Scentre Group · ASX:SCG
Scentre — FY2022 Earnings Presentation
31 slides from Scentre's earnings presentation, Feb 22, 2023
Slide 1: Scentre Group reports full year FFO growth of 20.6%
ASX Announcement 22 February 2023 SCENTRE GROUP REPORTS FULL YEAR FUNDS FROM OPERATIONS GROWTH OF 20.6% Scentre Group (ASX: SCG) today released its results for the 12 months to 31 December 2022 with Funds From Operations (FFO) of $1,040 million (20.06 cents per security), up 20.6%, and Distribution
Slide 2: ASX Announcement (continued): developments, membership, leadership
In November 2022 a $33 million investment at Westfield Penrith was completed, including the introduction of new casual dining experiences, a Coles supermarket and an entertainment precinct. The $33 million investment in Westfield Parramatta opened in December 2022 including a new fresh food precinct
Slide 3: Outlook
Outlook CEO Elliott Rusanow said: “We are confident that the strength of our business and platform, the quality of our team and our customer focused strategy will continue to generate long-term growth for our securityholders.” Subject to no material change in conditions, the Group expects FFO to be
Slide 4: Full Year Results 2022
FULL YEAR RESULTS 2022 Westfield Sydney, NSW
Slide 5: Purpose, Plan, Ambition and financial highlights
OUR PURPOSE: Creating extraordinary places, connecting and enriching communities OUR PLAN: We create the places more people choose to come, more often, for longer OUR AMBITION: To grow the business by becoming essential to people, their communities and the businesses that interact with them 12 MONTH
Slide 6: Full Year Overview
Full Year Overview Our Ambition is to grow the business by becoming essential to people, their communities and businesses that interact with them Customer Experience Scentre Group is a responsible, sustainable Financial Highlights – Welcomed 480 million customer visits in 2022, business – Funds From
Slide 7: Visitation
Visitation Creating the places more people choose to come, more often, for longer CUSTOMER VISITATION 67m Activated more than 15,400 events across our portfolio of +16.2% 42 Westfield destinations during 2022, up from 13,500 events in 2021 480m 413m Westfield Penrith, NSW 2021 2022 Full Year Results
Slide 8: Business Partner Sales
Business Partner Sales The most efficient platform for businesses to connect with people TOTAL PORTFOLIO SALES (MAT $bn) $4.6bn 1 +21.0% 1 $26.7bn $25.0bn $0.9bn $1.8bn For the 12 months to 31 December 2022: $22.0bn $22.1bn $0.4bn $0.3bn – Total sales were $4.6 billion higher than 2021 – Total sales
Slide 9: Leasing Activity
Leasing Activity1 The Group achieved a record level of leasing activity in 2022 LEASING DEALS AVERAGE SPECIALTY LEASE TERM PORTFOLIO OCCUPANCY 3,409 6.9 yrs 98.9% 912 deals Increased from 6.8 yrs 20bps 3,409 AVERAGE SPECIALTY LEASING SPREADS AVERAGE SPECIALTY RENT ESCALATION (3.6%) +6.8% 2,648 2,628
Slide 10: Gross Rent Cash Collections
Gross Rent Cash Collections The Group collected a record $2,592 million of gross rent during 2022 GROSS RENT CASH COLLECTIONS $334m NET TRADE DEBTORS $102m 12 MONTHS TO 31 DEC 2022 12 MONTHS TO 31 DEC 2022 $2,592m $2,258m $2,058m $193m $186m $84m 2020 2021 2022 2020 2021 2022 Full Year Results 2022
Slide 11: Development Opportunities
Development Opportunities Creating the places more people choose to come, more often, for longer Westfield Albany, NZ Westfield Barangaroo, NSW Westfield Booragoon, WA Westfield Sydney, NSW Westfield Doncaster, VIC Westfield Eastgardens, NSW Westfield Liverpool, NSW FUTURE DEVELOPMENTS >$4.5bn Westf
Slide 12: We are a responsible, sustainable business
We are a responsible, sustainable business COMMUNITY TALENT ENVIRONMENT ECONOMIC PERFORMANCE INVESTED $21M IN COMMUNITIES RETAINED KEY TALENT POWERED BY RENEWABLES 20.6% FFO GROWTH LAUNCHED AUSLAN SANTA GENDER-EQUALITY GLOBAL LEADER 38% EMISSIONS REDUCTION PROCUREMENT Invested $21 million Retained K
Slide 13: Operating Profit and FFO
Operating Profit and FFO 12 months to 12 months to $m 31 Dec 2022 31 Dec 2021 Property revenue 2,373.9 2,269.5 Property expenses (566.7) (527.0) OPERATING PROFIT Expected Credit Charge (ECC) (14.3) (168.8) 20.8% Net Operating Income 1,792.9 1,573.7 Management income 46.1 44.8 Income 1,839.0 1,618.5
Slide 14: Financial Position
Financial Position $m 31 Dec 2022 31 Dec 2021 Total Balance Sheet Assets1 35,977.0 35,432.7 Borrowings2 (9,941.9) (9,532.0) Other (2,850.1) (2,004.5) Minority Interest (544.8) (787.7) Subordinated Notes3 (4,109.6) (4,109.6) Net Tangible Assets4 18,530.6 18,998.9 Net Tangible Assets4 – per security $
Slide 15: Funding December 2022
Funding 31 December 2022 FUNDING INTEREST COVER LIQUIDITY 4.0x $4.8bn Borrowings $9.9bn Gearing 27.3% Weighted average debt maturity 3.6 years Subordinated notes $4.1bn Liquidity $4.8bn FFO TO DEBT INTEREST RATE HEDGED2 13.0% 85% Weighted average interest rate1 4.8% Interest rate exposure hedged per
