Scentre Group · ASX:SCG
Scentre — H1 2024 Earnings Presentation
30 slides from Scentre's earnings presentation, Aug 21, 2024
Slide 1: Scentre Group delivers FFO of $568 million for first six months of 2024
ASX Announcement 21 August 2024 SCENTRE GROUP DELIVERS FUNDS FROM OPERATIONS OF $568 MILLION FOR FIRST SIX MONTHS OF 2024 Scentre Group (ASX: SCG) today released its results for the six months to 30 June 2024 with Funds From Operations (FFO) of $568 million (10.95 cents per security, up 2.0%) and Di
Slide 2: Westfield destinations, capital management and outlook
Scentre Group continues to operate its 42 Westfield destinations with increased levels of security and is working closely with police, authorities, government and industry on community safety initiatives. Westfield destinations The Group continues to progress its $4 billion pipeline of future retail
Slide 3: Further information / About Scentre Group
Further information: Company Secretary Investor Relations Corporate Affairs/Media +61 2 9358 7439 + 61 2 9028 8792 +61 2 9358 7739 About Scentre Group We acknowledge the Traditional Owners and communities of the lands on which our business operates. We pay our respect to Aboriginal and Torres Strait
Slide 4: Half Year Results 2024
Half Year Results 2024 Westfield Miranda, NSW
Slide 5: Half Year Overview
Half Year NET OPERATING INCOME FUNDS FROM OPERATIONS DISTRIBUTION Overview 1 $1,006m $568m $446m +3.5% 10.95cps +2.0% 8.60cps +4.2% CUSTOMER VISITS2 WESTFIELD MEMBERSHIP3 42 destinations close to 20 million people, activated to attract more people 320m +1.9% 4.1m +0.6m BUSINESS PARTNER SALES1 An eff
Slide 6: Half Year Overview
Half Year Overview Our strategy is to create the places and experiences that more people choose to come to, more often and for longer Customer Experience Projects Financial Highlights – Welcomed 320 million customers YTD, 1.9% more – Successful completion of the $27 million Westfield Tea – Net Opera
Slide 7: Visitation
Visitation CUSTOMER VISITATION (YTD1) 6m STRATEGIC PARTNERSHIPS +1.9% 320m Olympics Live Site at Westfield Hurstville, NSW 314m Angus and Julia Stone at Westfield Warringah, NSW Disney at Westfield Chatswood, NSW Aug 2023 Aug 2024 1. For the YTD 18 August 2024 Half Year Results 2024 4
Slide 8: Business Partner Sales
Business Partner Sales TOTAL PORTFOLIO SALES (MAT $bn) $0.8bn 1 +2.9% 1 For the 12 months to 30 June 2024 $28.6bn total sales were: $27.8bn − Up $0.8 billion or 2.9% on 2023 − Up $4.2 billion or 17.1% on 2019 $24.4bn $23.5bn $23.4bn For the 6 months to 30 June 2024 $22.9bn total sales were: − Up $0.
