Scentre Group · ASX:SCG
Scentre — H1 2016 Earnings Presentation
19 slides from Scentre's earnings presentation, August 2016
Slide 1: Half Year Results to 30 June 2016
Half Year Results to 30 June 2016 Scentre Group Limited ABN 66 001 671 496 All amounts in Australian dollars unless otherwise specified The financial information included in this release is based on the Scentre Group’s IFRS financial statements. Non IFRS financial information included in this releas
Slide 2: Highlights
HIGHLIGHTS Overview 6 months to 30 June 2016 Overview Scentre Group is the pre-eminent Australia & New Zealand focused shopping centre A-REIT. Assets Under Management $43.3bn It owns and operates interests in 40 Westfield shopping centres, including 16 of the top 25 Profit $1,154m performing centres
Slide 3: Financial Overview
FINANCIAL OVERVIEW FUNDS FROM OPERATIONS1 DISTRIBUTION $m 6 months to 6 months to Pro Forma $m 6 months to 6 months to 30 June 2016 30 June 2015 Growth %2 30 June 2016 30 June 2015 Net Property Income 895 929 2.1% Funds from Operations 617 604 Management Income 23 23 0.6% Retained Earnings (51) (49)
Slide 4: Operating Performance
OPERATING PERFORMANCE 30 June 16 Total Sales (Moving Annual Turnover) $22.6bn Average Specialty Store Sales (psm) $11,000 Specialty Store Rent (psm) $1,586 Comparable NOI Growth 2.6% Portfolio Leased > 99.5% Occupancy Cost 17.7% Lease Deals Completed Number 1,550 Lease Deals Completed Area (sqm) 215
Slide 5: Retail Sales
RETAIL SALES COMPARABLE SALES COMPARABLE SALES TOTAL PORTFOLIO BY CATEGORY GROWTH %1 GROWTH %1 6 months to 12 months to 6 months to 12 months to 30 June 2016 30 June 2016 30 June 2016 30 June 2016 Majors 1.7% 2.3% Supermarkets 0.2% 1.0% Mini Majors 0.8% 2.6% Department Stores 2.8% 3.5% Specialties 2
Slide 6: Projects
PROJECTS ACTIVE PROJECTS Key highlights for the 6 months to 30 June 2016 include: Total Project SCG Share Anticipated Commenced $m $m Completion Commenced $605m of developments (SCG share $480m), including developments at Chermside, North Lakes and Whitford City. 2016 Commencements Chermside 355 355
Slide 7: Capital Management
CAPITAL MANAGEMENT DEBT METRICS 30 June 16 31 December 15 Gearing Total interest bearing liabilities $11.4bn $11.1bn 33.7% or 33.2% pro forma for the sale of two New Zealand assets and the acquisition of 77 Market St from David Jones. Gearing (look through basis) 33.7%1 33.3% Weighted average intere
Slide 8: Financing Facilities
FINANCING FACILITIES FACILITIES & LIQUIDITY1 MATURITY PROFILE1 A$bn 30 June 16 % $bn 3.0 Bonds Bonds Drawn Facilities USD 21% $2.8 Undrawn Facilities EUR 27% $3.8 GBP 11% $1.5 2.0 AUD 4% $0.6 Total 63% $8.7 Bank Facilities Drawn 17% $2.3 Undrawn 20% $2.9 1.0 Total 37% $5.2 Total Facilities 100% $13.
Slide 9: Appendices
APPENDICES Half Year Results 2016 | Page 9
Slide 10: Our Portfolio
OUR PORTFOLIO As at 30 June 2016 1 Total PORTFOLIO BY GLA1 Centres 40 Number of Retail Outlets 11,657 NSW | 39% VIC | 20% Gross Lettable Area (m sqm) 3.6 QLD | 15% SCG Interest (bn) $30.8 SA | 8% JV Partner Interests (bn) $12.5 WA | 6% Assets Under Management (bn) $43.3 ACT | 5% Weighted Average Cap
Slide 11: Developments: Westfield Chermside
DEVELOPMENTS ACTIVE PROJECTS WESTFIELD CHERMSIDE OVERVIEW Project Cost $355m (SCG Share: $355m) Additional Retailers Approx 95 Incremental GLA1 33,000 Completed GLA1 156,600 Completion Date Q2 2017 Construction is now well underway for the $355m redevelopment at Westfield Chermside which is due for
Slide 12: Developments: Westfield North Lakes
DEVELOPMENTS ACTIVE PROJECTS WESTFIELD NORTH LAKES OVERVIEW Project Cost $170m (SCG Share: $85m) Additional Retailers Approx 60 Incremental GLA1 43,500 Completed GLA1 113,000 Completion Date Nov 2016 The successful opening of the Events cinema complex in March 2016 marked the completion of the Stage
Slide 13: Developments: Westfield Warringah Mall
DEVELOPMENTS ACTIVE PROJECTS WESTFIELD WARRINGAH MALL OVERVIEW Project Cost $310m (SCG Share: $155m) Additional Retailers Approx 70 Incremental GLA1 14,000 Completed GLA 133,000 Completion Date Nov 2016 Construction at Westfield Warringah Mall is progressing well and on track for completion in Novem
Slide 14: Developments: Westfield Whitford City
DEVELOPMENTS ACTIVE PROJECTS WESTFIELD WHITFORD CITY OVERVIEW Project Cost $80m (SCG Share: $40m) Additional Retailers 4 Incremental GLA 5,000 Completed GLA 85,000 Completion Date 2017 Construction at Westfield Whitford City commenced in Q3 2016 with completion expected in 2017. The project includes
Slide 15: Developments: Casey Central
DEVELOPMENTS COMPLETED PROJECT CASEY CENTRAL OVERVIEW Project Cost $155m (SCG Share $155m) Additional Retailers 76 Completed Centre Retailers 98 Incremental GLA 22,200 Completed GLA 28,700 In March 2016 Casey Central’s $155m redevelopment opened with 84 new specialty stores, a new full line Coles Su
Slide 16: Profit and FFO
PROFIT AND FFO PROFIT AND FFO $m PROFIT FFO FFO Notes to the Financial 6 months to Adjustments 1 6 months to Statements 30 June 2016 30 June 2016 A B A+B Net Property Income 871 24 895 Note 4(a)(iv) Management Income 2 23 - 23 Note 4(a)(i) Project Income 3 50 - 50 Note 4(a)(i) Gross Income 944 24 96
Slide 17: Balance Sheet
BALANCE SHEET BALANCE SHEET PROPORTIONATE 1 $m Consolidated Equity Accounted 30 June 2016 31 December 2015 A B A+B Cash 209 13 222 153 Property Investments - Shopping centres 27,666 2,433 30,099 29,513 - Development projects and construction in progress 640 74 714 565 Total Property Investments 28,3
Slide 18: Cash Flow
CASH FLOW CASH FLOWS FROM OPERATING ACTIVITIES – LOOK THROUGH BASIS $m Consolidated Equity Accounted 30 June 2016 A B A+B Receipts in the course of operations (including GST) 1,495 116 1,611 Payments in the course of operations (including GST) (519) (26) (545) Dividends/distributions received from e
Slide 19: Interest Hedging Profile
INTEREST HEDGING PROFILE 85% Hedged at 30 June 2016 70% Hedged on average for next 3 years1, 2 $ FIXED RATE DEBT DERIVATIVES HEDGING FLOATING RATE $ & NZ$ DEBT $ Debt Payable $ Swap Payable NZ$ Swap Payable NZ$ Collar Payable 31 December1 $m Fixed Rate $m Fixed Rate NZ$m Fixed Rate NZ$m Strike Rate