Slide 16: Funding: debt maturity profile
Funding Available liquidity of $4.8 billion, sufficient to cover all debt maturities to Q4 2025 DEBT MATURITY PROFILE1 % A$bn Senior Bonds $bn USD 23% 4.3 3.0 EUR 21% 3.9 GBP 3% 0.7 2.5 HKD 1% 0.1 Total 48% 9.0 2.0 Bank Facilities 1.5 Drawn 8% 1.6 Undrawn 22% 4.1 1.0 Total 30% 5.7 Total Debt Facilit
Slide 17: Interest Rate Hedging
Interest Rate Hedging As at 31 December 2022 HEDGE MATURITY PROFILE $bn 2.31% 85% 12.0 2.30% 10.0 2.67% HEDGED AT JANUARY 2023 8.0 2.64% 81% 6.0 2.58% 4.0 HEDGED AT DECEMBER 2023 3.26% 2.0 0.0 Jan-23 Dec-23 Dec-24 Dec-25 Dec-26 Dec-27 Swap Payable Full Year Results 2022 14
Slide 18: Outlook
Outlook Subject to no material change in conditions, the Group expects: – FFO to be in the range of 20.75 to 21.25 cents per security for 2023, representing 3.4% to 5.9% growth for the year. – Distributions to be at least 16.50 cents per security for 2023, representing at least 4.8% growth for the y
Slide 19: Appendices
APPENDICES Westfield Knox, VIC
Slide 20: Developments: Westfield Knox
Developments Active Project Westfield Knox, VIC Highlights Overview Stage 1: Completed in December 2022, introducing a Project Cost $355m (SCG Share: $177.5m) diverse mix of premium fashion and lifestyle brands, a Commencement Q1 2022 new fresh food emporium, alongside new Completion Stage 1, Decemb
Slide 21: Developments: Westfield Mt Druitt
Developments Completed Project Westfield Mt Druitt, NSW Highlights Overview Creation of an integrated rooftop dining, Project Cost $55m (SCG Share: $27.5m) entertainment and lifestyle precinct. Commencement Q1 2021 Completion March 2022 Introduced 15 new dining experiences, an indoor Incremental Pro
Slide 22: Developments: Westfield Penrith
Developments Completed Project Westfield Penrith, NSW Highlights Overview Introduction of three new casual dining experiences, a Project Cost $33m (SCG Share: $16.5m) Coles supermarket and Hanaromart’s first Korean and Commencement Q1 2022 pan-Asian grocery store in Sydney. Completion November 2022
Slide 23: Developments: Westfield Parramatta
Developments Completed Project Westfield Parramatta, NSW Highlights Overview Reinvigorated and expanded the fresh food precinct Project Cost $33m (SCG Share: $16.5m) featuring an upgraded Coles supermarket, introducing Commencement Q1 2022 a new ALDI and an expanded specialist Asian Completion Decem
Slide 24: Profit and FFO
Profit and FFO Statutory Profit FFO Financial 1. The Group’s measure of FFO is based upon the National Association of Real Estate Investment Trusts’ (NAREIT, a US industry body) definition, adjusted to Reconciliation from Profit to FFO 12 months to FFO 12 months to Statement reflect the Group’s prof
Slide 25: Operating Cash Flow
Operating Cash Flow Cash flows from operating activities - proportionate Equity 12 Months to 12 Months to $m Consolidated Accounted 31 Dec 2022 31 Dec 2021 Receipts in the course of operations (including GST) 2,854.1 274.1 3,128.2 2,680.3 Payments in the course of operations (including GST) (938.5)
Slide 26: Balance Sheet
Balance Sheet Balance Sheet – Proportionate1 Equity Debt $m Consolidated Accounted 31 Dec 2022 Reclassification 31 Dec 2022 A B C=A+B 1. Period end AUD/NZD exchange rate 1.0729 at 31 December 2022 Cash 679.0 14.9 693.9 (693.9) - 2. Includes $354.9m of Property Linked Notes shown in minority interest
Slide 27: Business Partner Sales: Growth Over 2021
Business Partner Sales Growth Over 20211 Total Majors & Specialty sales were 14.4% higher for the 3 months to December and 18.6% higher for the year compared to 2021 Specialty sales were 16.9% higher for the 3 months and 23.2% higher for the year Majors sales were 10.6% higher for the 3 months and 1
Slide 28: Business Partner Sales: Growth Over 2019
Business Partner Sales Growth Over 20191 Total Majors & Specialty sales were 9.7% higher for the 3 months to December and 9.0% higher for the year compared to 2019 Specialty sales were 9.6% higher for the 3 months and 9.5% higher for the year Majors sales were 10.0% higher for the 3 months and 8.1%
Slide 29: Business Partner Sales: Comparable Growth Over 2019
Business Partner Sales Comparable Growth Over 20191 Total Majors & Specialty sales were 12.4% higher for the 3 months to December and 12.0% higher for the year compared to 2019 Specialty sales were 12.5% higher for the 3 months and 12.7% higher for the year Majors sales were 12.3% higher for the 3 m
Slide 30: Property Valuations December 2022
Property Valuations 31 December 2022 AUSTRALIA (A$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% 782.0 5.75% 6.18% Airport West 50% 197.5 5.65% 6.55% Woden 50% 310.0 5.75%
Slide 31: Important Notice
Important Notice All amounts in Australian dollars unless otherwise specified. The financial SCENTRE GROUP LIMITED ABN 66 001 671 496 information included in this document is based on the Scentre Group’s IFRS financial statements. Non IFRS financial information included in this document SCENTRE MANA