Scentre Group · ASX:SCG
Scentre — H1 2021 Earnings Presentation
34 slides from Scentre's earnings presentation, Aug 24, 2021
Slide 1: ASX Announcement: Strong operating performance drives 28% growth in half year operating profit
ASX Announcement 24 August 2021 STRONG OPERATING PERFORMANCE DRIVES 28% GROWTH IN HALF YEAR OPERATING PROFIT For personal use only Scentre Group (ASX: SCG) today released its results for the six months to 30 June 2021 with Operating Profit of $460.1 million (8.88 cents per security) and Funds From O
Slide 2: ASX Announcement continued
Deal activity has been strong with a number of first to market and first to portfolio brands. In New Zealand, first to market brands for Westfield Newmarket include Moncler, Saint Laurent, Balenciaga, Alexander McQueen, Burberry and Jimmy Choo. First to portfolio brands include the Miele Experience
Slide 3: Further information
Further information: Company Secretary Investor Relations Corporate Affairs/Media For personal use only Maureen McGrath Andrew Clarke Alexis Lindsay +61 2 9358 7439 +61 2 9358 7612 +61 2 9358 7739 Scentre Group (ASX: SCG) owns and operates 42 Westfield Living Centres across Australia and New Zealand
Slide 4: Westfield Chermside, QLD
For personal use only Half Year Results 2021 Westfield Chermside, QLD
Slide 5: Half Year Results
Half Year Results For personal use only 30 June 2021 6 months to 6 months to $million 30 Jun 2021 30 Jun 2020 Growth % Operating Profit $460.1 $360.8 Cents per security 8.88c 6.94c 28.0% Funds From Operations (FFO) $463.4 $361.9 Cents per security 8.94c 6.96c 28.4% Receipts in the course of operatio
Slide 6: Half Year Overview
Half Year Overview For personal use only Our Westfield Living Centre platform is essential to people, Capital Management communities and businesses The Group currently has available liquidity of $5.7 billion, sufficient to cover During the 6 months to June 2021 we experienced a strong all debt matur
Slide 7: Customer Visits by Region
For personal use only 1. 20 120 0 80 40 140 60 100 20 120 0 80 40 60 100 Legend Jan-20 Jan-20 Feb-20 Feb-20 Mar-20 Mar-20 Apr-20 Apr-20 May-20 May-20 Jun-20 Jun-20 Jul-20 Jul-20 Aug-20 Aug-20 Denotes lockdown period Sep-20 Sep-20 Oct-20 Oct-20 SA Nov-20 Nov-20 ACT Dec-20 Dec-20 Jan-21 Jan-21 Feb-21
Slide 8: Total Sales
Total Sales 1 Our business partners experienced a strong rebound in sales as soon as government restrictions were eased For personal use only Retailer In-Store Sales $11.8b $0.8b $11.2b When restrictions are removed, customers want to return $0.1b to our centres to purchase and consume goods, servic
Slide 9: Total Sales by Region
Total Sales by Region 1 Our business partners experienced a strong rebound in sales as soon as government restrictions were eased For personal use only SA - No Lockdown Days 2 NZ - 7 Days 2 NSW - 15 Days 2 $0.8b $0.7b $0.8b $0.7b $0.7b $0.9b $4.6b $3.7b $4.4b H119 H120 H121 H119 H120 H121 H119 H120
Slide 10: Leasing Activity
Leasing Activity We have experienced strong demand for space For personal use only Leasing Deals New Leases Renewals Demand for space in our Living Centres is strong 1,515 1,189 During the first half, we have completed 1,515 leasing deals, 619 including 619 new merchant deals 576 596 613 293 896 We
Slide 11: Gross Rent Cash Collections
Gross Rent Cash Collections For personal use only The Group collected $1.2 billion of gross rent during the first half of 2021 250 1st Half 2020: $875 million 1st Half 2021: $1.2 billion 200 $200m $200m $200m $199m $202m $201m $198m $200m $174m $168m 150 100 $74m 50 $59m - January February March Apr
Slide 12: Long-Term Growth in Total Rental Income
Long-Term Growth in Total Rental Income Total Portfolio1 For personal use only Space (GLA square metres) Our leading platform, expertise and focus on curating an offer that our customers want has delivered long-term 3.9m growth 3.6m Since 2010, we have consistently grown rental income. This 3.4m has
Slide 13: Scentre Group Overview
Scentre Group Overview For personal use only Our Purpose Extraordinary platform of 42 Living Centres, Creating extraordinary places, connecting and enriching communities ownership of 7 of the top 10 centres in Australia and 4 of the top 5 in New Zealand Our Plan Essential social infrastructure, stra
Slide 14: Strategic Locations
Strategic Locations For personal use only The strategic locations of our portfolio enables businesses to efficiently connect with more customers With a total population of 30 million, there is further opportunity for the business and platform to reach more people 20 people million live within close
Slide 15: Customer Initiatives
Customer Initiatives For personal use only Enhancing Customer “tbd” Engagement PETER ALLEN CEO We continue to give customers more reasons to engage, more often and for longer We’re expanding the Westfield ecosystem – creating more opportunities for interaction between Scentre Group, our customers an
Slide 16: Introducing Westfield Plus
Scan to Join Westfield Plus Introducing Westfield Plus For personal use only Our membership program Designed to drive value for our customers by removing friction in centre, personalising communications and rewarding engaged members with exclusive benefits Live in all 42 Westfield Living Centres 1.9
