Scentre Group (SCG) H2 2024 earnings summary

Executive summary

• Achieved fourth consecutive year of FFO and distribution growth, with FFO up 3.5% to $1,132 million (21.82 cents per security) and distributions up 3.8% to $893 million (17.20 cents per security) for 2024.

• Customer visits reached 526 million in 2024, up 14 million year-over-year, and Westfield membership grew by 0.7 million to 4.5 million.

• Business partner sales hit a record $29 billion, up $544 million from 2023 and 15.8% above 2019 levels.

• Portfolio occupancy increased to 99.6%, with 3,253 leasing deals completed and specialty lease spreads of 2.0%.

• Continued investment in security and customer experience, including major partnerships and destination activations.

Financial highlights

• Net Operating Income rose 4.0% to $2,030 million, driven by 4.6% growth in property revenue and 5.2% average specialty rent escalations.

• Collected $2,821 million in gross rent, equivalent to 102% of gross billings.

• Net asset value at $18,006 million, with NTA per security at $3.47.

• Management fee income increased by 6.7% to $3.3 million, aided by new opportunity trusts.

• Property valuations grew 2% over December 2023, with underlying valuations up 0.5%.

Outlook and guidance

• FFO per security targeted at 22.75 cents for 2025, representing 4.3% growth; distributions expected to grow 2.5% to 17.63 cents per security.

• Maintenance CapEx expected to remain steady at $162 million in 2025.

• Project income forecasted to rise to $15–20 million in 2025.

• No significant step-up in CapEx anticipated in the next 12–18 months.

• Positive leasing spreads and high occupancy expected to continue, supported by limited available space.