Stockland

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Stockland (ASX: SGP) is a diversified property group in Australia, which owns, manages, and develops a range of assets, including shopping centres, office and industrial assets, residential communities, and retirement villages.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~32.34% of the total shareholding. Vanguard Investments Australia Ltd. and State Street Global Advisors Australia Ltd. hold a maximum stake in the company at ~10.09% and ~4.46%, respectively.

1.4 Key Metrics:

During FY22, the company recorded a current ratio of 1.15x against 0.50x of the industry median. In addition, it posted a return on equity of 14.3% as compared to 11.9% in FY21. Below is captured the trend of the Net Margin and Debt-to-Equity Ratio.

Section 2: Financial Highlights and Operational Summary

2.1 Insights of FY22:

2.2 Operational Summary: During FY22, the workplace portfolio recorded an FFO of AUD 110mn against AUD 111mn in FY21. Logistics FFO witnessed YoY growth of ~37.2% to AUD 155mn. Below highlighted the portfolio segregation in FY22.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 12, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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