Scentre Group · ASX:SCG
Scentre — FY2021 Earnings Presentation
31 slides from Scentre's earnings presentation, February 2022
Slide 1: Full Year Results 2021
Full Year Results 2021 Westfield Newmarket, NZ
Slide 2: Full Year Results 31 December 2021
Full Year Results 31 December 2021 12 months to 12 months to $million 31 Dec 2021 31 Dec 2020 Growth %1 Gross Cash Receipts $2,680.3 $2,356.9 13.7% Net Operating Cash Flow $913.6 $732.7 24.8% Cents per security 17.62c 14.12c Operating Profit $845.8 $763.4 10.9% Cents per security 16.32c 14.71c Funds
Slide 3: Full Year Overview
Full Year Overview Our Ambition is to be essential to people, their communities and businesses that interact with them Financial Results Projects - Gross cash inflow of $2,680 million, an increase of $323 million, - Commenced the $355 million investment in Westfield Knox, introducing including an in
Slide 4: Gross Rent Cash Collections
Gross Rent Cash Collections The Group collected $2,258 million of gross rent during 2021, an increase of approximately $200 million compared to 2020 Full Year 2020: $2.1 billion Full Year 2021: $2.3 billion $249m Lockdowns Commenced: $238m VIC NSW ACT 28-May 26-Jun 12-Aug Reopening Commenced: NSW 11
Slide 5: Leasing Activity
Leasing Activity We have driven strong demand for space Occupancy has increased to 98.7% Leasing Deals New Merchants Renewals 2,625 2,497 During the year we completed 2,497 leasing deals, including 1,090 new merchant deals 848 1,090 We welcomed 267 new brands to the portfolio including a 1,777 1,407
Slide 6: Rental Growth
Rental Growth Total Portfolio 98.7% Up 20bps (7.6%) (5.9%) Occupancy across Specialty Specialty the total portfolio Leasing Spreads Leasing Spreads For the 12 months to For the six months to 31 December 2021 31 December 2021 $824 Up $5psm 6.8 years Average Rent Average Specialty Per Square Metre Lea
Slide 7: Total Sales
Total Sales 1 Retailer In-Store Sales (MAT $bn) $22.0bn $22.1bn $0.4bn $0.3bn Portfolio sales have grown despite 2021 having more days of government imposed trading restrictions than 2020 Sales in the second half of 2021 were $10.9 billion Government Restriction Days weighted by SCG portfolio 2020 2
Slide 8: Scentre Group
Scentre Group Our Purpose Leading platform of 42 Living Centres, ownership Creating extraordinary places, connecting and enriching communities of 7 of the top 10 centres in Australia and 4 of the top 5 in New Zealand Our Plan Essential social infrastructure, strategically located in close proximity
Slide 9: Westfield Plus
Scan to Join Westfield Plus Our membership program Designed to drive value to our customers through personalisation and rewarding engaged members with exclusive benefits Live in all 42 Westfield Living Centres 2.2 million members We have welcomed an additional 1.6 million new members in 2021 “Love t
Slide 10: Westfield Direct
Westfield Direct westfield.com.au Launched in October 2021 to give customers more options to connect with and buy from Westfield, offering aggregated ‘Click and Collect’ and delivery across our market leading Australian portfolio Westfield Direct was launched in October, and now has Over 150 sellers
Slide 11: Close Proximity to People
Close Proximity to People The strategic locations of our portfolio enables businesses to efficiently connect with more customers 20 people million live within close proximity to a Westfield Living Centre people live within close proximity to a Westfield Living Centre Brisbane 6 CENTRES Sydne Austral
Slide 12: Customer Driven Future Developments > $4.5bn
Customer Driven Future Developments > $4.5bn Future Developments Westfield Albany, NZ Westfield Barangaroo, NSW Westfield Booragoon, WA Westfield Doncaster, VIC Westfield Eastgardens, NSW Westfield Liverpool, NSW Westfield Sydney, NSW Westfield Warringah, NSW Westfield Parramatta, NSW Westfield Tea T
Slide 13: We are a Responsible, Sustainable Business
We are a Responsible, Sustainable Business Improved Facilitated $4.88 million Customer Input customer advocacy to 38, up 2 points. community access to COVID-19 recognising 489 Westfield Local Leveraged customer listening tools and vaccinations. Heroes since 2018.onated to Westfield community consult
Slide 14: Operating Profit and FFO
Operating Profit and FFO 12 months to 12 months to 31 Dec 2021 31 Dec 2020 $m Property revenue 2,269.5 2,262.3 Property expenses (527.0) (504.5) Expected Credit Charge (168.8) (303.9) Net Operating Income 1,573.7 1,453.9 Management income 44.8 41.0 Income 1,618.5 1,494.9 Overheads (81.7) (77.2) EBIT
Slide 15: Financial Position
