Full Year 2026 Stockland Earnings Call

August 18, 2026

Speaker #2: Good morning, and thank you for joining Stockland’s full year 2026 financial results update. Joining me today is Joshua McHutchison, our CFO. Joining us for Q&A will be Kylie O’Connor, CEO of Investment Management, and Andrew Whitson, CEO of Development.

Tarun Gupta: Good morning, and thank you for joining Stockland's full-year 2026 financial results update. Joining me today is Josh McHutchison, our CFO. Joining us for Q&A will be Kylie O'Connor, CEO, Investment Management, and Andrew Whitson, CEO of Development. Before we begin, I would like to acknowledge the traditional owners and custodians of the land on which we meet, the Gadigal people of the Eora nation, and pay my respects to elders, past, present, and emerging. Over the last five years, our focus has been on reshaping our portfolio, embedding additional growth pathways, and positioning the business for sustainable performance. This time last year, we said that FY26 would mark an inflection point in both activity levels and strategic delivery. In this result, you will see that we have not only achieved this objective, but have done so in a rapidly changing macroeconomic environment.

Speaker #2: Before we begin, I'd like to acknowledge the traditional owners and custodians of the land on which we meet, the Gadigal people of the Eora Nation, and pay my respects to Elders past, present, and emerging.

Speaker #2: Over the last five years, our focus has been on reshaping our portfolio, embedding additional growth pathways, and positioning the business for sustainable performance. This time last year, we said that FY26 would mark an inflection point in both activity levels and strategic delivery.

Tarun Gupta: Over the last five years, our focus has been on reshaping our portfolio, embedding additional growth pathways, and positioning the business for sustainable performance. This time last year, we said that FY26 would mark an inflection point in both activity levels and strategic delivery. In this result, you will see that we have not only achieved this objective, but have done so in a rapidly changing macroeconomic environment.

Speaker #2: In this result, you will see that we have not only achieved this objective, but have done so in a rapidly changing macroeconomic environment. Looking forward, we are confident that the strength of our multi-sector platform can provide further growth as the residential market moves through a more moderate phase of the cycle.

Tarun Gupta: Looking forward, we are confident that the strength of our multi-sector platform can provide further growth as the residential market moves through a more moderate phase of the cycle. FY26 was a year of strong delivery, with a step change in development volumes, continued growth in our capital partnering platform, and active recycling of capital into targeted growth areas. Funds from operations was up 10.4% to AUD 892 million, with FFO per security of AUD 0.369 at the top end of our guidance range. We delivered this earnings growth while also further strengthening the balance sheet, with gearing reducing to 22.7% and NTA growing 4% to AUD 4.39 per security. We maintained our focus on maximizing risk-adjusted returns, delivering return on invested capital outcomes consistently within our targeted ranges.

Speaker #2: FY26 was a year of strong delivery. With this step change in development volumes, continued growth in our capital partnering platform, and active recycling of capital into targeted growth areas, funds from operations were up 10.4% to $892 million, with FFO per security of $36.9, at the top end of our guidance range.

Speaker #2: We delivered this earnings growth while also further strengthening the balance sheet, with gearing reducing to 22.7% and NTA growing 4% to $4.39 per security.

Speaker #2: We maintained our focus on maximizing risk-adjusted returns, delivering return on invested capital outcomes consistently within our targeted ranges. Importantly, we have positioned Stockland for growth in FY27.

Tarun Gupta: Importantly, we have positioned Stockland for growth in FY27. I am pleased to report today that the disciplined implementation of our strategy has translated to strong operational and financial performance across all parts of the business. In our residential platforms, we delivered record settlements and a 53% increase in sales, and we are well-positioned with strong contracts on hand for FY27. We have delivered a significant increase in volumes across our commercial development pipeline, completing projects with an end value of AUD 830 million and commencing projects worth a further AUD 1.2 billion, creating high-quality investment product for our partners and for us. With the majority of our capital now allocated to our preferred sectors of living, retail, and logistics, we are making good progress in capturing change of use upside within our workplace portfolio and maximizing the value of existing logistics assets through conversion to data centers.

Speaker #2: I'm pleased to report today that the disciplined implementation of our strategy has translated into strong operational and financial performance across all parts of the business.

Speaker #2: In our residential platforms, we delivered record settlements and a 53% increase in sales, and we are well-positioned with strong contracts on hand for FY27.

Speaker #2: We have delivered a significant increase in volumes across our commercial development pipeline, completing projects with an end value of $830 million and commencing projects worth a further $1.2 billion.

Speaker #2: Creating high-quality investment products for our partners and for us. With the majority of our capital now allocated to our preferred sectors of living, retail, and logistics, we are making good progress in capturing change-of-use upside within our workplace portfolio and maximizing the value of existing logistics assets through conversion to data centers.

Tarun Gupta: We have approximately 450 megawatts of power secured across three data center sites, along with a pipeline of four additional identified opportunities, all on land that we already control. Growing our capital partnering platform is an integral part of our strategy, and we were pleased to welcome three new capital partners during the year, Morgan Stanley Real Estate, Mercer, and EdgeConneX. In addition to these new partners, we have expanded partnerships with several existing investors. By expanding our third-party capital base and restocking our development pipelines in a capital-efficient manner, we have significantly scaled our platform, strengthened our market position and portfolio quality, and enhanced our ROIC. Over the last three years, we have increased group assets under management by AUD 5 billion with the addition of less than AUD 1 billion to our net funds employed.

Speaker #2: We have approximately 450 megawatts of power secured across three data center sites, along with a pipeline of four additional identified opportunities, all on land that we already control.

Speaker #2: Growing our capital partnering platform is an integral part of our strategy, and we were pleased to welcome three new capital partners during the year: Morgan Stanley Real Estate, Mercer, and EdgeConneX. In addition to these new partners, we have expanded partnerships with several existing investors.

Speaker #2: By expanding our third-party capital base and restocking our development pipelines in a capital-efficient manner, we have significantly scaled our platform, strengthened our market position and portfolio quality, and enhanced our ROIC.

Speaker #2: Over the last three years, we have increased group assets under management by $5 billion, with the addition of less than $1 billion to our net funds employed, and as a result, we have grown our high-quality, recurring management income by an average of 25% per annum over that period.

Tarun Gupta: As a result, we have grown our high-quality recurring management income by an average of 25% per annum over that period. Creating something better for the people and communities we serve requires sustainability to remain embedded across everything we do. Recognizing that the homes, communities, and assets we create today will shape how people live, work, and connect for generations. We have delivered close to 10,000 affordably priced new homes and residential lots across the country, with almost a third of these being delivered for first-time homebuyers. We achieved net zero Scope 1 and 2 emissions, marking a major milestone in our journey toward a low-carbon future, and continue to advance initiatives designed to reduce our most material Scope 3 emissions. In FY24, Stockland has generated just over AUD 800 million of social value, and our employee engagement remained high at 84%.

Speaker #2: Creating something better for the people and communities we serve requires sustainability to remain embedded across everything we do, recognizing that the homes, communities, and assets we create today will shape how people live, work, and connect for generations.

Speaker #2: We have delivered close to 10,000 affordably priced new homes and residential lots across the country, with almost a third of these being delivered for first-time home buyers.

Speaker #2: We achieved net zero Scope 1 and 2 emissions, marking a major milestone in our journey toward a low-carbon future, and continue to advance initiatives designed to reduce our most material Scope 3 emissions.

Speaker #2: In FY24, Stockland has generated just over $800 million of social value, and our employee engagement remained high at 84%. Almost 80% of our people own Stockland securities, aligning with the interests of our security holders.

Tarun Gupta: Almost 80% of our people own Stockland securities, aligning with the interest of our security holders. I will now hand over to Josh, who will talk through the financials.

Speaker #2: I'll now hand over to Josh, who will talk through the financials.

Speaker #3: Thanks, Tarun, and good morning, everyone. As Tarun mentioned, the consistent execution of our strategy has delivered strong operational and financial outcomes over the year.

Josh McHutchison: Thanks, Tarun, and good morning, everyone. As Tarun mentioned, the consistent execution of our strategy has delivered strong operational and financial outcomes over the year. This result is characterized by a significant earnings uplift, a strong balance sheet, and capital settings that support future growth. Turning to the financial result in detail. Funds from operations was up 10.4% to AUD 892 million, with FFO per security up 9.1% at the top end of our guidance range. The investment management segment delivered FFO of AUD 606 million, reflecting strong comparable performance and contributions from development completions. Pleasingly, we achieved this growth while also absorbing NOI dilution from the transfer of assets into partnerships during FY25 and FY26, together with investment in capability and platform expansion.

Speaker #3: This result is characterized by a significant earnings uplift, a strong balance sheet, and capital settings that support future growth. Turning to the financial result in detail, funds from operations were up 10.4% to $892 million.

Speaker #3: FFO per security was up 9.1% at the top end of our guidance range. The Investment Management segment delivered FFO of $606 million, reflecting strong comparable performance and contributions from development completions.

Speaker #3: Pleasingly, we achieved this growth while also absorbing NOI dilution from the transfer of assets into partnerships during FY25 and FY26, together with investment in capability and platform expansion.

Speaker #3: Development FFO was up 17.3%, driven by a step change in settlement volumes across our residential portfolios, growing development fees from increased activity in partnerships, and a larger contribution from commercial development.

Josh McHutchison: Development FFO was up 17.3%, driven by a step change in settlement volumes across our residential portfolios, growing development fees from increased activity in partnerships, and a larger contribution from commercial development. We have continued to invest in growth while maintaining cost discipline. Across the group, total overheads have grown by 6.4% per annum over the last three years, while we have grown our revenue base by over 13% per annum over the same period. Net interest expense was down, reflecting higher capitalization into projects in line with increased activation of the pipeline. Statutory profit was up 20.2% to AUD 994 million. This includes just over AUD 200 million of net fair value gains for the period. Given the scale and duration of major project opportunities that we have secured, revaluations relating to properties under development are expected to comprise an increasing proportion of the group's valuation movements in future periods.

