can automatically locate relevant research reports and use them to synthesise answers to these questions. During FY24, we commenced our SARA 2.0 project. SARA 2.0 is now able to dynamically interpret and condense relevant information in to user-friendly summaries, making complex customer insights and trends more accessible to our teams than ever before. This innovative use of AI streamlines our access to valuable customer insights and enhances our ability to make informed, data-driven decisions, empowering our people to create and curate thriving communities that are valued by our stakeholders. 48 Stockland Annual Report 2024 Elevating the voice of our customers in our Land Lease Communities During FY24, we sought to better understand the preferences and motivations of Australians aged over 55 years aimed at informing our ability to provide outstanding customer experiences. The insights derived from this research have been instrumental in helping us to shape home design and prioritising community amenities and services. We also initiated a ‘Voice of the Customer’ program, which is centered around the pivotal moments throughout the customer journey from initial enquiry to the construction and living stages. This has allowed us to foster strong customer advocacy while also identifying pain points and opportunities for improvement to ensure we’re delivering what our customers want and need. Partner of choice We provide high-quality, commercially attractive investment prospects for third-party investor partners with demonstrated leadership and proven expertise in asset development and management. Our strategic capital partnerships enable us to extend our management and development capabilities and grow assets under management more quickly to enhance long-term, sustainable business growth for us and our partners. In line with our strategic ambitions, during FY24 we expanded our capital partnership platform to leverage the availability of long-term institutional capital and the investment appetite for the Australian residential sector. Further information on our capital partnerships can be found on page 20. Stockland Piccadilly, NSW 49 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 How we create value Digital and data excellence Digital and data are the critical tools that enable our business to solve today’s challenges for our customers and country, driving breakthrough innovation. Innovation is essential to what we do, every day. We are leveraging initiatives to enhance scalability and efficiency to support our growth ambitions. We are focused on using our technology and data analytics capabilities to transform raw data into actionable insights that allow us to adapt to changing customer needs in real time and create value for our business and our customers. This focus supports the execution of Stockland’s strategy by providing a deeper understanding of our customers, enabling data-driven decision making and driving operational excellence, including the delivery of our ESG agenda. Data-enabled solutions continue to unlock value and drive agility to support our customer centricity, operational excellence, and enhanced decision making across our business. Data-led leasing Data-led leasing is a tenant recommendation engine that virtually models the retail mix within our shopping centres to predict the best outcome for our customers, tenants and our retail town centres. It involves leveraging a range of existing historical data sets and employing geospacial machine learning to better understand how various shops perform and how their performance can optimise the whole centre. This supports our leasing teams in strategically positioning stores and brands within our town centres to drive more traffic and, ultimately, sales. Data-led leasing not only ensures we're meeting the needs and wants of our customers and contributes to the long-term, sustainable performance of our shopping centres, but it greatly enhances our decision-making efficiency, with a reduction in time to decision by around three to four days. Stockland Terra Stockland Terra, our proprietary and tailored geospatial analytical application, continues to improve the way our teams explore, track, and evaluate land acquisition opportunities across Australia. In FY24, we expanded Stockland Terra's capability, including: • Rapid consolidation of acquisition data to support faster analysis and reporting. • Improved site discovery functionality to allows us to quickly analyse tens of thousands of lots using strategic ffilters to identify investment opportunities. Terra continues to increase the productivity and efficiency of our teams by reducing time spent on research, analysis and decision-making. 50 Stockland Annual Report 2024 Stockland Melbourne Business Park, Vic Governance 51 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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. Qualifications and age BComm, FCA, 66 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 more than 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, National Vice President, Property Council of Australia and Group Chief Financial Officer. Qualifications and age BA (Econ) (Hons), MBA, GAICD, 54 Directorships of listed entities in last three years None. 52 Stockland Annual Report 2024 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 was formerly the Chairman of Waypoint REIT, National Storage REIT and Shopping Centre Council of Australia and has previously been a director of Westfiel d 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 and the Nominations Committee. Qualifications and age BE, BComm, MBA, 66 Directorships of listed entities in last three years National Storage REIT (19 December 2013 to April 2022), Waypoint REIT (10 July 2016 to 15 May 2024). 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 and a member of the Nominations Committee. Qualifications and age BA, MBA, FAICD, 55 Directorships of listed entities in last three years ASX Limited (1 August 2016 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 more than 30 years’ experience in the telecommunication and government sectors in Australia, New Zealand and Hong Kong. She was 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 was also a director of AMP Limited. Ms McKenzie is currently the Chair of NBN Co Limited, and Healius Limited, and a director of the Geelong Port. Ms McKenzie is a member of the Audit Committee, Nominations Committee and Sustainability Committee. Qualifications and age BA, LLB, 63 Directorships of listed entities in last three years AMP Limited (18 November 2020 to 31 December 2023), Healius Limited (25 February 2021 to present). 53 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Governance 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 also served as a Director of Waypoint REIT Group. Mr Newton is currently a Director of BAI Communications Australia, Boldyn Networks 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, 71 Directorships of listed entities in last three years Waypoint REIT Group (10 July 2016 to 27 October 2023). 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 Infrastructure Victoria. Ms O’Reilly is the Chair of the Risk Committee and a member of the Audit Committee. Qualifications and age BBus, 63 Directorships of listed entities in last three years Directorships of listed entities in last three years: 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). 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, Champions of Change Coalition, and the Chairman ofData Standards for the Consumer Data Right in Australia. Mr Stevens also serves as a Director of Ooh Media Limited. Mr Stevens is the Chair of the Sustainability Committee, a member of the Risk Committee and the People and Culture Committee. Qualifications and age BComm, MComm, FCA, 64 Directorships of listed entities in last three years 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 more than 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 also served as a director of CSR Limited. 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, People & Culture Committee and the Sustainability Committee. Qualifications and age BE (Hons), 59 Directorships of listed entities in last three years CSR (16 January 2023 to 9 July 2024). 54 Stockland Annual Report 2024 The Stockland Leadership Team Tarun Gupta Managing Director and Chief Executive Officer Refer to biography on page 52. Alison Harrop Chief Financial Officer Alison Harrop joined Stockland as Chief Financial Officer on 10 January 2022. Ms Harrop has more than 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 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 Kylie O'Connor CEO Investment Management Kylie O’Connor joined Stockland as CEO, Investment Management on 27 November 2023. Ms O’Connor has more than 25 years’ experience in property funds management. She was previously Head of Real Estate at AMP Capital and has held funds management, audit and advisory roles at Lendlease and Arthur Andersen. Ms O'Connor is a key management person for the purposes of the Remuneration Report. Qualifications BComm (Land Economics), GDAFI, GAICD Andrew Whitson CEO Development Andrew Whitson was appointed Group Executive & CEO, Development in November 2023, with end-to-end responsibility for development across all Stockland asset classes as well as project management, ESG and sales. 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 New South Wales. In July 2013, he was appointed Group Executive & CEO Communities before his role was expanded to lead both the residential and retirement living businesses in August 2018. In 2022, Mr Whitson oversaw the $1 billion disposal of Stockland’s Retirement Living business, and the successful acquisition of the Stockland Halcyon Land Lease portfolio. Mr Whitson is 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) 55 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Governance 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 more than 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. Qualifications BA (Hons), LLB (Hons), MPP, GAICD 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 more than 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 Gill Rees Chief People & Stakeholder Engagement Officer Gill Rees will commence as Chief People & Stakeholder Engagement Officer on 2 September 2024. Ms Rees has more than 30 years of experience in people and culture roles. She was the Global Head of HR at Chartered Standard Bank and EGM of People and Culture for Commonwealth Bank in Australia. Qualifications Bsc (Hons) Management Science Former executives Louise Mason Louise Mason was Stockland's CEO of Commercial Property from 18 May 2018 to 20 November 2023. Karen Lonergan Karen Lonergan was Stockland's Chief People & Stakeholder Engagement Officer from 11 March 2019 to 30 June 2024. 56 Stockland Annual Report 2024 Our approach to corporate governance Stockland Corporation Limited, Stockland Trust Management Limited 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 FY24 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 2024 financial year, is current as at 22 August 2024, 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 2024 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. Audit Commitee Sustainability Commitee Nominations Commitee Risk Commitee People & Culture Commitee 57 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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. 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, Canberra, Perth, Sydney, the Sunshine Coast and the Gold Coast. A copy of the Board Charter can be found on our website www.stockland.com.au/about- stockland/corporate-governance. 58 Stockland Annual Report 2024 Board committees Five permanent Board Committees covering Audit, Risk, People & Culture, Nominations 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, Nominations 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 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. People & Culture Committee Melinda Conrad (Chair) Tom Pockett Andrew Stevens Adam Tindall The People & Culture Committee is responsible for considering and making 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. Risk Committee Christine O’Reilly (Chair) Stephen Newton Andrew Stevens 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. Sustainability Committee Andrew Stevens (Chair) Kate McKenzie Adam Tindall 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. Nominations Committee Melinda Conrad (Chair) Kate McKenzie Laurence Brindle The purpose of the Nominations Committee is to consider and make recommendations to the Board on: • Identifying individuals qualified to become Board members and recommending individuals to the Board for nomination as members of the Board. • Overseeing the process for the election of the Chairman of the Board, and where, appropriate, recommending candidates to the Board. 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. 59 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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 Nominations Committee A B A B A B A B A B A B Director Mr T Pockett 10 10 – – 4 4 - - – – - - Mr L Brindle 10 10 5 6 – – - - – – 2 2 Ms M Conrad 10 10 – – 4 4 - - – – 2 2 Mr T Gupta 10 10 – – – – - - – – - - Ms K McKenzie 10 10 6 6 – – 4 4 – – 2 2 Mr S Newton 10 10 6 6 – – - - 4 4 - - Ms C O’Reilly 10 10 6 6 – – - - 4 4 - - Mr A Stevens 10 10 – – 4 4 4 4 4 4 - - Mr A Tindall 10 10 6 6 4 4 4 4 – – - - A – Meetings attended / B – Meetings eligible to attend 60 Stockland Annual Report 2024 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 the Board being 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. 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. 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. 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 2024, the tenure profile of the Board is shown in the below diagram. Tenure profile 45% 1-4 years = 4 Directors 55% 5-10 years = 5 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 FY24, the Board received a number of presentations including in relation to work, health and safety, strategic procurement and cyber security as well as deep dives on asset sectors in which Stockland participates. Supported by recommendations from the Nominations Committee, 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. 61 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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. 62 Stockland Annual Report 2024 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, 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 FY24 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. 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 FY24, 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. 37.5% Female Non-Executive Directors 63 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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 full regard to all relevant tax laws, regulations and tax governance processes, to demonstrate good corporate citizenship. Approach to tax policy, strategy and governance Stockland maintains a Board Tax Policy, and Tax Control and Governance Framework (TCGF), reviewed and approved by the Audit Committee and Board, 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 independent 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 Board of Taxation’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. Tax disclosures and information For information and detailed reconciliations of Stockland’s tax expense, effective tax rate and material temporary and non-temporary differences 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 Australian economy, through the various taxes levied at the federal, state and local government level. In FY24 these taxes totalled more than $369 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 2024 tax year. Total tax contribution (%) 24.82% State taxes (includes land tax and payroll rax) 24.23% PAYG withholding 21.11% Net GST paid 16.93% Other duties & levies 12.5% Income tax 0.41% Fringe benefit tax 64 Stockland Annual Report 2024 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 audit 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 note 34 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 page 71 and forms part of the Directors’ Report for the year ended 30 June 2024. 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. Tom Pockett Chairman Tarun Gupta Managing Director Dated at Sydney, 22 August 2024 65 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Governance Executive confirmations The Managing Director and the Chief Financial Officer have provided a written declaration to the Directors as required by section 295A of the Corporations Act, 2001 (Cth) and formed on the basis of a sound system of risk management and internal compliance and control systems which is operating effectively. Associates and joint ventures, which the Company and Trust do not control, are not dealt with for the purposes of this declaration, however 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. Stockland Piccadilly, NSW 66 Stockland Annual Report 2024 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 leadership and 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 activities which are underpinned by our risk management framework and Three Lines of Defence model. Our governance framework is provided on page 51. 67 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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 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. 2. Evaluate and prioritise Members of our Leadership Team participated in the evaluation of material matters to 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 our ESG strategy, we assess environmental, social, governance, 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, access to social infrastructure, health and wellbeing, biodiversity, and the transition to a circular economy. These matters have been 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). 68 Stockland Annual Report 2024 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 embraced new ways of working post COVID by enabling greater workplace flexibility. Our strong employee engagement scores reflect our culture and we use this to mitigate compliance risk and to navigate the opportunities and challenges posed by new ways of working. Our culture will continue to be a strong mitigant for compliance. 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 new ways of working involve 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 proactively monitor and review 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 and update to incorporate learnings; • Embed our new ‘Standards of Safety’ with employees, contractors, consultants and suppliers which has assisted in reducing incidents in key focus areas across the business; • 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, tensions in the Middle East, 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, published in August 2023. 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. 69 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Governance Information and technology system continuity and cyber security 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 so that we can 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 a significant challenge 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 across the housing continuum 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 continuation 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 There continues to be an increase in the volume and complexity of regulatory change across all levels of government, which in turn increases the level of difficulty and risk involved in undertaking business operations. 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. Challenging market conditions may impact our ability to deliver on strategic priorities 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, as we continue to: • 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; • allocate capital strategically across our diversified portfolio in response to changing markets; • retain a strong balance sheet at appropriate levels of gearing within our target range of between 20% to 30%; • 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 on our business. Failure to successfully implement and maintain strong capital partnerships Capital partners play an important role in the successful execution of our strategic priorities. To deliver these priorities we will continue to: • maintain a strong culture of corporate governance including an operating model designed to manage investments across the lifecycle of assets; • Apply an active engagement approach to deliver mutual benefits and maintain satisfaction; and • Embed and maintain appropriate policies and procedures to discharge our fiduciary obligations. 