Slide 1: ASX Announcement: Full Year FFO of 25.42c per Security
ASX Announcement 18 February 2020 FULL YEAR FUNDS FROM OPERATIONS OF 25.42c PER SECURITY UP 3.2% (PRO FORMA BASIS); For personal use only ANNUAL CUSTOMER VISITS GROW TO 548 MILLION Scentre Group (ASX: SCG) today released its results for the 12 months to 31 December 2019, with Funds From Operations (
Slide 2: Financial position, operations and responsible business
The Group has a strong financial position with interest cover at 3.6 times and FFO/Debt of 10.3%. Balance For personal use only sheet gearing was 33.0% at 31 December 2019. The Group has “A” grade credit ratings by S&P, Fitch and Moody’s. Operations Comparable net operating income increased by 2.0%
Slide 3: Outlook
Outlook For personal use only The Group forecasts Operating Earnings for the 12 months ending 31 December 2020 to be between 24.75 and 24.80 cents per security. This would represent growth, on a pro forma basis1, of approximately 3.1%. The Group forecasts to achieve Project Income (after tax) of app
Slide 4: Westfield Newmarket, NZ
For personal use only Full Year Results 2019 Westfield Newmarket, NZ
Slide 5: Scentre Group Overview
Scentre Group Overview For personal use only Extraordinary platform of 42 Westfiel Living Centres with over 548 million annual customer Creating visits extraordinary places, – Regarded as the first choice platform for retail and brand partners to connect and interact with customers connecting and –
Slide 6: For personal use only
For personal use only Full Year Results 2019 3
Slide 7: Full Year Results
Full Year Results For personal use only 31 December 2019 Cents per Proforma $m security Growth % Growth %1 “Our strategic focus on the customer and Operating Earnings (OE)2 1,287.4 24.34 1.0% + 3.6% curation of our offer to continually meet their Funds From Operations (FFO) 1,344.6 25.42 0.7% + 3.2%
Slide 8: Highlights
Highlights For personal use only Customer & Retail Partners Development & Asset Management Capital Management Activity – Increased annual customer visits to over 548 – Opened the NZ$790 million (SCG share: – Divested the Sydney Office Towers for $1.52 million in 2019 an increase of more than 12 mill
Slide 9: Operating Performance
Operating Performance For personal use only 31 December 20191 Customer Visits Per Annum > 548 million, an increase of > 12 million “The strength of our portfolio combined Comparable Net Operating Income (NOI) Growth2 + 2.0% with our leading Portfolio Leased 99.3% operating platform has seen customer
Slide 10: Net Operating Income
Net Operating Income For personal use only Comparable NOI Growth1 31 Dec 2019 Portfolio Leased 99.3% approx. 20% of Lease Deals Number – Total Deals3 2,566 specialty rent Lease Deals Area (sqm) – Total Deals3 420,239 Average Specialty Lease Incentives 7.2%4 During 2019, comparable net operating inco
Slide 11: Scentre Group Portfolio
Scentre Group Portfolio High quality retail property – strategically located within high population-growth trade areas – generating more than 548 million customer visits For personal use only Scentre Group’s portfolio is located in major cities, with population forecast to grow by more than 40% or 1
Slide 12: Development Activity
Development Activity For personal use only Total Project Cost SCG Share Completion $m $m Completed Projects Newmarket NZD790 NZD400 Q4 2019 Active Projects Carindale 50 16 2H 2020 Mt Druitt 55 28 2H 2020 Total Projects 863 428 Target returns from development of greater than 7% yield and greater than
Slide 13: Future Retail Developments
Future Retail Developments For personal use only Albany (NZ) > $3bn 1 2 Barangaroo (NSW) Future Retail Developments 3 Booragoon (WA) 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 In addition, the Group h
Slide 14: We are a Responsible, Sustainable Business
We are a Responsible, Sustainable Business For personal use only Community Environmental People Economic Connecting and enriching communities Net zero emissions by 20301 We will be the place for talent to thrive We will deliver long term sustainable returns through economic cycles – Continued to exp
Slide 15: Financial Performance
Financial Performance For personal use only Funds From Operations 12 months to 12 months to Growth % Pro forma1 $m 31 Dec 2019 31 Dec 2018 Growth % Net Operating Income 1,925.5 1,900.8 Management Income 48.7 46.1 + 3.6% Income 1,974.2 1,946.9 1.4% 1 Overheads (88.1) (85.9) EBIT 1,886.1 1,861.0 1.3%
Slide 16: Cash Flow
Cash Flow For personal use only Cash flows from operating activities 12 months to 31 Dec 2019 Receipts in the course of operations (including GST) 2,931.3 Payments in the course of operations (including GST) (962.2) Net operating cash flows from equity accounted entities 130.4 Income and withholding
Slide 17: Financial Position
