Highlights

Scentre Group reports first half 2015 results with 6.1% growth in specialty sales in Australia, and maintains its 2015 full year FFO forecast of 22.5 cents per security representing 3.5% growth, and distribution forecast of 20.9 cents per security.

  • Focus on the integration of food, fashion, leisure and entertainment experiences in each of its shopping centres to curate a retail environment that connects shoppers with the retailers, goods and services that will resonate with the local community
  • Introduced new services to improve the shopper experience, including an in-house advertising network of 1,200 custom designed digital displays, a nationwide rollout of state-of-the-art free WiFi at 26 centres, and the introduction of ticketless parking at 4 centres by the end of the year
  • Commenced $825m (SCG share: $578m) of development starts in 2015, including Casey Central, Chatswood, Hurstville, Kotara, North Lakes and Warringah Mall, maintaining a forward development pipeline in excess of $3.0bn
  • Announced the sale of 4 Australian shopping centres (Figtree, North Rocks, Strathpine and Warrawong) for $783m. Proceeds will be reallocated to the Group’s development pipeline
  • The strong underlying operating performance will offset the dilutionary earnings impact of the sale of the 4 Australian shopping centres, enabling Scentre Group to maintain its 2015 full year FFO forecast of 22.5 cents per security representing 3.5% growth, and distribution forecast of 20.9 cents per security

HIGHLIGHTS OVERVIEW

Overview 6 months to 30 June 2015
Assets Under Management 1 $40.7bn
Profit $1,083m
Funds from Operations (FFO) $604m
FFO per security 11.38 cents
Distribution per security 10.45 cents
Comparable NOI Growth1 2.4%
Gearing 2 34.8%
2015 Full Year Forecast  
FFO per security 22.5 cents
3.5% growth
Distribution per security 20.9 cents
Comparable NOI growth 2.0 - 2.5% for the year
  • 1. Pro forma post sale of four Australian assets, settlement expected Q3 2015.
  • 2. On a pro forma basis post sale of four Australian assets gearing would be 33.1%.

Our Operations

australia map
  • The portfolio remained in excess of 99.5% occupied
  • 2.4% Comparable NOI Growth for the 6 months to 30 June, with 2015 forecast of 2.0-2.5%
  • Comparable Specialty Retail Sales Growth of 6.1% in Australia to $10,556 psm, and 6.3% in New Zealand to NZ$10,374 psm
  • 18.0% Specialty Store Occupancy Cost

Portfolio Summary

As At 30 June 2015 Australia 1 New Zealand Total 2
Centres 34 9 43
Number of Retail Outlets 10,762 1,401 12,163
Gross Lettable Area (m sqm) 3.3 0.4 3.7
SCG Interest (bn) 3 $27.4 NZ$1.9 $29.0
JV Partner Interests (bn) 3 $10.7 NZ$1.1 $11.7
Assets Under Management (bn) 3 $38.1 NZ$3.0 $40.7
Weighted Average Capitalisation Rate 5.72% 7.30% 5.81%

1. Pro forma post sale of four Australian assets, settlement expected Q3 2015
2. Period end exchange rate AUD/NZD 1.1285
3. Includes construction in progress and assets held for development.

portfolio by gla

portfolio by asset value (SCG share)