Scentre Group · ASX:SCG
Scentre — H1 2020 Earnings Presentation
27 slides from Scentre's earnings presentation, 2020
Slide 1: Half Year Results 2020
Half Year Results 2020 Westfield Miranda, Newmarket, NSW NZ
Slide 2: Half Year Update
Half Year Update 30 June 2020 All 42 Westfield Living Centres have remained open, safe and trading during the pandemic “A fundamental strength - Implementing and communicating the highest levels of health and safety standards of our business is the - Providing essential services to communities strat
Slide 3: Scentre Group Overview
Scentre Group Overview Our Purpose Extraordinary platform of 42 Living Centres Creating extraordinary places, connecting and enriching communities Our Plan Customer centric strategy, focused on delivering extraordinary experiences, every day We will create the places more people choose to come, more
Slide 4: Half Year Results
Half Year Results 30 June 2020 Cents per Cents per $m security security incl-ECC incl-ECC excl-ECC1 “At the onset of the Operating Earnings (OE)2 $361 million 6.94 11.41 pandemic, we acted quickly to secure additional funding, Funds From Operations (FFO) $362 million 6.96 11.43 ensuring we are in a
Slide 5: Customer Visitation and Store Openings
Customer Visitation and Store Openings All 42 Westfield Living Centres have remained open and trading, providing for their communities during the pandemic Australia New Zealand 120% 140% 128% 127% 103% 120% 119% 100% 100% 120% 82% 84% 81% 100% 92% 80% 64% 80% 60% 60% 100% 100% 43% 60% 92% 93% 40% 82
Slide 6: Gross Rent Cash Collections
Gross Rent Cash Collections 120% 1H20: 70% or $875m 100% Q1: 90% or $574m Q2: 48% or $301m 94% 94% 80% 82% 82% 80% 60% 40% 35% 28% 20% $200m $200m $174m $59m $74m $168m $172m 0% January February March April May June July The Group collected $875 million (70%) of total billings in the first half of 2
Slide 7: Retailer Activity
Retailer Activity COVID Activity1 Leasing Activity Agreed - SME retailers (Code) 1,624 Portfolio Leased 98.8% To be agreed - SME retailers (Code) 976 Lease Deals Number – Total Deals 596 Agreed - other retailers 814 Lease Deals Area (sqm) – Total Deals 103,024 To be agreed - other retailers 186 Leas
Slide 8: Strategic Location of Portfolio
Strategic Location of Portfolio High quality retail property – strategically located in close proximity to where people live > 16 million > 16 million people living in metropolitan and surrounding areas are within a 30-minute drive of a Westfield Living Centre Brisbane 84% 6 CENTRES Australia & Sydn
Slide 9: Customer Initiatives
Customer Initiatives Connected Customer Experience By listening to and understanding what our customers “We are accelerating the implementation of our want, we can enhance their experience Connected Customer Experience” PETER ALLEN CEO We want to Remove friction And Create new opportunities for inte
Slide 10: Westfield Direct
Westfield Direct The contactless drive-thru click and collect service was launched in all 42 Westfield Living centres during the peak period of COVID lockdown Retailers participated across every centre in Australia and New Zealand 14,000+ products available from 590 retailers Over 10,000 orders serv
Slide 11: Westfield Plus
Westfield Plus Introducing Westfield Plus Our membership program. Designed to drive value for our customers by removing friction in centre, personalising communications & rewarding engaged members with exclusive benefits. Now live in 12 Westfield Living centres. Rolling out to additional centres in
Slide 12: We are a Responsible, Sustainable Business
We are a Responsible, Sustainable Business Community Environmental People Economic Connecting and enriching Net zero emissions by 20301 We will be the place for talent to We will deliver long term sustainable communities thrive returns through economic cycles – Scentre Group has received a – Extensi
Slide 13: Summary
Summary The health, safety and wellbeing of our customers, retailers and people is our number “We own and operate major one priority - We will continue to follow government and health advice essential social infrastructure in the best locations and The fundamentals of the Group remain strong and the
Slide 14: Funds From Operations