Speaker #3: We have continued to invest in growth while maintaining cost discipline. Across the group, total overheads have grown by 6.4% per annum over the last three years, while we have grown our revenue base by over 13% per annum over the same period.

Speaker #3: Net interest expense was down, reflecting higher capitalization into projects in line with increased activation of the pipeline. Statutory profit was up 20.2% to $994 million.

Speaker #3: This includes just over $200 million of net fair value gains for the period. Given the scale and duration of major project opportunities that we have secured, revaluations relating to properties under development are expected to comprise an increasing proportion of the Group's valuation movements in future periods.

Speaker #3: From FY27, cumulative revaluation gains relating to these properties will be recognized in FFO when development value is monetized through a capital partnering or divestment transaction, and becomes cash-backed.

Josh McHutchison: From FY27, cumulative revaluation gains relating to these properties will be recognized in FFO when development value is monetized through a capital partnering or divestment transaction and becomes cash-backed. This adjustment is not expected to have a material impact on FFO in FY27. Looking now at the result for the Investment Management segment in more detail. We have delivered comparable growth of 3.5% from our portfolio, primarily driven by another strong performance from the logistics portfolio and continued growth from retail. The logistics portfolio benefited from project completions and strong underlying growth, partly offset by lower NOI from the prior year transfer of AUD 400 million of assets into new partnerships and AUD 289 million of strategic asset disposals. Growth in our retail portfolio was supported by strong re-leasing spreads and the completion of three new developments.

Speaker #3: This adjustment is not expected to have a material impact on FFO in FY27. Looking now at the results for the Investment Management segment in more detail, we've delivered comparable growth of 3.5% from our portfolio, primarily driven by another strong performance from the logistics portfolio, and continued growth from retail.

Speaker #3: The logistics portfolio benefited from project completions and strong underlying growth, partly offset by lower NOI from the prior year transfer of $400 million of assets into new partnerships, and $289 million of strategic asset disposals.

Speaker #3: Growth in our retail portfolio was supported by strong re-leasing spreads and the completion of three new developments. We continue to actively manage the workplace portfolio, recycling capital from non-core exposures and positioning assets for future change-of-use development opportunities.

Josh McHutchison: We continue to actively manage the Workplace portfolio, recycling capital from non-core exposures and positioning assets for future change of use development opportunities. Communities rental income comprises our established land lease portfolio, which contributed AUD 17 million during the year, and our smaller portfolio of communities real estate assets, which contributed approximately AUD 8 million. Investment Management at net overheads increased 12% as a result of investment in capability across the business and the growth of operational land lease platform. Turning now to the Development segment. Settlements were up 30% in our MPC business. By volume, the proportion of lots settled in joint ventures or project development agreements increased to 55%, primarily due to a greater number of lots settled in our partnership with Supalai.

Speaker #3: Communities rental income comprises our established land lease portfolio, which contributed $17 million during the year, and our smaller portfolio of communities real estate assets, which contributed approximately $8 million.

Speaker #3: Investment management net overheads increased 12% as a result of investment in capability across the business and the growth of the operational land lease platform. Turning now to the development segment, settlements are up 30% in our MPC business by volume. The proportion of lots settled in joint ventures or project development agreements increased to 55%.

Speaker #3: Primarily, due to a greater number of lots settled in our partnership with Super LIE. The MPC development operating profit margin was 21.2%, in line with previous guidance and reflecting further price growth in the Queensland and WA markets during the year, offset by a mix shift to lower margin projects.

Josh McHutchison: The MPC development operating profit margin was 21.2%, in line with previous guidance and reflecting further price growth in the Queensland and WA markets during the year, offset by a mix shift to lower margin projects. The land lease development business delivered FFO of AUD 100 million, a 67% increase on the prior year. The business recorded 777 home settlements and transferred three communities into partnerships. The LLC development operating profit margin reflected a mix of settlements from lower margin projects and increasing marketing costs associated with newly launched communities. The commercial development business generated FFO of AUD 35 million, underpinned by build to sell logistics profits and the transfer of three recently completed retail assets into the partnership with Morgan Stanley. Net overheads increased 13.1%, reflecting growth in the development platform, as well as increased activation of our pipeline. Operating cash flow was broadly in line with FFO at AUD 876 million.

Speaker #3: The land lease development business delivered FFO of $100 million, a 67% increase on the prior year. The business recorded 777 home settlements and transferred three communities into partnerships.

Speaker #3: The LLC Development operating profit margin reflected a mix of settlements from lower-margin projects and increasing marketing costs associated with newly launched communities. The Commercial Development business generated FFO of $35 million, underpinned by build-to-sell logistics profits and the transfer of three recently completed retail assets into the partnership with Morgan Stanley.

Speaker #3: Net overheads increased 13.1%, reflecting growth in the development platform as well as increased activation of our pipeline. Operating cash flow was broadly in line with FFO at $876 million.

Speaker #3: We finished the year with gearing at 22.7%, down significantly from 28.1% at December, reflecting strong second-half cash inflows from MPC and LLC settlements, and further capital recycling.

Josh McHutchison: We finished the year with gearing at 22.7%, down significantly from 28.1% at December, reflecting strong H2 cash inflows from MPC and LLC settlements and further capital recycling. Our weighted average cost of debt for the year was in line with FY25 at 5.3%. We expect this to increase to 5.9% for FY27. We extended the tenor of our debt book and we've maintained prudent levels of hedging and substantial liquidity. Our capital management settings are aligned with our strategic growth objectives, and our funding sources are clearly defined. In FY26, we continue to effectively redeploy retained earnings, recycle our own capital, and raise additional third-party capital. Over the last three years, we have raised or recycled an average of over AUD 2 billion of capital per annum, maintaining a strong balance sheet position and enabling future growth. I'll now hand back to Tarun Gupta.

Speaker #3: Our weighted average cost of debt for the year was in line with FY25 at 5.3%. We expect this to increase to 5.9% for FY27.

Speaker #3: We extended the tenor of our debt book, and we've maintained prudent levels of hedging and substantial liquidity. Our capital management settings are aligned with our strategic growth objectives, and our funding sources are clearly defined.

Speaker #3: In FY26, we continue to effectively redeploy retained earnings, recycle our own capital, and raise additional third-party capital. Over the last 3 years, we have raised or recycled an average of over $2 billion of capital per annum, maintaining a strong balance sheet position and enabling future growth.

Speaker #3: I'll now hand back to Tarun.

Speaker #2: Thanks, Josh. We have a simple and effective business model that leverages our end-to-end development expertise together with investment management capabilities across our targeted sectors.

Tarun Gupta: Thanks, Josh McHutchison. We have a simple and effective business model. This leverages our end-to-end development expertise together with investment management capabilities across our targeted sectors. The strength of our business model lies in the way our platforms leverage each other for product, capital, capability, and opportunities, accelerating growth and enhancing returns. Our investment portfolio provides high quality recurring rental income embedded from its development pipeline and capital sourced from its growing partnership platform. We manage Australia's leading MPC business, which generates attractive through-cycle returns and offers embedded adjacent use opportunities. Our land lease business has rapidly scaled into Australia's leading platform, with more than 10,000 existing and future homes and a pipeline that is sourced from our MPC platform.

Speaker #2: The strength of our business model lies in the way our platforms leverage each other for product, capital, capability, and opportunities, accelerating growth and enhancing returns.

Speaker #2: Our investment portfolio provides high-quality, recurring rental income. We embed growth from its development pipeline, and capital sourced from its growing partnership platform. We manage Australia's leading MPC business, which generates attractive through-cycle returns and offers embedded adjacent use opportunities.

Speaker #2: Our land lease business has rapidly scaled into Australia's leading platform, with more than 10,000 existing and future homes, and a pipeline that is sourced from our MPC platform.

Speaker #2: And finally, we have a scale opportunity in Dar es Salaam, partnering with a leading global operator, with opportunities sourced from our logistics pipeline that we expect to contribute to earnings in FY27 onwards.

Tarun Gupta: And finally, we have a scale opportunity in data centers, partnering with a leading global operator with opportunities sourced from our logistics pipeline that we expect to contribute to earnings in FY27 onwards. Moving firstly to the investment portfolio, which represents the high-quality core of our business. The portfolio delivered comparable NOI growth of 3.5%, strong leasing spreads in our essentials-based retail portfolio supported comparable growth of 3.1%, led by non-discretionary categories. The logistics portfolio generated comparable FFO growth of over 8%, driven by another period of very rented, providing good opportunities to square meters of leasing during the year and is driving solid underlying income growth while also actively managing several assets that are being positioned for further development as either logistics or data center opportunities.

Speaker #2: Moving firstly to the investment portfolio, which represents the high-quality core of our business. The—

Speaker #1: The portfolio delivered comparable NOI growth of 3.5%. Strong leasing spreads in our essentials-based retail portfolio, so comparable growth of 3.1% was led by non-discretionary categories.

Speaker #1: The logistics portfolio generated comparable FFO growth of over eight . 8% , driven by another period of very rented , providing good opportunities to square metres of leasing during the year and is driving solid underlying income growth .

Speaker #1: While also actively managing several assets that are being positioned for further development as either logistics or data center opportunities . A commercial development pipeline has an estimated end value of approximately $16 billion , including approximately $9 billion in logistics , underpinning future growth and returns Three recently completed retail assets ceded our new convenience retail partnership with Morgan Stanley , and we have further opportunities in retail across our MPC pipeline , leveraging our cross-sector master planning capabilities .

Tarun Gupta: Our commercial development pipeline has an estimated end value of approximately AUD 16 billion, including approximately AUD 9 billion in logistics underpinning future growth and returns. Three recently completed retail assets seeded our new convenience retail partnership with Morgan Stanley. And we have further opportunities in retail across our MPC pipeline. Leveraging our cross-sector master planning capabilities, we have secured power at several of our existing logistics sites for change of use opportunities into data centers, which I'll talk more about shortly. Turning to residential for sale. Our master-planned communities business delivered a 49% uplift in sales for the year and achieved just over 8,900 settlements, up 30% on FY25 and above our target range due to a strong settlement performance in the Q4, particularly in Victoria.

