Scentre Group half-year profit reaches $1.46 billion

Scentre Group on Tuesday reported a profit of $1.46 billion for the half year ended June 30.

Funds from operations [FFO] of $657 million represent 12.38 cents per security, a 3.1 per cent increase on the prior corresponding period.

The group’s total assets were $37.6 billion, with $52.8 billion in assets under management, at June 30.

“[Scentre] have continued to bring our purpose to life by creating extraordinary places, connecting and enriching communities and providing the best locations for retailers to connect with customers,” Scentre Group CEO Peter Allen said.

“During the half, we opened Westfield Plenty Valley, the first of more than 100,000sqm of additional space for our portfolio this year. At Barangaroo Central we secured further growth in a strategic location by being part of the successful consortium which will see us deliver and operate the retail component.”

Allen said the group also improved its exposure to the south-eastern suburbs of Sydney through the acquisition of 50 per cent of Westfield Eastgardens.

He noted that physical retail stores are influencing sales across all channels, including in-store, online and marketplaces, as well as enabling click and collect options and last mile distribution.

“This reinforces the pivotal role that physical stores play in the retail ecosystem,” he said.

The group has made solid progress on it plan for $1.8 billion in active redevelopments across Australia and New Zealand.

Allen highlighted the redevelopment of Westfield Newmarket in New Zealand, which will feature the first David Jones in Auckland and the newest format stores for Farmers and Countdown, as well as a rooftop lifestyle, dining and entertainment precinct.

Westfield Plenty Valley opened in March 2018 and is trading strongly, the company said.

Other redevelopments are underway, including Westfield Carousel and Kotara, and the group continues to work on pre-development opportunities through an over $3 billion development program.

Scentre Group went on to reconfirm FFO growth of 4 per cent for the 12 months ending December 31, with an increase of 2 per cent, or 22.16 cents per security, forecasted.

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