70 Stockland Annual Report 2024 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, www.pwc.com.au 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 2024, 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 in relation 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 22 August 2024 71 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Governance 72 Stockland Annual Report 2024 Stockland Sienna Wood, WA Remuneration Report 73 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Remuneration Report Message from the Chair of the People & Culture Committee On behalf of the Board, I am pleased to present the Remuneration Report for FY24 FY24 was marked by solid progress on our strategic priorities, with strong overall performance in a continuing challenging economic climate. Leadership and operating model changes During the year we evolved the Stockland operating model to more directly support how we create value for our stakeholders and to power the next stage of our growth. The alignment of our business under two new areas – Investment Management and Development – positions us to deliver on our strategy across the stages of value creation: origination, development and investment management. As a result of this structural change: • Louise Mason took the opportunity to pursue the next phase of her career • Andrew Whitson expanded his remit to take on the new role of CEO, Development with end-to-end responsibility for Development across all asset classes as well as Project Management, Sustainability and Sales. Following an internal and external benchmarking exercise, the Fixed Pay for Andrew was increased from $850,000 to $950,000 with effect from 20 November 2023 to reflect the broader scope of his role • Kylie O’Connor was appointed to the new role of CEO, Investment Management with responsibility for Stockland owned investments and the growing capital partnership platform. • With the growth in his portfolio and following an internal and external benchmarking exercise, the Fixed Pay for Justin Louis was increased from $750,000 to $825,000 with effect from 1 July 2024. These changes reinforce the experience and capability across the Stockland Leadership Team (SLT) under Tarun as it drives execution of the Group's strategic priorities. As part of our continuous Board renewal process, the Board appointed Robert (Bob) Johnston to the Stockland Board, effective 1 October 2024. Mr Johnston will offer himself for election by securityholders at the 2024 Stockland Annual General Meetings. Our people & culture As Stockland grows, we continue to invest in strengthening our culture, capacity and capability to deliver on our strategy. Through our approach to diversity and inclusion, new ways of working, learning and leadership, and rewarding performance, we seek to demonstrate industry best practice in our ability to attract, develop and retain talent. We are proud of our achievements in FY24 including: • maintaining high levels of engagement during a year of significant change • launched the Songlines Program during the year to boost employees' cultural capability as part of our First Nations strategy and commitment to our Stretch Reconciliation Action Plan • commenced a partnership with Our Watch, a national leader in the primary prevention of violence against women. The aim of this partnership being to not only meet our positive duty obligations under the new Respect at Work legislation, but to become a leader in gender equality • launched ‘Flex Leave’ public holiday policy which allows our people to swap up to three public holidays for days that are significant to them, whether they be for cultural, religious or personal reasons. This is another way we have enhanced our flexible approach to working and support the wellbeing of our people • received a WGEA Employer of Choice Gender Equality citation, which we have now maintained for 15 years. We also received a Gold Employer award at the Pride in Diversity LGBTQ+ Inclusion Awards, which is an important acknowledgement of our commitment to foster an LGBTQ+ inclusive environment for all 74 Stockland Annual Report 2024 • since mid-2021, we have reduced the gender pay gap 1 for average base pay from 25.9% to 19.2%. While this progress is pleasing and shows our actions are working, we know we have more work to do; and • the recognition of our graduate program in the Australian Financial Review as one of Australia’s top 100 graduate employers for the 8th year. 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 SLT. The Board considers a range of quantitative and qualitative factors in its decisions. The remuneration outcomes for FY24 reflect: • Stockland’s performance against a range of measures of financial performance and financial value-drivers in our 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 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 discretion, and taken into consideration the following factors: • our focus on operational excellence continues to deliver strong performance across our diversified portfolio, and our strategic initiatives detailed throughout this Annual Report position the organisation for future growth • we have achieved a strong FY24 financial result in a challenging environment, with pre-tax Funds From Operations (FFO) of $843 million, and FFO per security towards the top end of guidance at 35.4 cents • the ongoing pressure from interest rates in FY24 has led to further cap rate expansion across Commercial Property, which in turn has contributed to valuation declines. This has again impacted Recurring Return On Invested Capital (ROIC) which at 2% is below the through the cycle long-term target range of 6% - 9% • Development ROIC of 15%, is within our target range of 14-18% • maintaining a strong balance sheet, and actively managing our gearing level and hedging profile to provide substantial liquidity, providing the flexibility to invest in existing and emerging opportunities. After careful consideration of these factors, we consider the following outcomes in FY24 to be appropriate: • an STI award for the Managing Director and CEO equal to 78% of his maximum STI opportunity; and • awards to Other Executive Key Management Personnel (KMP) in the range of 63% to 78% of maximum STI opportunity. The 2021 Long-term Incentive (LTI) Plan has vested at 100%. These outcomes reflect Stockland’s strong relative performance versus our peer index comparator group over multiple years. Looking ahead We are pleased that the changes to the executive remuneration framework made in 2022 to drive a sharper focus on operational and strategic delivery through a simplified STI scorecard and LTI that rewards the creation of securityholder value – both relative and absolute – appear to be working as intended. The delivery of our annual STI targets is now translating into TSR performance which in turn is generating stronger alignment to our securityholders and retentive benefits for our executives. We consider that the executive remuneration framework continues to be aligned to the continued success of Stockland’s growth strategy and no further changes are being contemplated at this point in time. 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. 1 As at December 2023 and excluding the Managing Director and CEO, and including permanent employees, fixed term contractors and casuals. Melinda Conrad, Chair, People & Culture Committee 75 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Remuneration Report Remuneration Report Contents 1 Remuneration framework at a glance 77 2 Performance and remuneration outcomes 78 3 Remuneration governance 84 4 Executive remuneration in detail 86 5 Executive KMP remuneration tables 90 6 Non-Executive Director remuneration 93 Key Management Personnel Individuals who were KMP at any time during the financial year were as below. Name Non-Executive Directors Mr Tom Pockett Chairman 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 Managing Director and Chief Executive Officer Other Executive KMP Ms Alison Harrop Chief Financial Officer Mr Justin Louis Chief Investment Officer Ms Kylie O'Connor CEO, Investment Management (from 27 November 2023) Mr Andrew Whitson1 CEO, Development Former Executive KMP 2 Ms Louise Mason3 CEO, Commercial Property (until 31 December 2023) 1 Andrew Whitson was CEO, Communities until 19 November 2023. From 20 November 2023 Andrew Whitson was CEO, Development, he remained Executive KMP for the full year. 2 Katherine Grace (Chief Legal & Risk Officer) will no longer be an Executive KMP with effect from 30 June 2023 following changes during FY23 to the operation and structure of the Investment Committee and decision making forums for the P&L business operations. 3 Louise Mason was a KMP up until 31 December 2023, from 1 January 2024 she was on gardening leave until 30 June 2024 when she ceased employment with Stockland. 76 Stockland Annual Report 2024 1. Remuneration framework at a glance Our executive remuneration framework is designed to reflect our purpose and strategy. 77 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Remuneration Report 2. Performance and remuneration outcomes 2.1. STI Corporate Scorecard assessment KPI The value we add and how we measure it Financial Performance (60%) Financial Executing on our strategy delivers diversified income streams and increased return on invested capital Our focus is on generating high-quality recurring income supplemented by growth from disciplined development activity that drives sustainable growth for our stakeholders. FFO is a key measure of operational performance and our ability to generate cash flow from core business activities. For FY24, our pre-tax FFO targets were: • 34.5 to 35.5 cents per security • $822 million to $846 million How ESG is integrated: • Consideration of economically sustainable solutions, such as our renewable energy inter-asset trading, which is income generating; and energy efficiency initiatives across our operating assets which reduce cost 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. ROIC reflects how well Stockland is investing capital to generate high quality, sustainable earnings through our new developments. For FY24, our ROIC targets were: • Recurring ROIC through-cycle target range of 6-9 per cent • Development ROIC through-cycle target range of 14-18 per cent How is ESG integrated: • Our Investment Governance Framework includes measures to identify and assess ESG risks and opportunities to support decision making at the start of each project Financial Value Drivers (40%) Strategy 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 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 strategic priorities. For FY24, our strategic priorities were: • Increase capital allocations to target sectors • Expand our capital partner platform for both new and existing partners • Launch our new ESG strategy and make progress on our Net Zero targets • Strengthen our approach to risk and safety • Evolve our operating model to align with the long-term delivery of our strategic direction How is ESG integrated: • Business unit ESG Plans are prepared and integrated into business plans, setting deliverables and minimum expectations to deliver on our ESG Strategy and targets Customers and Partners We are committed to delivering a better way to live for our customers. 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 We aim to optimise our pipeline and develop innovative and resilient places that will provide the highest value use for communities now and in the future. We measure satisfaction levels to understand how well we are meeting the expectations of our customers and partners. For FY24, our customer and partner measures were: • Customer satisfaction metrics across our diverse customer base (75% - 80%) • Capital partner satisfaction How is ESG integrated: • We embed environmental and social considerations into the design and development of our assets for better outcomes for our customers and the community. We actively engage with our value chain on ESG matters to drive better outcomes People and Capability Position Stockland as an employer of choice by providing leadership in attracting, integrating and retaining talent and continuing to drive a safe, inclusive and diverse workplace Stockland is focused on providing a safe, respectful and inclusive environment where our people can bring their whole selves to work and to thrive. Our people are at the centre of our high performing, innovative and customer- focused culture. We recognise that organisations with a safe, diverse, inclusive and engaged workforce connected by a clear vision and purpose deliver superior returns. For FY24, our people and capability measures were: • Employee engagement • Leadership effectiveness How is ESG integrated: • We deliver programs to engage our people including volunteering opportunities through our CARE Foundation. We are building the capability of our people to deliver on our ESG Strategy 78 Stockland Annual Report 2024 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. Outcomes Min Max • Pre-tax FFO was $843 million (35.4 cents per security) towards the top end of guidance. • Recurring ROIC was 2 per cent, below the target range, reflecting the impact of adverse market capitalisation rates. • Development ROIC was 15 per cent, within our target range. Min Max • we have now reshaped our portfolio substantially in line with our targeted capital allocations with acquisitions in the Residential sector and development in the Logistics sector and ~ $690m of divestments of non-core assets improving the quality of our portfolio • new capital partnerships established with Mitsubishi Estate Asia, Invesco, Supalai to continue to grow our communities, land lease and residential sectors • successful launch of our ESG strategy to the market and entered strategic partnerships with Energy Bay to instal and supply solar energy and Ampol to install EV charging bays across our town centres • development of Stockland Standards of Safety with refined contractor management processes to align to the new standards including automation of new inspection protocols and reporting capabilities • evolved our operating model to align with the long-term delivery of our strategic direction across the stages of value creation: origination, development and investment management Min Max • continued to drive a customer-centric culture. The results from our employee survey that measures customer focus is two points above the Willis Towers Watson Australian National Norms • overall customer satisfaction results are strong, meeting or exceeding targets for four out of five customer experience measures • continued focus on building strong relationships with capital partners demonstrated by positive feedback Min Max • achieved an employee engagement score of 87 per cent which places us at the Willis Towers Watson Norm for high performing companies • achieved a leadership score of 88 per cent which places us four points above the Willis Towers Watson Norm for high performing companies • launched the Songlines Program during the year to boost employees' cultural capability as part of our First Nations strategy and commitment to our Stretch Reconciliation Action Plan • recognised by the Australian Financial Review as one of Australia’s top 100 graduate employers for the 8th year • received a WGEA Employer of Choice Gender Equality citation, which we have now maintained for 15 years 79 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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 FY24 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 FY24. 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 ESG Strategy launched in August 2023, is considered in both the STI Corporate Scorecard (i.e. the first step) integrated throughout all measures and as part of the discretionary overlay (i.e. the second step) in determining short term incentive outcomes. As shown in the table above, incorporating ESG performance in this way means that all measures in the scorecard, including financial, are impacted by ESG performance. With our 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. 80 Stockland Annual Report 2024 2.2. Executive KMP STI outcomes The table below sets out the STI awards for FY24. 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 FY24 STI paid in cash1 STI deferred into equity2 DSTI securities to be granted3 % % % % $ $ % $ % Executive Director Tarun Gupta 100 150 117 78 1,748,250 874,125 50 874,125 50 203,864 Other Executive KMP Alison Harrop 90 135 105 70 793,800 529,200 67 264,600 33 61,710 Justin Louis 90 135 117 78 786,713 524,475 67 262,238 33 61,159 Kylie O'Connor4 90 135 105 70 504,258 336,173 67 168,085 33 39,201 Andrew Whitson 90 135 117 78 955,806 637,204 67 318,602 33 74,305 Former Executive KMP Louise Mason5 90 135 95 63 722,925 722,925 100 - 0 - 1 The portion of STI awarded for the FY24 performance year which is paid as cash. 2 The portion of STI awarded for the FY24 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 2024. This price was $4.2878. 4 The FY24 STI paid to Kylie O'Connor was pro-rated to reflect her start date of 27 November 2023. 5 The FY24 STI paid to Louise Mason was made fully in cash in line with her employment contract in the circumstances of redundancy. 2.3. Performance against LTI measures The table below shows Stockland’s performance against the relative TSR performance hurdle for the 2021 LTI award for which the performance period ended on 30 June 2024. This award will vest at 100 per cent subject to further service conditions. The table below also shows the 2022 and 2023 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 2021 LTI 1 July 2021 – 30 June 2024 Relative TSR1 2.14% 12.88% 10.74% 100.00% 100% 100.00% 2022 LTI 1 July 2022 – 30 June 2025 Relative TSR1 Performance period ongoing 60% Absolute TSR Performance period ongoing 40% 2023 LTI 1 July 2023 – 30 June 2026 Relative TSR1 Performance period ongoing 60% Absolute TSR Performance period ongoing 40% 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%. 81 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Remuneration Report 2.4. Realised remuneration table (NON-IFRS DISCLOSURE) The table below outlines the cash remuneration that was received in relation to FY24 which includes Fixed Pay and the non-deferred portion of any FY24 STI. The table also includes the value of deferred STI awards from FY22 and FY23 which vested during FY24, prior year LTI awards which vested during FY24 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. $ Fixed Pay1 STI awarded and received as cash2 Previous years’ DSTI which were realised3 Previous years’ LTI which were realised4 Total Remuneration (received and/or realised) Awards which lapsed or were forfeited5 Executive Director Tarun Gupta 2024 1,499,870 874,125 1,396,224 1,578,616 5,348,835 413,551 2023 1,500,042 862,500 878,633 - 3,241,175 - Other Executive KMP Alison Harrop 2024 857,315 529,200 204,618 - 1,591,133 - 2023 823,758 468,342 81,321 - 1,373,421 - Justin Louis 2024 767,307 524,475 412,830 - 1,704,612 - 2023 763,248 472,500 281,504 - 1,517,252 - Kylie O'Connor6 2024 553,853 336,173 - - 890,026 - 2023 - - - - - - Andrew Whitson 2024 913,388 637,204 1,117,952 1,029,181 3,697,725 - 2023 851,367 535,500 298,744 768,501 2,454,112 - 1 Fixed Pay includes cash salary, superannuation and packaged benefits (and associated taxes). 2 FY24 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 FY24 using the 30 June 2024 closing security price of $4.17 (FY23: $4.03). 4 This represents the value of all prior years’ LTI which vested during FY24 using the 30 June 2024 closing security price of $4.17 (FY23: $4.03). 5 The value shown represents the value of any previous years’ equity awards which lapsed or were forfeited during the financial year. The FY24 values are based on the closing 30 June 2024 security price of $4.17 (FY23: $4.03). 6 Kylie O'Connor commenced with Stockland on 27 November 2023, as a result her remuneration represents a portion of the year. 82 Stockland Annual Report 2024 2.5. Financial performance over the past five years The remuneration outcomes for our executives vary with short-term and long-term performance outcomes. The table below summarises Stockland's performance for the past five years and shows the link to incentive outcomes. FY20 FY21 FY22 FY23 FY24 Financial performance Pre-tax FFO ($m)1 825 788 851 883 843 Post-tax FFO ($m)2 825 788 851 847 786 Statutory profit ($m) -21 1,105 1,381 440 295 Pre-tax FFO per security (cents) 34.7 33.1 35.7 37.1 35.4 Statutory EPS (cents) (0.9) 46.4 57.9 18.5 12.4 Recurring ROIC (%)3 10 3 2 Development ROIC (%) 16 18 15 Returns to securityholders Security price as at 30 June ($) 3.31 4.66 3.61 4.03 4.17 Distribution per security (cents) 24.1 24.6 26.6 26.2 24.6 Stockland TSR – 1 year (%) (15.8) 48.5 (17.2) 19.4 9.5 Tailored index TSR (%)4 (21.3) 19.9 (3.6) (0.6) 3.2 Incentive outcomes Cash STI ($m)5 16.0 24.2 36.6 33.1 38.8 DSTI ($m) 7.4 5.4 9.4 8.8 9.8 Company-wide STI pool ($m) 23.4 29.6 46.0 41.9 48.6 Managing Director and CEO STI (% of target) 77 100 145 115 117 LTI vested (% of grant)6 0 48 48 100 100 Managing Director and CEO total incentive outcome (% of maximum opportunity) 22 567 978 778 909 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. 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. 9 In FY24 the 2021 LTI was tested and vested at 100%. 83 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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. In addition to the above framework, a Nominations Committee was established on 24 August 2023. 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. 84 Stockland Annual Report 2024 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. 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 FY24, 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: • 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 Use of discretion 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. Consequence management 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. 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. Clawback (malus) 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 2024. There are no related party transactions between KMP and the Company during the current year and the previous year. 85 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 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 FY24. 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. 86 Stockland Annual Report 2024 4.3. Fixed Pay Elements How Fixed Pay Works Purpose To attract and retain the executives capable of leading and delivering the strategy Includes • Comprises cash salary, superannuation contributions and packaged benefits (including associated taxes) • Package benefits may include novated leases on vehicles and parking Changes during the year • In recognition of his expanded role and following an internal and external benchmarking exercise, the Fixed Pay for Andrew Whitson was increased from $850,000 to $950,000 effective 20 November 2023. • With the growth in his portfolio and following an internal and external benchmarking exercise, the Fixed Pay for Justin Louis was increased from $750,000 to $825,000 with effect from 1 July 2024. • No Fixed Pay increases are planned for the Managing Director and CEO or other Executive KMP in FY25. Benchmarking approach • 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. 