Speaker #1: We have secured power at our at several of our existing logistics sites for change of use opportunities into data centers , which I'll talk more about shortly Turning to residential for sale , our master planned communities business delivered a 49% uplift in sales for the year and achieved just over 8900 settlements , up 30% on FY 25 and above .

Speaker #1: Our target range benefited from a strong settlement performance in the fourth quarter, particularly in Victoria. Sales momentum was strong in the first half, with second half activity moderating as buyer sentiment responded to cumulative interest rate increases and uncertainty associated with tax changes. Queensland and Western Australia remained the strongest markets, with demand moderating but still exceeding available supply in the New South Wales market.

Tarun Gupta: Sales momentum was strong in H1, with H2 activity moderating as buyer sentiment responded to cumulative interest rate increases and uncertainty associated with tax changes. Queensland and Western Australia remain the strongest market, with demand moderating but still exceeding available supply. In the New South Wales market, demand is concentrated to more affordable product. In Victoria, demand is stable but running below long-run volume averages. Apart from certain Victorian projects, customer incentives and rebates are running well below historical levels. We have seen cancellations and default rates decline during the year across the MPC business, now running below long-term trends. Our MPC business enters FY27 with over 3,800 contracts on hand at an average price above FY26 settlements, providing good visibility in a moderating market environment.

Speaker #1: Demand is concentrated to more affordable product in Victoria , demand is stable , but running below long run volume averages Apart from certain Victorian projects , customer incentives and rebates are running well below historical levels .

Speaker #1: We have seen cancellations in default rates decline during the year across the MPC business . Now running below long term trends Our MPC business enters FY 27 with over 3800 contracts on hand at an average price above FY 26 elements , providing good visibility in a moderating market environment .

Speaker #1: The residential market benefits from strong population growth , significant undersupply , and favourable tax settings for new dwellings , which should support a return to equilibrium over the medium term We first entered the land lease sector five years ago with the acquisition of Halcyon Communities Since that time , we have scaled the business into a material earnings contributor on a combined business .

Tarun Gupta: The residential market benefits from strong population growth, significant undersupply, and favorable tax settings for new dwellings, which should support a return to equilibrium over the medium term. We first entered the land lease sector 5 years ago with the acquisition of Halcyon Communities. Since that time, we have scaled the business into a material earnings contributor. On a combined basis, the business generated AUD 137 million of FFO, up 40% on the back of a significant lift in development volumes and expanding portfolio of established home sites and strong underlying growth in management income. New project launches and continued demand for our product drove an 88% uplift in net sales volumes for the year and a 48% increase in settlement volumes. We are now actively trading from 17 communities with 3 additional launches planned for FY27, and our established portfolio totals almost 4,000 home sites.

Speaker #1: The business generated on a combined basis the business generated $137 million of FFO , up 40% on the back of a significant lift in development volumes and expanding portfolio of established home sites and strong underlying growth in management , income .

Speaker #1: New project launches and continued demand for our product drove an 88% uplift in net sales volumes for the year, and a 48% increase in settlement volumes.

Speaker #1: We are now actively trading from 17 communities , with three additional launches planned for FY 27 , and I established portfolio totals . Almost 4000 home sites .

Speaker #1: We also expanded our partnerships with Invesco and MN Real Estate during the year, and we were pleased to welcome Mercer to our platform. Moving on to our data centre strategy, our partnership with leading global operator EdgeConnex provides us with a clear pathway to monetizing the significant value upside embedded in our existing portfolio.

Tarun Gupta: We also expanded our partnerships with Invesco and M&G Real Estate during the year, and we were pleased to welcome Mercer to our platform. Moving on to our data center strategy. Our partnership with leading global operator EdgeConneX provides us with a clear pathway to monetizing the significant value upside embedded in our existing portfolio. By combining our land holdings and development and investment management expertise with EdgeConneX's operational experience, technical capabilities, and hyperscaler relationships, we have created a distinctive end-to-end capability and platform for growth. The Stockland EdgeConneX data center partnership is focused on turnkey data center solutions for hyperscaler customers, primarily in Sydney and Melbourne. There may be sites that are not suitable for the partnership, and in those instances, there is a framework for us to undertake powered land sales or pursue other data center opportunities. Moving on to our data center pipeline.

Speaker #1: By combining our landholdings and development and investment management expertise with Edgeconnex operational experience , technical capabilities and Hyperscaler relationships . We have created a distinctive end to end capability and platform for growth .

Speaker #1: The Stockland-EdgeConneX data center partnership is focused on turnkey data center solutions for hyperscale customers, primarily in Sydney and Melbourne. There may be sites that are not suitable for the partnership, and in those instances, there is a framework for us to undertake powered land sales or pursue other data center opportunities. Moving on to our data center pipeline.

Speaker #1: In addition to the 450MW of power secured across three sites , we have identified four pipeline projects within our portfolio , three of which have been endorsed by the New South Wales government's investment delivery Authority for a fast track approval process Given the progress we have made over the last three years in securing power and planning , we expect initial earnings contributions from site transfers in FY 27 .

Tarun Gupta: In addition to the 450 megawatts of power secured across 3 sites, we have identified 4 pipeline projects within our portfolio, 3 of which have been endorsed by the New South Wales government's Investment Delivery Authority for a fast-track approval process. Given the progress we have made over the last 3 years in securing power and planning, we expect initial earnings contributions from site transfers in FY27. While progressing our data center opportunities, we are maintaining funding flexibility. The combination of partner capital and off-balance sheet leverage provides a significant funding capacity. And with our existing land at market value comprising a meaningful component of our equity contribution to the partnership, our cash equity requirements are staged and manageable.

Speaker #1: While progressing our data centre opportunities . We are maintaining funding flexibility The combination of partner capital and off balance sheet leverage provides a significant funding capacity and with our existing land at market value comprising a meaningful component of our equity contribution to the partnership , our cash equity requirements are staged and manageable We expect data centre funding , including land that we already own , to total approximately 10% of group net funds employed over time , with capital to be recycled from other parts of the business , including our workplace allocation .

Tarun Gupta: We expect data center funding, including land that we already own, to total approximately 10% of group net funds employed over time, with capital to be recycled from other parts of the business, including our workplace allocation. In summary, our FY26 result has demonstrated the resilience, agility, and operational excellence of our portfolio through the cycle and the strength of our business model. Furthermore, our disciplined execution of strategy over the last five years has set up a focused and diversified business that is positioned for sustainable growth. In FY27, the growth in other parts of our business is expected to more than offset a lower MPC FFO contribution. For FY27, FFO per security is expected to be AUD 0.38 to AUD 0.39 on a post-tax basis. The distribution per security is expected to be AUD 0.252, in line with FY26. We will now open the lines for questions.

Speaker #1: So in summary , our FY 26 result has demonstrated the resilience , agility , and operational excellence of our portfolio through the cycle and the strength of our business model Furthermore , our disciplined execution of strategy over the last five years has set up a focused and diversified business that is positioned for sustainable growth in FY 27 .

Speaker #1: The growth in other parts of our business is expected to more than offset a lower MPC FFO contribution. For FY27, FFO per security is expected to be $0.38 to $0.39 on a post-tax basis.

Speaker #1: The distribution per security is expected to be 25.2 cents, in line with FY26. We'll now open the lines for questions.

Speaker #2: Thanks, Taryn. We will now start the Q&A session. I will introduce each caller by name and ask you to go ahead.

Operator: Thanks, Tarun. We will now start the Q&A session. I will introduce each caller by name and ask you to go ahead. You will then hear a beep indicating your microphone is live. Our first question today comes from Callum Bramah from Macquarie. Callum, please go ahead.

Speaker #2: You'll then hear a beep indicating your microphone is live. Our first question today comes from Calum Brammer from Macquarie. Calum, please go ahead.

Speaker #3: Good morning . Thanks for taking my question . Just a couple in there . I just wondered , are you able to tell us what your current estimate is of the capital ?

Callum Bramah: Good morning. Thanks for taking my question. Just a couple in there. I just wondered, are you able to tell us what your current estimate is of the capital you will need to contribute into the data centers? Maybe try and, I guess, come in a little bit closer on the contribution you are expecting in 2027. Is that because you have good visibility into a contract? As I understood it, that was one of the conditions precedent required for you to cede one of the data centers into the joint venture.

Speaker #3: You'll need to contribute into the data centres and maybe try, I guess, come in a little bit closer on the contribution you're expecting in '27.

Speaker #3: Is that because you have good visibility into a contract? As I understood it, that was kind of one of the conditions precedent required for you to seed one of the data centers into the joint venture.

Speaker #1: Yeah . Thanks for the question . So yeah , funding wise , as as I said in my speech , this will emerge , you know , 10% of funds employed .

Tarun Gupta: Yeah, Callum, thanks for the question. Funding-wise, as I said in my speech, this will emerge 10% of funds employed. You know what our funds employed today is about AUD 15 billion, so 10% of that is what we think our cash equity contribution is to the JV over coming years. That is over coming years. As you know, we just formed the partnership in March this year, so it has only been a few months. But we do have visibility and deals underway in site transfers that will be happening in FY27, and that is included in our guidance. But the exact numbers, et cetera, will emerge obviously as the year progresses.

Speaker #1: You know, what's our funds employed today is about $15 billion. So 10% of that is what we think our cash equity contribution is to the JV over the years.

Speaker #1: But that's over the coming years. As you know, we just formed the partnership in March this year, so it's only been a few months.

Speaker #1: But we do have visibility and deals underway in in-sight transfers that will be happening in FY27, and that's included in our guidance.

Speaker #1: But the exact numbers, etc., will emerge, obviously, as the year progresses.

Speaker #3: And just customers, so Hyperscaler customer contracts and visibility on that.

Callum Bramah: And just customers. So hyperscaler customer contracts and visibility on that.

Speaker #1: Yeah . So just , just to be clear , the , the site transfers can happen before customer contracts are signed . It's just the joint venture needs to be confident that there is enough interest and the sites are high quality .