Financial Position For personal use only Balance Sheet $m Total Property Investments 31 Dec 2019 38,172.6 31 Dec 2018 39,101.1 $38.2bn Property Investments Total Assets 40,034.9 40,982.3 Total Liabilities 15,798.0 16,419.6 $23.3bn Net Assets before Minority Interest 24,236.9 24,562.7 Net Assets Mino
Slide 18: Debt Management
Debt Management For personal use only 31 Dec 2019 Debt metrics Net Debt FFO to Debt $12.9bn 10.3% $1.8bn 85% Interest Cover 3.6x Liquidity Interest Interest rate exposure hedged percentage 85% rate hedging 3.6x 33.0% Weighted average interest rate 4.2% Weighted average debt maturity 4.2 years Liquid
Slide 19: Debt Management: Maturity Profile and Liquidity
Debt Management For personal use only 31 Dec 2019 Maturity Profile Facilities & Liquidity $A billion % $bn 3.5 Bonds EUR 33% 4.8 3.0 USD 18% 2.7 2.5 GBP 10% 1.5 2.0 AUD 3% 0.4 1.5 Total 64% 9.4 Bank Facilities 1.0 Drawn 26% 3.8 0.5 Undrawn 10% 1.5 - Total 36% 5.3 2020 2021 2022 2023 2024 2025 2026 2
Slide 20: Outlook 2020 Forecast
Outlook 2020 Forecast For personal use only Cents per Proforma Growth % security Growth %1 “Our proposition is to Operating Earnings (OE)2 24.75 – 24.80 + 1.7% + 3.1% deliver long-term sustainable returns Net Project Income3 0.53 – 0.55 through economic cycles” Funds From Operations (FFO) approx. 25
Slide 21: Appendix
Appendix For personal use only Westfield Newmarket, NZ Full Year Results 2019 18
Slide 22: Developments: Westfield Newmarket
Developments For personal use only Completed project Westfield Newmarket, NZ Overview Project Cost NZ$790m (SCG share: NZ$400m) Commencement Q1 2018 Completion Q4 2019 Highlights Incremental Project GLA 52,000sqm Westfield Newmarket, NZ Completed Centre GLA 88,150sqm New Anchors David Jones, Farmers
Slide 23: Developments: Westfield Carindale
Developments For personal use only Active project Westfield Carindale, QLD Overview Project Cost $50m (SCG share: $16m) Commencement Q1 2019 Completion 2H 2020 Highlights New Anchors Kmart and new format David Jones1 Westfield Carindale, QLD 1. The new format David Jones store opened in November 201
Slide 24: Developments: Westfield Mt Druitt
Developments For personal use only Active project Westfield Mt Druitt, NSW Overview Project Cost $55m (SCG share: $27.5m) Commencement Q4 2019 Completion 2H 2020 Highlights Incremental Project GLA 4,000sqm Westfield Mt Druitt, NSW Completed Centre GLA 64,373sqm Specialty Retail Introducing 12 new ro
Slide 25: Retailer In-Store Sales
Retailer In-Store Sales For personal use only Comparable specialty in-store sales growth1 3 months to 12 months to Total in-store sales grew 1.5% for the quarter and 1.9% for the year 31 Dec 2019 31 Dec 2019 Retail Services 9.2% 7.1% Specialty in-store sales grew 2.8% for the quarter and 2.2% for th
Slide 26: Retailer In-Store Sales by region
Retailer In-Store Sales For personal use only Comparable specialty in-store sales growth by region1 5% 3.9% 3 months MAT 3.6% 3.2% 3.1% 3% 2.8% 2.6% 2.3% 2.2% 1.6% 1% 0.8% n/a2 0.2% (1%) (1.2%) (1.7%) (2.4%) (3%) NSW QLD VIC WA SA ACT NZ Total 1. Total stable portfolio – total dollar sales growth 2.
Slide 27: Retailer In-Store Sales: category contribution
Retailer In-Store Sales For personal use only Category contribution of $25 billion of total retailer in-store sales 18.0% “By listening and acting on 16.0% 16.8% what our customers want we have actively curated the mix 14.0% within our portfolio” 13.5% 12.0% PETER ALLEN CEO 10.0% & Other Fashion Uni
Slide 28: Distribution Per Security (cents)
Distribution Per Security (cents) For personal use only Delivering long-term sustainable returns through economic cycles +3.0% 23.28 +2.0% 22.60 +2.0% 22.16 +2.0% 21.73 +1.9% 21.30 20.90 2015 2016 2017 2018 2019 2020 (Forecast) Full Year Results 2019 25
Slide 29: Profit & FFO
Profit & FFO For personal use only Reconciliation from Profit to FFO Statutory Profit FFO FFO Financial 12 months to Adjustments 1 12 months to Statement $m 31 Dec 2019 31 Dec 2019 Notes A B C=A+B 1. FFO adjustments relate to property Net operating income 1,848.4 77.1 1,925.5 Note 2(iii) revaluation
Slide 30: Balance Sheet
Balance Sheet For personal use only Balance Sheet – Proportionate1 $m Consolidated EquityAccounted 31 Dec 2019 A B C = A +B Cash 253.0 8.0 261.0 Property Investments 1. Period end AUD/NZD exchange rate 1.0423 – Shopping centres 34,301.8 3,241.0 37,542.8 at 31 Dec 2019 – Development projects and cons
Slide 31: Interest Rate Hedging
Interest Rate Hedging For personal use only 31 Dec 20191 Hedge Maturity Profile Interest Rate Hedging $A billion $bn Fixed Rate 12.0 2.54% Net Debt 12.9 10.0 2.47% 2.45% 8.0 Fixed Rate Debt 2.36% $ Fixed rate debt 0.4 3.31% 2.26% 6.0 2.29% 4.0 Derivatives 2.13% 2.0 $ Swap Payable 9.9 2.49% 1.51% NZ$
Slide 32: 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