4.4. Short-Term Incentives Elements How Short-Term Incentives work Purpose 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 Target Maximum Managing Director and CEO 100% 150% Other Executive KMP 90% 135% STI performance measures Performance measures Financial outcomes (60%) • Funds from operations • Recurring ROIC • Development ROIC Financial value-drivers (40%) • Strategy • Customers and partners • People and capability 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 Cash Deferred Securities Managing Director and CEO 50% 50% Other Executive KMP Two thirds 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 with regards to the treatment of deferred awards. 87 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Remuneration Report 4.5. 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 Target Maximum Managing Director and CEO 200% 300% Other Executive KMP 120% 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 FY24 award, this price was $4.2878. Performance period 1 July 2023 – 30 June 2026 LTI performance measures • The 2021 grant is 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 17 A- REIT 200 peers excluding 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 12 smaller capitalised companies has been allocated a 1.67 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 Nil Greater than Peer Index 50% Equal to 8% pa 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% Between 11% pa and 13% pa 100% - 150% 15% or more than the Peer Index (from 2022) 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 2026 Tranche 2: 30 June 2027 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 88 Stockland Annual Report 2024 4.6. 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. 89 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Remuneration Report 5. Executive KMP remuneration tables 5.1. Executive remuneration (statutory presentation) Short-term Post-employment Other long-term Security- based payments1 Performance related $ Year Salary2 Non-monetary benefits3 Other payments Cash STI4 Super- annuation benefits Termination benefits5 Long service leave6 DSTI LTI Total (STI + LTI) Percent of Total (DSTI + LTI) Percent of Total Executive Director Tarun Gupta 2024 1,497,333 – – 874,125 27,399 – 9,418 1,095,669 1,072,565 4,576,509 66.5% 47.4% 2023 1,490,564 – – 862,500 25,292 – 6,437 1,159,975 841,866 4,386,634 65.3% 45.6% Other Executive KMP Alison Harrop 2024 767,989 17,083 – 529,200 27,399 – 3,933 221,764 200,784 1,768,152 53.8% 23.9% 2023 797,546 13,800 – 468,342 25,292 – 2,634 141,923 102,815 1,552,352 45.9% 15.8% Justin Louis 2024 696,757 17,083 – 524,475 27,399 – 3,670 300,705 179,272 1,749,361 57.4% 27.4% 2023 748,581 14,066 – 472,500 25,292 – 2,683 374,553 91,799 1,729,474 54.3% 27.0% Kylie O'Connor 2024 543,909 – – 336,173 20,549 – – 70,144 970,775 41.9% 7.2% 2023 – – – – – – – – – – – – Andrew Whitson 2024 931,682 – – 637,204 27,399 – (23,268) 423,733 408,555 2,405,305 61.1% 34.6% 2023 796,174 – – 535,500 25,292 – 22,843 550,682 458,318 2,388,809 64.7% 42.2% Former Executive KMP Louise Mason7 2024 375,649 – – 722,925 16,939 853,654 2,580 200,200 408,561 2,580,508 51.6% 23.6% 2023 833,003 – – 602,438 25,292 – 9,305 594,908 458,318 2,523,264 65.6% 41.7% Consolidated remuneration 2024 4,813,319 34,166 – 3,624,102 147,084 853,654 (3,667) 2,312,215 2,269,737 14,050,610 58.4% 32.6% 20238 4,665,868 27,866 – 2,941,280 126,460 – 43,902 2,822,041 1,953,116 12,580,533 61.3% 38.0% 1 Represents the fair value of securities and performance rights recognised in FY24. In the case of Louise Mason, the value includes the accelerated accounting charge or reversal of equity retained or forfeited on departure. This includes her unvested DSTI awards and pro-rated LTI awards based on her service period. 2 Includes any changes in accruals for annual leave. 3 Comprises salary packaged benefits, including motor vehicles, car parking and FBT payable on these items. 4 Cash STIs are earned in the financial year to which they relate and are paid in September of the following financial year. For Louise Mason, her FY24 STI was paid 100% as cash. 5 This represents the contractual termination payment to Louise Mason including severance and Fixed Pay for the period while she was on gardening leave (1 January 2024 – 30 June 2024). 6 Includes any change in accruals for long service leave. 7 For Louise Mason her FY24 remuneration reflects the period she was KMP from 1 July to 31 December 2023. This includes salary, superannuation, annual leave and long service leave accruals. 8 The total disclosed in the FY23 Remuneration Report ($14,230,831) includes remuneration of Katherine Grace who is no longer Executive KMP and therefore excluded from the above ($1,650,298). 90 Stockland Annual Report 2024 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 4.5. The number of performance rights held during the year are set out below. Granted during year Vested and exercised Balance at 1 July 2023 Number Value $1 Number2 Value $3 Exercised into securities & remain subject to service conditions Forfeited / Lapsed Balance at 30 June 20244 Executive Director Tarun Gupta 1,760,856 740,248 994,893 (51,518) 216,376 (154,553) (99,173) 2,195,860 Other Executive KMP Alison Harrop 269,310 248,724 334,285 - - - - 518,034 Justin Louis 240,456 222,075 298,469 - - - - 462,531 Kylie O'Connor - - - - - - - - Andrew Whitson 766,128 251,685 338,265 (142,151) 572,869 (142,151) - 733,511 Former Executive KMP Louise Mason 766,128 251,685 338,265 (142,151) 572,869 (142,151) - 733,511 1 The value as at the grant date calculated in accordance with AASB 2 Share-based Payment. 2 For Tarun Gupta, the number of rights exercised refers to a one-off grant of 305,244 performance rights as compensation for incentives forfeited on ceasing employment with his previous employer to join Stockland. The number of rights exercised reflects the assessment of performance conditions against a relative TSR hurdle showing an achievement outcome of 67.51%. Tranche 1 of this award (51,518 securities) vested on 1 September 2023. Tranches 2-4 will vest over the next three years subject to service conditions. For Louise Mason and Andrew Whitson, the number of rights exercised refers the 2020 grant of performance rights that vested at 100% in accordance with the plan rules. 3 The closing price as at the vest date. 4 For Louise Mason the balance is the date she ceased to be KMP on 31 December 2023. 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. Balance at 1 July 20231 DSTI granted2 LTI performance rights exercised Purchased / (Sold or Forfeited) Balance at 30 June 20243 Executive Director Tarun Gupta 636,965 212,822 206,071 - 1,055,858 Other Executive KMP Alison Harrop 40,357 57,782 - - 98,139 Justin Louis 139,704 58,295 - - 197,999 Kylie O'Connor - - - - - Andrew Whitson 832,862 66,068 284,302 (393,160) 790,072 Former Executive KMP Louise Mason 318,486 74,326 284,302 (78,000) 599,114 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 2 of this award (83,140 securities) vested on 1 September 2023. Tranches 3-5 will vest over the next three years subject to further service conditions. 100% of the 2022 STI tranche 2 and 100% of the 2023 STI tranche 1 which were due to vest in 2024 vested. 2 The number of securities granted 1 July 2023 for the 2023 STI that vest over one and two years (i.e., 50% at 30 June 2024 and 50% at 30 June 2025). 3 For Louise Mason the balance is the date she ceased to be KMP on 31 December 2023. 91 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Remuneration Report 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. Grant Instrument Grant date Performance period start date Vesting date1 Unvested equity at 30 June 2024 Maximum value of award to vest $2 Fair value per Instrument3 Relative TSR Absolute TSR DSTI Executive Director Tarun Gupta FY22 LTI Tranche 2 Rights 20-Oct-21 1-Jul-21 30-Jun-25 327,047 578,873 1.77 Special Grant Tranche 2 Securities 23-Aug-21 1-Jul-21 1-Sep-24 51,518 111,279 2.16 Special Grant Tranche 3 Securities 23-Aug-21 1-Jul-21 1-Sep-25 51,518 111,279 2.16 Special Grant Tranche 4 Securities 23-Aug-21 1-Jul-21 1-Sep-26 51,517 111,277 2.16 Special Grant Tranche 3 Securities 21-Jun-21 1-Jun-21 1-Sep-24 83,140 387,432 4.66 Special Grant Tranche 4 Securities 21-Jun-21 1-Jun-21 1-Sep-25 72,747 339,001 4.66 Special Grant Tranche 5 Securities 21-Jun-21 1-Jun-21 1-Sep-26 34,640 161,422 4.66 FY23 LTI Tranche 1 Rights 18-Oct-22 1-Jul-22 30-Jun-25 400,759 524,994 1.47 1.07 FY23 LTI Tranche 2 Rights 18-Oct-22 1-Jul-22 30-Jun-26 400,759 524,994 1.47 1.07 DSTI FY23 Tranche 2 Securities 17-Oct-23 1-Jul-22 30-Jun-25 106,411 401,169 3.77 FY24 LTI Tranche 1 Rights 17-Oct-23 1-Jul-23 30-Jun-26 370,124 497,447 1.52 1.08 FY24 LTI Tranche 2 Rights 17-Oct-23 1-Jul-23 30-Jun-27 370,124 497,447 1.52 1.08 Other Executive KMP Alison Harrop FY23 LTI Tranche 1 Rights 18-Oct-22 1-Jul-22 30-Jun-25 134,655 176,398 1.47 1.07 FY23 LTI Tranche 2 Rights 18-Oct-22 1-Jul-22 30-Jun-26 134,655 176,398 1.47 1.07 DSTI FY23 Tranche 2 Securities 17-Oct-23 1-Jul-22 30-Jun-25 28,891 108,919 3.77 FY24 LTI Tranche 1 Rights 17-Oct-23 1-Jul-23 30-Jun-26 124,362 167,143 1.52 1.08 FY24 LTI Tranche 2 Rights 17-Oct-23 1-Jul-23 30-Jun-27 124,362 167,143 1.52 1.08 Justin Louis FY23 LTI Tranche 1 Rights 18-Oct-22 1-Jul-22 30-Jun-25 120,228 157,499 1.47 1.07 FY23 LTI Tranche 2 Rights 18-Oct-22 1-Jul-22 30-Jun-26 120,228 157,499 1.47 1.07 DSTI FY23 Tranche 2 Securities 17-Oct-23 1-Jul-22 30-Jun-25 29,147 109,884 3.77 FY24 LTI Tranche 1 Rights 17-Oct-23 1-Jul-23 30-Jun-26 111,038 149,235 1.52 1.08 FY24 LTI Tranche 2 Rights 17-Oct-23 1-Jul-23 30-Jun-27 111,037 149,234 1.52 1.08 Andrew Whitson FY22 LTI Tranche 2 Rights 18-Oct-21 1-Jul-21 30-Jun-25 104,655 186,286 1.78 FY23 LTI Tranche 1 Rights 18-Oct-22 1-Jul-22 30-Jun-25 136,258 178,498 1.47 1.07 FY23 LTI Tranche 2 Rights 18-Oct-22 1-Jul-22 30-Jun-26 136,258 178,498 1.47 1.07 DSTI FY23 Tranche 2 Securities 17-Oct-23 1-Jul-22 30-Jun-25 33,034 124,538 3.77 FY24 LTI Tranche 1 Rights 17-Oct-23 1-Jul-23 30-Jun-26 125,843 169,133 1.52 1.08 FY24 LTI Tranche 2 Rights 17-Oct-23 1-Jul-23 30-Jun-27 125,842 169,132 1.52 1.08 Former Executive KMP Louise Mason4 FY22 LTI Tranche 2 Rights 18-Oct-21 1-Jul-21 30-Jun-25 104,655 186,286 1.78 FY23 LTI Tranche 1 Rights 18-Oct-22 1-Jul-22 30-Jun-25 136,258 178,498 1.47 1.07 FY23 LTI Tranche 2 Rights 18-Oct-22 1-Jul-22 30-Jun-26 136,258 178,498 1.47 1.07 DSTI FY23 Tranche 2 Securities 17-Oct-23 1-Jul-22 30-Jun-25 37,163 140,105 3.77 FY24 LTI Tranche 1 Rights 17-Oct-23 1-Jul-23 30-Jun-26 125,843 169,133 1.52 1.08 FY24 LTI Tranche 2 Rights 17-Oct-23 1-Jul-23 30-Jun-27 125,842 169,132 1.52 1.08 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. 4 For Louise Mason the balance is the date she ceased to be KMP on 31 December 2023. 92 Stockland Annual Report 2024 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. FY25 FY24 Stockland Board Chairman $500,000 $500,000 Non-Executive Director $175,000 $175,000 Stockland Board Committees Audit Chair $45,000 $45,000 Member $20,000 $20,000 Risk Chair $45,000 $45,000 Member $20,000 $20,000 People & Culture Chair $45,000 $45,000 Member $20,000 $20,000 Sustainability Chair $45,000 $45,000 Member $20,000 $20,000 Nomination Chair $45,000 $45,000 Member $20,000 $20,000 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. In consideration of the succession planning for director roles over the medium-term, consideration is being given to the appropriate size of the cap in FY25. Total fees of $2,174,592 (87 per cent of the approved limit) were paid to Non-Executive Directors in FY24. The increase in total fees from FY23 is due to: • The increase in Member fees for the Risk Committee, People & Culture Committee and Sustainability Committee with effect from 1 July 2023 to align internally with the Member fees of the Audit Committee and to Market, and • The Nominations Committee commencing with effect from 24 August 2023. 93 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Remuneration Report 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 Post-employment Year Board and Committee Fees Non- monetary benefits Superannuation contributions Total1 Non-Executive Directors Tom Pockett 2024 472,601 – 27,399 500,000 2023 474,708 – 25,292 500,000 Laurence Brindle 2024 212,065 – – 212,065 2023 195,000 – – 195,000 Melinda Conrad 2024 232,790 – 25,607 258,397 2023 199,095 – 20,905 220,000 Kate McKenzie 2024 232,065 – – 232,065 2023 212,500 – – 212,500 Stephen Newton 2024 217,562 – 22,438 240,000 2023 224,216 – 13,284 237,500 Christine O'Reilly 2024 240,000 – – 240,000 2023 240,000 – – 240,000 Andrew Stevens 2024 234,234 – 25,766 260,000 2023 230,769 – 24,231 255,000 Adam Tindall 2024 209,068 – 22,997 232,065 2023 192,308 – 20,192 212,500 Consolidated remuneration 2024 2,050,385 – 124,207 2,174,592 2023 1,968,596 – 103,904 2,072,500 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). 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 2023 Purchased / (Sold) Balance at 30 June 2024 Non-Executive Directors Tom Pockett 50,000 - 50,000 Laurence Brindle 40,000 - 40,000 Melinda Conrad 60,000 - 60,000 Kate McKenzie 40,000 - 40,000 Stephen Newton 70,000 - 70,000 Christine O'Reilly 50,000 - 50,000 Andrew Stevens 40,000 - 40,000 Adam Tindall 40,000 - 40,000 94 Stockland Annual Report 2024 Artists’ impression, Affinity Place, NSW Financial report for the year ended 30 June 2024 95 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 Consolidated statement of comprehensive income Year ended 30 June Stockland Trust $M Note 2024 2023 2024 2023 Revenue 1 2,989 2,808 724 704 Cost of property developments sold: • land and development (1,481) (1,317) – – • capitalised interest (99) (82) – – • utilisation of provision for impairment of inventories 6 6 7 – – Investment property expenses (231) (225) (229) (231) Share of (loss)/profit of equity–accounted investments 23 (15) 84 (97) (22) Management, administration, marketing and selling expenses (466) (406) (43) (41) Net change in fair value of investment properties 7 (212) (256) (230) (288) Net movement in provision for impairment of inventories 6 (22) (26) – – Net gain on other financial assets 1 1 – – Net (loss)/gain on sale of other non–current assets (11) 13 (6) 5 Finance income 16 18 10 315 226 Finance expense 16 (113) (84) (238) (161) Net (loss)/gain on financial instruments 16 (2) 9 (2) 9 Transaction costs (24) (21) – – Profit before tax 338 515 194 201 Income tax expense 21 (33) (77) – – Profit from continuing operations 305 438 194 201 Profit from discontinued operation net of income tax 14 – 2 – – Profit after tax attributable to securityholders of Stockland 305 440 194 201 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 4 (5) 4 (5) Cash flow hedges – reclassified to profit or loss – 3 – 3 Other comprehensive income/(loss) 4 (2) 4 (2) Total comprehensive income/(loss) 309 438 198 199 Basic earnings per security (cents) 3 12.8 18.5 8.1 8.4 Diluted earnings per security (cents) 3 12.7 18.3 8.1 8.4 Continuing operations Basic earnings per security (cents) 14 12.8 18.4 8.1 8.4 Diluted earnings per security (cents) 14 12.7 18.2 8.1 8.4 The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. 96 Stockland Annual Report 2024 Consolidated balance sheet As at 30 June Stockland Trust $M Note 2024 2023 2024 2023 Cash and cash equivalents 12 719 271 516 102 Receivables 8 508 330 46 22 Inventories 6 1,553 1,289 – – Other financial assets 17 88 35 88 35 Other assets 134 138 94 93 Non-current assets held for sale 14 101 4 – – Current assets 3,103 2,067 744 252 Receivables 8 151 169 2,965 2,389 Inventories 6 2,496 2,584 – – Investment properties 7 10,098 10,532 9,697 10,169 Equity–accounted investments 23 687 675 637 662 Other financial assets 17 233 285 217 270 Property, plant and equipment 131 137 1 – Intangible assets 13 56 62 – – Other assets 105 129 98 115 Non–current assets 13,957 14,573 13,615 13,605 Assets 17,060 16,640 14,359 13,857 Payables 9 1,104 885 672 443 Borrowings 15 261 200 261 200 Development provisions 6 269 453 44 196 Other financial liabilities 17 13 20 13 20 Other liabilities 10 143 121 14 20 Current tax liabilities 21 37 30 – – Current liabilities 1,827 1,709 1,004 879 Payables 9 119 178 – – Borrowings 15 4,469 3,707 4,469 3,707 Development provisions 6 147 201 – – Other financial liabilities 17 123 151 123 151 Deferred tax liabilities 22 28 42 – – Other liabilities 10 454 476 26 27 Non–current liabilities 5,340 4,755 4,618 3,885 Liabilities 7,167 6,464 5,622 4,764 Net assets 9,893 10,176 8,737 9,093 Issued capital 20 8,644 8,652 7,347 7,355 Reserves 36 29 130 85 Retained earnings/undistributed income 1,213 1,495 1,260 1,653 Securityholders’ equity 9,893 10,176 8,737 9,093 The above consolidated balance sheet should be read in conjunction with the accompanying notes. 97 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 Consolidated statement of changes in equity Attributable to securityholders of Stockland Reserves $M Note Issued capital Security based payments Cash flow hedges Retained earnings Equity Balance at 30 June 2022 8,655 39 (14) 1,681 10,361 Profit for the year – – – 440 440 Other comprehensive loss, net of tax – – (2) – (2) Total comprehensive income – – (2) 440 438 Dividends and distributions 4 – – – (626) (626) Security based payment expense 32 – 18 – – 18 Acquisition of treasury securities 20 (15) – – – (15) Securities vested under Security Plans 20 12 (12) – – – Other movements (3) 6 – (626) (623) Balance at 30 June 2023 8,652 45 (16) 1,495 10,176 Profit for the year – – – 305 305 Other comprehensive loss, net of tax – – 4 – 4 Total comprehensive income – – 4 305 309 Dividends and distributions 4 – – – (587) (587) Security based payment expense 32 – 18 – – 18 Acquisition of treasury securities 20 (23) – – – (23) Securities vested under Security Plans 20 15 (15) – – – Other movements (8) 3 – (587) (592) Balance at 30 June 2024 8,644 48 (12) 1,213 9,893 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 98 Stockland Annual Report 2024 Consolidated statement of changes in equity Attributable to securityholders of Trust Reserves $M Note Issued capital Security based payments Cash flow hedges Other Undistri- buted income Equity Balance at 30 June 2022 7,358 39 (14) – 2,078 9,461 Profit for the year – – – – 201 201 Other comprehensive loss, net of tax – – (2) – – (2) Total comprehensive income – – (2) – 201 199 Distributions 4 – – – – (626) (626) Capital contribution – – – 57 – 57 Security based payment expense – 16 – – – 16 Acquisition of treasury securities 20 (14) – – – – (14) Securities vested under Security Plans 20 11 (11) – – – – Other movements (3) 5 – 57 (626) (567) Balance at 30 June 2023 7,355 44 (16) 57 1,653 9,093 Profit for the year – – – – 194 194 Other comprehensive loss, net of tax – – 4 – – 4 Total comprehensive income – – 4 – 194 198 Distributions 4 – – – – (587) (587) Capital contribution – – – 38 – 38 Security based payment expense – 16 – – – 16 Acquisition of treasury securities 20 (21) – – – – (21) Securities vested under Security Plans 20 13 (13) – – – – Other movements (8) 3 – 38 (587) (554) Balance at 30 June 2024 7,347 47 (12) 95 1,260 8,737 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 99 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 Consolidated statement of cash flows Year ended 30 June Stockland Trust $M Note 2024 20231 2024 2023 Receipts in the course of operations (including GST) 3,493 2,918 892 835 Payments in the course of operations (including GST) (2,353) (1,871) (334) (291) Payments for land (786) (649) – – Distributions received from equity–accounted investments 46 97 19 69 Receipts from Retirement Living residents - 10 – – Payments to Retirement Living residents, net of DMF - (11) – – Interest received 19 10 291 226 Interest paid (265) (172) (265) (172) Tax paid (40) – – – Net cash flows from operating activities 28 114 332 603 667 Proceeds from sale of investment properties 716 346 711 253 Payments for and development of investment properties (534) (363) (483) (389) Payments for plant, equipment and software (4) (23) – – Payments for investments (including equity–accounted) (77) (111) (59) (110) Repayments from/(extension of) loans to related entities - – (593) 684 Receipts from sale of a business – 914 – – Net cash flows from investing activities 101 763 (424) 438 Payments for treasury securities under Security Plans 20 (23) (15) (21) (14) Proceeds from borrowings 28 4,171 3,062 4,171 3,062 Repayments of borrowings 28 (3,380) (3,639) (3,380) (3,639) Dividends and distributions paid 4 (535) (631) (535) (631) Net cash flows from financing activities 233 (1,223) 235 (1,222) Net movement in cash and cash equivalents 448 (128) 414 (117) Cash and cash equivalents at the beginning of the year 271 399 102 219 Cash and cash equivalents at the end of the year 719 271 516 102 1 Amounts for the year ended 30 June 2023 included cash flows relating to both continuing and discontinued operations. Net cash flows relating to discontinued operation have been disclosed in note 14B. The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 100 Stockland Annual Report 2024 Notes to the financial report Basis of preparation 102 Results for the year 104 1. Revenue 104 2. Operating segments 106 3. EPS 110 4. Dividends and distributions 110 5. Events subsequent to the end of the year 111 Operating assets and liabilities 112 6. Inventories 112 7. Investment properties 116 8. Receivables 124 9. Payables 125 10. Other liabilities 125 11. Leases 126 12. Cash and cash equivalents 128 13. Intangible assets 129 14. Non-current assets and discontinued operations held for sale 130 Capital structure and financial risk management 132 15. Borrowings 133 16. Net financing costs 135 17. Other financial assets and liabilities 136 18. Fair value measurement of financial instruments 139 19. Financial risk factors 141 20. Issued capital 146 Taxation 149 21. Income tax 149 22. Deferred tax 151 Group structure 152 23. Equity-accounted investments 152 24. Joint operations 157 25. Controlled entities 158 26. Deed of cross guarantee 162 27. Parent entity disclosures 164 Other items 165 28. Notes to the consolidated statement of cash flows 165 29. Commitments 166 30. Contingent liabilities 166 31. Related party disclosures 167 32. Personnel expenses 168 33. Key management personnel disclosures 168 34. Auditor's remuneration 169 35. Accounting policies 169 36. Adoption of new and amended accounting standards 170 101 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 2024. 