Our CR&S Strategy

In light of recent economic events we have revisited our strategy to ensure it reflects the current environment. Many elements remain unchanged. At its heart, our strategy is about maintaining a solid focus on property fundamentals – property management, leasing and developing across a diverse range of asset types. This has not changed.

We continue to focus on active asset management, conservative balance sheet management, and maintaining our commitment to developing a high performance culture with skilled and motivated employees.

We will also maintain our efforts to achieve cost and operational efficiencies, through having the best organisational structures in place and enhanced customer insight capabilities.

Strategic weightings

Our stapled structure combines Trust and Development activities to provide a mix of stable recurring income and growth. We consistently derive 60-80% of our income from our recurring business and 20-40% from our trading business.

This has remained unchanged for many years as we're confident it provides the right balance of risk and return with exposure to both stable Trust returns and higher growth development income. Our intention is to continue with a model that provides growth as well as annuity-type income, and we will assess all opportunities in line with these strategic weightings.

Cross-business activities

We will continue to use our capabilities across our diverse businesses to maximise the value of each asset and to ensure the entire portfolio provides a balance of short-term and long-term returns.

We will use our knowledge and experience to determine at any given time whether a piece of land bought with a residential community development in mind might not be better utilised to develop a retirement village, or whether an office development should also include retail space. We will also assess whether to retain an asset as it is – with a steady income stream – or develop it for greater potential returns in the long-term. This cross-business view enables us to ensure our business is more than the sum of the separate parts.

Our corporate responsibility and sustainability (CR&S) strategy

We take the view that doing the right thing as a property manager, owner and developer is about dealing with risk, seeking opportunities and creating long-term value for our investors. It's about balancing the needs and interests of our stakeholders.

This year our areas of focus have been employee engagement, embedding CR&S in the business, the health and safety of our people and contractors, and energy efficiency and climate change.

How we are addressing these issues is detailed in our 2009 CR&S Report assured to AA1000As and attaining the Global Reporting Initiative application level of B+.

The full 2009 CR&S Report can be viewed at www.stockland.com.au. We look forward to hearing your thoughts at sustainability@stockland.com.au