Scentre Group (SCG) H1 2024 earnings summary

Executive summary

• Funds From Operations (FFO) for H1 2024 reached $568 million (10.95 cents per security), up 2.0% year-over-year, with distributions of $446 million (8.60 cents per security), up 4.2%.

• Net operating income grew 3.5% to $1,006 million, driven by higher property revenue and occupancy.

• 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 and 98 new brands added.

• Customer visits rose 1.9% to 320 million, and business partner sales reached a record $28.6 billion for the 12 months to June 2024, up 2.9% year-over-year and 17.1% above 2019 levels.

Financial highlights

• FFO per security was 10.95 cents, up 2.0% year-over-year; interim distribution was 8.60 cents per security, up 4.2%.

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

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

• Property revenue rose 5.1%, specialty rent escalations averaged 5.5%, and new lease spreads were +1.1%.

• Statutory profit for the half year was $403.9 million, with basic EPS at 7.79 cents and diluted EPS at 7.75 cents.

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 are forecast to be at least 17.20 cents per security, up at least 3.6% for the year.

• Guidance includes potential benefit from repricing/reissuing subordinated notes and assumes no material change in conditions.