Slide 9: Leasing Activity
Leasing Activity LEASING DEALS AVERAGE SPECIALTY RENT ESCALATIONS AVERAGE SPECIALTY LEASE TERM 1,459 +5.5% 6.8 yrs 550 New Merchants, 98 New Brands CPI + 2% average specialty rent escalations 1,550 1,579 1,567 1,515 1,436 1,459 PORTFOLIO OCCUPANCY AVERAGE SPECIALTY LEASING SPREAD 1,394 1,377 99.3% +
Slide 10: Gross Rent Cash Collections
Gross Rent Cash Collections Collected $1,372m, equivalent to 100% of gross billings GROSS RENT CASH COLLECTIONS $40m NET TRADE DEBTORS $29m 6 MONTHS TO 30 JUN 2024 AS AT 30 JUN 2024 $1,372m $181m $1,332m $151m $1,250m $1,200m $121m $49m $875m $20m Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-20 Jun-21 Jun
Slide 11: Scentre Group Portfolio
Scentre Group Portfolio $49.8 billion of assets under management (SCG share $34.3 billion) across 42 Westfield destinations1 42 Westfiedestinations in close proximity to 20 million people and situated on more than 670 hectares QLD 6 destinations of land $5.8bn SCG Investment 675,000m2 of retail GLA
Slide 12: Development Opportunities
Development Opportunities Westfield Albany, NZ Westfield Bondi, NSW Westfield Booragoon, WA Westfield Sydney, NSW Westfield Doncaster, VIC Westfield Eastgardens, NSW Westfield Liverpool, NSW FUTURE DEVELOPMENTS >$4.0bn Westfield Parramatta, NSW Westfield Penrith, NSW Westfield Warringah, NSW Target
Slide 13: We are a responsible and sustainable business
We are a responsible and sustainable business COMMUNITY TALENT ENVIRONMENT ECONOMIC PERFORMANCE IMPLEMENTED KEY PARTNERSHIPS GOLD EMPLOYER AWEI AWARDS ON TRACK FOR NET ZERO BY 2030 $568 MILLION FFO INCREASED CUSTOMER ADVOCACY LAUNCHED “EVERYONE BELONGS” WASTE MANAGEMENT PLAN GLOBAL ESG LEADER Announ
Slide 14: Operating Profit and FFO
Operating Profit and FFO 6 months to 6 months to $m 30 Jun 2024 30 Jun 2023 Growth $ Growth % Property revenue 1,299.9 1,237.4 Property expenses (294.3) (265.5) Net Operating Income 1,005.6 971.9 33.7 3.5% NET OPERATING INCOME 3.5% Management income 26.7 24.3 Income 1,032.3 996.2 36.1 3.6% Overheads
Slide 15: Financial Position
Financial Position $m 30 Jun 2024 31 Dec 2023 Total Assets1 35,101.4 35,070.4 Senior borrowings2 (11,068.5) (10,767.7) Other liabilities (2,348.5) (2,406.4) Minority interest (181.4) (356.2) Subordinated notes3 (3,698.8) (3,698.8) Net Tangible Assets4 17,804.2 17,841.3 Net Tangible Assets4 – per sec
Slide 16: Funding June 2024
Funding 30 June 2024 FUNDING WEIGHTED AVERAGE INTEREST COVER FACILITY MATURITY 3.8x 3.5yrs Senior borrowings $11.1bn 1 Gearing 30.9% Weighted average facility maturity1 3.5 years Subordinated notes $3.7bn Liquidity $3.2bn FFO TO DEBT INTEREST RATE HEDGED 12.6% 89% Weighted average interest rate2 5.6
Slide 17: Funding
Funding Available liquidity of $3.2 billion at 30 June 2024 FACILITY MATURITY PROFILE1 % A$bn Margin Bonds AUD 2% 0.4 3.5 USD 23% 4.3 EUR 14% 2.5 3.0 GBP 4% 0.7 HKD 1% 0.1 2.5 Total 44% 8.0 2.0 Bank Facilities Drawn 19% 3.5 1.5 Undrawn 17% 2.9 Total 36% 6.4 1.0 Total Senior Facilities1 80% 14.4 2.2%
Slide 18: Interest Rate Hedging
Interest Rate Hedging HEDGE MATURITY PROFILE AND RATES1 $bn 14.0 2.44% 2.93% 89% at 2.44% HEDGED AT JUNE 2024 12.0 2.94% 89% at 2.93% 10.0 2.96% 8.0 89% 89% HEDGED AT DECEMBER 2024 6.0 Hedged Hedged 73% Hedged 3.53% 4.0 53% Hedged 31% 3.72% 2.0 Hedged 3.63% 13% 3% Hedged Hedged 0.0 Jun-24 Dec-24 Dec
Slide 19: Outlook