Tarun Gupta: Yes. Just to be clear, the site transfers can happen before customer contracts are signed. It is just the joint venture needs to be confident that there is enough interest and the sites are high quality. As you know, you just have to look at the seven sites we put on our slide. They are very high-quality sites in strong availability zones. Since we formed the JV, EdgeConneX, our partner, has been talking to hyperscaler customers in the more immediate sites that are further along the planning and power pathway. As you would expect, we are getting some interest, but it is early days. Signed contracts were not a condition precedent to site transfers, just to be clear.

Speaker #1: As you know , you just have to look at the seven sites we put on the on our slide . They are very high quality sites in strong availability zones .

Speaker #1: And since we formed the JV with EdgeConneX, our partner has been talking to hyperscale customers in the more immediate sites that are, you know, further along the planning and power pathway.

Speaker #1: And, as you would expect, we are getting some interest, but it's early days, and signed contracts were not a condition precedent to site transfers, just to be clear.

Speaker #3: Can I just clarify and maybe I'm reading into it too much , but the terminology around margins . So I think you use the phrasing around 20% for your margins , operating margins in MPC .

Callum Bramah: Can I just clarify, and maybe I am reading into it too much, but the terminology around margins. I think you used the phrasing around 20% for your operating margins in MPC. Whereas I think historically it has been low 20s range. Is that a slight change? Are you expecting lower margins as we go into FY27? Maybe in relation to that, is the margin on the contracts on hand in line with what you saw coming into or for this year? Or are they below despite the fact they have got a higher average price?

Speaker #3: Whereas I think historically it's been in the low 20s range, is that a slight change? Are you expecting lower margins as we go into '27, and maybe in relation to that, is the margin on the contracts on hand in line with what you saw coming into or for this year, or are they below, despite the fact they've got a higher average price?

Speaker #4: Yeah . Thanks . Thanks , Calum . A little bit of a little bit of color around the margin outlook . You know there's there's a combination of factors that have impacted our margins moving forward .

Andrew Whitson: Yes. Thanks, Callum. A little bit of color around the margined outlook. There is a combination of factors that have impacted our margins moving forward. We have taken, across the board, a view of more moderate growth in the near term, given the change in market conditions. Over the last year or so, we have had some unrealized growth coming through our Victorian portfolio. Then we have traded out of a number of higher margin projects, namely, Aura, Newport, Willowdale. So that has meant that our margin outlook is lower than prior year. But remembering a lot of this will be determined or the future outlook for margin will be determined by what we see once this market starts to recover. A couple of years ago, WA was our lowest margin part of our portfolio, and we have seen margins grow there materially as that market recovered.

Speaker #4: You know , we've taken , you know , across the board a view of more moderate growth in the near term , given the change in market conditions .

Speaker #4: You know , over the last year or so , we've had some unrealized growth coming through our Victorian portfolio . And then we've traded out of a number of higher margin projects .

Speaker #4: Namely Elara , Newport , Willowdale . So that's meant that our margin outlook is lower than prior year . But , you know , remembering , you know , a lot of this will will be determined or the future outlook for margin will be determined by what we see once this once this market starts to recover , you know , a couple of years ago , WA was our lowest margin part of our portfolio .

Speaker #4: And we've seen margins grow there materially as that market recovered . So , you know , the margin outlook is is influenced on a whole of life basis by , you know , our view of future growth

Andrew Whitson: So, the margin outlook is influenced on a whole of life basis by our view of future growth.

Speaker #2: Thank you. The next question comes from Tom Bodett from Jarden. Tom, please go ahead.

Operator: Thank you. The next question comes from Tom Bodor from Jarden. Tom, please go ahead.

Speaker #5: Good morning, Tarun. Thanks for taking my question. Maybe another way to ask, sort of, the prior question around the data center contribution.

Tom Bodor: Morning, Tarun. Thanks for taking my question. Maybe another way to ask some of the prior question around the data center contribution. You have talked about both in other parts of the business offsetting lower MPC contribution. Are there items outside of data centers that will be contributing that were not contributing in FY26? I am thinking things like land lease, sell down profits or any other items we should be aware of.

Speaker #5: You've talked about growth in other parts of the business offsetting lower MPC contribution. Is there anything outside of data centers that could be contributing that wasn't contributing in '26?

Speaker #5: I'm thinking about things like land leases, sell-down profits, or any other items we should be aware of.

Speaker #1: Yeah . Tom . Good morning . I think what what we I think are demonstrating in strategy and in execution is that we have multiple strong drivers of growth , which I touched on in my speech .

Tarun Gupta: Yeah. Tom, good morning. I think what we are demonstrating in strategy and in execution is that we have multiple strong drivers of growth, which I touched on in my speech, and all of those drivers are now starting to contribute materially. So I will go through them. Management income, you have seen us grow that line, the gross line by about 25%. That trajectory there or thereabouts should continue. As you know, we formed three new partnerships recently and our platform is growing, so that high quality line continues to grow. Our logistics business, yes, we are doing site transfers, but there is also more development completions coming through. So there is a good growth outlook for our logistics business. Then land lease, again, excluding site transfers, because we had some FFO contribution.

Speaker #1: And all of those drivers are now starting to contribute materially. So I'll go through them. Management income – you've seen us grow that line.

Speaker #1: The gross line is up by about 25%. That trajectory, there or thereabouts, should continue. As you know, we formed three new partnerships recently, and our platform is growing.

Speaker #1: So that high quality line continues to grow . Our logistics business , yes , we're doing site transfers , but there's also more development completions coming through .

Speaker #1: So there's a good growth outlook for our logistics business. And then on land lease again, outside excluding sites transfers, because we had some FFO contribution.

Speaker #1: The underlying business, in both net income—recurring income from rent—and further development profits and margin. And we've guided to an improving margin in land lease, which is also going to be a growth driver coming into FY27.

Tarun Gupta: The underlying business in both net income, recurring income from rent and further development profits and margin, and we have guided to an improving margin in land lease, are also going to be growth drivers coming into FY27. Our retail business, let us not forget that we, after consolidating after a few years, now we are growing that business because we have got high conviction in our convenience-based strategy, coming out of MPC, and we have got Morgan Stanley as a partner looking to grow with us. So a number of growth drivers. Then of course, data centers, which is the start of earnings contributions from that strategy. As we always said, the initial earnings would be site transfers. That is something we are confident on in FY27. That is just the start. There will be more in future years.

Speaker #1: So and our retail business , let's not forget that we after consolidating after a few years , now we're growing that business because we've got high conviction in our convenience based strategy coming out of MPC .

Speaker #1: And we've got Morgan Stanley as our partner , looking to grow with us . So number of growth drivers . And then of course , data centers , which is the start of earnings contributions from that strategy .

Speaker #1: As we always said , the initial earnings would be site transfers . That is something we are confident on in FY 27 . But that's just the start .

Speaker #1: There'll be more in future years. We've identified seven sites, and as we start to get into production, there'll be development management, project management, and other fees.

Tarun Gupta: We have identified seven sites, and as we start to get into production, there will be development management, project management and other fees. Then we get capital partners, there will be further profit events, then development completions, and then investment income. This is a long-term strategy for the group.

Speaker #1: Then we get capital partners . There'll be further profit events , then development completions , and then investment income . This is a long term strategy for for the group

Speaker #5: And is it right to think the majority of profits will be at completion, or is that not the case?

Tom Bodor: Is it right to think the majority of profits will be at completion or is that not the case?

Speaker #1: No , as I said , site transfers . You already starting those coming through , given the value we've added over the last three years , the fees will start to accrue as well as as production starts to take place in the joint venture , the real next material , I guess profit event will be when we start introducing capital partners .

Tarun Gupta: No, as I said, site transfers, you are already starting those coming through, given the value we have added over the last three years. The fees will start to accrue, as well as, production starts to take place in the joint venture. The real next material, I guess, profit event will be when we start introducing capital partners. But that, we have got lots of times. We have got balance sheet funding capacity over time. But, yeah, initial, we have just started the strategy three months, four months ago by doing the partnership, so it is well underway.

Speaker #1: But that we've got lots of times we've got balance sheet funding capacity over time . But yeah , initial we've just started the strategy three months , four months ago by doing the partnerships .

Speaker #1: So it's well underway

Speaker #5: Yeah , thanks . And then maybe just one for Andrew on residential . I'd just be interested in how you're seeing residential prices evolving in the corridors in which you have projects at a national level , like how much have you seen prices fall and how should we think about , you know , going forward , the potential impact of that given your whole of life accounting policy ?

Tom Bodor: Yeah, thanks. Maybe just one for Andrew Whitson on residential. I would just be interested in how you are seeing residential prices evolving in the corridors in which you have projects at a national level. How much have you seen prices fall and how should we think about, going forward, the potential impact of that, given your whole of life accounting policy?

Speaker #4: Yeah , thanks . Thanks , Tom . So maybe I can just give you a bit of a view of each of the markets and how we're seeing things progress , you know , Queensland and Western Australia are still the two strongest markets in the country .

Andrew Whitson: Yeah. Thanks, Tom Bodor. Maybe I can just give you a bit of a view of each of the markets and how we are seeing things progress. Queensland and Western Australia are still the two strongest markets in the country. We are seeing new releases, majority of them selling out on the weekend of release. We have gone from being multiple times oversubscribed to one to two times oversubscribed for those new releases. Real focus on affordable product, and that is a theme across the country, that we are seeing most demand for our more affordable product. Queensland and WA, we have still been seeing 0.5% a month, of sort of price growth coming through that portfolio at the moment, and that has obviously slowed from 1% to 2% a month that we were seeing six to 12 months ago. New South Wales is very much an affordability-driven market.

Speaker #4: And we're seeing , you know , New releases , majority of them selling out on the weekend of release . You know , we've gone from being , you know , multiple times oversubscribed to 1 to 2 times oversubscribed for those new releases .

Speaker #4: Real focus on affordable product . And that's a theme across the country that we're seeing most demand for our , for our more affordable product , you know , Queensland and WA , we've still been seeing , you know , half a per cent a month sort of price growth coming through that portfolio at the , at the moment .

Speaker #4: And that's obviously slowed from , you know , 1 to 2% a month that we were seeing , seeing 6 to 12 months ago , you know , New South Wales is is very much an affordable , affordability driven market , down in the Illawarra , you know , where we've got more affordable product , we're still seeing good demand .