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 2024 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 2023. 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 $260 million (2023: $627 million). 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 $603 million during the year. Undrawn bank facilities of $2,525 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. 102 Stockland Annual Report 2024 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 20 103 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 Year ended $M Development Investment Management Other1 Stockland Trust 30 June 2024 Development revenue 2,183 – – 2,183 – Management revenue 53 30 3 86 – Property revenue - outgoings recoveries – 72 – 72 68 Revenue from contracts with customers 2,236 102 3 2,341 68 Property revenue - leases – 648 – 648 656 Statutory revenue 2,236 750 3 2,989 724 Amortisation of lease incentives – 92 – 92 Straight–line rent – 21 – 21 Share of revenue from equity accounted investments2 171 40 – 211 Segment revenue 2,407 903 3 3,313 30 June 2023 Development revenue 2,005 – – 2,005 – Management revenue 52 28 8 88 – Property revenue - outgoings recoveries – 68 – 68 66 Revenue from contracts with customers 2,057 96 8 2,161 66 Property revenue - leases – 647 – 647 638 Statutory revenue from continuing operations 2,057 743 8 2,808 704 Amounts classified as discontinued operations – – 10 10 – Statutory revenue 2,057 743 18 2,818 704 Amortisation of lease incentives – 90 – 90 Straight–line rent – 10 – 10 Share of revenue from equity accounted investments2 117 36 – 153 Unrealised DMF revenue – – (7) (7) Segment revenue 2,174 879 11 3,064 Less: amounts classified as discontinued operations1 – – (10) (10) Segment revenue from continuing operations 2,174 879 1 3,054 1 For the year ended 30 June 2023, the results of the Retirement Living business for the period from 1 to 29 July 2022 were included. Refer to note 14B for further details. 2 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. 104 Stockland Annual Report 2024 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 $7 million (2023: $10 million) of contingent rents billed to tenants. Contingent rents are derived from the tenants’ revenues and represent 0.9% (2023: 1.4%) of gross lease income. Dividends and distributions Dividends and distributions received from investments other than equity-accounted investments 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. 105 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 2. Operating segments To reflect 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 Development, the CEO Investment Management, and the Chief Investment Officer. Reportable Segments Stockland has three reportable segments: • Development – Develops a range of assets including residential properties, commercial properties and mixed-use assets. Assets which are developed are either held for the purpose of producing rental income, capital appreciation, or both, and will be transferred to the Investment Management segment once operational, or they are trading assets which are sold on completion; • Investment Management – Invests in and manages commercial properties and residential investment properties, manages capital investments, and earns management income for services performed; and • Other – includes 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. 106 Stockland Annual Report 2024 2A. Reconciliation of FFO to profit after tax Year ended 30 June Stockland $M 2024 20231 FFO 786 847 Adjust for: Amortisation of lease incentives (92) (90) Amortisation of lease fees (13) (14) Straight–line rent (21) (10) Net change in fair value of investment properties2 (307) (230) Unrealised DMF revenue – 7 Net (loss)/gain on financial instruments (2) 9 Net gain on other financial assets 1 1 Net (loss)/gain on sale of other non–current assets (11) 12 Net provision for impairment of inventories (22) (26) Non-FFO income tax benefit/(expense) 24 (41) Other one–off costs3 (38) (25) Profit after tax 305 440 (Profit)/loss from discontinued operations net of income tax – (2) Profit after tax from continuing operations 305 438 1 For the year ended 30 June 2023, the results of the Retirement Living business for the period from 1 to 29 July 2022 were included. Refer to note 14B for further details. 2 Includes Stockland’s share of revaluation relating to properties held through joint ventures (2024: $86 million loss; 2023: $26 million gain) and fair value unwinding of ground leases recognised under AASB 16 (2024: $1 million; 2023: $1 million). 3 Other one-off costs related to significant transactions, one-off provisions and integration costs. 107 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 2B. FFO and AFFO The contribution of each reportable segment to FFO and AFFO for Stockland is summarised as follows: Year ended $M Development Investment Management Other1 Stockland 30 June 2024 Development revenue 2,355 – – 2,355 Management revenue 52 30 3 85 Property revenue2 – 873 – 873 Segment revenue 2,407 903 3 3,313 Segment EBIT2 513 617 – 1,130 Amortisation of lease fees – 13 – 13 Interest expense in cost of sales3 (101) – – (101) Finance income – – 21 21 Finance expense – – (124) (124) Unallocated corporate and other expenses – – (96) (96) FFO Tax expense – – (57) (57) FFO4 412 630 (256) 786 Maintenance capital expenditure (55) Incentives and leasing costs5 (72) AFFO 659 30 June 2023 Development revenue 2,128 – – 2,128 Management revenue 45 35 8 88 Property revenue2,6 – 845 3 848 Segment revenue 2,173 880 11 3,064 Segment EBIT2,6 529 589 3 1,121 Amortisation of lease fees – 14 – 14 Interest expense in cost of sales3 (84) – – (84) Finance income – – 13 13 Finance expense – – (88) (88) Unallocated corporate and other expenses – – (93) (93) FFO Tax expense – – (36) (36) FFO4,1 445 603 (201) 847 Maintenance capital expenditure7 (56) Incentives and leasing costs5 (58) AFFO1 733 1 For the year ended 30 June 2023, the results of the Retirement Living business for the period from 1 to 29 July 2022 were included. Refer to note 14B for further details. 2 Investment Management property revenue and EBIT adds back $90 million (2023: $90 million) of amortisation of lease incentives and excludes $21 million (2023: $10 million) of straight–line rent adjustments. 3 Interest expense in cost of sales in Development includes Stockland's share of interest expense in cost of sales from equity accounted investments of $2 million (2023: $2 million). 4 Investment Management FFO includes share of profits from equity-accounted investments of $20 million (2023: $19 million) and Development FFO includes share of profits from equity-accounted investments of $56 million (2023: $39 million). 5 Expenditure incurred on incentives and leasing costs during the year excluding assets under construction. 6 30 June 2023 amounts include $7 million of unrealised Retirement Living DMF revenue. 7 30 June 2023 amounts include Retirement Living maintenance capital expenditure of $7 million. 108 Stockland Annual Report 2024 2C. Balance sheet by operating segment The balance sheet of each reportable segment for Stockland is summarised as follows: As at $M Development Investment Management Other Stockland 30 June 2024 Real estate related assets1,2 4,967 10,158 119 15,244 Other assets 674 235 907 1,816 Assets 5,641 10,393 1,026 17,060 Borrowings – – 4,730 4,730 Other liabilities 1,731 290 416 2,437 Liabilities 1,731 290 5,146 7,167 Net assets/(liabilities) 3,910 10,103 (4,120) 9,893 30 June 2023 Real estate related assets1,2 4,696 10,620 91 15,407 Other assets 525 195 513 1,233 Assets 5,221 10,815 604 16,640 Borrowings – – 3,907 3,907 Other liabilities 1,965 393 199 2,557 Liabilities 1,965 393 4,106 6,464 Net assets/(liabilities) 3,256 10,422 (3,502) 10,176 1 Includes non–current assets held for sale, inventories, investment properties, equity–accounted investments and certain other assets. 2 Includes equity–accounted investments of $507 million (2023: $424 million) in Investment Management and $184 million (2023: $251 million) in Development. Refer to note 23 for further details. 109 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 3. EPS Keeping it simple EPS is the amount of post–tax profit attributable to each security. Basic EPS is calculated as statutory profit for the period divided by the weighted average number of securities (WANOS) outstanding. This is highly variable as it includes unrealised fair value movements in investment properties and financial instruments. Diluted EPS adjusts the basic EPS for the dilutive effect of any instruments, such as Security Plan rights, that could be converted into securities. Basic FFO per security is disclosed in the Directors’ report and more directly reflects the underlying income performance of the portfolio. Year ended 30 June Stockland Trust 2024 2023 2024 2023 Profit after tax attributable to shareholders ($M) 305 440 194 201 WANOS used in calculating basic EPS 2,382,246,165 2,382,387,660 2,382,246,165 2,382,387,660 Basic EPS (cents)1 12.8 18.5 8.1 8.4 Effect of rights and securities granted under Security Plans2 21,367,237 17,523,015 21,367,237 17,523,015 WANOS used in calculating diluted EPS 2,403,613,402 2,399,910,675 2,403,613,402 2,399,910,675 Diluted EPS (cents)1 12.7 18.3 8.1 8.4 1 30 June 2023 amounts include both continuing and discontinued operations. Earnings per security for continuing and discontinued operations have been separately disclosed in note 14B. 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 2024 is $54 million based on a 30% tax rate (2023: $14 million). Stockland Trust For the current year, the interim and final distributions are paid solely out of the Trust and therefore the franking percentage is not relevant. Date of payment Cents per security Total amount ($M) Non attributable (%) 2024 2023 2024 2023 2024 2023 2024 2023 Interim distribution 29 February 28 February 8.0 11.8 191 282 - 25.3 Final distribution 30 August 30 August 16.6 14.4 396 344 12.3 37.6 Total distribution 24.6 26.2 587 626 0.1 32.1 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). 110 Stockland Annual Report 2024 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 Note 2024 2023 FFO ($M)1 2 786 847 Weighted average number of securities used in calculating basic EPS 3 2,382,246,165 2,382,387,660 FFO per security (cents) 33.0 35.6 Distribution per security for the year (cents) 24.6 26.2 Payout ratio 75% 74% 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 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. 111 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 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. Stockland As at 30 June 2024 2023 $M Current Non–current Total Current Non–current Total Completed inventory Cost of acquisition 139 – 139 145 – 145 Development and other costs 419 – 419 414 – 414 Interest capitalised 13 – 13 15 – 15 Total Completed inventory1 571 – 571 574 – 574 Development work in progress Cost of acquisition 8 70 78 – 76 76 Development and other costs – 22 22 – 14 14 Impairment provision (2) – (2) – – – Apartments 6 92 98 – 90 90 Cost of acquisition 152 145 297 144 60 204 Development and other costs 207 48 255 16 6 22 Interest capitalised 13 3 16 – – – Land Lease Communities 372 196 568 160 66 226 Cost of acquisition – 117 117 29 112 141 Development and other costs – 4 4 – – – Interest capitalised – 5 5 1 – 1 Logistics – 126 126 30 112 142 Cost of acquisition 458 1,572 2,030 384 2,015 2,399 Development and other costs 120 362 482 111 150 261 Interest capitalised 44 245 289 37 245 282 Impairment provision (18) (97) (115) (7) (94) (101) Masterplanned Communities 604 2,082 2,686 525 2,316 2,841 Total development work in progress 982 2,496 3,478 715 2,584 3,299 Inventories 1,553 2,496 4,049 1,289 2,584 3,873 1 Comprises Masterplanned Communities inventory of $549 million (30 June 2023: $546 million), Logistics inventory of $21 million (30 June 2023: $26 million), and Other inventory of $1 million (30 June 2023: $2 million). No apartments projects are included in completed inventory in the current or prior year. 112 Stockland Annual Report 2024 The following impairment provisions are included in the inventory balance with movements for the period recognised in profit or loss: As at 30 June Stockland $M 2024 2023 Opening balance 101 82 Amounts utilised (6) (7) Reversal of provisions previously recorded (24) (5) Additional provisions created 46 31 Balance at 30 June 117 101 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 $786 million (2023: $649 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 4.8 to 5.7% during the financial year (2023: 3.3 to 4.7%). 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 2024 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. 113 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 2024 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 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 2024. Stockland Sales price Average 3 year price growth1 1 year sales rate Cost $M 5% decrease 0% 25% reduction 5% increase Additional impairment charge on inventories: • Land Lease Communities – – – – • Logistics – – – – • Masterplanned Communities and Apartments (16) (122) (1) (4) 1 The average 3 year price growth underpinning the 30 June 2024 impairment assessment is 3.2%. Key inputs used to assess impairment of inventories are: Item Description Cost escalation rates The annual increase in base costs applied up to the period in which the costs are incurred. Costs to complete The cost expected to be incurred to bring remaining lots to practical completion, including rectification provisions and other costs. Current sales price 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 Development. Financing costs Assumptions on the annual interest rates underpinning future finance costs capitalised to the cost of inventories. Revenue escalation rates The annual growth rate by which a lot is expected to increase in value until point of sale. Sales rates Assumptions on the number of lot sales expected to be achieved each month. Selling costs The costs expected to be incurred to complete the sale of inventories. Impact of climate-related events on inventory impairments Climate-related risks and climate-associated regulation may affect inventory impairment considerations in two main ways. Firstly, physical risk exposure to adverse climate conditions and events, such as floods and bushfires, may cause damage to inventory and result in reduced demand in affected developments. Risk factors include inventory location and whether the product has been designed to mitigate the impacts of climate-related physical risks. Secondly, elevated design standards to enhance resilience and the decarbonisation of the supply chain may lead to increased build costs. Stockland's strategy is to design a commercially sustainable response to identified risks, leveraging Stockland's scale and diversification to access opportunities including onsite renewable energy generation, resilient product design, and procurement of lower-carbon materials. When conducting impairment assessments management considers the cost to develop inventory to required design standards, the latest assessment of climate-related risk and opportunities, and other economic and product-specific factors, such as design and location, when determining sales pricing and expected volumes. 114 Stockland Annual Report 2024 Development cost provisions As at 30 June 2024 2023 $M Current Non– current Total Current Non– current Total Development cost provisions1 269 147 416 453 201 654 Development cost provisions 269 147 416 453 201 654 1 Includes $79 million (2023: $256 million) of provisions relating to investment properties. $44 million (2023: $196 million) of the investment property provisions are recorded in Stockland Trust. As at 30 June Stockland $M 2024 2023 Opening balance 654 726 Additional provisions 115 39 Amounts utilised (175) (110) Amounts derecognised (178) (1) Balance at 30 June 2024 416 654 The development cost provisions reflect obligations as at 30 June 2024 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. 115 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 reported 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. Types of investment properties Stockland invests in and develops the following types of investment properties: • Community real estate: non-residential properties retained from Masterplanned Communities developments which are leased to tenants, and includes childcare and medical centres. • Land Lease Communities (LLC): an over-50s affordable lifestyle residential offering, where residents pay an initial purchase price for the home and ongoing site rental costs. • Logistics: industrial buildings and warehouses located in and near population centres and transport infrastructure. • Town centres: essentials-based community shopping centres in suburban and regional locations. • Workplace: office buildings and campuses in metropolitan business hubs. Segments Investment properties managed as operating assets are reported in the Investment Management segment and are included in note 7.A. Investment properties under development are reported in the Development segment and are included in note 7.B. Where an investment property has both an operating and development component the reporting is split between segments, with the operating component reported under the Investment Management segment and the development component reported under the Development segment. When an investment property or a component of investment property enters redevelopment it will transfer to the Development segment. Similarly, when an investment property or a component of investment property is completed and begins to earn rental income it will transfer to the Investment Management segment. Specific considerations for LLC 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. Residents are entitled to the total capital gain or loss upon sale of the home and are not required to pay departure costs. 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. Changes in the fair value of the land arising from development activities are recognised in FFO, generally occurring on settlement of the home. 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. As at 30 June Stockland Trust $M Note 2024 2023 2024 2023 Investment properties - Investment Management 7.A 9,449 9,952 9,249 9,780 Investment properties - Development 7.B 649 580 448 389 Investment properties 10,098 10,532 9,697 10,169 Subsequent costs 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. 116 Stockland Annual Report 2024 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. 117 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 7A. Investment properties - Investment Management As at 30 June Stockland Trust $M 2024 2023 2024 2023 Town Centres 4,452 5,152 4,391 5,089 Logistics 3,715 3,382 3,715 3,382 Workplace 1,782 1,823 1,769 1,824 Land Lease Communities 349 251 127 54 Community real estate 78 76 78 76 Sundry properties 75 82 30 36 Book value of Investment Management investment properties 10,451 10,766 10,110 10,461 Less amounts classified as: • property, plant and equipment (129) (131) – – • non–current assets held for sale (12) – – – • other assets (including lease incentives and fees) (168) (194) (170) (192) • other assets (including lease incentives and fees) attributable to equity–accounted investments (4) (5) (4) (5) • other receivables (straight–lining of rental income) (23) (51) (23) (50) • other receivables (straight–lining of rental income) attributable to equity–accounted investments (13) (10) (13) (10) Investment properties (including Stockland’s share of investment properties held by equity–accounted investments) 10,102 10,375 9,900 10,204 Less: Stockland’s share of investment properties held by equity– accounted investments (653) (423) (651) (424) Investment properties 9,449 9,952 9,249 9,780 Net carrying value movements Opening balance 9,952 9,919 9,780 9,723 Acquisitions 35 58 9 129 Expenditure capitalised 94 95 97 95 Net transfers from Development 308 251 308 251 Transfers to non–current assets held for sale (12) – – – Transfers in from property, plant and equipment – 15 – – Disposals (716) (130) (715) (130) Net change in fair value1 (212) (256) (230) (288) Balance at 30 June 9,449 9,952 9,249 9,780 1 Includes fair value unwinding of ground leases recognised under AASB 16 (2024: $1 million; 2023: $1 million). 118 Stockland Annual Report 2024 7B. Investment properties - Development As at 30 June Stockland Trust $M 2024 2023 2024 2023 Logistics under development 394 348 325 348 Land Lease Communities under development 365 256 192 90 Workplace under development 199 379 199 379 Town Centres under development 27 18 8 7 Community real estate under development 22 11 – – Other communities under development 7 3 – – Book value of Development investment properties 1,014 1,015 724 824 Less amounts classified as: • cost to complete provision (17) (2) (17) (2) • non–current assets held for sale (89) – – – Investment properties (including Stockland’s share of investment properties held by equity–accounted investments) 908 1,013 707 822 Less: Stockland’s share of investment properties held by equity– accounted investments (259) (433) (259) (433) Investment properties 649 580 448 389 Net carrying value movement Opening balance 580 572 389 446 Acquisitions 130 44 67 – Expenditure capitalised 345 215 309 194 Net transfers to Investment Management (308) (251) (308) (251) Transfers to non–current assets held for sale (89) – – – Disposals (9) – (9) – Balance at 30 June 649 580 448 389 119 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 7C. 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 2024 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. 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: • 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. 