Financial Position $m 31 Dec 2021 31 Dec 2020 Total Balance Sheet Assets1 35,480.7 35,285.3 Borrowings2 (9,532.0) (9,253.8) Other (2,052.5) (2,326.2) Minority Interest (787.7) (778.7) Subordinated Notes3 (4,109.6) (4,109.6) Net Balance Sheet Assets – attributable to ordinary securityholders 18,998.9
Slide 16: Funding
Funding 31 December 2021 Funding Borrowings $9.5bn 4.0x $5.6bn Gearing 27.5% Interest Cover Liquidity Weighted average debt maturity 4.1 years Subordinated notes $4.1bn Liquidity Weighted average interest rate1 $5.6bn 4.2% 12.8% 50% Interest rate exposure hedged percentage 50% FFO to Debt Interest r
Slide 17: Funding
Funding Available liquidity of $5.6 billion, sufficient to cover all debt maturities to early 2024 Debt Maturity Profile1 % A$bn $ billion Senior Bonds 3.0 USD 22% 4.3 EUR 20% 3.9 2.5 GBP 8% 1.5 HKD 1% 0.1 2.0 Total 51% 9.8 1.5 Bank Facilities Drawn 4% 0.8 1.0 Undrawn 24% 4.6 Total 28% 5.4 0.5 Total
Slide 18: Outlook
Outlook The Group is focused on driving customer visitation, engagement and occupancy in order to deliver earnings growth in 2022 and future years. Subject to no material change in conditions, the Group expects to distribute at least 15.0 cents per security for 2022, representing at least 5.3% growt
Slide 19: Appendices
Appendices Westfield Newmarket, NZ
Slide 20: Developments: Westfield Knox
Developments Active project Westfield Knox, VIC Overview Project Cost $355m (SCG share: $177.5m) Commencement Q1 2022 Completion 2022 / 2023 Highlights Incremental Project GLA 4,000sqm Westfield Knox, VIC Completed Centre GLA 144,810sqm Offering Introducing a diverse mix of premium fashion and lifes
Slide 21: Developments: Westfield Mt Druitt
Developments Active project Westfield Mt Druitt, NSW Overview Project Cost $55m (SCG share: $27.5m) Commencement Q1 2021 Completion March 2022 Highlights Incremental Project GLA 4,000sqm Westfield Mt Druitt, NSW Completed Centre GLA 64,373sqm Offering Creation of an integrated rooftop dining, entert
Slide 22: Profit & FFO
Profit & FFO Statutory Profit FFO Financial Reconciliation from Profit to FFO 12 months to FFO 12 months to Statement $m 31 Dec 2021 Adjustments1 31 Dec 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’ (NAREIT, a US industry
Slide 23: Cash Flow
Cash Flow Cash flows from operating activities – proportionate Equity 12 months to 12 months to $m Consolidated Accounted 31 Dec 2021 31 Dec 2020 Receipts in the course of operations (including GST) 2,448.5 231.8 2,680.3 2,356.9 Payments in the course of operations (including GST) (775.0) (78.7) (85
Slide 24: Balance Sheet
Balance Sheet Balance Sheet – Proportionate1 Equity Debt $m Consolidated Accounted 31 Dec 2021 Reclassification 31 Dec 2021 1. Period end AUD/NZD exchange rate A B C = A +B 1.0627 at 31 December 2021 Cash 978.7 10.2 988.9 (988.9) - 2. Includes $612.0m of Property Linked Property Investments Notes sh
Slide 25: Interest Rate Hedging
Interest Rate Hedging As at 31 December 2021 Hedge Maturity Profile Interest Rate Hedging $ billion $bn Fixed Rate 8.0 7.0 1.96% 1.72% Fixed Rate Debt 6.0 1.48% 1.51% 1.40% $ Fixed rate debt1 0.03 3.81% 5.0 4.0 1.61% Derivatives 3.0 $ Swap payable 6.73 1.95% 2.0 2.09% 1.0 Total Hedged 6.76 1.96% 0.0
Slide 26: Customer Visits
Customer Visits 1 Weekly Customer Visits vs 2019 120 100 80 60 40 20 VIC & NZ Second Initial Lockdowns Lockdowns Various State Lockdowns Delta Lockdowns Omicron 0 Mar-20 May-20 Mar-21 May-21 Apr-20 Apr-21 Jun-20 Sep-20 Jun-21 Sep-21 Jan-20 Feb-20 Oct-20 Jan-21 Feb-21 Oct-21 Jan-22 Feb-22 Aug-20 Nov-
Slide 27: Customer Visits by Region
1. 20 120 0 80 40 60 100 20 120 0 80 40 60 100 Jan-20 Legend 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 Sep-20 Sep-20 Oct-20 Oct-20 Nov-20 Denotes lockdown period Nov-20 Dec-20 Dec-20 Jan-21 Jan-21 SA Feb-21 Feb-21 QLD Mar-21 Mar-21 Apr-2
Slide 28: Total Sales by Region
Total Sales by Region 1 SA ACT VIC 2 2 7 Days 2 No Days 63 Days 108 Days 2 4 Days 2 154 Days 2 $1.6b $1.7b $0.8b $0.8b $3.2b $3.6b 2020 2021 2020 2021 2020 2021 QLD NZ 14 Days 2 97 Days 2 114 Days 2 34 Days 2 $3.7b $4.0b $1.7b $1.7b 2020 2021 2020 2021 WA NSW 4 Days 2 2 No Days2 12 Days 2 106 Days $
Slide 29: Retailer In-Store Sales
Retailer In-Store Sales Growth over 20201 Total in-store sales were 1.4% lower for the 3 months to December and 0.1% higher for the year compared to 2020 Specialty in-store sales were 3.4% lower for the 3 months and 2.3% higher for the year. Majors in-store sales were 1.4% lower for the 3 months and
Slide 30: Property Valuations
Property Valuations 31 December 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% 6.15% Airport West 50% 182.5 5.85% 6.78% Woden 50% 305.0 5.75%
Slide 31: Important Notice
Important Notice 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 document has not been