Stockland

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Stockland (ASX: SGP) 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 ~32.38% of the total shareholding. Vanguard Investments Australia Ltd. and State Street Global Advisors Australia Ltd. hold a maximum stake in the company at ~9.49% and ~4.77%, respectively.

1.4 Key Metrics:

During FY22, the company recorded a debt-to-equity ratio of 0.44x against 0.50x in FY21. In addition, it posted a current ratio of 1.15x against 0.57x in FY21. Below is captured the trend of the Return on Equity and Current Ratio:

Section 2: Business Updates, Quarterly Highlights and Financial Summary

2.1 Recent Updates:

2.2 Quarterly Summary:

2.3 Financial Summary: As of 30 June 2022, the net tangible assets (NTA) stood at AUD 4.31 per security, indicating a growth of 8.3% from 30 June 2021. This showcases increased revaluation gains from the high-quality portfolio:

Section 3: Key Risks and Outlook:

Strategic Pillars: Below picture showcases the strategic business pillars:

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 neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 31, 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.

Disclaimer

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