120 Stockland Annual Report 2024 Key inputs and methodologies Key inputs and methodologies used to measure fair value for investment properties are: Item Description 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 discount rate 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. Adopted terminal yield 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. DCF method 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). 121 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 2024 2023 Development investment properties Properties under development1 Level 3 DCF and income capitalisation method Net market rent (per sqm p.a.) $145 - $1,483 $105 - $1,407 10 year average market rental growth 3.26 - 3.67% 3.39 - 3.71% Adopted discount rate 6.00 - 7.00% 6.00 - 6.50% Adopted terminal yield 5.38 - 6.25% 4.13 - 5.50% Adopted capitalisation rate on completion 5.25 - 6.00% 3.88 - 5.25% Investment Management investment properties Community Real Estate Level 3 Income capitalisation method Net market rent (per place p.a.)2 $2,785 - $4,043 $2,700 - $3,803 Capitalisation rate 4.88 - 5.50% 4.75 - 5.50% Land Lease Communities Level 3 DCF and income capitalisation method Net market rent (per lot p.a.) $7,815 - $10,129 $7,682 - $9,930 Adopted capitalisation rate 5.00% 4.75% Terminal yield 5.25 - 5.50% 5.00 - 5.25% Discount rate 6.50 - 7.00% 6.25 - 6.25% Logistics Level 3 DCF and income capitalisation method Net market rent (per sqm p.a.) $99 - $205 $86 - $235 10 year average market rental growth 3.12 - 3.95% 3.20 - 4.32% Adopted capitalisation rate 5.25 - 6.25% 4.25 - 5.50% Adopted terminal yield 5.38 - 6.50% 4.50 - 5.75% Adopted discount rate 6.75 - 7.50% 5.75 - 7.00% Town Centres Level 3 DCF and income capitalisation method Net market rent (per sqm p.a.) $200 - $684 $193 - $692 10 year average specialty market rental growth 2.69 - 4.32% 2.34 - 3.51% Adopted capitalisation rate 5.75 - 7.00% 5.25 - 7.00% Adopted terminal yield 6.00 - 7.25% 5.75 - 7.25% Adopted discount rate 7.00 - 8.00% 6.25 - 8.00% Workplace Level 3 DCF and income capitalisation method Net market rent (per sqm p.a.) $404 - $1,040 $336 - $921 10 year average market rental growth 3.05 - 3.89% 3.07 - 3.75% Adopted capitalisation rate 4.50 - 9.00% 4.88 - 9.00% Adopted terminal yield 4.75 - 9.25% 5.25 - 9.25% Adopted discount rate 6.25 - 8.25% 6.00 - 9.00% 1 Key inputs for properties under development are presented in aggregate. Not all inputs will apply to every asset within the Development portfolio. 2 Rent is charged based on the total licensed capacity of each property. 122 Stockland Annual Report 2024 Sensitivity information Significant unobservable input Impact on fair value of an increase in input Impact on fair value of a decrease in input Adopted capitalisation rate Decrease Increase Adopted discount rate Decrease Increase Adopted terminal yield Decrease Increase Net Operating Income (NOI) • Net market rent Increase Decrease • 10 year average market rental growth Increase Decrease • 10 year specialty market rental growth Increase Decrease 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 2024. 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 2024. Stockland Capitalisation rate Discount rate Net operating income $M 0.25% decrease 0.25% increase 0.25% decrease 0.25% increase 5% decrease 5% increase Fair value gain/(loss) on Investment Management investment properties: • Communities Real Estate 4 (4) 2 (2) (4) 4 • Land Lease Communities 10 (9) 4 (3) (10) 10 • Logistics 186 (170) 70 (68) (195) 195 • Town Centres 191 (173) 83 (81) (236) 236 • Workplace 82 (75) 34 (33) (101) 101 Fair value gain/(loss) on Investment Management investment properties 473 (431) 193 (187) (546) 546 Impact of climate-related events on property valuations Climate-related risks and climate-associated regulations may affect property values in two main ways. Firstly, physical risk exposure to adverse climate conditions and events, such as floods and bushfires, may cause damage to investment properties, lost income, and/or reduced useful lives at affected properties. Risk factors 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 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 identified risk factors, 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. 123 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 8. Receivables As at 30 June Stockland Trust $M 2024 2023 2024 2023 Trade receivables1 179 124 12 7 Allowance for expected credit loss (5) (4) (5) (4) Net current trade receivables 174 120 7 3 Other receivables 49 61 20 14 Receivables due from related entities 277 146 9 – Allowance for expected credit loss (3) (9) (1) (7) Net other receivables 323 198 28 7 Straight–lining of rental income 11 12 11 12 Current receivables 508 330 46 22 Straight–lining of rental income 11 40 12 39 Other receivables 140 129 89 72 Receivables due from related entities – – 2,870 2,283 Allowance for expected credit loss – – (6) (5) Non–current receivables 151 169 2,965 2,389 1 Lease receivables from tenants total $13 million (2023: $8 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 2024 reconcile to the opening loss allowances as follows: As at 30 June Stockland Trust $M 2024 2023 2024 2023 Opening ECL balance 13 13 16 16 Provision raised during the year 5 4 6 4 Provision released during the year (10) (4) (10) (4) Closing ECL balance 8 13 12 16 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. 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. 124 Stockland Annual Report 2024 9. Payables As at 30 June Stockland Trust $M Note 2024 2023 2024 2023 Trade payables and accruals 474 349 122 100 Land purchases 237 213 154 – Distributions payable 4 396 344 396 344 GST payable/(receivable) (5) (21) – (1) Other payables 2 – – – Current payables 1,104 885 672 443 Other payables 21 19 – – Land purchases 98 159 – – Non–current payables 119 178 – – 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 Stockland Trust $M 2024 2023 2024 2023 Land purchases 50 49 – – Other liabilities 93 72 14 20 Current other liabilities 143 121 14 20 Land purchases 386 421 – – Other liabilities 68 55 26 27 Non–current other liabilities 454 476 26 27 Land purchases As part of its normal restocking process, Stockland on occasion 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. 125 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 Stockland Trust $M 2024 2023 2024 2023 Right–of–use assets Investment properties (non–current)1 24 24 24 24 Other assets (non–current)2 8 10 – – Total right–of–use assets 32 34 24 24 Lease liabilities Other liabilities (current) 3 3 – – Other liabilities (non-current) 34 36 26 27 Total lease liabilities 37 39 26 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 million (2023: $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 Stockland Trust $M 2024 2023 2024 2023 Depreciation charge of right–of–use assets Investment properties 1 1 1 1 Other assets 2 3 – – Total depreciation charge of right–of–use assets 3 4 1 1 Other expenses relating to leases Interest expense (included in finance expense) 2 2 1 1 Total other expenses relating to leases 2 2 1 1 The total cash outflow for leases in the year was $5 million (2023: $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 circumstances occurs which affects this assessment and is within the control of the lessee. No lease terms were revised during the year. 126 Stockland Annual Report 2024 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. 127 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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: Stockland Trust $M 2024 2023 2024 2023 Undiscounted lease payments due to Stockland or the Trust in the years ending 30 June: 2024 n/a 594 n/a 592 2025 589 461 580 455 2026 473 369 465 364 2027 376 281 370 278 2028 286 204 280 201 2029 203 n/a 198 n/a Beyond 2029 (2023: Beyond 2028) 696 753 683 737 Total undiscounted lease payments due 2,623 2,662 2,576 2,627 Lease modifications 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 2024, 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 $719 million is $144 million (2023: $137 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. 128 Stockland Annual Report 2024 13. Intangible assets The consolidated balance sheet contains the following amounts relating to intangible assets: Stockland As at 30 June 2024 2023 $M Software Under development Total Software Under development Total Cost Opening balance 90 6 96 81 10 91 Additions 4 3 7 9 5 14 Transfer – (4) (4) – (9) (9) Closing balance 94 5 99 90 6 96 Accumulated amortisation and impairment Opening balance (34) – (34) (26) – (26) Amortisation (9) – (9) (8) – (8) Closing balance (43) – (43) (34) – (34) Intangible assets 51 5 56 56 6 62 Software 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% (2023: 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. 129 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 14. Non-current assets and discontinued operations held for sale KEEPING IT SIMPLE 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 the recognition as a completed sale within one year from the date of classification. Investment properties held for sale remain measured at fair value. 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. A discontinued operation may only be classified as held for sale once the sale is highly probably and where the carrying amount will be recovered principally through a sale transaction rather than through continuing use. 14A. Non-current assets held for sale As at 30 June Stockland Trust $M 2024 2023 2024 2023 Investment properties transferred from Investment Management 12 – – – Investment properties transferred from Development1 89 4 – – Non–current assets held for sale 101 4 – – 1 2023 amounts include $46 million of Retirement Living investment property net of $42 million Retirement Living resident obligations. The following investment properties were held for sale at 30 June 2024: • Sundry properties at Balgowlah NSW • Sundry properties at Nowra NSW • Redland Bay LLC at Redland Bay QLD 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 2023: • Stockland Affinity retirement village, WA 14B. Discontinued operations held for sale There were no discontinued operations held for sale at 30 June 2024. For the year ended 30 June 2023 the Group's Retirement Living business1 was sold on 29 July 2022, at which point the associated assets and liabilities were derecognised by Stockland. The carrying amounts of the major classes of assets and liabilities for the current period and the comparable period, being the year ended 30 June 2023, were nil following the disposal of the business in July 2022. The financial performance of the discontinued operation for the year ended 30 June 2023 was as follows: Results of discontinued operations Stockland $M 2023 Revenue 10 Investment property expenses (1) Management, administration, marketing and selling expenses (4) Net change in fair value of investment properties (2) Profit before tax 3 Income tax expense (1) Profit after tax from discontinued operation 2 1 Excludes the results of Aspire villages and sundry assets not included in the transaction. 130 Stockland Annual Report 2024 The impact of the discontinued operation on EPS for the year ended 30 June 2023 was as follows: Stockland Year ended 30 June 2023 Continuing operations Discontinued operations Total Profit after tax attributable to securityholders ($M) 438 2 440 Basic EPS (cents) 18.4 0.1 18.5 Diluted EPS (cents) 18.2 0.1 18.3 The impact of the discontinued operation on cash flows for the year ended 30 June 2023 was as follows: Year ended 30 June Stockland $M 2023 Net cash inflow from operating activities 2 Net cash outflow from investing activities (6) Net cash utilised by discontinued operation (4) 131 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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. 132 Stockland Annual Report 2024 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 2024 and up to the date of authorisation of these accounts. The weighted average cost of debt for the year was 5.3% (2023: 4.3%). Stockland and Trust As at 30 June 2024 2023 $M Note Current Non– current Carrying value Fair value Current Non– current Carrying value Fair value Offshore medium term notes 15.A 163 3,149 3,312 3,231 – 3,085 3,085 2,980 Domestic medium term notes and commercial paper 15.B 98 945 1,043 1,013 200 547 747 696 Bank facilities 15.C - 375 375 375 – 75 75 75 Borrowings1 261 4,469 4,730 4,619 200 3,707 3,907 3,751 1 The difference of $111 million (30 June 2023: $156 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 MTN program in Europe and Asia. These notes have been issued in USD, EUR, GBP 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 2024, the fair value of the US private placements and European and Asian MTNs is $1,822 million (2023: $1,177 million) and $1,409 million (2023: $1,803 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 2024, Stockland and the Trust have undrawn bank facilities of $2,525 million (2023: $1,425 million) of which $200 million is due to expire within 12 months of balance sheet date and $200 million is due to expire within 12 months of the date of authorisation of these financial statements. 133 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 15D. Drawn debt The composition and maturity profile for the Group's drawn debt of $4.6 billion is shown below at face value Drawn debt maturity profile1 112 112 890 890 220 220 228 228 442 442 1,240 1,240 98 98 300 300 650 650 75 75 300 300 Offshore MTNs Domestic MTNs & Commercial Paper Bank debt FY25 FY26 FY27 FY28 FY29 FY30+ 1 Face value in AUD at 30 June 2024 after the effect of the CCIRS. Drawn debt composition %1 69% Offshore MTNs 23% Domestic MTNs & Commercial Paper 8% Bank debt 134 Stockland Annual Report 2024 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 2023 and 30 June 2024. 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 Stockland Trust $M 2024 2023 2024 2023 Interest income from related parties – – 301 219 Interest income from other parties 18 10 14 7 Finance income 18 10 315 226 Interest expense relating to borrowings (260) (178) (260) (178) Interest paid or payable on other financial liabilities at amortised cost (28) (37) – – Finance expense on lease liabilities (2) (2) (1) (1) Less: interest capitalised to inventories 151 114 – – Less: interest capitalised to investment properties 26 19 23 18 Finance expense (113) (84) (238) (161) Designated hedge accounting relationships Fair value hedges – gain on change in fair value of derivatives 32 4 32 4 Fair value hedges – (loss)/gain on change in fair value of borrowings (31) (14) (31) (14) Net (loss)/gain on designated hedge accounting relationships 1 (10) 1 (10) Non-designated hedge accounting relationships (Loss)/gain on foreign exchange movements – (1) – (1) (Loss)/Gain on fair value movements (3) 20 (3) 20 Net (loss)/gain on non–designated hedge accounting relationships (3) 19 (3) 19 Net (loss)/gain on financial instruments (2) 9 (2) 9 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. 135 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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. Stockland Trust As at 30 June Other financial assets Other financial liabilities Other financial assets Other financial liabilities $M 2024 2023 2024 2023 2024 2023 2024 2023 Instruments in a designated fair value hedge1 CCIRS 27 – – – 27 – – – Instruments in a designated cash flow hedge1 CCIRS 26 – – – 26 – – – Instruments held at fair value through profit or loss IRS 35 35 (13) (20) 35 35 (13) (20) Current2 88 35 (13) (20) 88 35 (13) (20) Instruments in a designated fair value hedge1 CCIRS 108 121 (89) (111) 108 121 (89) (111) Instruments in a designated cash flow hedge1 CCIRS 26 48 (5) (6) 26 48 (5) (6) Instruments held at fair value through profit or loss CCIRS 13 12 – – 13 12 – – IRS 70 90 (29) (34) 70 90 (29) (34) Other3 16 14 – – – – – – Non–current2 233 285 (123) (151) 217 270 (123) (151) 1 No interest rate swaps are in designated hedge relationships. 2 Totals may not add due to rounding. 3 Other financial assets include investments by the Corporation in Stockland Care Foundation Trust and other third party digital start-up entities. 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. 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 $136 million (2023: $162 million). 136 Stockland Annual Report 2024 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. 137 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 Stockland and Trust Borrowings Derivatives Carrying amount Mark to market As at 30 June $M 2024 2023 Move ments (Repaid)/ Drawn Gain/ (loss) on FV of debt 2024 2023 Move ments Cash flow hedge reserve impact Gain/ (loss) on FV of deriva- tives Net gain/ (loss) recog- nised in profit or loss1 US Dollar 1,867 1,864 4 – (4) 115 108 7 1 6 2 • Effective 1,539 1,535 4 – (4) 118 111 7 1 6 2 • Other2 328 328 – – – (3) (3) – – – – Euro3 483 471 12 – (12) (20) (29) 9 1 8 (4) GBP 190 – 190 193 3 (1) – (1) (1) (1) 2 HK Dollar3 778 758 20 – (20) (5) (31) 26 3 23 4 Foreign exposure1 3,318 3,093 225 193 (33) 89 48 41 4 37 4 AUD bank debt 375 75 300 300 – – – – – – – AUD MTNs and commercial paper 1,048 750 298 298 – – – – – – – AUD IRS – – – – – 81 87 (6) – (6) (6) Borrowing costs (12) (11) (1) (1) – Total1 4,730 3,907 823 790 (33) 170 135 35 4 31 (2) 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 Stockland Trust $M 2024 2023 2024 2023 Opening cash flow hedge reserve (16) (14) (16) (14) Net change in fair value of cash flow hedges 4 (5) 4 (5) Reclassified to profit or loss – 3 – 3 Closing cash flow hedge reserve (12) (16) (12) (16) 138 Stockland Annual Report 2024 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: Stockland As at 30 June 2024 2023 $M Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets – 305 – 305 – 306 – 306 Other investments 16 – – 16 14 – – 14 Financial assets carried at fair value 16 305 – 321 14 306 – 320 Offshore MTNs1 – (2,991) – (2,991) – (2,765) – (2,765) Derivative liabilities – (136) – (136) – (171) – (171) Other financial liabilities2 – – – – – – (42) (42) Financial liabilities carried at fair value – (3,127) – (3,127) – (2,936) (42) (2,978) Net position 16 (2,822) – (2,806) 14 (2,630) (42) (2,658) 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 retirement living resident obligations were included in investment properties held for sale. Refer to note 14A for further details. Trust As at 30 June 2024 2023 $M Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets – 305 – 305 – 306 – 306 Other investments – – – – – – – – Financial assets carried at fair value – 305 – 305 – 306 – 306 Offshore MTNs1 – (2,991) – (2,991) – (2,765) – (2,765) Derivative liabilities – (136) – (136) – (171) – (171) Financial liabilities carried at fair value – (3,127) – (3,127) – (2,936) – (2,936) Net position – (2,822) – (2,822) – (2,630) – (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. 139 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 The following table shows a reconciliation from the opening to closing balances for fair value measurements in Level 3 of the fair value hierarchy: Stockland 2024 2023 $M Retirement Living resident obligations Total Retirement Living resident obligations Total Opening balance (42) (42) (2,716) (2,716) (Losses)/gains recognised in profit or loss – – – – Cash receipts from incoming residents on turnover – – (3) (3) Cash payments to outgoing residents on turnover, net of DMF – – 6 6 Disposals related to the sale of Retirement Living assets and the Retirement Living business 42 42 2,671 2,671 Balance at 30 June1 – – (42) (42) 1 At 30 June 2023, $42 million of retirement living resident obligations were included in investment properties held for sale (30 June 2024: $nil). Refer to note 14A for further details. 140 Stockland Annual Report 2024 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: Stockland and Trust As at 30 June 2024 2023 Carrying amount 2,991 2,765 Notional amount 2,815 2,623 Maturity date Aug 2024 – Jun 2036 Aug 2024 – Mar 2036 Hedge ratio 1:1 1:1 Change in discounted spot value of outstanding hedging instruments since inception of the hedge 92 53 Change in value of hedged item used to determine hedge ineffectiveness (94) (65) Weighted average hedged rate for outstanding hedged instruments against AUD$1 EUR 0.63 EUR 0.63 GBP 0.52 N/A HKD 5.57 HKD 5.57 USD 0.77 USD 0.77 141 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 (2023: 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 2024 2023 As at 30 June Profit or loss Equity Profit or loss Equity $M Increase Decrease Increase Decrease Increase Decrease Increase Decrease EUR – – (1) 2 – – (2) 2 GBP – – (3) 3 – – – – HKD – – (4) 5 – – (5) 6 USD – – (9) 10 – – (10) 12 Impact – – (17) 20 – – (17) 20 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 (2023: 200bps). 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. Stockland Trust As at 30 June 2024 2023 2024 2023 $M Increase Decrease Increase Decrease Increase Decrease Increase Decrease Impact on interest income/(expense) 14 (14) 5 (5) 68 (68) 48 (48) Impact on net gain/(loss) on derivatives – through profit or loss 113 (118) 113 (122) 113 (118) 113 (122) Impact on profit or loss 127 (132) 118 (127) 181 (186) 161 (170) Impact on equity 19 (20) 27 (28) 19 (20) 27 (28) 142 Stockland Annual Report 2024 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 2024, 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 2024 and 30 June 2023, 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 2024, the current weighted average debt maturity is 5.2 years (2023: 5.0 years). 143 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 Stockland $M Carrying amount Contractual cash flows 1 year or less 1 – 2 years 2 – 5 years Over 5 years 30 June 2024 Non–derivative Payables (excl. GST) (832) (832) (713) (110) (9) – Other liabilities (436) (436) (50) (78) (308) – Lease liabilities (39) (39) (3) (3) (7) (26) Distributions payable (396) (396) (396) – – – Borrowings (4,730) (5,937) (452) (1,121) (1,801) (2,563) Derivative Interest rate derivatives (41) (44) (11) (10) (17) (6) CCIRS (95) • Inflows 1,567 37 520 260 750 • Outflows (1,721) (84) (557) (310) (770) Financial liabilities (6,569) (7,838) (1,672) (1,359) (2,192) (2,615) 30 June 2023 Non–derivative Payables (excl. GST) (740) (740) (562) (58) (101) (19) Other liabilities (470) (470) (49) (48) (373) – Lease liabilities (39) (39) (3) (2) (7) (27) Distributions payable (344) (344) (344) – – – Borrowings (3,907) (4,843) (348) (302) (2,157) (2,036) Other financial liabilities1 (42) (42) (42) – – – Derivative Interest rate derivatives (54) (59) (20) (10) (21) (8) CCIRS (117) • Inflows 1,698 40 40 595 1,023 • Outflows (1,889) (86) (85) (659) (1,059) Financial liabilities (5,713) (6,728) (1,414) (465) (2,723) (2,126) 1 At 30 June 2023, $42 million of existing resident obligations was included in investment properties held for sale (30 June 2024: $nil). Refer to notes 14A and 14B for further details. 