Scentre Group (SCG) H2 2024 earnings summary

Executive summary

• Achieved fourth consecutive year of FFO and distribution growth, with FFO up 3.5% to $1,132m (AUD 1.13bn) and distributions up 3.8% to $893m for 2024, targeting 4.3% FFO growth in 2025.

• Customer visits reached 526 million in 2024, up 14 million year-over-year, and business partner sales hit a record $29.0bn, up $544m from 2023.

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

• Continued investment in security and customer experience, including major partnerships, destination activations, and a robust response to the Westfield Bondi attack.

• Board and management focused on resilience, community engagement, and responsible business practices.

Financial highlights

• Net operating income rose 4% to $2,030m, driven by 4.6% property revenue growth and 5.2% average specialty rent escalations.

• Full-year distribution was $893m (17.20 cps), up 3.8% year-over-year.

• Gross rent collections totaled $2,821m, 102% of gross billings.

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

• Statutory profit was $1,050m, up from $175m in 2023.

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 around $162m in 2025.

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

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

• Strategy to attract more people and unlock growth opportunities expected to deliver continued earnings and distribution growth.