Andrew Whitson: Down in the Illawarra, where we have got more affordable product, we are still seeing good demand. The northwest at The Gables, where it is over AUD 2,000 a square meter, demand has been slower. This market, prices have been moving sideways. There is limited rebating in the New South Wales market at the moment, so we have not seen large rebates being deployed, but very much a price-pointed market. Victoria, Tarun Gupta mentioned that activity has been below long run averages. If you look at the latest National Agricultural Land Management Survey data, it is annualizing running at sort of 8,000 to 10,000 vacant land sales per annum. That is below long run averages that were more around 18,000 per annum. So activity is still at a low level, but that market has stabilized. It has got a real affordability advantage now.

Speaker #4: The North west that Gables where it's over $2,000 a square metre , demand has been been slower . This market prices have been moving sideways .

Speaker #4: There is limited rebating in the New South Wales market at the moment, so we haven't seen, you know, large rebates being deployed.

Speaker #4: But very much a price pointed market . And then Victoria , you know , Turin mentioned that activity's been , you know , below long run averages .

Speaker #4: So , you know , if you look at the latest national land survey data , it's annualizing running at sort of 8 to 10 000 vacant land sales per annum .

Speaker #4: That's below long-run averages that were more around 18,000 per annum. So, activity is still at a low level. But that market has stabilised.

Speaker #4: It's got a real affordability advantage . Now you know you can get land in the in the growth corridors . You know sub $1,000 a square metre .

Andrew Whitson: You can get land in the growth corridors, sub AUD 1,000 a square meter. That is driving purchases, both first home buyers, but also interstate investors into that market. So seeing prices there holding, but we are deploying rebates, and we have been doing that really for most of the last H2 as well. We spoke about that at the half year update. But seeing prices holding in that market as well.

Speaker #4: And that's driving that's driving purchases , you know , both first home buyers , but also interstate investors in into that market . So seeing prices there holding , but we are deploying rebates and we've been doing that really for most of the last last half as well .

Speaker #4: We spoke about that at the half-year update, but we're seeing prices holding in that market as well.

Speaker #2: Thank you. The next question is from Richard Jones from JP Morgan. Richard, please go ahead.

Operator: Thank you. The next question is from Richard Jones from JP Morgan. Richard, please go ahead.

Operator: Thank you. The next question is from Richard Jones from JPMorgan. Richard, please go ahead.

Speaker #5: Thank you. Just in terms of following on a little bit from the prior questions, just to confirm, the commercial development contribution was $35 million in FY26.

Richard Jones: Thank you. Tarun, just in terms of, I was just following on a little bit from the prior questions. The commercial development contribution was AUD 35 million in FY26. Just wondering if you can give us a rough tier of where that might be in 2027 inclusive of data centers. Is that going to be a material change from that?

Speaker #5: Just wondering if you can give us a rough steer of where that might be in '27, inclusive of data centers? Is that going to be a material change from that?

Speaker #1: Yeah. So commercial development last year in '26 was mainly logistics built to sell, and a little bit of the Morgan Stanley transfer.

Tarun Gupta: Yeah. Commercial development last year in 2026 was mainly logistics built to sell and a little bit of the Morgan Stanley transfer, so we had some earnings from that. This year it is going to be probably less than that. What we have noted, obviously the year still just started, so we are not relying on a major contribution. Not in those commercial development lines, but clearly in data centers, as I have already said, we have good visibility of contracts that we are working on that will contribute to earnings on site transfers.

Speaker #1: So we had some earnings from that this year. It's going to be probably less than that. What we have noted, obviously, is the year has still just started.

Speaker #1: So we're not relying on a major contribution. So, yeah, not in those commercial development lines, but clearly in data centers.

Speaker #1: As I've already said, we have good visibility of contracts that we're working on that will contribute to earnings on site transfers.

Speaker #5: Okay . And maybe just a question for Andrew , just the banks are saying that loan applications have stabilized in August . I know it's it's sort of an days .

Richard Jones: Okay. Maybe just a question for Andrew. The banks are saying that loan applications have stabilized in August. I know it is early days. How are you seeing the volumes of, I guess, late July, early August, and how that compares to June, July? Just trying to get a sense as to whether the trajectory has bottomed or is still trending down.

Speaker #5: Are you seeing, you know, how are you seeing the volumes of, I guess, late July, early August, and how that compares to, sort of, June, July? Just trying to get a sense as to whether the trajectory has bottomed or is still trending down.

Speaker #4: From Richard , from a from a net sales point of view , you know , our our Q4 net sales at around , you know , just under 1950 , they were roughly spread evenly over those three months .

Andrew Whitson: Richard, from a net sales point of view, our Q4 net sales at just under 1,950, they were roughly spread evenly over those three months. But we did obviously see a step down to the 512 in July. We have seen a stabilization of those numbers at those levels. We have seen inquiries stabilize. We have not seen a continued fall in either inquiry or sales over that period. Remembering July traditionally for us is a lower month of sales. You have a few seasonal impacts in there as well, particularly in the southern states before you head into the spring selling season. That is how the market is looking. I would not like to characterize that we have seen a step up in August.

Speaker #4: But we did obviously see a step down to the , the five , five , 12 in , in July . But we have seen a stabilization of those numbers is , you know , at a at around those levels , we've seen inquiries stabilize .

Speaker #4: We haven't seen a continue fall or a fall in , in , in either inquiry or sales over that period . And remembering July traditionally for us is a lower month of sales .

Speaker #4: You've got a few seasonal impacts in there as well , particularly in the in the southern states . Before you head into the spring selling season .

Speaker #4: So that's how the market's looking. Wouldn't like to characterize that. We've seen a step up in August.

Speaker #2: The next question comes from Lauren Berry from Morgan Stanley. Lauren, please go ahead.

Operator: The next question comes from Lauren Berry from Morgan Stanley. Lauren, please go ahead.

Speaker #6: Hi, thanks, guys. Question for Josh: You said in your presentation that you're now moving to wanting to recognize uplift on developments through FFO.

Lauren Berry: Hi. Thanks, guys. Question for Josh. You said in your presentation that you are moving to now wanting to recognize uplift on development through FFO. Can you talk a bit more about that change and whether that is being driven by the movement to data center development?

Speaker #6: Can you talk a bit more about that change, and whether that is being driven by the move into data center developments?

Speaker #7: Yeah , yeah . Thanks , Lauren . Yeah , we're very much we're making the change . You know , because of the evolution of our business , you know , very consistent , consistent with our strategy .

Josh McHutchison: Yeah. Thanks, Lauren. We are very much, we are making the change because of the evolution of our business, very consistent with our strategy. We are now seeing a number of large development opportunities that potentially span multiple periods in the future. What the new definition of FFO is doing is looking at that cumulative development revaluation gain or loss only when they are realized through a cash-backed capital partnering or a divestment transaction. As you know, under the previous approach, when development value is created on investment properties, it gets recorded as a fair value gain and excluded from FFO. We just think this really gives a more complete and consistent measure of the development performance of the business, regardless of whether the asset is held as inventory or investment property. To be clear, there is no double counting here.

Speaker #7: You know , we are now seeing a number of large development opportunities that potentially span multiple periods in the future . So , you know what the new definition of FFO is doing is looking at that cumulative development , revaluation gain or loss only when they realized through a cash backed capital partnering or a divestment transaction .

Speaker #7: So as you know, under the previous approach, when development value is created on investment properties, it gets recorded as a fair value gain and excluded from FFO.

Speaker #7: So we just think this really gives a more complete and consistent measure of the development performance of the business, regardless of whether the assets are held as inventory or investment property.

Speaker #7: But but to be clear , there is no there is no double counting . You know , any cumulative revaluation gains will be removed statutory revaluation adjustment through that FFO reconciliation .

Josh McHutchison: Any cumulative revaluation gains will be removed from the statutory revaluation adjustment through that FFO reconciliation. There is no ultimate change in accounting on how we treat these things. It is really just how do we better reflect the development value creation on these projects.

Speaker #7: So , you know , there is no there's no ultimate change in accounting on how we treat these things . It's really just how do we better reflect the the development value creation on These projects

Speaker #6: Sorry , are you are you are you intending to to put Stockland share of the development gain through FFO or is it just simply when you sell down to a capital partner that that share of it gets booked through FFO ?

Lauren Berry: Sorry, are you intending to put Stockland's share of the development gain through FFO? Or is it just simply when you sell down to a capital partner that that share of it gets booked through FFO?

Speaker #7: Yeah , very much only when we sell down . So when we sell down . So it's cash backed as we realize that .

Josh McHutchison: Yeah. Very much only when we sell down. So when we sell down, so it is cash backed as we realize that. So the portion that we retain would continue to be revalued through fair value gains.

Speaker #7: So, the portion that we retain would continue to be revalued through fair value gains.

Speaker #6: Yeah . Okay . Great . And then on developments under DC is understand that you're you're planning on booking land sale profits in FY 27 .

Lauren Berry: Yep. Okay, great. On developments under DCF, I understand that you are planning on booking land sale profits in FY27. Can you talk a bit more about the timing of when you think that these projects are going to commence actual construction? Also give us a sense of which project is probably the most imminent and whether you would be looking to commence potentially without a contract in place.

Speaker #6: Can you talk a bit more about the timing of when you think that these projects are going to commence actual construction and also give us a sense of , you know , which , which projects is probably the most imminent and whether you would be looking to commence potentially without a contract in place

Speaker #1: Yeah . Lauren , the , the it's , it's a bit early to get into that level of detail . We just starting the financial year , the deals we're working on , as I said , we have good visibility .

Tarun Gupta: Yeah, Lauren, it's a bit early to get into that level of detail. We're just starting the financial year. The deals we're working on, as I said, we have good visibility. They include obviously transfers to EdgeConneX, but you will note we also have the framework in place to do powered land sales if they're not suitable for EdgeConneX, so they could take different forms of earnings contribution. At the moment, the focus really is still getting planning and full power. So power has been secured, but as you know, it takes 6 to 12 months for final contracts to be signed, and some of these sites are working through that process. Also DAs, et cetera, are still coming through.