144 Stockland Annual Report 2024 As at Trust $M Carrying amount Contractual cash flows 1 year or less 1 – 2 years 2 – 5 years Over 5 years 30 June 2024 Non–derivative Payables (excl. GST) (276) (276) (276) – – – Lease liabilities (27) (27) – – (2) (25) Distributions payable (396) (396) (396) – – – Borrowings (4,730) (5,937) (452) (1,121) (1,801) (2,563) Derivative Interest rate derivatives (41) (44) (11) (10) (17) (6) CCIRS (95) • Inflows 1,567 37 520 260 750 • Outflows (1,721) (84) (557) (310) (770) Financial liabilities (5,565) (6,834) (1,182) (1,168) (1,870) (2,614) 30 June 2023 Non–derivative Payables (excl. GST) (100) (100) (100) – – – Lease liabilities (27) (27) – – (2) (25) Distributions payable (344) (344) (344) – – – Borrowings (3,907) (4,843) (348) (302) (2,157) (2,036) Derivative Interest rate derivatives (54) (59) (20) (10) (21) (8) CCIRS (117) • Inflows 1,698 40 40 595 1,023 • Outflows (1,889) (86) (85) (659) (1,059) Financial liabilities (4,549) (5,564) (858) (357) (2,244) (2,105) 145 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 (both 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 Trust Number of securities $M $M As at 30 June 2024 2023 2024 2023 2024 2023 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 (5,275,960) (5,275,982) (48) (40) (46) (38) Issued capital 2,381,895,702 2,381,895,680 8,644 8,652 7,347 7,355 20A. Movements in ordinary securities Stockland and Trust Stockland Trust Number of securities $M $M As at 30 June 2024 2023 2024 2023 2024 2023 Opening balance 2,387,171,662 2,387,171,662 8,692 8,692 7,393 7,393 Securities issued during the year – – – – – – Closing balance 2,387,171,662 2,387,171,662 8,692 8,692 7,393 7,393 Stockland did not issue any ordinary staples securities during the year. 146 Stockland Annual Report 2024 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. Movement of other equity securities Stockland and Trust Stockland Trust Number of securities $M $M 2024 2023 2024 2023 2024 2023 Opening balance 5,275,982 4,197,304 (40) (37) (38) (35) Securities acquired1 5,398,445 4,494,605 (23) (15) (21) (14) Securities transferred to employees on vesting (5,398,467) (3,415,927) 15 12 13 11 Closing balance 5,275,960 5,275,982 (48) (40) (46) (38) 1 Average price: $4.27 per security (2023: $3.44). 20C. Security based payments Keeping it simple Security options granted under employee security plans are held at fair value. The valuation of security options is a key area of accounting estimation and judgement for Stockland. Stockland operates three Security Plans at its discretion for eligible employees which are described below: Long term incentives (LTI) Under the LTI plan, eligible 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 number and weighted average fair value of LTI rights and DSTI securities under the Security Plans are as follows: Weighted average price per right/security Number of rights/securities Details 2024 2023 2024 2023 Opening balance $2.69 $3.19 16,775,784 13,331,666 Granted during the year $2.53 $2.34 7,760,384 8,373,415 Forfeited and lapsed during the year $2.01 $2.91 (1,028,126) (1,499,664) Rights converted to vested Stockland stapled securities $3.43 $3.67 (4,990,636) (3,429,633) Outstanding at the end of the year $2.47 $2.69 18,517,406 16,775,784 147 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 LTI 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 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 2024 was 5,511,566 (2023: 5,504,051). 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 2024 2023 Grant date 17 October 2023 17 October 2023 18 October 2022 18 October 2022 Fair value of rights granted under plan $1.52 $1.08 $1.47 $1.07 Securities spot price at grant date $3.77 $3.77 $3.33 $3.33 Exercise price – – – – Distribution yield 6.54% 6.54% 7.06% 7.06% Risk–free rate at grant date 4.11% 4.11% 3.40% 3.40% Expected remaining life at grant date 2.71 years 2.71 years 2.70 years 2.70 years Expected volatility of Stockland's securities 25% 25% 33% 33% Expected volatility of index price 19% 0% 23% 0% The LTI rights outstanding as at 30 June 2024 of 14,372,763 (2023: 12,411,904), have a fair value ranging from $1.07 to $3.77 (2023: $1.07 to $4.59) per right and a weighted average restricted period remaining of 1.5 years (2023: 1.6 years). During the year, 2,581,827 rights (2023: 1,393,163) vested and will convert to securities with a weighted average fair value of $3.04 per security (2023: $3.20). 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 $3.77 (2023: $3.34). The DSTI outstanding as at 30 June 2024, included in the table above, are 3,755,123 (2023: 3,734,093). The DSTI outstanding have a fair value ranging from $3.33 to $4.66 (2023: $3.33 to $4.76) 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. 148 Stockland Annual Report 2024 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 permanent and temporary differences. Temporary 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 Stockland $M 2024 2023 Current tax (49) (30) Adjustments for prior years 2 – Current tax (47) (30) Adjustments for prior years (2) – Reversal/(origination) of temporary differences 16 (48) Deferred tax 14 (48) Income tax in profit or loss (33) (78) Less: income tax (expense)/benefit relating to discontinued operations – (1) Income tax in profit or loss from continuing operations (33) (77) 21B. Reconciliation of profit before tax to income tax recognised in profit or loss Year ended 30 June Stockland $M 2024 2023 Profit before tax 338 518 Less: Trust profit before tax (194) (201) Adjust for: intergroup eliminations (37) (64) Profit before tax of Stockland Corporation Group 107 253 Prima facie income tax calculated at 30% (32) (76) Impact on income tax recognised in profit or loss due to: Permanent adjustments – 1 Amounts which are non-deductible in the year (1) (1) Cost base not previously able to be recognised in relation to goodwill of Retirement Living business – – Under–provided in prior years – (2) Income tax in profit or loss (33) (78) Effective tax rate 31% 31% Effective tax rate (excluding discontinued operations) 31% 31% 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. 149 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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. 150 Stockland Annual Report 2024 22. Deferred tax As at 30 June Assets Liabilities Net $M 2024 2023 2024 2023 2024 2023 Inventories 43 40 (85) (68) (42) (28) Investment properties 86 37 (164) (115) (78) (78) Property, plant and equipment 16 18 – – 16 18 Payables 33 16 (9) (9) 24 7 Provisions 49 30 – – 49 30 Leases 2 1 – – 2 1 Reserves 1 8 – – 1 8 Tax assets/(liabilities)1 230 150 (258) (192) (28) (42) 1 Totals may not add due to rounding. Movement in temporary differences As at 30 June Recognised in Recognised in $M 2022 Retained earnings Profit or loss 2023 Retained earnings Profit or loss 2024 Inventories (28) – – (28) – (14) (42) Investment properties (94) – 16 (78) – – (78) Property, plant and equipment 21 – (3) 18 – (2) 16 Payables 9 – (2) 7 – 17 24 Retirement Living resident obligations (185) – 185 – – – – Provisions 44 – (14) 30 – 19 49 Leases (1) – 2 1 – 1 2 Reserves 7 – 1 8 – (7) 1 Tax losses carried forward 233 – (233) – – – – Tax assets/(liabilities)1 6 – (48) (42) – 14 (28) 1 Totals may not add due to rounding. Stockland 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: • 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 rental income, primarily 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. 151 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 2024 or 30 June 2023. 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 six-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. The property was sold on 3 March 2023. Stockland Communities Partnership Pty Ltd Also known as SCP, this joint venture develops and sells masterplanned communities. SCP was formed during the year. Stockland Fife Kemps Creek Trust Also known as Fife Kemps Creek Trust, this joint venture develops industrial build to hold assets in Kemps Creek, NSW. Stockland FIfe Willawong Trust Also known as Fife Willawong Trust, this joint venture develops industrial build to hold assets in Willawong, QLD. SLLP1 Land Trust and SLLP1 Development Trust Also known as SLLP1, this joint venture develops and operates Land Lease Communities. The Development Trust is responsible for the development activities and sale of houses, while the Land Trust owns the land on which the communities are being developed and is responsible for operating the communities and collecting rental income. SLLP1 was formed during the year. Stockland Residential Rental Partnership Trust and SRRP Development Trust Also known as SRRP, this joint venture develops and operates 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 developed and is responsible for operating the communities and collecting rental income. SSRCP Holdco Pty Ltd Also known as the Stockland Supalai Residential Communities Partnership or SSRCP. On 18 December 2023, Stockland announced the formation of SSRCP and the acquisition of a $1.06 billion1 Masterplanned Communities portfolio within that partnership. The partnership is owned 50.1% by Stockland and 49.9% by Supalai. The transaction remains subject to regulatory approval, with active engagement ongoing with both the FIRB and the ACCC. The M_Park Trust Also known as TMPT, this joint venture owns, operates and develops 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. 1 Settlement of certain Project Delivery Agreement projects are also conditional on the vendor obtaining relevant landowner Change of Control consents. SSRCP may also exercise its right to acquire (at its election) certain additional parcels of land for an additional payment of up to $239 million. 152 Stockland Annual Report 2024 23A. Interest in joint ventures The ownership interest and carrying amount in each joint venture is presented below: Stockland Ownership interest as at 30 June Carrying amount as at 30 June Share of total comprehensive income / (loss) for the period ended 30 June % % $M $M $M $M 2024 2023 2024 2023 2024 2023 Macquarie Park Trust 51.0 51.0 278 330 (34) 15 Riverton Forum Pty Limited 50.0 50.0 – – – – SLLP1 Development Trust 50.1 N/A – N/A – N/A SLLP1 Land Trust 50.1 N/A 6 N/A – N/A SRRP Development Trust 50.1 50.1 – 21 49 43 Stockland Communities Partnership Pty Ltd 50.1 N/A 37 N/A 3 N/A Stockland Fife Kemps Creek Trust 50.0 50.0 136 121 – – Stockland Fife Willawong Trust 50.0 50.0 30 28 – 1 Stockland Residential Rental Partnership Trust 50.1 50.1 96 84 10 (13) SSRCP HoldCo Pty Ltd 50.1 N/A – N/A – N/A The M_Park Trust 51.0 51.0 102 88 (43) 36 Willeri Drive Trust 50.0 50.0 2 3 – 2 Total1 687 675 (15) 84 1 Totals may not add due to rounding. Trust Ownership interest as at 30 June Carrying amount as at 30 June Share of total comprehensive income / (loss) for the period ended 30 June % % $M $M $M $M 2024 2023 2024 2023 2024 2023 Macquarie Park Trust 51.0 51.0 284 336 (34) 15 Riverton Forum Pty Limited 50.0 50.0 – – – – SLLP1 Land Trust 50.1 N/A 6 N/A – N/A Stockland Fife Kemps Creek Trust 50.0 50.0 136 121 (1) – Stockland Fife Willawong Trust 50.0 50.0 30 28 – 1 Stockland Residential Rental Partnership Trust 50.1 50.1 96 85 9 (12) The M_Park Trust 51.0 51.0 83 88 (71) (28) Willeri Drive Trust 50.0 50.0 2 3 – 2 Total1 637 662 (97) (22) 1 Totals may not add due to rounding. Changes to joint ventures There were no other changes to the above list of investments in joint ventures during the year. 153 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 23B. Summary of financial information for joint ventures and associates The tables below provide summarised financial information for all joint ventures held by 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. Summary balance sheet As at 30 June Macquarie Park Trust Fife Kemps Creek Trust SRRP Trust1 SRRP Development Trust $M 2024 2023 2024 2023 2024 2023 2024 2023 Cash and cash equivalents 7 9 – 2 14 15 89 52 Inventories – – – – – – 70 179 Other current assets 2 1 – – – 2 2 17 Current assets 9 10 – 2 14 17 161 248 Inventories – – – – – – 50 – Investment properties 635 724 273 241 342 291 – – Other non-current assets 32 28 – – 70 98 – – Non–current assets 667 752 273 241 412 389 50 – Assets 676 762 273 243 426 406 211 248 Borrowings – – – – 217 – 68 – Other current liabilities 3 5 2 1 15 21 142 74 Current liabilities 3 5 2 1 232 21 210 74 Borrowings – – – – – 216 – 98 Other non-current liabilities 113 99 – – – – – – Non–current liabilities 113 99 – – – 216 – 98 Liabilities 116 104 2 1 232 237 210 172 Net assets 560 658 271 242 194 169 1 76 Reconciliation to carrying amounts Opening balance 658 665 242 122 169 142 76 92 Capital contributions – – 31 120 13 53 – – Total comprehensive profit/ (loss) for the year (66) 30 (2) – 19 (25) 47 46 Distributions paid (32) (37) – – (7) (1) (122) (62) Net assets at 30 June2 560 658 271 242 194 169 1 76 % ownership 51.0 51.0 50.0 50.0 50.1 50.1 50.1 50.1 Group's share of net assets2 285 336 136 121 97 85 1 38 Adjustments on consolidation with Trust3 (1) – – – (1) – n/a n/a Carrying amount Trust2 284 336 136 121 96 85 n/a n/a Adjustments on consolidation with Stockland4 (7) (6) – – (1) (1) (1) (17) Carrying amount Stockland2 278 330 136 121 96 84 – 21 1 Legal entity name is Stockland Residential Rental Partnership Trust. 2 Totals may not add due to rounding. 3 Adjustments on consolidation with Trust reflect the net elimination of profit or loss over time on transactions between the Joint Venture and the Trust. 4 Adjustments on consolidation with Stockland reflect the net elimination of profit or loss over time on transactions between the Joint Venture and Stockland. 154 Stockland Annual Report 2024 Summary balance sheet continued As at 30 June TMPT SCP Other joint ventures Total $M 2024 2023 2024 2023 2024 2023 2024 2023 Cash and cash equivalents 6 5 9 n/a 19 1 144 84 Inventories – – 20 n/a – – 90 179 Other current assets – – 2 n/a 34 14 40 34 Current assets 6 5 31 n/a 53 15 274 297 Inventories – – 135 n/a 75 – 260 – Investment properties 400 391 – n/a 149 37 1,799 1,684 Other non-current assets – – – n/a – 18 102 144 Non–current assets 400 391 135 n/a 224 55 2,161 1,828 Assets 406 396 166 n/a 277 70 2,435 2,125 Borrowings – – – n/a – – 285 – Other current liabilities 30 93 15 n/a 140 1 347 195 Current liabilities 30 93 15 n/a 140 1 632 195 Borrowings 214 130 42 n/a 46 – 302 444 Other non-current liabilities – – 34 n/a – – 147 99 Non–current liabilities 214 130 76 n/a 46 – 449 543 Liabilities 244 223 91 n/a 186 1 1,081 738 Net assets 162 173 75 n/a 91 69 1,354 1,387 Reconciliation to carrying amounts Opening balance 173 – n/a n/a 69 162 1,387 1,183 Capital contributions 129 228 71 n/a 23 – 267 401 Total comprehensive profit/ (loss) for the year (140) (55) 4 n/a – 5 (138) 1 Distributions paid – – – n/a – (98) (161) (198) Net assets at 30 June1 162 173 75 n/a 91 69 1,354 1,387 % ownership 51.0 51.0 50.1 n/a n/a n/a n/a n/a Group's share of net assets1 83 88 37 n/a 45 35 684 703 Adjustments on consolidation with Trust – – n/a n/a (7) (4) (10) (4) Carrying amount Trust1 83 88 n/a n/a 38 31 637 662 Adjustments on consolidation with Stockland 19 – – n/a (7) (4) 3 (28) Carrying amount Stockland1 102 88 37 n/a 38 31 687 675 1 Totals may not add due to rounding. 155 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 Summary income statement Year ended 30 June Macquarie Park Trust Fife Kemps Creek Trust SRRP Trust1 SRRP Development Trust $M 2024 2023 2024 2023 2024 2023 2024 2023 Revenue 41 41 – – 15 16 309 249 Cost of property developments sold – – – – – – (240) (187) Net change in fair value of investment properties (93) – – – 19 (24) – – Net finance income/(expense) (7) (5) – – (5) (7) 3 – Other expenses (7) (6) (2) – (10) (10) (19) (16) Profit/(loss) after tax2 (66) 30 (2) – 19 (25) 53 46 Total comprehensive income/(loss) (66) 30 (2) – 19 (25) 53 46 % ownership 51.0 51.0 50.0 50.0 50.1 50.1 50.1 50.1 Group's share of total comprehensive income/(loss)2 (34) 15 (1) – 9 (12) 27 23 Adjustments on consolidation with Trust3 – – – – – – n/a n/a Trust's share of profits/ (losses) from equity accounted investments (34) 15 (1) – 9 (12) n/a n/a Adjustments on consolidation with Stockland4 – – 1 – 1 (1) 22 20 Stockland's share of profits/(losses) from equity accounted investments2 (34) 15 – – 10 (13) 49 43 1 Legal entity name is Stockland Residential Rental Partnership Trust. 2 Totals may not add due to rounding. 3 Adjustments on consolidation with Trust reflect the net elimination of profit or loss during the year on transactions between the Joint Venture and the Trust. 4 Adjustments on Stockland reflect the net elimination of profit or loss during the year on transactions between the Joint Venture and Stockland. 156 Stockland Annual Report 2024 Summary income statement continued Year ended 30 June TMPT SCP Other joint ventures Total $M 2024 2023 2024 2023 2024 2023 2024 2023 Revenue 21 2 35 n/a – 10 421 318 Cost of property developments sold – – (28) n/a – – (268) (187) Net change in fair value of investment properties (149) (55) – n/a – 2 (223) (77) Net finance income/(expense) (3) – – n/a – – (12) (12) Other expenses (9) (2) (3) n/a – (7) (50) (41) Profit/(loss) after tax1 (140) (55) 4 n/a – 5 (132) 1 Total comprehensive income/(loss) (140) (55) 4 n/a – 5 (132) 1 % ownership 51.0 51.00 50.1 n/a n/a n/a n/a n/a Group's share of total comprehensive income/(loss)1 (71) (28) 2 n/a – 3 (68) 1 Adjustments on consolidation with Trust – – n/a n/a – – - – Trust's share of profits/ (losses) from equity accounted investments (71) (28) n/a n/a – 3 (97) (22) Adjustments on consolidation with Stockland 28 64 1 n/a – – 55 83 Stockland's share of profits/(losses) from equity accounted investments (43) 36 3 n/a – 3 (15) 84 1 Totals may not add due to rounding. 24. Joint operations 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. A summary of Stockland's joint operations and their primary activities are as follows: Joint operation Primary activities Aura Co-venture The Aura Co-venture develops the Aura masterplanned residential community in Sunshine Coast, QLD. It is a for-profit unincorporated joint operation domiciled in Australia. Katalia Co-venture The Katalia Co-venture develops the Cloverton masterplanned residential community in Kalkallo, VIC. It is a for-profit unincorporated joint operation domiciled in Australia. Kemps Creek 90 Aldington Co-venture The Kemps Creek 90 Aldington Co-venture develops the Kemps Creek Logistics build to sell development at 90 Aldington Road in Kemps Creek, VIC. It is a for-profit unincorporated joint operation domiciled in Australia. Kemps Creek 244-270 Aldington Co-venture The Kemps Creek 244-270 Aldington Co-venture develops the Kemps Creek Logistics build to sell development at 244-270 Aldington Road in Kemps Creek, VIC. It is a for-profit unincorporated joint operation domiciled in Australia. Sienna Wood Co-venture The Sienna Wood Co-venture develops the Sienna Wood masterplanned residential community in Hilbert, WA. It is a for-profit unincorporated joint operation domiciled in Australia. 