Funds From Operations 6 months to 6 months to Funds From Operations 30 Jun 2020 30 Jun 2019 $m Property revenue 1,146.1 1,235.4 Property expenses (249.4) (264.2) Net Operating Income 896.7 971.2 Management income 20.9 23.4 Income 917.6 994.6 Overheads (41.9) (42.5) Adjust: Straight lining of rent (6
Slide 15: Financial Position
Financial Position Balance Sheet $m 30 Jun 2020 31 Dec 2019 Total Property Investments 34,186.8 38,172.6 Other Assets 1,275.5 923.6 Total Assets1 35,462.3 39,096.2 Interest Bearing Liabilities2 13,618.1 12,902.3 Other Liabilities 2,105.2 1,957.0 Total Liabilities 15,723.3 14,859.3 Net Assets before
Slide 16: Debt Metrics
Debt Metrics 30 June 2020 Debt metrics Net Debt $13.6bn $4.4bn 81% Gearing (look through basis) 38.4% Liquidity1 Interest Weighted average interest rate 4.0% rate hedging Weighted average debt maturity1 4.8 years Liquidity1 Interest rate exposure hedged percentage $4.4bn 81% 3.6x Interest Cover2 Inv
Slide 17: Debt Profile
Debt Profile1 Maturity Profile Facilities & Liquidity $ billion % $bn 3.5 Bonds 3.0 USD 28% 5.0 EUR 22% 3.9 2.5 GBP 8% 1.5 2.0 AUD 2% 0.4 1.5 HKD 1% 0.1 Total 61% 10.9 1.0 Bank Facilities 0.5 Drawn 15% 2.8 Undrawn 24% 4.3 - 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total 39% 7.1 Total Facili
Slide 18: Appendices
Appendices Westfield North Lakes, QLD Half Year Results 2020 18
Slide 19: Development Activity
Development Activity Total Project SCG Share Completion Cost $m $m Active Projects Carindale 50 16 10 Sep 2020 Total Projects 50 16 Target returns from development of greater than 7% yield and greater than 15% IRR Doncaster ELP1 Total Special Projects 90 67 Belconnen Myer Hornsby Harvey Norman Futur
Slide 20: Future Retail Developments
Future Retail Developments Albany (NZ) > $3bn 1 2 Barangaroo (NSW) Future Retail Developments 3 Booragoon (WA) 4 Doncaster (VIC) 5 Eastgardens (NSW) 6 Knox (VIC) 7 Liverpool (NSW) 8 Marion (SA) 1 10 3 9 9 Sydney (NSW) 8 7 2 5 10 Warringah Mall (NSW) 4 6 In addition, the Group has potential opportuni
Slide 21: Retailer In-Store Sales
Retailer In-Store Sales Like-for-like in-store sales1 Total in-store sales were 8.1% lower for the half and 3.5% lower for the year Specialty 6 months to 12 Months to Sales by Region 30 Jun 2020 30 Jun 2020 Specialty in-store sales were 12.1% lower for the half and 4.8% lower for the year NSW (14.2%
Slide 22: Cash Flow
Cash Flow Cash flows from operating activities – proportionate Equity 6 months to $m Consolidated Accounted 30 Jun 2020 Receipts in the course of operations (including GST) 969.9 89.5 1,059.4 Payments in the course of operations (including GST) (404.4) (27.4) (431.8) Net operating cash flows from eq
Slide 23: Profit & FFO
Profit & FFO Statutory Profit FFO Financial Reconciliation from Profit to FFO 6 months to FFO 6 months to Statement $m 30 Jun 2020 Adjustments 1 30 Jun 2020 Notes A B C=A+B 1. FFO adjustments relate to property Property revenue 2 1,110.1 36.0 1,146.1 revaluations, mark to market of interest Property
Slide 24: Balance Sheet
Balance Sheet Balance Sheet – Proportionate1 Equity Debt $m Consolidated Accounted Reclassifications 30 Jun 2020 A B C D = A +B + C Cash 927.2 10.1 (937.3) — 1. Period end AUD/NZD exchange rate Property Investments 1.0694 at 30 Jun 2020 – Shopping centres 30,834.3 2,817.7 — 33,652.0 2. Includes $619
Slide 25: Interest Rate Hedging
Interest 30 June 2020 Rate Hedging 1 Hedge Maturity Profile Interest Rate Hedging $ billion $bn Fixed Rate 12.0 Net Debt 13.6 10.0 2.46% 2.42% 2.19% Fixed Rate Debt 8.0 2.07% $ Fixed rate debt 0.4 3.31% 6.0 2.05% 1.83% 4.0 Derivatives 1.20% 2.0 $ Swap Payable 9.9 2.25% NZ$ Swap Payable 0.8 2.31% - D
Slide 26: Property Valuations
Property Valuations 30 June 2020 AUSTRALIA (A$m) Ownership Book Value Retail Cap Rate Economic Yield AUSTRALIA (A$m) Ownership Book Value Retail Cap Rate Economic Yield AUSTRALIAN CAPITAL TERRITORY VICTORIA Belconnen 100% 770.0 5.75% 6.16% Airport West 50% 180.0 6.00% 6.98% Woden 50% 310.0 5.75% 6.5
Slide 27: Important Notice
Important Notice All amounts in Australian dollars unless otherwise specified. The financial information included in SCENTRE GROUP LIMITED ABN 66 001 671 496 this document is based on the Scentre Group’s IFRS financial statements. Non IFRS financial information included in this document has not been