Outlook Subject to no material change in conditions, the Group reconfirms: − Funds From Operations to be in the range of 21.75 to 22.25 cents per security for 2024, representing 3.0% to 5.4% growth for the year. − Distributions to be at least 17.20 cents per security for 2024, representing at least
Slide 20: Appendices
Appendices Olympics and Paralympics Live Site at Westfield Chermside, QLD
Slide 21: Developments: Westfield Tea Tree Plaza
Developments Completed Project Westfield Tea Tree Plaza, SA Highlights Overview Introduced JB Hi-Fi and an expanded Timezone into Project Cost $27m (SCG Share: $13.5m) the former Myer level 1 space, enabling the Commencement 2023 introduction of additional specialty dining operators. Completion June
Slide 22: Developments: Westfield Sydney
Developments Westfield Sydney, NSW Highlights Overview Introducing a further 5 levels of luxury and high-end Project Cost $450m (SCG Share: $450m) retail, including the new Chanel boutique. Commencement 2024 Completion In stages from Q4 2024 Other brands to join the expanded Westfield Sydney Increme
Slide 23: Developments: Westfield Mt Gravatt
Developments Westfield Mt Gravatt, QLD Highlights Overview Introducing Uniqlo, Harris Scarfe, and a range of Project Cost $50m (SCG Share: $50m) specialty stores into the former David Jones space, Commencement 2023 including highly sought after fashion brands, and a Completion Q4 2024 new entertainm
Slide 24: Profit and FFO
Profit and FFO Statutory Profit FFO Financial Reconciliation from Profit to FFO 6 months to FFO 6 months to Statement $m 30 Jun 2024 Adjustments1 30 Jun 2024 Notes A B C=A+B 1. The Group’s measure of FFO is based upon the National Association of Real Property revenue2 1,264.1 35.8 1,299.9 Note 2(iii
Slide 25: Operating Cash Flow
Operating Cash Flow Cash flows from operating activities - proportionate Equity 6 Months to 6 Months to $m Consolidated Accounted 30 Jun 2024 30 Jun 2023 Receipts in the course of operations (including GST) 1,428.0 147.9 1,575.9 1,608.2 Payments in the course of operations (including GST) (491.1) (4
Slide 26: Balance Sheet
Balance Sheet Balance Sheet – Proportionate1 Equity Debt 1. Period end AUD/NZD exchange rate 1.0949 at 30 June 2024 $m Consolidated Accounted 30 Jun 2024 Reclassification 30 Jun 2024 2. Includes trade debtors and receivables, interest receivable, interest related derivative assets, plant, equipment,
Slide 27: Business Partner Sales: Growth Over 2019
Business Partner Sales Growth Over 20191 Total sales were 17.1% higher for the 12 months to June Total Portfolio 12 Months to 6 Months to 3 Months to Sales Growth by Category 30 Jun 2024 30 Jun 2024 30 Jun 2024 Specialty sales were 21.5% higher for the 12 months to June Fashion 17.5% 14.9% 15.0% Maj
Slide 28: Business Partner Sales: Growth Over 2023
Business Partner Sales Growth Over 20231 Total sales were 2.9% higher for the 12 months to June Total Portfolio 12 Months to 6 Months to 3 Months to Sales Growth by Category 30 Jun 2024 30 Jun 2024 30 Jun 2024 Specialty sales were 2.3% higher for the 12 months to June Fashion (2.0%) (1.7%) (2.0%) Ma
Slide 29: Property Valuations June 2024
Property Valuations 30 June 2024 AUSTRALIA (A$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% 815.0 6.25% 6.69% Airport West 50% 180.0 6.75% 7.79% Woden 50% 290.1 6.25% 7.1
Slide 30: Important Notice
Important Notice All amounts in Australian dollars unless otherwise specified. SCENTRE GROUP LIMITED ABN 66 001 671 496 The material in this release and presentation is for general information purposes only and is given in summary form. Information in this presentation is not SCENTRE MANAGEMENT LIMI