157 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 Stockland Development (Sub7) Pty Limited1 Armstrong Creek Pty Ltd1 Stockland Development Holding Trust AW Bidco 1 Pty Limited1 Stockland Development Pty Limited1 AW Bidco 2 Pty Limited1 Stockland Eurofinance Pty Limited1 AW Bidco 4 Pty Limited1 Stockland Financial Services Pty Limited1 AW Bidco 5 Pty Limited1 Stockland Glam BidCo Pty Ltd2 AW Bidco 6 Pty Limited1 Stockland Highett Pty Limited AW Bidco No. 7 Pty Limited Stockland Highlands Pty Limited1 AW Bidco No. 8 Pty Limited Stockland Kawana Waters Pty Limited1 AW Bidco No. 9 Pty Limited Stockland Lake Doonella Pty Limited1 AW Bidco No. 10 Pty Limited Stockland Land Lease Communities Holdings Pty Limited1 AW Bidco No. 11 Pty Limited Stockland Land Lease Landlord Pty Limited1 AW Bidco No. 12 Pty Limited Stockland Land Lease Management Pty Limited1 AW Bidco No. 13 (NSW) Pty Limited Stockland Lensworth Glenmore Park Limited1 Baratheon Developments Pty Ltd Stockland LLC Aura Pty Limited1 Compam Property Management Pty Limited Stockland LLC B by Halcyon Trust Eisha Pty Ltd Stockland LLC Burpengary Trust Enaard Pty Ltd Stockland LLC Curlewis Trust Endeavour (No. 2) Unit Trust Stockland LLC Evergreen Trust Glam Development Trust2 Stockland LLC General Pty Limited1 Glengar Capital Pty Limited Stockland LLC Glades Trust Glenmore Park Investments Pty Limited Stockland LLC Greens Trust Groves LLC Trust2 Stockland LLC Halcyon Dales Pty Limited2 Halcyon Constructions QLD Pty Ltd1 Stockland LLC Halcyon Ridge Pty Limited2 Halcyon Resales Pty Ltd1 Stockland LLC Halcyon Serrata Pty Limited2 Halcyon Resales Unit Trust Stockland LLC Highlands Trust2 Halcyon TF Pty Ltd1 Stockland LLC Ilyarrie Trust2 Jimboomba Trust Stockland LLC Lakeside Trust JT Bid Co No. 1 Pty Limited Stockland LLC Landing Trust JT Bid Co No. 2 Pty Limited Stockland LLC No. 2 Pty Limited1 LAB-52 Bricklet Pty Limited Stockland LLC No.3 Pty Ltd1 LAB-52 Holdings Pty Limited Stockland LLC No.4 Pty Ltd1 LAB-52 SMRTR Pty Limited Stockland LLC Parks Trust LAB-52 Yodel Pty Limited Stockland LLC Peregian Beach Trust Mayflower Investments Pty Ltd Stockland LLC Piara Waters Trust Merrylands Court Pty Limited Stockland LLC Providence Pty Limited1 Mulgoa Nominees Pty Limited Stockland LLC Pty Limited1 Northpoint No. 1 Trust Stockland LLC Rendezvous Road Trust Northpoint No. 2 Trust Stockland LLC Rise Trust Northpoint No. 3 Trust Stockland LLC SLC SPV Pty Limited1 Northpoint No. 4 Trust Stockland LLC St Germain Trust Northpoint No. 5 Trust Stockland LLC Vision Trust Northpoint No. 6 Trust Stockland LLC Waters Trust Nowra Property Unit Trust Stockland Management Limited S1 Commercial Property Pty Limited Stockland Mature Holding Trust S1 Communities Pty Limited Stockland Miami (Fund) Unit Trust 158 Stockland Annual Report 2024 S2 Commercial Property Pty Limited Stockland Miami (Non–Fund) Unit Trust S2 Communities Pty Limited Stockland Miami (QLD) Pty Limited1 S3 Commercial Property Pty Limited Stockland MPC Hold Co Pty Ltd S3 Communities Pty Limited Stockland MPC Mid Co Pty Ltd S4 Commercial Property Pty Limited Stockland North Boambee Valley LLC Trust S4 Communities Pty Limited Stockland North Lakes Development Pty Limited1 S5 Commercial Property Pty Limited Stockland North Lakes Pty Limited1 S5 Communities Pty Limited Stockland Ormeau Trust Stockland (Boardwalk Sub 2) Pty Limited Stockland PR1 Trust Stockland (Queensland) Pty. Limited1 Stockland PR2 Trust Stockland (Russell Street) Pty Limited1 Stockland PR3 Trust Stockland A.C.N 116 788 713 Pty Limited1 Stockland PR4 Trust Stockland Aevum SPV Finance No. 1 Pty Limited Stockland Property Management Pty Ltd1 Stockland Armstrong Creek LLC Trust Stockland Retail Services Pty Limited1 Stockland Bells Creek Pty Limited1 Stockland Retain (Retirement) Pty Limited1 Stockland Berwick LLC Trust Stockland Richmond Retirement Village Pty Limited Stockland Birtinya Retirement Village Pty Limited1 Stockland RRP No. 1 Pty Ltd1 Stockland Buddina Pty Limited1 Stockland Scrip Holdings Pty Limited Stockland Caboolture Waters Pty Limited1 Stockland Services Pty Limited1 Stockland Caloundra Downs Pty Limited1 Stockland Singapore Pte Ltd Stockland Capital Partners Limited Stockland South Beach Pty Limited1 Stockland Care Foundation Pty Limited Stockland Syndicate No. 1 Trust Stockland Care Foundation Trust Stockland The Grove Retirement Village Pty Limited Stockland CH Finance Pty Limited Stockland Town Centres Pty Ltd Stockland Communities HoldCo Pty Ltd2 Stockland Trust Management Limited Stockland Communities Partnership HoldCo Pty Ltd2 Stockland Urban Development Pty Limited Stockland Development (Holdings) Pty Limited1 Stockland Urban Development Sub 1 Pty Limited2 Stockland Development (NAPA NSW) Pty Limited1 Stockland Urban Development Sub 2 Pty Limited2 Stockland Development (NAPA QLD) Pty Limited1 Stockland Urban Development Sub 3 Pty Limited2 Stockland Development (NAPA VIC) Pty Limited1 Stockland WA (Estates) Pty Limited1 Stockland Development (PHH) Pty Limited1 Stockland WA Development (Realty) Pty Limited1 Stockland Development (PR1) Pty Limited Stockland WA Development (Vertu Sub 1) Pty Limited Stockland Development (PR2) Pty Limited Stockland WA Development Pty Limited1 Stockland Development (PR3) Pty Limited Stockland Wallarah Peninsula Management Pty Limited1 Stockland Development (PR4) Pty Limited Stockland Wallarah Peninsula Pty Limited1 Stockland Development (Sub3) Pty Limited Stockland Wholesale Funds Management Pty Limited1 Stockland Development (Sub4) Pty Limited Stockland Willawong Industrial Pty Ltd Stockland Development (Sub5) Pty Limited Toowong Place Pty Ltd 1 These entities are parties to the Deed of Cross Guarantee and members of the Closed Group as at 30 June 2024. 2 These entities were formed/incorporated or acquired in the current financial year. 159 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 Controlled entities of Stockland Trust 9 Castlereagh Street Unit Trust Stockland CP Acquisition Trust 601 Pacific Highway HoldCo Trust1 Stockland CPR Industrial Trust 601 Pacific Highway JV Trust1 Stockland CRE Childcare Trust 601 Pacific Highway Trust1 Stockland CRE Holding Trust Acinom Pty Ltd Stockland CRE Medical Trust ADP Trust Stockland Direct Diversified Fund Advance Property Fund Stockland Direct Office Trust No. 4 Advance Property Fund No. 2 Stockland Direct Retail Trust No. 3 AVMW Pty Ltd Stockland Eastern Creek Trust Capricornia Property Trust Stockland Finance Holdings Pty Limited2 Caitjan Pty Limited Stockland Finance Pty Limited2 CP Trust No. 4 Trust Stockland Gables Retail Trust CP Trust No. 5 Trust Stockland Gables Retail Trust 21 CP Trust No. 6 Trust Stockland Glam RRP Trust1 Endeavour (No. 1) Unit Trust Stockland Harrisdale Trust Eriwill Pty Limited Stockland Industrial No. 1 Property 1 Trust Faxrow Pty Limited Stockland Industrial No. 1 Property 4 Trust Flinders Industrial Property Trust Stockland Industrial No. 1 Property 5 Trust Flinders Industrial Property Subtrust (No 1) Stockland Industrial No. 1 Property 6 Trust Glam RRP Sub Trust1 Stockland Industrial No. 1 Property 7 Trust GRRP LLC Beerwah Trust1 Stockland Industrial No. 1 Property 8 Trust GRRP LLC Burpengary No 2 Trust1 Stockland Industrial No. 1 Property 9 Trust GRRP LLC Caboolture Trust1 Stockland Industrial No. 1 Property 11 Trust GRRP LLC Crystal Trust1 Stockland JV Town Centre Trust1 GRRP LLC Diamond Trust1 Stockland JV Trust GRRP LLC Gold Coast Trust1 Stockland Kemps Creek Industrial Trust GRRP LLC Maleny Trust1 Stockland Leppington Industrial Trust GRRP LLC Pacific Paradise Trust1 Stockland Logistics Capital Partnership Trust GRRP LLC Ruby Trust1 Stockland Logistics Partnership Trust1 GRRP LLC Sapphire Trust1 Stockland Logistics Trust GRRP LLC Toowoomba Trust1 Stockland Marrickville Unit Trust Hervey Bay Holding Trust Stockland Mornington Unit Trust Hervey Bay Sub Trust Stockland Mt Atkinson Industrial Trust Horlyd Pty Ltd Stockland Mulgrave Unit Trust Industrial Property Trust Stockland North Ryde Unit Trust Jimboomba Village Shopping Centre and Tavern Trust Stockland Padstow Trust Landdoc Pty Ltd Stockland Padstow Unit Trust Marinatas Pty Ltd Stockland Parkinson Unit Trust Mariste Pty Ltd Stockland Quarry Road Trust Mattlix Pty Ltd Stockland Retail Holding Sub-Trust No. 1 Moncas Pty Ltd Stockland Retail Holding Trust No. 1 Pallawell Pty Ltd Stockland Richlands Unit Trust Racjen Pty Ltd Stockland RRP Holding Trust Rigburn Pty Limited Stockland Shellharbour JV Trust1 Sandtor Pty Ltd Stockland Sienna Wood Retail Trust SDOT4 Property#1 Trust Stockland SLPT Holding Trust1 SDOT4 Property#2 Trust Stockland St Marys Unit Trust SDOT4 Property#3 Trust Stockland Tingalpa Unit Trust SDRT1 Property 3 Trust Stockland Truganina Industrial Trust SDRT3 Property # 1 Trust Stockland Town Centre Holding Trust1 160 Stockland Annual Report 2024 SDRT3 Property # 2 Trust Stockland Town Centre Mid Trust1 SDRT3 Property # 3 Trust Stockland Walker Street JV Trust1 Sequoia Victoria Trust Stockland Walker Street Trust Sequoia Victoria Trust No. 2 Stockland Wholesale Office Trust No. 1 Shellharbour Property HoldCo Trust1 Stockland Wholesale Office Trust No. 2 Shellharbour Property Trust Stockland Willawong Industrial Trust Stockland 161 Walker Street Trust Stockland Willawong Industrial Trust No. 2 Stockland Altona Trust1 Stockland Willawong Industrial Trust No. 3 Stockland Baringa Shopping Centre Trust Stockland Wonderland Drive Property Trust Stockland Bayswater Unit Trust Stockland Yatala Industrial Trust Stockland Birtinya Shopping Centre Trust Stockland Yennora Trust1 Stockland Botany Trust1 Sugarland Shopping Centre Trust Stockland Brooklyn Industrial Trust SWOT2 Sub Trust No. 1 Stockland Bundaberg Trust SWOT2 Sub Trust No. 2 Stockland Castlereagh Street Trust SWOT2 Sub Trust No. 3 Stockland Community Real Estate Trust Tianmar Pty Ltd 1 These entities were formed/incorporated or acquired in the current financial year. 2 These entities are parties to the Deed of Cross Guarantee (Finance) as at 30 June 2024. 161 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 2024 and consolidated statement of comprehensive income for the year ended 30 June 2024, 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 Closed Group $M 2024 2023 Cash and cash equivalents 78 1 Receivables 197 193 Inventories 808 785 Other assets 25 46 Non-current assets held for sale 100 – Current assets 1,208 1,025 Receivables 55 53 Inventories 2,496 2,584 Investment properties 308 584 Equity–accounted investments 25 15 Other financial assets – 42 Property, plant and equipment 11 15 Intangible assets 56 62 Other assets 9 14 Non–current assets 2,960 3,369 Assets 4,168 4,394 Payables 102 174 Provisions 225 257 Current tax liabilities 37 30 Other liabilities 105 31 Current liabilities 469 492 Payables 114 140 Borrowings 2,685 2,834 Provisions 147 212 Other liabilities 429 429 Deferred tax liabilities 28 30 Non–current liabilities 3,403 3,645 Liabilities 3,872 4,137 Net assets 296 257 Issued capital 1,311 1,311 Reserves 3 3 Accumulated losses (1,018) (1,057) Securityholders’ equity 296 257 162 Stockland Annual Report 2024 Summarised consolidated statement of comprehensive income Year ended 30 June Closed Group $M 2024 20231 Profit before tax 72 152 Income tax (33) (78) Profit after tax 39 74 Other comprehensive income – – Total comprehensive income 39 74 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 part of the year ended 30 June 2023. Summarised movement in consolidated accumulated losses As at 30 June Closed Group $M 2024 2023 Opening balance (1,057) (487) Adjustment for entities added/removed – (644) Profit after tax 39 74 Accumulated losses at 30 June (1,018) (1,057) 163 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 27. Parent entity disclosures Stockland Corporation Limited Stockland Trust $M 2024 2023 2024 2023 Results for the year ended 30 June Profit/(loss) for the year 96 (77) 194 206 Other comprehensive income – – 4 (2) Total comprehensive income 96 (77) 198 204 Financial position as at 30 June Current assets 2,570 3,781 207 363 Assets1 2,659 3,834 25,545 24,472 Current liabilities 37 1,423 10,943 10,918 Liabilities 1,675 2,941 15,602 14,763 Net assets 984 893 9,943 9,709 Issued capital 1,298 1,298 7,337 7,342 Other Reserves (11) (6) 134 93 (Accumulated losses)/retained earnings (303) (399) 2,472 2,274 Equity 984 893 9,943 9,709 1 There were no intangible assets as at 30 June 2024 (2023: $nil). Parent entity contingencies There are no contingencies within either parent entity as at 30 June 2024 (2023: $nil). Parent entity capital commitments Neither parent entity has entered into any capital commitments as at 30 June 2024 (2023: $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 2024. 164 Stockland Annual Report 2024 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 Stockland Trust $M 2024 20231 2024 2023 Profit after tax 305 440 194 201 Adjustments for: Net impact on fair value hedges (1) 10 (1) 10 Net impact on derivatives 3 (19) 3 (19) Interest capitalised to investment properties (26) (19) (24) (18) Net impact on sale of non–current assets 11 (13) 6 (5) Net gain on other financial assets (1) (1) – – DMF base fee earned, unrealised – (7) – – Net additional/(release of) inventory impairment provision 22 26 – – Depreciation and amortisation 16 17 – – Straight–line rent adjustments 25 10 24 10 Net unrealised change in fair value of investment properties 212 256 230 288 Share of profits of equity-accounted investments, net of distributions received 61 97 116 110 Equity–settled security based payments 18 18 16 16 Other items (4) (2) (4) 4 Adjustments for movements in: Receivables (112) (225) 23 51 Other assets 28 52 16 26 Inventories (255) (91) – – Deferred tax liabilities (14) 48 – – Current tax liabilities 7 30 – – Payables and other liabilities 61 (263) 156 (6) Resident obligations (net of impact of village disposals) (2) 2 – – Other provisions (240) (34) (152) (1) Net cash flows from operating activities 114 332 603 667 1 Amounts for the year ended 30 June 2023 included cash flows relating to both continuing and discontinued operations. Net cash flows relating to discontinued operation have been disclosed in note 14B. 165 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 28B. Reconciliation of movement in financial liabilities arising from financing activities As at 30 June Stockland and Trust Non cash movements $M Opening balance Net cash flow Foreign exchange movements Fair value changes1 Closing balance Offshore medium term notes 3,085 195 – 32 3,312 Domestic medium term notes and commercial paper 747 296 – – 1,043 Bank facilities 75 300 – – 375 2024 3,907 791 – 32 4,730 Offshore medium term notes 3,087 (14) 1 11 3,085 Domestic medium term notes and commercial paper 840 (93) – – 747 Bank facilities 545 (470) – – 75 2023 4,472 (577) 1 11 3,907 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 Stockland Trust $M 2024 2023 2024 2023 Inventories 679 569 – – Investment properties 298 286 298 286 Capital expenditure commitments 977 855 298 286 The above commitments include capital expenditure commitments for joint ventures of $129 million (30 June 2023: $172 million). 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 2024 comprise bank guarantees, letters of credit, property indemnities and insurance bonds issued to local government and other authorities against performance contracts. Stockland maintains undrawn bank facilities (as outlined in note 15.C) which are available to support these contingent liabilities. The amounts currently issued are as follows: As at 30 June Stockland and Trust $M 2024 2023 Contingent liabilities 515 549 166 Stockland Annual Report 2024 31. Related party disclosures Year ended 30 June Stockland Trust $’000s 2024 2023 2024 2023 Responsible Entity fees 134 126 – – Development management and investment management fees 52,123 71,626 – – Property management, tenancy design and leasing fees 1,260 1,113 – – Rental income – – 14,531 14,569 Finance income – – 308,414 224,637 Revenue from related parties 53,517 72,865 322,945 239,206 Responsible Entity fees – – 37,664 37,560 Property management, tenancy design and leasing fees – – 18,240 26,389 Recoupment of expenses – – 65,264 72,114 Development management fee capitalised to investment property – – 14,702 6,285 Expenses to related parties – – 135,870 142,348 Responsible Entity, management and other fees 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 (2023: 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 $2,870 million (2023: $2,283 million) repayable in June 2030. Interest on the loan is payable monthly in arrears at interest rates within the range of 10.18% - 10.45% during the year ended 30 June 2024 (2023: 7.23% - 10.06%). 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. In exchange for those services Stockland is entitled to fees, including investment management, development management, and other capital partnership fees. During the year, management fees of $54 million (2023: $73 million) were recognised for services provided. Sales to capital partnerships During the year, Stockland sold inventories to capital partnerships for $157 million (2023: $72 million). 167 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 32. Personnel expenses Year ended 30 June Stockland Trust $M 2024 2023 2024 2023 Wages and salaries (including on–costs) 288 270 – – Equity–settled security based payment transactions 18 18 – – Contributions to defined contribution plans 22 18 – – Movement in annual and long service leave provisions 3 4 – – Personnel expenses 331 310 – – Personnel expenses The total personnel expenses for the year was $331 million (2023: $310 million), which includes $18 million of equity-settled security based payment transactions (2023: $18 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 Stockland Trust $000’s 2024 2023 2024 2023 Short term employee benefits 10,522 10,632 – – Post–employment benefits 271 256 – – Other long term benefits (4) 72 – – Termination benefits 854 – – – Security based payments 4,582 5,343 – – Key management personnel compensation 16,225 16,303 – – Information regarding individual Directors’ and Executives’ remuneration is provided in the remuneration report on pages 73 to 94 of the Annual 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 168 Stockland Annual Report 2024 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 Stockland Trust $000’s 2024 2023 2024 2023 PricewaterhouseCoopers Australia Audit and review of financial report 2,224 2,053 657 625 Audit of unlisted property fund financial reports 220 213 – – Regulatory audit and assurance services 534 464 389 340 Remuneration for audit services 2,978 2,730 1,046 965 Other non–audit services 47 107 – – Remuneration for non–audit services 47 107 – – Auditor remuneration 3,025 2,837 1,046 965 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. Foreign currency 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 Applicable exchange rate Monetary assets and liabilities Balance date Non-monetary assets and liabilities measured at historical cost 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 as incurred. 169 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 17 Insurance Contracts AASB 17 Insurance Contracts establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts to enable users of financial statements to assess the financial impact of those contracts. This standard is effective for annual reporting periods beginning on or after 1 January 2023. Stockland adopted AASB17 during the year with no material impact on adoption. 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 adopted AASB2020-1 during the year with no 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 adopted AASB 2021-2 during the year with no material impact on adoption. 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 annual reporting periods beginning on or after 1 January 2023. Stockland adopted AASB2021-5 during the year with no material impact on adoption. Each future transaction will be assessed on a case by case basis. AASB 2023-2 Amendments to Australian Accounting Standards – Definition of Accounting Estimates International Tax Reform – Pillar Two Model Rules AASB 2023-2 Amendments to Australian Accounting Standards – Definition of Accounting Estimates International Tax Reform – Pillar Two Model Rules provides temporary relief from accounting for deferred taxes arising from the Organisation for Economic Cooperation and Development's (OECD's) international tax reform. The amendment is effective for annual 170 Stockland Annual Report 2024 periods beginning on or after 1 January 2023 that end on or after 30 June 2023. Stockland adopted AASB 2023-2 during the year with no material impact on adoption. 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 2023-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements AASB 2023-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements amends AASB 107 Statement of Cash Flows and AASB 7 Financial Instruments: Disclosures to require additional disclosures of supplier finance arrangements. The amendment is effective for annual periods beginning on or after 1 January 2024. Stockland has assessed the revised definition and does not currently expect any material impact on adoption. AASB Australian Reporting Standards - Disclosure of Climate-related Financial Information - Exposure Draft 1 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. In October 2023, the AASB released Australian Sustainability Reporting Standards Exposure Draft 1 (ED SR1) Disclosure of Climate-related Financial Information. At this time, ED SR1 combines requirements of IFRS S1 and S2 into one standard with the goal of reducing duplication between the standards and focusing on climate related financial disclosures. Stockland will continue to monitor the development of the Australian Sustainability Reporting Standards and, once finalised, will assess the impact of these standards. At this stage, Stockland expects the primary impacts of the standards to be: 1. An increase to climate-related risk and opportunity disclosures and their potential financial impact, and 2. A requirement to disclose forward-looking financial sensitivities based on climate scenarios and Stockland's response to those scenarios. Refer to Stockland's Climate Transition Action Plan released alongside the 30 June 2023 Annual Report for Stockland's assessment of climate-related risks and opportunities, net zero targets, and strategy to achieve those targets. AASB 18 Presentation and Disclosure in Financial Statements AASB 18 Presentation and Disclosure in Financial Statements replaces AASB 101 Presentation of Financial Statements. AASB 18 requires changes to the presentation of the statement of profit or loss to classify income and expenses into operating, investing and financing categories, with the introduction of defined subtotals operating profit and profit before financing and income taxes. AASB 18 also enhances guidance around aggregation principles within the primary financial statements and information disclosed in the notes, and requires management-defined performance measures used in public communications that are subtotals of income and expense to be reconciled to the subtotals required by AASBs. The standard is effective for annual periods beginning on or after 1 January 2027. Stockland expects AASB18 to lead to changes in the way information is presented in the primary financial statements in the financial report for the year ended 30 June 2028, however at this time does not anticipate any other impacts. 