Speaker #1: They include, obviously, transfers to Edge. But you will note we also have the framework in place to do powered land sales, if they're not suitable for EdgeConneX.

Speaker #1: So they could take different forms of earnings contribution. But at the moment, yeah, the focus really is still getting planning and full power.

Speaker #1: So power has been secured . But as you know , it takes , you know , 6 to 12 months for final contracts to be signed .

Speaker #1: And some of these sites are working through that process . And also Das , etc. , are still coming through . So there's a number of conditions , precedent that we'll have to satisfy during the course of FY 27 , which we confident on .

Tarun Gupta: There's a number of conditions precedent that we'll have to satisfy during the course of FY27, which we're confident on, and obviously, that's why we've included a contribution into our guidance. But as the year progresses, we will share that information with you.

Speaker #1: And obviously , that's why we've included it . A contribution into our guidance . But yeah , as the year progresses , we will share that information with you

Speaker #2: Thank you. The next question comes from Cody Shields from UBS. Cody, please go ahead.

Operator: Thank you. The next question comes from Cody Shield from UBS. Cody, please go ahead.

Speaker #5: Good morning .

Cody Shield: Morning, Tarun team. Thanks for the time this morning. Just first question on MPC. Looks like around 30% of MPC revenues went to JV partners in FY26. Where do you see that landing for 2027 and maybe for land lease as well?

Speaker #8: Thanks for the time this morning. Just first question on MPC. It looks like around 30% of MPC revenues went to JV partners in FY26.

Speaker #8: Where do you see that landing for '27, and maybe for land lease as well?

Speaker #4: Maybe it's going to be around a similar number for for the year ahead . You know , obviously , depending on actual volumes coming out of each project .

Andrew Whitson: It's going to be around a similar number for the year ahead. Obviously, dependent on actual volumes coming out of each project, but we would expect the number to be similar within land lease. Cody, I might have to come back to you on that number.

Speaker #4: But but we would expect the number to be to be similar within land lease . Cody . I might have to come back to you on that on that number

Speaker #8: Okay . No worries . Maybe just turning to July trading very early days , but are you seeing any noticeable shift in , you know , the mix of buyer that you're getting ?

Cody Shield: Okay, no worries. Maybe just turning to July trading. Very early days, but are you seeing any noticeable shift in the mix of buyer that you're getting? Are you getting more investor activity, post-budget?

Speaker #8: Are you getting more investor activity post-budget?

Speaker #4: Oh , it's probably a bit early . Cody . Just yeah , we're obviously monitoring that as well . Yeah , there is some volatility .

Andrew Whitson: It's probably a bit early, Cody. We're obviously monitoring that as well. There is some volatility week on week, month on month, but it probably too early to call out a trend. Ultimately, we think the changes towards new-built product from a tax policy setting will support the new part of the market. But, it needs to be confidence in stabilization of the broader housing market before you see that really play out in bigger numbers.

Speaker #4: You know , week on week , month on month , but it probably too early to call out a trend . You know ultimately we think you know the the the changes towards new built product from a tax policy setting will will support the new part of the market .

Speaker #4: But you know , it needs to be , you know , confidence in , you know , stabilization of the broader housing market before you see that really play out in bigger numbers

Speaker #8: Okay. Got it. That's all from me. Thank you.

Cody Shield: Okay, got it. That's all from me. Thank you.

Speaker #2: Thank you. The next question is from Siraj Nabhani from Citi. Siraj, please go ahead.

Operator: Thank you. The next question is from Suraj Nebhani from Citi. Suraj, please go ahead.

Speaker #9: Thanks. Hi, good morning, guys. Could I just ask a couple of quick ones from me? Sorry to ask the data question again, but it's hard not to.

Suraj Nebhani: Hi. Good morning, guys. Good result. A couple of quick ones from me. Sorry to ask the data center question again, but it's hard not to. I guess, you outlined 450 megawatts of secured power-approved sites across three of them. Firstly, can you confirm all three are slated for the EdgeConneX partnership and will be built out as fully fitted data centers?

Speaker #9: I guess—you know, you outlined 450 MW of secured, power-approved sites across three of them. Firstly, can you confirm all three are slated for the next partnership and will be built out as fully fitted data centers?

Tarun Gupta: I think what I'd say is, the EdgeConneX partnership is to do fully fitted out hyperscaler, fully fitted out data centers. In terms of the specifics of which site goes when, it's too early to say that. Obviously, we need to go through a proper process with our JV partner. There's a very defined process. We are offering those sites as they come up for conditions precedent, and then they'll go through. Yeah, I think that's what I'd say, Suraj, but too early to start to be too specific on each site transfer. We'll let you know when those start to happen over the course of the year in what happened. It's just the start of the year.

Speaker #1: I think what I'd say is the Edgeconnex partnership is to do fully fitted out hyperscaler Hyperscaler fully fitted out data centers in terms of the specifics of which site goes when it's too early to say that , you know , obviously we need to go through a proper process with our JV partner .

Speaker #1: There's a very defined process. We are offering those sites as they come up for conditions precedent, and then they'll go through.

Speaker #1: But yeah , I think that's what I'd say , Suraj . But too early to start to be too specific on each side , transfer , we'll let you know when those start to happen over the course of , of the year .

Speaker #1: That's what happened. But it's just the start of the year.

Speaker #9: Thank you, Tarun. And just the one on the funding requirements—it's good to have the clarity on, I guess, the percentage of NFP. We keep getting asked about it.

Suraj Nebhani: Thank you, Tarun. Just other one on the funding requirements. It's good to have the clarity on, I guess, the percentage of NFE. We keep getting asked about, I guess, what could the potential size of the total capital be in these data center requirements, including the partner contributions. Can you touch on potential sort of end value or of maybe the power-approved pipeline or some sort of stuff around the potential spend, maybe just per megawatt or something like that?

Speaker #9: I guess, you know, what could the potential size of the total capital be in these data center requirements, including the partner contributions?

Speaker #9: Can you touch on potential sort of end value or , you know , like of maybe the power of proof pipeline or , you know , some sort of stuff around the potential spend , you know , maybe just per megawatt or something like that ?

Speaker #1: Yeah . I think just the cost per megawatt . So , you know , approximating 20 million per megawatt . So general rule of thumb , I won't give you a specific one .

Tarun Gupta: Yeah, I think just the cost per megawatt, approximating AUD 20 million per megawatt is a general rule of thumb. I won't give you a specific one we are using, but as a general, you can use that. If you use that, you can come up with a cost number. Obviously, value, again, you can make your own assumptions based on what's happening in the market. There's significant value creation. We put an indicative slide there using 100 as the base for you to work through. As I said before, the current secured pipeline and the others we working on, we've got a long road ahead that we have good funding pathways for, just on the balance sheet funding. But remembering once customer contracts are secured, these assets become very valuable for capital partnering, and that's our strategy. We've demonstrated in every sector we've done that.

Speaker #1: We are using it, but as a general rule, you can use that. So if you use that, you know, you can come up with a cost number.

Speaker #1: Obviously value , you know , again , you can make your own assumptions based on what's happening in the market . There's significant value creation .

Speaker #1: We put a indicative slide there using 100 as the base for you to work through . But as I said , you know , before the current secured pipeline and the others , we were working on , we've got a long road ahead that we have good funding pathways for just on the balance sheet funding , but remembering once customer contracts are secured , these assets become very valuable for capital partnering .

Speaker #1: And that's our strategy. We've demonstrated it in every sector. We've done that over the next, you know, two to five years.

Tarun Gupta: The next 2 to 5 years, we've got a lot of value to create and also funding that we'll be taking forward. But as we've articulated, we have good pathways on funding.

Speaker #1: We've got , you know , a lot of value to create . And also funding that will be taking , taking forward . But , you know , as we've articulated , we we have good pathways on funding .

Speaker #2: Thank you. The next question is from Adam Calvetti from Bank of America. Adam, please go ahead.

Operator: Thank you. The next question is from Adam Calvetti from Bank of America. Adam, please go ahead.

Adam Calvetti: Hi, Tarun and team. Just a question on, what's the end value of the data center sites that they're being assessed on? Are you selling them in as powered land? Are you selling them in as a completed data center? How much of the economics are you giving away to EdgeConneX? Just trying to understand and quantify the potential value uplift on this land.

Speaker #10: Hi . 13 team . Hey , just a question on what's the end value of the data center sites that they're being assessed on ?

Speaker #10: Are you selling them in as powered land? Are you selling them as a completed data center? How much of the economics are you giving away to Next Connect?

Speaker #10: I'm just trying to understand and quantify the potential value uplift on this land.

Speaker #1: Yeah . Adam , the the , the sites are going to go into the partnership at a fair market value based on a .

Tarun Gupta: Yeah, Adam, the sites are going to go into the partnership at a fair market value based on obviously a zoned site and zoned cleared site with power secured. We are fully capturing the value that we are creating. We, Stockland, because we have been working on these sites for over three years, and we have owned some of the sites for 10, 20 years. Our security holders will be rewarded fairly for that. After that, clearly EdgeConneX brings a lot of value through the technical capability and the operating capability, and clearly the hyperscaler relationships. After that, everything is shared pari passu.

Speaker #1: Obviously, a zoned site and a zone-cleared site with power secured. So we are fully capturing the value that we are creating.

Speaker #1: We’re Stockland because we’ve been working on these sites for over three years, and we’ve owned some of the sites for ten, twenty years.

Speaker #1: So we, as security holders, will be rewarded fairly for that. After that, clearly, EdgeConneX brings a lot of value through the technical capability and the operating capability.

Speaker #1: And clearly, the hyperscaler relationships. And after that, everything is shared, pari passu.

Speaker #10: Okay , great . That's clear . And I just wanted to clarify , I think you mentioned that the revaluation uplifts in FY 27 will not be material .

Adam Calvetti: Okay, great. That is clear. I just wanted to clarify, I think you mentioned that the revaluation uplifts in FY27 will not be material. Is that correct, or will they have a material contribution to earnings?

