Scentre Group’s strong 2015

WestfieldWestfield ANZ owner, Scentre Group, has today released its 2015 full year results, announcing growth above forecast expectations.

Scentre Group, the company spun off from Westfield’s international business in 2014, lifted underlying profit by 3.8 per cent to $1.199 billion.

On a statutory basis net profit fell to $2.7 billion from $6.59 billion in 2014.

The 2015 result includes just the company’s Australian and New Zealand shopping centres, whereas the result for 2014 included six months worth of contributions from Westfield’s offshore malls.

Scentre said comparable speciality sales in its Australian malls grew by 5.3 per cent in 2015 with growth in particular seen in fashion, footwear, jewellery, tech and appliances and leisure.

The Group forecasts FFO growth for the 12 months ending in December 2016 to be approximately 3 per cent. This represents an underlying increase of approximately 5 per cent excluding the impact of the sale of centres in Australia and New Zealand.

“Scentre Group’s pre-eminent portfolio and unique market position have provided a strong operating performance and excellent returns for security-holders since the Group was established as a separate entity,” said Scentre Group Chairman, Frank Lowy.

Group CEO, Peter Allen, said the “secure cashflows from our shopping centres” in conjunction with the groups “accreditive development program” would provide growth income through the economic cycles.

Allen says the $830 million redevelopment projects at Casey Central, Chatswood, Hurstville, Kotara, North Lakes and Warringah Mall will add significant value to the groups future performance.

“We have already opened the redevelopments at Chatswood, Hurstville, North Lakes and Kotara which are trading strongly. These developments will be accretive to earnings and create substantial long-term value.”

At Westfield North Lakes, the group has commenced the $140 million Ikea link mall project, which connects a new Ikea store with the existing centre. The development will include a new Kmart discount department store, JB Hi-Fi Home, Rebel and approximately 50 new specialty stores over a single level with completion expected in December 2016.

Want more Inside Retail? Subscribe to Inside Retail Weekly now and get our premium print publication delivered to your door every week.


Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

Is the US-China trade war having an impact on your business?


Talks of a merger between @OZretailers and @retailaustralia have come to a close, with the parties failing to align…

7 days ago

.@Wesfarmers is one step closer to its acquisition of online retailer @Catch_au after @acccgovau announced it would…

2 weeks ago

In order to combat falling cash reserves, @oliversrealfood CEO is putting his own money on the line to fund the bus…

3 weeks ago

FREE NEWS BRIEFS Get breaking news delivered