Scentre Group (SCG) H1 2024 earnings summary

Executive summary

• Funds From Operations (FFO) for H1 2024 rose 2.0% to $568 million (10.95 cents per security), with distributions up 4.2% to $446 million (8.60 cents per security).

• Net operating income increased 3.5% to $1,006 million for the half year ended 30 June 2024.

• Statutory profit was $404 million, including an unrealised property valuation decrease of $120 million.

• Portfolio occupancy improved to 99.3%, with 1,459 leasing deals completed and 98 new brands added.

• Customer visits reached 320 million, up 1.9% year-over-year, and business partner sales hit a record $28.6 billion for the 12 months to June 2024, up 2.9% year-over-year.

Financial highlights

• Property revenue rose 5.1%, driven by CPI-linked specialty rental escalations of 5.5% and positive leasing spreads of 1.1%.

• Gross rent collections totaled $1,372 million, representing 100% of gross billings and $40 million higher than H1 2023.

• Statutory profit for the half year was $404 million, including an unrealised property revaluation decrease of $120 million.

• Weighted average interest rate for the period was 5.6%; excluding subordinated notes, it was 4.7%.

• Net tangible assets per security stood at $3.43, with economic net asset value per security at $4.27.

Outlook and guidance

• FFO for 2024 is expected in the range of 21.75–22.25 cents per security, representing 3.0%–5.4% growth.

• Distributions for 2024 are forecast to be at least 17.20 cents per security, at least 3.6% growth.

• Guidance incorporates potential benefits from the subordinated notes tender offer and new issuance.