Speaker #10: I just—is that correct, or will they have a material contribution to earnings?

Speaker #7: No . Just to be clear . So I think the change in FFO that I talked about in relation to , you know , development , realized development gains , cash back , realized development gains for our investment properties , it will be that will be immaterial for FY 27 .

Josh McHutchison: No, just to be clear, I think the change in FFO that I talked about, in relation to realized development gains, cash back realized development gains for our investment properties, that will be immaterial for FY27.

Speaker #2: Thank you. The next question comes from James Druce from CLSA. James, please go ahead.

Operator: Thank you. The next question comes from James Druce from CLSA. James, please go ahead.

Speaker #5: Yeah , I , I had to run in team maybe just a question on on one more question on the land profits . If I may .

James Druce: Yeah. Hi, Tarun and team. Maybe just one more question on the land profits, if I may. It sounds like that will be rolling, or some of that will be rolling into FY28 as well. Do you expect to take all of those land profits through 2027?

Speaker #5: It sounds like that will be rolling or some of that will be rolling into FY 28 as well . Like , do you expect to take all of those land profits through 27 ?

Speaker #1: No . James . Good morning . They will be this is a programmatic strategy for us . There is seven sites identified . We are talking initially only a couple of sites in terms of what's in our initial guidance .

Tarun Gupta: No, James. Good morning. This is a programmatic strategy for us. There are seven sites identified. We are talking initially only a couple of sites, in terms of what is in our initial guidance. So there will be more sites in future years. And also, the recognition will span more than one year, depending on the construction program. Obviously, we, the developer, will have some development services agreements to prepare the site, service it, things like that, which will impact the profit recognition. But it will be over multiple years. It is not all in 2027. This is just the start.

Speaker #1: So there'll be more sites in future years, and also the recognition will span more than one year depending on the construction program.

Speaker #1: Obviously, the developer will have some development services agreements to prepare the site, service IT, things like that, which will impact the profit recognition.

Speaker #1: But it will be over multiple years. It's not all in '27—this is just the start.

Speaker #5: Okay , that's clear . Maybe just on the capitalized interest it picked up from 180 million to around 220 million , I think that sounds a bit higher this year , but can you just provide some guidance for the cap interest for for next year please ?

James Druce: Okay, that is clear. Maybe just on the capitalized interest, it picked up from AUD 180 million to around AUD 220 million, I think. That sounds a bit high this year. But can you just provide some guidance for the cap interest for next year, please?

Speaker #7: Yeah . James . You know , obviously capitalized interest has increased . You know , as a result of , you the increased activation of our of our pipeline and , you know , the , the slightly higher interest costs , you know , and as we look forward , you know , we think it's going to be a similar level of capitalization next year .

Josh McHutchison: Yeah, James, obviously capitalized interest has increased, as a result of the increased activation of our pipeline and the slightly higher interest costs. As we look forward, we think it is going to be a similar level of capitalization next year. Slightly higher cost, but yeah, similar level of capitalization next year.

Speaker #7: You know, slightly higher cost, but similar level of capitalization next year.

Speaker #2: Thank you. The next question comes from Ben Bradshaw from Barrenjoey. Ben, please go ahead.

Operator: Thank you. The next question comes from Ben Brayshaw from Barrenjoey. Ben, please go ahead.

Speaker #11: Justin. Justin, just a follow-up question on the release of COGS interest for MPC, as a percentage of revenue seems to have ticked up.

Ben Brayshaw: Justin, just a follow-up question on the release of COGS interest for MPC as a percentage of revenue seems to have ticked up for FY26. Just wondering if you see that as a new normal run rate for FY27 and beyond.

Speaker #11: FY26. I'm wondering if you see that as a new normal run rate for FY27 and beyond.

Speaker #7: Now listen , it it was a little higher . You know , there was included in FY 26 the sale of North Shore that had a had a higher proportion of interest capitalized , which was released through Cogs .

Josh McHutchison: No, listen, it was a little higher. There was included in FY26, the sale of Northshore that had a higher proportion of interest capitalized, which was released through COGS. So our expectation is moving forward that it should be closer to our previous range that we have guided. The order of 6%.

Speaker #7: So our expectation is moving forward that it should should be closer to our previous , you know , range that we've guided The order of 6% .

Speaker #11: And in FY in order . Thank you . And in in FY 26 , you recognize the A capitalized interest headwind for MPC .

Ben Brayshaw: Thank you. In FY26, you recognized a capitalized interest headwind for MPC. Do you expect that to normalize or just any comments on FY27 capitalized interest headwind or benefit for MPC, please?

Speaker #11: Do you expect that to normalize, or do you have any comments on FY27 capitalized interest headwind or benefit for MPC?

Speaker #4: Yeah . Are you talking about the . Because I think it was what , 6.3% in in 26 . It was just above 6% , you know , as as Josh was referring to , that had North Shore in it .

Andrew Whitson: Yeah. Are you talking about the because, well, I think it was what? 6.3% in 2026. It was just above 6%. Yeah, as Josh McHutchison was referring to, that had Northshore in it. We have also launched a number of long-dated projects that we have held in our portfolio, Rivermont and Botanica. So you start to get more capitalized interest coming through there. Importantly, in MPC, we released through COGS more cap interest than we took onto the balance sheet over the last 12 months. So you are not seeing a build-up. Yeah, we have given that range of 4% to 6%. Yeah, next year is probably going to be towards the top end of that range as well with some of these longer-dated projects coming to market, which is a good thing for activation.

Speaker #4: But we're also launched a number of long dated projects that we've held in our portfolio . Revermont and Botanica . So you start to get more capitalized interest coming through their .

Andrew Whitson: So you start to get more capitalized interest coming through there. Importantly, in MPC, we released through COGS more cap interest than we took onto the balance sheet over the last 12 months. So you are not seeing a build-up. Yeah, we have given that range of 4% to 6%. Yeah, next year is probably going to be towards the top end of that range as well with some of these longer-dated projects coming to market, which is a good thing for activation.

Speaker #4: Importantly, in MPC, we released, through COGS, more capitalized interest than we took onto the balance sheet over the last 12 months.

Speaker #4: So you're not seeing a build up ? Yeah , we've given that range of 4 to 6% , you know , next year it's probably going to be towards the top end of that range as well .

Speaker #4: With some of these longer dated projects coming to market , which is which is a good thing for activation . And obviously , we continue to focus on that right metric as well to make sure that we're allocating capital in a disciplined way

Andrew Whitson: We continue to focus on that ROIC metric as well, to make sure that we are allocating capital in a disciplined way.

Speaker #11: And so just a question on , on the guidance of 5.9 , it's quite a material increase on FY 26 . When , you know , hedging in place seems to be broadly unchanged over the last six months for FY 27 , just wondering if you've done anything to alter the the finance costs .

Ben Brayshaw: Just a question on the WACD guidance of 5.9. It is quite a material increase on FY26 when hedging in place seems to be broadly unchanged over the last six months for FY27. Just wondering if you have done anything to alter the finance cost that is included in FY27 guidance of 5.9, or is it just an increase in the floating rate?

Speaker #11: That is included in FY 27 guidance of five nine or is it is it just an increase in the floating rate ?

Speaker #7: It's really very much the increase in the floating rate , you know , as you just suggested , our , our , our hedging is expected to be a similar level in , in 26 as to what it was in 25 .

Josh McHutchison: It is really very much the increase in the floating rate. As you just suggested, our hedging is expected to be a similar level in 2026 as to what it was in 2025. But yeah, it is really the increase in the underlying rate.

Speaker #7: But yeah , it's really the , the increase in the , in the underlying rate

Speaker #2: The next question comes from Clare McHugh from Green Street. Clare, please go ahead.

Operator: The next question comes from Claire McHugh from Green Street. Claire, please go ahead.

Operator: The next question comes from Claire McKew from Green Street. Claire, please go ahead.

Speaker #12: I'll just ask a quick question on capital allocation priorities. Obviously, there's not appetite to really move the needle on gearing, so you're beholden to rotating capital in partnerships.

Claire McHugh: Hi all. Just a quick question on capital allocation priorities. Obviously, there is not appetite to really move the needle on gearing, so you are beholden to rotating capital and partnerships. I am just curious, given the material levers you have on the development side, where should we expect- Where do you see the highest and best use of that capital on the development front? Is it really reorienting to ramp up data centers? Is it moderating logistics? Obviously, there is retail within the MPCs. If you can just give us some color on where you see the highest and best use of the capital on that front.

Claire McKew: Hi all. Just a quick question on capital allocation priorities. Obviously, there is not appetite to really move the needle on gearing, so you are beholden to rotating capital and partnerships. I am just curious, given the material levers you have on the development side, where should we expect- Where do you see the highest and best use of that capital on the development front? Is it really reorienting to ramp up data centers? Is it moderating logistics? Obviously, there is retail within the MPCs. If you can just give us some color on where you see the highest and best use of the capital on that front.

Speaker #12: I'm just curious , you know , given the levers you the material levels you have on the development side , you know , where should we expect , you know , where do you see the highest and best use of , of that capital ?

Speaker #12: And on the development front , is it really reorienting to , to ramp up data centers ? Is it , you know , you know , and moderating logistics , obviously , there's there's retail within the NPCs .

Speaker #12: If you can just give us some color on where you see the highest and best use of your capital on that front.

Speaker #1: Yeah . Clare . Yes , I think what , what I'd say is at the macro level , our general capital allocations to living retail and logistics is , is appropriate as we see the near and medium term .

Tarun Gupta: Yeah. Claire, yes. I think what I would say is that at the macro level, our general capital allocations to living retail and logistics is appropriate as we see the near and medium term. But within that, where we are allocating, obviously, in some of our development business, we go through cycles. We allocated a lot of capital to MPC in the last couple of years. That has worked for us. But as Andrew said, we are very ROIC disciplined. Our ROIC in the MPC business through the cycle, we have demonstrated somewhere between 15% to 17%. So that implies if sales slow, we will pull some of the capital back from that business and allocate to other growth areas like data centers and logistics, where we are still making good returns, including land lease.

