Scentre Group (SCG) H2 2024 earnings summary

Executive summary

• Achieved fourth consecutive year of growth in Funds From Operations (FFO) and Distributions Per Security, with FFO up 3.5% to AUD 1.13 billion for 2024 and targeting 4.3% growth in 2025.

• Customer visits reached 526 million in 2024, up 14 million year-over-year, with early 2025 visits up 2.5% on prior year.

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

• Portfolio occupancy increased to 99.6%, with 3,253 leasing deals completed and average specialty rent escalations of 5.2%.

• Expanded Westfield membership to 4.5 million, up 0.7 million year-over-year.

Financial highlights

• Net operating income rose 4% to AUD 2.03 billion, driven by 4.6% growth in property revenue and 5.2% average specialty rent escalations.

• Full-year distribution was AUD 893 million, up 3.8% year-over-year.

• Funds From Operations (FFO) of AUD 1.132 billion (21.82 cents per security), up 3.5% year-over-year.

• Net asset value at AUD 18.006 billion, with NTA per security at AUD 3.47.

• Collected AUD 2.821 billion in gross rent, equivalent to 102% of gross billings.

Outlook and guidance

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

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

• Project income forecasted to rise to AUD 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.