Scentre Group · ASX:SCG
Scentre — FY2015 Earnings Presentation
22 slides from Scentre's earnings presentation, Dec 31, 2015
Slide 1: Full Year Results to 31 December 2015
FULL YEAR RESULTS TO 31 DECEMBER 2015 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 re
Slide 2: Strategy
STRATEGY Scentre Group’s strategy is to create extraordinary Since the establishment of Scentre Group: places connecting and enriching communities by owning, managing and developing the best retail assets Asset Management - disposition of seven assets in Australia and New Zealand; introduction of
Slide 3: Highlights
HIGHLIGHTS Key highlights for 2015 include: Overview 12 months to 31 December 2015 Assets Under Management 1 $42.1bn Earnings – FFO of $1.199bn or 22.58 cents per security, Profit $2,708m representing growth of 3.8%, above previous market guidance Funds from Operations (FFO) $1,199m of 3.5%. FFO p
Slide 4: Funds from Operations
FUNDS FROM OPERATIONS FUNDS FROM OPERATIONS $m 12 months to 31 December 2015 Net Property Income - Australia 1,668 - New Zealand 156 Total Net Property Income 1,824 Management income 46 Project income 85 Gross income 1,955 Overheads (91) EBIT 1,864 Net interest (499) Earnings before Tax 1,365 Tax (7
Slide 5: Balance Sheet
BALANCE SHEET BALANCE SHEET - PROPORTIONATE $m 31 December 2015 31 December 2014 Cash 153 190 Property investments - Shopping centres 29,513 28,920 - Development projects and construction in progress 565 374 Total Property investments 30,078 29,294 Assets held for sale 417 1,005 Deferred tax assets
Slide 6: Our Operations
OUR OPERATIONS As at 31 December 2015 1 Australia New Zealand Total 2 Centres 34 6 40 Number of Retail Outlets 10,693 977 11,670 Gross Lettable Area (m sqm) 3.3 0.3 3.6 SCG Interest (bn) 3 $28.9 NZ$1.3 $30.1 JV Partner Interests (bn) 3 $11.0 NZ$1.1 $12.0 Assets Under Management (bn) 3 $39.9 NZ$2.4 $
Slide 7: Comparable Retail Sales Growth
COMPARABLE RETAIL SALES GROWTH Pro forma post sale of four Australian assets and three New Zealand assets Full Year Results 2015 // Page 7
Slide 8: Comparable Retail Sales Growth
COMPARABLE RETAIL SALES GROWTH Pro forma post sale of four Australian assets and three New Zealand assets Total stable portfolio including mini majors and specialties Full Year Results 2015 // Page 8
Slide 9: Operating Performance
OPERATING PERFORMANCE 12 months to 31 December 2015 Australia New Zealand Total Moving Annual Turnover (incl. GST) bn $20.6 NZ$1.9 $22.3 Specialty Store Retail Sales (incl. GST) (psm) $10,826 NZ$12,117 $10,867 Specialty Store Rent (psm) $1,606 NZ$1,289 $1,569 Comparable NOI growth 2.7% 0.9% 2.6% Por
Slide 10: Project Details
PROJECT DETAILS ACTIVE PROJECTS Total SCG Share Project Yield Anticipated Project Range Completion $m $m Scentre Group 2016 Starts Chermside 355 355 2017 North Lakes – Stage 2 140 70 2016 495 425 2015 Starts Warringah Mall 310 155 2016 Casey Central 155 155 2016 465 310 960 735 7.0 - 7.5% Third Part
Slide 11: Appendices
APPENDICES Scentre Group - Full Year Results 2015 // Page 11
Slide 12: Developments: Westfield Chermside
DEVELOPMENTS ACTIVE PROJECTS WESTFIELD CHERMSIDE The $355m redevelopment of Westfield Chermside includes the construction of a second level gallery mall that will connect with the upper levels of Myer and David Jones department stores, and a new lifestyle and entertainment precinct. The gallery mall
Slide 13: Developments: Westfield North Lakes Stage 2
DEVELOPMENTS ACTIVE PROJECTS WESTFIELD NORTH LAKES - Stage 2 A $140m redevelopment of Westfield North Lakes is underway with the construction of a new 60-store retail mall that will link the new 29,000sqm IKEA-owned store currently under construction with the existing centre. The new retail mall wil
Slide 14: Developments: Westfield Warringah Mall
DEVELOPMENTS ACTIVE PROJECTS WESTFIELD WARRINGAH MALL Construction at Westfield Warringah Mall is progressing well and on track to open in 2016. A new two-level parallel mall, anchored by a reconfigured Myer department store and large format mini-major retailers across both levels, will connect thro
Slide 15: Developments: Casey Central
DEVELOPMENTS ACTIVE PROJECTS CASEY CENTRAL Work is progressing well on the $155m project at Casey Central which is on track for completion with the first stage opening in March and final stage in September 2016. Casey Central, in which the Group acquired its initial interest in 2006, will transform
Slide 16: Developments: Westfield Hurstville
DEVELOPMENTS COMPLETED PROJECTS WESTFIELD HURSTVILLE In November 2015 Westfield Hurstville’s $105m redevelopment opened with a full refurbishment, an ambience upgrade and the introduction of ticketless parking. A highlight of the project is the rooftop dining and entertainment precinct which has a r
Slide 17: Developments: Westfield Chatswood
DEVELOPMENTS COMPLETED PROJECTS WESTFIELD CHATSWOOD In November 2015 the first stage of Westfield Chatswood’s $125m redevelopment opened with a new five-level mall on Victoria Avenue replacing the existing two-level mall, and a reconfiguration and upgrade of two levels of the existing multi- storey
Slide 18: Developments: Westfield Miranda
DEVELOPMENTS COMPLETED PROJECTS WESTFIELD MIRANDA Westfield Miranda opened in October 2014 with the launch of a gourmet fresh food market and a three-level galleria fashion mall and an al fresco dining precinct with nine restaurants, cafes and food operators set around a landscaped public space. Ope
Slide 19: Financing Facilities
FINANCING Diversified funding including bonds and bank facilities from 19 banks FACILITIES FACILITIES LIQUIDITY Total Committed $14.0bn Amount Drawn $(10.4)bn Undrawn $3.6bn Cash $0.1bn Liquidity $3.7bn MATURITY PROFILE As at 31 December 2015 with foreign currency bonds at fully hedged A$ equivalent
Slide 20: Key Ratios and Interest Hedging
KEY RATIOS KEY METRICS 31 December 2015 Gearing (look through basis) 33.3% 1 Weighted Average Debt Maturity 5.6 years Investment Grade Ratings A1 (Stable) Moody's A (Stable) S&P BOND COVENANTS Requirement 31 December 2015 Net Debt/ Net Assets Not greater than 65% 34.6% 2 Secured Debt/ Total Assets N
Slide 21: Profit and FFO
PROFIT AND FFO PROFIT AND FFO $m PROFIT FFO FFO Financial 12 months to Adjustments 1 12 months to Statement Notes 31 December 2015 31 December 2015 A B C=A+B Net Property Income - Australia 1,632 36 1,668 Note 4(a)(iv) - New Zealand 154 2 156 Note 4(a)(iv) Total Net Property Income 1,786 38 1,824 No
Slide 22: Balance Sheet
BALANCE SHEET BALANCE SHEET PROPORTIONATE 1 $m Consolidated Equity Accounted 31 December 2015 A B C=A+B Cash 143 10 153 Property investments - Shopping centres 27,161 2,352 29,513 - Development projects and construction in 494 71 565 progress Total Property investments 27,655 2,423 30,078 Assets hel