Speaker #1: But within that , where we allocating obviously in some of our , you know , development business , we go through cycles , we allocated a lot of capital to MPC in the last couple of years .

Speaker #1: That has worked for us . But as Andrew said , we're very disciplined . Our role in the MPC business through the cycle , we've demonstrated somewhere between 15 to 17% so that implies if sales slow , we will pull some of the capital back from that business and allocate to other growth areas like data centers and logistics , where we're still making good returns , including land lease .

Speaker #1: But over the next three to five years, what you should expect is that as we start allocating more to data centers, we will start to moderate our workplace, our office exposure.

Tarun Gupta: Over the next three to five years, what you should expect is that as we start allocating more to data centers, we will start to moderate our workplace, our office exposure. That is not as strong a conviction sector for us. But we will do that as the funding requirements come through. We have already done it through change of use to higher uses to either data centers or build to rent or to resi for sale. So that is a key source of funding and recycling that we will do. We have been recycling AUD 700 million of assets every year in a systematic way. You have got to remember, we are now starting to build a very strong track record in attracting blue-chip capital to our platform.

Speaker #1: That is not , you know , as strong a conviction sector for us , but we will do that . You know , as the funding requirements come through .

Speaker #1: We've already done it through change of use to higher uses to either data centers or build to rent or to resi for sale .

Speaker #1: So that's a key source of funding. And recycling that we'll do. We've been recycling $700 million of assets every year in a systematic way.

Speaker #1: And then you've got to remember, we're now starting to build a very strong track record in attracting blue-chip capital to our platform.

Speaker #1: And when we're doing new development , new starts , if we're putting 70% or 50% partner capital and off balance sheet leverage within our guidelines , that provides a significant firepower to the group to grow our businesses .

Tarun Gupta: When we are doing new development, new starts, if we are putting 70% or 50% partner capital and off-balance sheet leverage within our guidelines, that provides a significant firepower to the group to grow our businesses. We have demonstrated that last year, we raised about AUD 2 billion of capital in that way. So it will be a combination of down weighting of workplace and capital partnering.

Speaker #1: And we've demonstrated that last year , we raised about 2 billion of , of , of capital in that way . So it'll be a combination of down weighting of workplace and capital partnering

Speaker #12: Okay . Thanks . That's helpful . And just . Appreciate there's been a lot of discussion on the data center . Development land profit coming through , but just really specifically .

Claire McHugh: Okay. Thanks. That is helpful. Just appreciate there has been a lot of discussion on the data center development land profit coming through. Just really specifically, so you have mentioned it is cash back. Obviously, once you contribute it into the partnership, there is no cash flow. Rather, the cash benefit is being driven by the fact that you have contributed that capital by virtue of the land profit. In turn, that reduces the burden on the remaining development cost. I am just curious because you have based that within that profit. That is correct, right?

Claire McKew: Okay. Thanks. That is helpful. Just appreciate there has been a lot of discussion on the data center development land profit coming through. Just really specifically, so you have mentioned it is cash back. Obviously, once you contribute it into the partnership, there is no cash flow. Rather, the cash benefit is being driven by the fact that you have contributed that capital by virtue of the land profit. In turn, that reduces the burden on the remaining development cost. I am just curious because you have based that within that profit. That is correct, right?

Speaker #12: So , you know , you've mentioned it's cash back backed . Obviously , once you contribute it into the partnership , there's no cash flow .

Speaker #12: Rather the , the , the cash benefit is being driven by the fact that , you know , you've contributed that capital by virtue of the land profit .

Speaker #12: In turn , that reduces reduces the burden on the remaining development costs . But I'm just curious because you've baked that within that , that's correct .

Speaker #12: Right .

Speaker #1: Now , when we sell down our land positions into partnerships , our capital partner or third party JV partners settle it with cash , hard cash , and that is what we will be .

Tarun Gupta: No. When we sell down our land positions into partnerships, our capital partner or third-party JV partners settle it with cash, hard cash, and that is what we will be.

Claire McHugh: Oh, they are. Okay.

Claire McKew: Oh, they are. Okay.

Speaker #12: They are .

Speaker #1: Okay . Yeah . There's no non-cash . This is hard cash that comes back , including any whip or whatever is is accrued to the land and any development margin that we realizing on sell down that will all be cash back in future years .

Tarun Gupta: Yeah. There's no non-cash. This is hard cash that comes back, including any WIP or whatever is accrued to the land, and any development margin that we are realizing on sell down, that will all be cash backed in future years. That is the business model of the group. We are a developer across our logistics. We have major projects coming through, as Josh said, data centers, retail, et cetera. So it is just reflecting the activity of a developer. When we sell our positions, we get cash and we recognize it in FFO.

Speaker #1: That is the business model of the group . We're a developer across our , you know , logistics . We've got major projects coming through .

Speaker #1: As Josh said , data centers , retail , etc. so it's just reflecting the activity of a developer . When we sell our positions , we get cash and we recognize it in FFO .

Speaker #13: Okay , okay .

Claire McHugh: Okay. So there's not a lag there in terms of just a lower. Okay, got it. In that vein, if we look at, say, one of your projects like Cherry Lane, which is obviously a smaller one, just running some high-level numbers on that potential land profit contribution based on broader market evidence. You have mentioned that that contribution will be negligible this year, but when I run numbers on at least one of those assets coming through to the partnership, it has the ability just on that land profit to move the needle by perhaps like 3% to 5% of your FFO. So I am just wondering, can you give us a sense of the profitability you are expecting in terms of, say, from land prior to the power secured and development secured versus what you are expecting to achieve on that transfer?

Claire McKew: Okay. So there's not a lag there in terms of just a lower. Okay, got it. In that vein, if we look at, say, one of your projects like Cherry Lane, which is obviously a smaller one, just running some high-level numbers on that potential land profit contribution based on broader market evidence. You have mentioned that that contribution will be negligible this year, but when I run numbers on at least one of those assets coming through to the partnership, it has the ability just on that land profit to move the needle by perhaps like 3% to 5% of your FFO. So I am just wondering, can you give us a sense of the profitability you are expecting in terms of, say, from land prior to the power secured and development secured versus what you are expecting to achieve on that transfer?

Speaker #12: So there's not a lag there in terms of just the lower . Okay . Got it . And so just in that , in that vein , if we look at , say , one of your projects , like Cherry Lane , which is obviously a smaller one , just running some high level numbers on , on that land , potential land profit contribution based on broader market evidence like it has , you know , you've mentioned that that contribution will be negligible .

Speaker #12: This year , but , you know , when I run numbers on at least one of those assets coming through to the partnership , it has the , the , the ability just on that land profit to move the needle by perhaps like 3 to 5% of your FFO .

Speaker #12: So I'm just wondering , you know , can you give us a sense of the , the profitability you're expecting in terms of say it's , you know , from land prior to the power secured and development secured versus what you're expecting to achieve on that transfer .

Speaker #1: Yeah, it really depends on our holding values. You know, there are seven sites that we've identified, so it'll depend on what our carrying value is.

Tarun Gupta: Yeah. It really depends on our holding values. There are seven sites that we have identified. So it will depend on what our carrying value is. But general rule of thumb, if you have logistics land, and that secures power and planning, it can be anywhere from, depending on what you are doing, from at book value to 2x book value. So again, it will be site by site. I think the specifics we are not going to get into in this call. But as you can see, we are already demonstrating through our guidance and what we will be booking through FY27, significant value creation coming through, which will be cash backed.

Speaker #1: But general rule of thumb , you know , if you've got logistics land and that's secures power and planning , it can be anywhere from , you know , depending on what you're doing from at book value to two X book value .

Speaker #1: So again , it will be site by site . So yeah , it's , I think the specifics we're not going to get get into in this call , but as , as you can see , we are already demonstrating through our guidance and what we will be booking through FY 27 .

Speaker #1: Significant value creation coming through, which will be cash-backed.

Speaker #2: Thank you. The next question is a follow-up question from Siraj Nabhani. Siraj, please go ahead.

Operator: Thank you. The next question is a follow-up question from Suraj Nebhani. Suraj, please go ahead.</

Operator: Thank you. The next question is a follow-up question from Suraj Nebhani. Suraj, please go ahead.

Speaker #9: Thank you . Thank you . Just just one quick question on the investment management fee streams . I think you highlighted on growth 25% per annum growth over the last few years .

Suraj Nebhani: Thank you. Just one quick question on the investment management fee streams. Tarun, I think you highlighted on growth, 25% per annum growth over the last few years. How should we think about further capital partnerships potential? Going back to the previous question as well, is it primarily in the data center space, or is there potential for more capital partnerships in other parts of the business as well?

Speaker #9: How should we think about further capital partnerships potential? Are there—and sort of going back to the previous question as well—is it primarily in the data center space, or is there potential for more capital partnerships in other parts of the business as well?

Speaker #14: Hi . Siraj , thanks for the question . It's Kylie here . So you can see capital partnerships is very much part of our strategy .

Kylie O'Connor: Hi, Suraj. Thanks for the question. It is Kylie here. You can see capital partnerships is very much part of our strategy, and we welcomed three new partners onto the platform this year. We also now have partners across all of our sectors, and we expect to do a combination of growing those partnerships within the existing sectors, and new partnerships as well. Of course, data centers will be a big part of that.

Speaker #14: And we welcomed three new partners onto the platform this year. We also now have partners across all of our sectors, and so we expect to do a combination of growing those partnerships within the existing sectors.

Speaker #14: And new partnerships as well. And of course, data centers will be a big part of that.

Speaker #2: Thank you. That's the last question we have time for today. I'll now hand back to Tarun for closing remarks.

Operator: Thank you. That is the last question we have time for today. I will now hand back to Tarun for closing remarks.

Speaker #1: Thank you . Thank you for joining the call . And we'll finish it here . But we're looking forward to seeing you all on the roadshow over the coming days and weeks .

Tarun Gupta: Thank you. Thank you for joining the call, and we will finish it here, but we are looking forward to seeing you all on the roadshow over coming days and weeks. Good morning, and thank you.

Speaker #1: Good morning, and thank you.

Operator: That concludes today's call. Thank you for joining us. You may now log out.

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