171 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 Consolidated Entity Disclosure Statement of Stockland Corporation Limited In this section This section includes the disclosure statement required under the Corporations Act 2001 (Cth), which requires Australian public companies to disclose information about their consolidated subsidiaries. For each consolidated subsidiary that is part of the consolidated entity at the end of the financial year, Stockland Corporation Ltd must disclose the following details: • The name and type of the entity (i.e. body corporate, partnership or trust), • For a body corporate, the place of incorporation and percentage of issued share capital held by Stockland Corporation Ltd, • Whether the entity is a trustee of a trust, a partner in a partnership, or a participant in a joint venture. This is only required where that trust, partnership or joint venture is also consolidated, • If the entity was an Australian resident or a foreign resident at the end of the financial year, and • If the entity was a foreign resident, each jurisdiction in which the entity was a resident. Name of entity Type of entity Trustee, partner or participant in JV % of share capital Country of incorporation and tax residency Albert & Co Pty Ltd Body corporate 100 Australia Armstrong Creek Pty Ltd Body corporate 100 Australia AW Bidco 1 Pty Limited Body corporate 100 Australia AW Bidco 2 Pty Limited Body corporate 100 Australia AW Bidco 4 Pty Limited Body corporate 100 Australia AW Bidco 5 Pty Limited Body corporate 100 Australia AW Bidco 6 Pty Limited Body corporate 100 Australia AW Bidco No. 7 Pty Limited Body corporate 100 Australia AW Bidco No. 8 Pty Limited Body corporate 100 Australia AW Bidco No. 9 Pty Limited Body corporate 100 Australia AW Bidco No. 10 Pty Limited Body corporate 100 Australia AW Bidco No. 11 Pty Limited Body corporate 100 Australia AW Bidco No. 12 Pty Limited Body corporate 100 Australia AW Bidco No. 13 (NSW) Pty Limited Body corporate 100 Australia Baratheon Developments Pty Ltd Body corporate 100 Australia Compam Property Management Pty Limited Body corporate 100 Australia Eisha Pty Ltd Body corporate 100 Australia Enaard Pty Ltd Body corporate 100 Australia Endeavour (No. 2) Unit Trust Trust 100 Australia Glam Development Trust Trust 100 Australia Glengar Capital Pty Limited Body corporate 100 Australia Glenmore Park Investments Pty Limited Body corporate 100 Australia Groves LLC Trust Trust 100 Australia Halcyon Constructions QLD Pty Ltd Body corporate 100 Australia Halcyon Resales Pty Ltd Body corporate Trustee 100 Australia Halcyon Resales Unit Trust Trust 100 Australia Halcyon TF Pty Ltd Body corporate 100 Australia Jimboomba Trust Trust 100 Australia JT Bid Co No. 1 Pty Limited Body corporate 100 Australia JT Bid Co No. 2 Pty Limited Body corporate 100 Australia LAB-52 Bricklet Pty Limited Body corporate 100 Australia LAB-52 Holdings Pty Limited Body corporate 100 Australia 172 Stockland Annual Report 2024 Name of entity Type of entity Trustee, partner or participant in JV % of share capital Country of incorporation and tax residency LAB-52 SMRTR Pty Limited Body corporate 100 Australia LAB-52 Yodel Pty Limited Body corporate 100 Australia Mayflower Investments Pty Ltd Body corporate 100 Australia Merrylands Court Pty Limited Body corporate 100 Australia Northpoint No. 1 Trust Trust 100 Australia Northpoint No. 2 Trust Trust 100 Australia Northpoint No. 3 Trust Trust 100 Australia Northpoint No. 4 Trust Trust 100 Australia Northpoint No. 5 Trust Trust 100 Australia Northpoint No. 6 Trust Trust 100 Australia Nowra Property Unit Trust Trust 100 Australia Mulgoa Nominees Pty Limited Body corporate 100 Australia S1 Commercial Property Pty Limited Body corporate 100 Australia S1 Communities Pty Limited Body corporate 100 Australia S2 Commercial Property Pty Limited Body corporate 100 Australia S2 Communities Pty Limited Body corporate 100 Australia S3 Commercial Property Pty Limited Body corporate 100 Australia S3 Communities Pty Limited Body corporate 100 Australia S4 Commercial Property Pty Limited Body corporate 100 Australia S4 Communities Pty Limited Body corporate 100 Australia S5 Commercial Property Pty Limited Body corporate 100 Australia S5 Communities Pty Limited Body corporate 100 Australia Stockland (Boardwalk Sub2) Pty Limited Body corporate 100 Australia Stockland (Queensland) Pty. Limited Body corporate 100 Australia Stockland (Russell Street) Pty Limited Body corporate 100 Australia Stockland A.C.N. 116 788 713 Pty Limited Body corporate 100 Australia Stockland Aevum SPV Finance No.1 Pty Limited Body corporate 100 Australia Stockland Armstrong Creek LLC Trust Trust 100 Australia Stockland Bells Creek Pty Limited Body corporate 100 Australia Stockland Berwick LLC Trust Trust 100 Australia Stockland Birtinya Retirement Village Pty Limited Body corporate 100 Australia Stockland Buddina Pty Limited Body corporate 100 Australia Stockland Caboolture Waters Pty Limited Body corporate 100 Australia Stockland Caloundra Downs Pty Limited Body corporate 100 Australia Stockland Capital Partners Limited Body corporate Trustee 100 Australia Stockland Care Foundation Pty Limited Body corporate Trustee 100 Australia Stockland Care Foundation Trust Trust 100 Australia Stockland CH Finance Pty Limited Body corporate 100 Australia Stockland Communities HoldCo Pty Ltd Body corporate 100 Australia Stockland Communities Partnership HoldCo Pty Ltd Body corporate 100 Australia Stockland Corporation Limited Body corporate n/a Australia Stockland Development (Holdings) Pty Limited Body corporate 100 Australia Stockland Development (NAPA NSW) Pty Limited Body corporate 100 Australia Stockland Development (NAPA QLD) Pty Limited Body corporate 100 Australia Stockland Development (NAPA VIC) Pty Limited Body corporate 100 Australia Stockland Development (PHH) Pty Limited Body corporate 100 Australia Stockland Development (PR1) Pty Limited Body corporate Trustee 100 Australia Stockland Development (PR2) Pty Limited Body corporate Trustee 100 Australia Stockland Development (PR3) Pty Limited Body corporate Trustee 100 Australia 173 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 Name of entity Type of entity Trustee, partner or participant in JV % of share capital Country of incorporation and tax residency Stockland Development (PR4) Pty Limited Body corporate Trustee 100 Australia Stockland Development (Sub3) Pty Limited Body corporate 100 Australia Stockland Development (Sub4) Pty Limited Body corporate Trustee 100 Australia Stockland Development (Sub5) Pty Limited Body corporate 100 Australia Stockland Development (Sub7) Pty Limited Body corporate 100 Australia Stockland Development Holding Trust Trust 100 Australia Stockland Development Pty Limited Body corporate 100 Australia Stockland Eurofinance Pty Limited Body corporate 100 Australia Stockland Financial Services Pty Limited Body corporate 100 Australia Stockland Glam BidCo Pty Ltd Body corporate 100 Australia Stockland Highett Pty Limited Body corporate 100 Australia Stockland Highlands Pty Limited Body corporate 100 Australia Stockland Kawana Waters Pty Limited Body corporate 100 Australia Stockland Lake Doonella Pty Limited Body corporate 100 Australia Stockland Land Lease Communities Holding Pty Limited Body corporate 100 Australia Stockland Land Lease Landlord Pty Limited Body corporate 100 Australia Stockland Land Lease Management Pty Limited Body corporate 100 Australia Stockland Lensworth Glenmore Park Pty Limited Body corporate 100 Australia Stockland LLC Aura Pty Limited Body corporate 100 Australia Stockland LLC B by Halcyon Trust Trust 100 Australia Stockland LLC Burpengary Trust Trust 100 Australia Stockland LLC Curlewis Trust Trust 100 Australia Stockland LLC Evergreen Trust Trust 100 Australia Stockland LLC General Pty Limited Body corporate 100 Australia Stockland LLC Glades Trust Trust 100 Australia Stockland LLC Greens Trust Trust 100 Australia Stockland LLC Halcyon Dales Pty Limited Body corporate 100 Australia Stockland LLC Halcyon Ridge Pty Limited Body corporate 100 Australia Stockland LLC Halcyon Serrata Pty Limited Body corporate 100 Australia Stockland LLC Highlands Trust Trust 100 Australia Stockland LLC Ilyarrie Trust Trust 100 Australia Stockland LLC Lakeside Trust Trust 100 Australia Stockland LLC Landing Trust Trust 100 Australia Stockland LLC No. 2 Pty Limited Body corporate Trustee 100 Australia Stockland LLC No.3 Pty Ltd Body corporate 100 Australia Stockland LLC No.4 Pty Ltd Body corporate 100 Australia Stockland LLC Parks Trust Trust 100 Australia Stockland LLC Peregian Beach Trust Trust 100 Australia Stockland LLC Piara Waters Trust Trust 100 Australia Stockland LLC Providence Pty Limited Body corporate 100 Australia Stockland LLC Pty Limited Body corporate Trustee 100 Australia Stockland LLC Rendezvous Road Trust Trust 100 Australia Stockland LLC Rise Trust Trust 100 Australia Stockland LLC SLC SPV Pty Limited Body corporate 100 Australia Stockland LLC St Germain Trust Trust 100 Australia Stockland LLC Vision Trust Trust 100 Australia Stockland LLC Waters Trust Trust 100 Australia Stockland Management Limited Body corporate Trustee 100 Australia Stockland Mature Holding Trust Trust 100 Australia 174 Stockland Annual Report 2024 Name of entity Type of entity Trustee, partner or participant in JV % of share capital Country of incorporation and tax residency Stockland Miami (Fund) Unit Trust Trust 100 Australia Stockland Miami (Non–Fund) Unit Trust Trust 100 Australia Stockland Miami (QLD) Pty Limited Body corporate 100 Australia Stockland MPC Hold Co Pty Ltd Body corporate 100 Australia Stockland MPC Mid Co Pty Ltd Body corporate 100 Australia Stockland North Boambee Valley LLC Trust Trust 100 Australia Stockland North Lakes Development Pty Limited Body corporate 100 Australia Stockland North Lakes Pty Limited Body corporate 100 Australia Stockland Ormeau Trust Trust 100 Australia Stockland PR1 Trust Trust 100 Australia Stockland PR2 Trust Trust 100 Australia Stockland PR3 Trust Trust 100 Australia Stockland PR4 Trust Trust 100 Australia Stockland Property Management Pty Ltd Body corporate 100 Australia Stockland Retail Services Pty Limited Body corporate 100 Australia Stockland Retain (Retirement) Pty Limited Body corporate 100 Australia Stockland Richmond Retirement Village Pty Limited Body corporate 100 Australia Stockland RRP No. 1 Pty Ltd Body corporate 100 Australia Stockland Scrip Holdings Pty Limited Body corporate 100 Australia Stockland Services Pty Limited Body corporate 100 Australia Stockland Singapore Pte Limited Body corporate 100 Singapore Stockland South Beach Pty Limited Body corporate 100 Australia Stockland Syndicate No. 1 Trust Trust 100 Australia Stockland The Grove Retirement Village Pty Limited Body corporate 100 Australia Stockland Town Centres Pty Ltd Body corporate 100 Australia Stockland Trust Management Limited Body corporate Trustee 100 Australia Stockland Urban Development Pty Limited Body corporate 100 Australia Stockland Urban Development Sub 1 Pty Limited Body corporate 100 Australia Stockland Urban Development Sub 2 Pty Limited Body corporate 100 Australia Stockland Urban Development Sub 3 Pty Limited Body corporate 100 Australia Stockland WA (Estates) Pty Limited Body corporate 100 Australia Stockland WA Development (Realty) Pty Limited Body corporate 100 Australia Stockland WA Development (Vertu Sub 1) Pty Limited Body corporate 100 Australia Stockland WA Development Pty Limited Body corporate 100 Australia Stockland Wallarah Peninsula Management Pty Limited Body corporate 100 Australia Stockland Wallarah Peninsula Pty Limited Body corporate 100 Australia Stockland Wholesale Funds Management Pty Limited Body corporate 100 Australia Stockland Willawong Industrial Pty Ltd Body corporate 100 Australia Toowong Place Pty Ltd Body corporate 100 Australia 175 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Financial report for the year ended 30 June 2024 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 96 to 171, 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 2024 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. In the opinion of the Directors of Stockland Corporation Limited: • The consolidated entity disclosure statement on pages 172 to 175 is true and correct. 3. 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. 4. Stockland Trust has operated during the year ended 30 June 2024 in accordance with the provisions of the Trust Constitution of 29 October 2013, as amended from time to time. 5. The Register of Unitholders has, during the year ended 30 June 2024, been properly drawn up and maintained so as to give a true account of the unitholders of Stockland Trust. 6.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 2024. 7. 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, 22 August 2024 176 Stockland Annual Report 2024 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 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 as at 30 June 2024 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 2024 • 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, including material accounting policy information and other explanatory information • the consolidated entity disclosure statement of Stockland Corporation Limited as at 30 June 2024 • 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 177 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. 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. Audit scope Key audit matters • 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, 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. 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 ($10,098 million) and the Trust’s ($9,697 million) investment property portfolio consisted primarily of Investment Management investment properties and Development investment properties at 30 June 2024. 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 Financial report for the year ended 30 June 2024 178 Stockland Annual Report 2024 Key audit matter How our audit addressed the key audit matter 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: • 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. investment properties; • we assessed the scope, competence and objectivity of the valuation experts engaged by Stockland and the Stockland Trust Group to provide external valuations at reporting date; • we met with a sample of the 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 agreed the rental income used in a sample of investment property valuations to relevant lease agreements and assessed the appropriateness of a sample of income related assumptions; • we engaged PwC valuation experts to support in our assessment of the appropriateness of adopted capitalisation rates and discount rates, and related income assumptions with reference to market data and comparable transactions, where possible; • we agreed the fair value of each investment property to the valuation determined by the experts engaged by Stockland and the Stockland Trust Group or the Directors, as applicable; • we physically inspected a sample of investment properties; and • we assessed the reasonableness of the disclosures against the requirements of Australian Accounting Standards. 179 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Key audit matter How our audit addressed the key audit matter 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 ($4,049 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. 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. Our procedures, amongst others, included: • we developed an understanding of Stockland’s processes and controls for determining the 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 valuation experts to support in our assessment of 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; • we physically inspected a sample of development projects; and • we assessed the reasonableness of the disclosures against the requirements of Australian Accounting Standards. Financial report for the year ended 30 June 2024 180 Stockland Annual Report 2024 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 2024, 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. 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. 181 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Report on the remuneration report Our opinion on the remuneration report We have audited the remuneration report included in the directors’ report for the year ended 30 June 2024. In our opinion, the remuneration report for the year ended 30 June 2024 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 22 August 2024 Financial report for the year ended 30 June 2024 182 Stockland Annual Report 2024 Stockland Aura, Qld Securityholder information and key dates 183 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Securityholder information and key dates Securityholders As at 31 July 2024, there were 2,387,171,662 securities on issue and the top 20 are securityholders set out in the table below. Securityholders Number of securities held per centage (per cent) of total securities HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 979,686,597 41.04 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 517,993,528 21.70 CITICORP NOMINEES PTY LIMITED 287,748,908 12.05 BNP PARIBAS NOMS PTY LTD 69,949,549 2.93 BNP PARIBAS NOMINEES PTY LTD61,746,548 2.59 NATIONAL NOMINEES LIMITED 46,574,412 1.95 CITICORP NOMINEES PTY LIMITED 24,914,544 1.04 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 17,228,603 0.72 E G HOLDINGS PTY LIMITED 6,411,632 0.27 MUTUAL TRUST PTY LTD 6,047,500 0.25 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 5,534,866 0.23 BKI INVESTMENT COMPANY LIMITED 5,050,000 0.21 IOOF INVESTMENT SERVICES LIMITED 4,743,938 0.20 BNP PARIBAS NOMINEES PTY LTD 4,622,079 0.19 NETWEALTH INVESTMENTS LIMITED 4,542,252 0.19 BNP PARIBAS NOMS (NZ) LTD 4,103,198 0.17 PALM BEACH NOMINEES PTY LIMITED 4,050,964 0.17 ARGO INVESTMENTS LIMITED 4,017,934 0.17 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 3,820,493 0.16 SOLIUM NOMINEES (AUSTRALIA) PTY LTD 3,755,123 0.16 Distribution of securityholders as at 31 July 2024 Number of securities held Number of securityholders Number of securities per centage (per cent) of total securityholders 1 – 1,000 14,462 6,182,534 0.26 1,001 – 5,000 19,682 52,940,025 2.22 5,001 – 10,000 7,946 57,700,812 2.42 10,001 – 100,000 6,189 131,965,122 5.53 100,001 – over 193 2,138,383,169 89.58 There were 1,724 securityholders holding less than a marketable parcel (109) at close of trading on 31 July 2024. Substantial securityholders as at 31 July 2024 Number of securities held BlackRock Group (BlackRock Inc and Subsidiaries) 242,762,310 Vanguard Investments Australia Limited/Vanguard Group Inc. 230,280,527 State Street Corporate and subsidiaries 213,169,670 184 Stockland Annual Report 2024 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. 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 Computershare Investor Services Pty Limited operates a freecall number on behalf of Stockland. Contact Computershare on 1800 804 985 for: • change of address details • request to receive communications online • request to have payments made directly to a 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 21 October 2024 Annual General Meeting 31 December 2024 Record date 19 February 2025 Half-year results announcement 30 June 2025 Record date 26 August 2025 Full-year results announcement Head office Level 25, 133 Castlereagh Street Sydney NSW 2000 Toll free: 1800 251 813 Telephone: (61 2) 9035 2000 Stockland entities 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 Level 13, 123 Pitt Street Sydney NSW 2000 Directors Non-Executive Directors • Tom Pockett – Chairman • 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 185 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Securityholder information and key dates Share/unit registry Computershare Investor Services Pty Limited 6 Hope Street, ERMINGTON, NSW, AUSTRALIA, 2115 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 186 Stockland Annual Report 2024 Glossary Term Definition $m $ millions AASBs or Accounting Standards Australian Accounting Standards as issued by the Australian Accounting Standards Board AFFO Adjusted FFO A-REIT Australian Real Estate Investment Trust ASIC Australian Securities and Investments Commission Aspire Villages Non–DMF product and a purpose–built neighbourhood exclusively for people aged over 55 years ASX Australian Securities Exchange ATO Australian Taxation Office Board Board of Directors of Stockland Corporation and STML CCIRS Cross currency interest rate swaps CODM Chief Operating Decision Maker as defined by AASB 8 Operating Segments CPI Consumer Price Index CRE Community real estate CTAP Climate transition action plan DCF Discounted cashflow D-Life Project development lifecycle DPS Distribution per security DSTI Deferred STI EBIT Earnings before interest and tax ECL Expected credit losses EPS Earnings per security Executive Director The Managing Director and Chief Executive Officer of Stockland, being Mr Tarun Gupta from 1 June 2021 FFO Funds from operations. Determined with reference to the PCA guidelines. FUM Funds under management Green Star Green Star is the Green Building council of Australia's national rating system for buildings and fitouts GST Goods and services tax IFRIC IFRS Interpretation Committee IFRS International Financial Reporting Standards as issued by the International Financial Reporting Standards Board IPUC Investment properties under construction IRR Internal rate of return IRS Interest Rate Swap KPI Key performance indicators LLC Land Lease Communities LTI Long term incentives MAT Moving annual turnover MTN Medium term note NABERS National Australian built environment rating system 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 Net operating income NRV Net realisable value 187 Year ended 30 June 2024 Acknowledgment of Traditional Custodians Contents FY24 highlights A letter from the Chairman and CEO How we create value Governance Remuneration Report Financial report for the year ended 30 June 2024 Glossary Term Definition PAYG Pay as you go Report This Stockland Annual Report 2024 ROA Return on assets ROE Return on equity ROIC Return on invested capital SA Serviced apartment SaaS Software as a service SBTi Science based targets initiative 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 Stockland Residential Rental Partnership STI Short term incentives STML 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 Limited (ACN 000 181 733) Stockland Corporation Group 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 Tax Control and Governance Framework TTC Tax Transparency Code TSR Total securityholder return WALE Weighted average lease expiry WOL 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 2024 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; expectations, commitments, targets, goals and objectives with respect to social value or sustainability; divestment, acquisition or integration of certain assets. The forward looking statements 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 FY24 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. 188 Stockland Annual Report 2024 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 Head Office Level 25, 133 Castlereagh Street SYDNEY NSW 2000