From SGP 09 results-STRATEGYStockland has consistently operated...

From SGP 09 results-

STRATEGY
Stockland has consistently operated within its stated long-term strategic weightings:
�� Recurring income 60 to 80% of EBIT
�� Trading profits 20 to 40% of EBIT

Expected organic growth from each of Stockland’s operating businesses over the next few
years will ensure the Group remains in line with these weightings.

Potential growth opportunities are assessed in the context of these weightings. It is evident that
good buying opportunities are starting to emerge in all key sectors, however Stockland is
conscious of its higher cost of capital following the recent capital raising and accordingly, hurdle
rates for investment will be set at appropriate levels.

The Group holds stakes in GPT, FKP and Aevum which also provide strategic option value for
future growth in line with these weightings. No corporate transactions will be contemplated
unless they clearly show value enhancement for Stockland’s securityholders.