Slide 17: Westfield Direct
Westfield Direct For personal use only Aggregated Click & Collect Following the successful pilot during 2020, we are on track to launch Westfield Direct in the second half of 2021. Designed as an extension of the Westfield in-centre experience Offering customers aggregated click & collect through ou
Slide 18: Development Activity
Development Activity For personal use only Total Completion Project Cost SCG Share $m $m Active Projects Mt Druitt 55 28 Q1 2022 Total Projects 55 28 3rd Party Design and Construction 101 Castlereagh Street residential and commercial project on behalf of Cbus Property 2023 Total Special Projects 25
Slide 19: Future Developments
Future Developments For personal use only Albany (NZ) > $4.5bn 1 2 Barangaroo (NSW) 3 Booragoon (WA) Future Developments 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 Half Year Results 2021 16
Slide 20: We are a Responsible, Sustainable Business
We are a Responsible, Sustainable Business For personal use only Open & Safe Delivered $4.88 million Customer First Westfield living centres remain open, first vaccination hub in Westfield donated to Westfield Local Heroes Leveraged customer listening tools (CX operating with COVID Safe protocols. C
Slide 21: Operating Profit and FFO
Operating Profit and FFO For personal use only 6 months to 6 months to Change Funds From Operations 30 Jun 2021 30 Jun 2020 $m Property revenue 1,136.6 1,139.9 Property expenses (258.9) (249.4) Expected Credit Charge (44.5) (232.1) Net Operating Income 833.2 658.4 26.5% Management income 23.1 20.9 I
Slide 22: Assets Under Management
Assets Under Management For personal use only The Group manages 42 Westfield Living Centres, with $50 billion of assets under management including $16 billion of 3rd party funds $15.8b JV Partners Scentre Group has perpetual management rights on these assets. The total annual management fees are app
Slide 23: Financial Position
Financial Position For personal use only $m 30 Jun 2021 31 Dec 2020 Total Balance Sheet Assets1 35,241.2 35,285.3 Borrowings2 (9,397.8) (9,253.8) Other (2,089.4) (2,326.2) Minority Interest (787.4) (778.7) Subordinated Notes3 (4,109.6) (4,109.6) Net Balance Sheet Assets - attributable to ordinary se
Slide 24: Funding
Funding For personal use only 30 June 2021 Funding Borrowings $9.4bn 3.3x $5.7bn Gearing 27.9% Interest Cover Liquidity Weighted average debt maturity 4.5 years Subordinated notes $4.1bn Liquidity Weighted average interest rate1 $5.7bn 4.8% 12.0% 55% Interest rate exposure hedged percentage 55% FFO
Slide 25: Funding: Debt Maturity Profile
Funding For personal use only Available liquidity of $5.7 billion, sufficient to cover all debt maturities to early 2024 Debt Maturity Profile1 % $bn $ billion Senior Bonds 3.5 USD 22% 4.3 3.0 EUR 20% 3.9 GBP 8% 1.5 2.5 HKD 1% 0.1 2.0 Total 51% 9.8 Bank Facilities 1.5 Drawn 5% 0.9 Undrawn 23% 4.5 1.
Slide 26: Outlook
Outlook For personal use only The Group continues to target a distribution of 14 cents per security for the year to 31 December 2021. This is based on the assumption that the current government restrictions substantially ease by the end of October 2021. Half Year Results 2021 23
Slide 27: Appendices
Appendices For personal use only Westfield Coomera, QLD
Slide 28: Profit & FFO
Profit & FFO For personal use only Statutory Profit FFO Financial Reconciliation from Profit to FFO 6 months to FFO 6 months to Statement $m 30 Jun 2021 Adjustments1 30 Jun 2021 Notes 1. The Group’s measure of FFO is based upon the A B C=A+B National Association of Real Estate Investment Trusts’ (NA
Slide 29: Cash Flow
Cash Flow For personal use only Cash flows from operating activities – proportionate Equity 6 months to 6 months to $m Consolidated Accounted 30 Jun 2021 30 Jun 2020 Receipts in the course of operations (including GST) 1,257.7 126.2 1,383.9 1,059.4 Payments in the course of operations (including GST
Slide 30: Balance Sheet
Balance Sheet For personal use only Balance Sheet – Proportionate1 Equity Debt $m Consolidated Accounted 30 Jun 2021 Reclassification 30 Jun 2021 1. Period end AUD/NZD exchange rate A B C = A +B 1.0741 at 30 Jun 2021 Cash 406.8 27.0 433.8 (433.8) - 2. Includes $613.6m of Property Linked Short term d
Slide 31: Interest Rate Hedging
Interest Rate Hedging For personal use only 30 June 2021 Hedge Maturity Profile Interest Rate Hedging $ billion $bn Fixed Rate 8.0 2.06% Borrowings 9.40 1.96% 1.72% Subordinated notes 4.11 6.0 1.48% 1.40% Fixed Rate Debt 4.0 1.11% $ Fixed rate debt1 0.03 3.81% 2.0 1.22% Derivatives $ Swap payable 7.
Slide 32: Retailer In-Store Sales
Retailer In-Store Sales For personal use only Growth over 20191 Total Majors and Specialty in-store sales were up 0.9% for the 6 months to June and 0.8% lower for the year compared to 20191, 2 Specialty in-store sales were up 2.3% for the 6 months and 0.8% lower for the year. Majors in-store sales w
Slide 33: Property Valuations
Property Valuations For personal use only 30 June 2021 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% 772.0 5.75% 6.14% Airport West 50% 182.5 5.85% 6.77% Wod
Slide 34: Important Notice
Important Notice For personal use only 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