Scentre Group · ASX:SCG
Scentre — FY2024 Earnings Presentation
30 slides from Scentre's earnings presentation, Feb 26, 2025
Slide 1: ASX Announcement: Scentre Group grows FFO by 3.5% to $1,132 million
ASX Announcement 26 February 2025 SCENTRE GROUP GROWS FUNDS FROM OPERATIONS BY 3.5% TO $1,132 MILLION Scentre Group (ASX: SCG) today released its results for the 12 months to 31 December 2024 with Funds From Operations (FFO) of $1,132 million (21.82 cents per security), up 3.5% on the previous year.
Slide 2: Westfield destinations and capital management
Westfield destinations The Group continues to progress its $4 billion pipeline of future development opportunities. The Group is focused on repurposing space. During the year the Group completed works at Westfield Tea Tree Plaza in Adelaide and Westfield Mt Gravatt in Brisbane with visitation up 8.6
Slide 3: Outlook
Outlook Mr Rusanow said: “Our strategy to attract more people to our destinations and unlock growth opportunities is expected to continue to deliver growth in earnings and distributions.” Subject to no material change in conditions, the Group’s target for FFO is 22.75 cents per security for 2025, re
Slide 4: Full Year Results 2024
2024 Full Year Results Connecting and enriching communities Westfield Chermside, QLD
Slide 5: 2024 Overview
2024 Overview 42 w Efficient platform for Strong demand from Financial destinations close to 20 businesses to connect with more businesses million people, activated to consumers attract more people +4.0% on FY23 526m $29.0bn 99.6% $2,030m Net Operating Income +3.5% Annual customer visits Business pa
Slide 6: Full Year Overview
Full Year Overview Our strategy is to create the places and experiences that more people choose to come to, more often and for longer Customer Experience Projects Financial Highlights – Welcomed 526 million customers in 2024, up – Successful completion of projects at Westfield – Net Operating Income
Slide 7: Visitation
Visitation CUSTOMER VISITATION +14m STRATEGIC PARTNERSHIPS +2.8% 526m Olympic Meet and Greet at Westfield Mt Gravatt, QLD 512m Amy Shark at Westfield Miranda, NSW 2023 2024 Disney at Westfield Southland, VIC Full Year Results 2024 4
Slide 8: Business Partner Sales
Business Partner Sales TOTAL PORTFOLIO SALES (MAT $bn) +$544m +1.9% For the 12 months to 31 December 2024 total sales were: $29.0bn – Up $544 million or 1.9% on 2023 $28.4bn – Up $4.0 billion or 15.8% on 2019 $26.7bn $25.0bn $22.0bn $22.1bn 2019 2020 2021 2022 2023 2024 Full Year Results 2024 5
Slide 9: Leasing Activity
Leasing Activity PORTFOLIO OCCUPANCY1 99.6% AVERAGE SPECIALTY RENT ESCALATIONS3 +5.2% LEASING DEALS3 3,253 +40bps2 CPI + 2% average specialty rent escalations 3,409 3,273 3,253 99.6% 2,686 1,177 2,566 2,625 2,497 1,169 1,176 2,466 99.3% AVERAGE SPECIALTY LEASING SPREAD3 +2.0% 1,410 1,161 848 1,090 +
Slide 10: Gross Rent Cash Collections
Gross Rent Cash Collections Collected $2,821m, equivalent to 102% of gross billings GROSS RENT CASH COLLECTIONS +$98m NET TRADE DEBTORS $22m 12 MONTHS TO 31 DEC 2024 AS AT 31 DEC 2024 $2,821m $2,723m $2,592m $193m $186m $2,258m $84m $2,058m 1 $22m $22m Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-20 Dec-2
Slide 11: Westfield destinations
Westfield destinations 42 Westfield destinations 74m Customer visits 672,000m2 of retail GLA 127ha of land QLD 6 locations Our destinations are in close proximity to 242m 20 million people and situated on more Customer visits 1.4 million m2 of retail GLA than 670 hectares of land holdings in 37m NSW
Slide 12: >$4.0bn Future Developments
>$4.0bn Future Developments Target yield of 6-7% with an incremental IRR of 12-15% RETAIL AND MIXED-USE DEVELOPMENT RESIDENTIAL DEVELOPMENT Received rezoning approval at Westfield Hornsby in Sydney and Westfield Belconnen in Canberra providing the opportunity for large- scale residential development
Slide 13: We are a responsible and sustainable business
We are a responsible and sustainable business COMMUNITY PEOPLE ENVIRONMENT ECONOMIC PERFORMANCE IMPLEMENTED KEY PARTNERSHIPS EMPLOYEE ENGAGEMENT AT 89% ON TRACK FOR NET ZERO BY 2030 $1,132 MILLION FFO INCREASED CUSTOMER ADVOCACY LAUNCHED “EVERYONE BELONGS” LONG-TERM ENERGY AGREEMENTS GLOBAL ESG LEAD
Slide 14: Operating Profit and FFO
Operating Profit and FFO 12 months to 12 months to $m 31 Dec 2024 31 Dec 2023 Growth $ Growth % Property revenue 2,643.8 2,528.4 Property expenses (614.3) (577.7) Net Operating Income 2,029.5 1,950.7 78.8 4.0% Management income 52.2 48.9 NET OPERATING INCOME +4.0% Income 2,081.7 1,999.6 Overheads (9
Slide 15: Financial Position
Financial Position $m 31 Dec 2024 31 Dec 2023 NET ASSET VALUE Total Assets1 35,223.2 35,070.4 $0.66 Senior borrowings2 (11,229.3) (10,767.7) Other liabilities (2,105.6) (2,406.4) Minority interest (183.1) (356.2) Subordinated notes3 (3,698.9) (3,698.8) Net Tangible Assets4 18,006.3 17,841.3 Net Tang
Slide 16: Funding
Funding FUNDING INTEREST COVER LIQUIDITY 3.7x $3.6bn Senior borrowings $11.2bn Gearing 30.9% Weighted average facility maturity 3.6 years Subordinated notes $3.7bn Liquidity $3.6bn FFO TO DEBT INTEREST RATE HEDGED 2 12.7% 94% Weighted average interest rate1 5.7% Interest rate exposure hedged percent
Slide 17: Funding: facility maturity profile
Funding Available liquidity of $3.6 billion at 31 December 2024 FACILITY MATURITY PROFILE1 % A$bn Margin $billion Senior Bonds 4.0 AUD 9% 1.6 USD 23% 4.3 3.5 EUR 8% 1.6 3.0 GBP 4% 0.7 HKD 1% 0.1 2.5 Total 45% 8.3 Bank Facilities 2.0 Drawn 18% 3.4 1.5 Undrawn 17% 3.2 Total 35% 6.6 1.0 Total Senior Fa
Slide 18: Interest Rate Hedging
Interest Rate Hedging HEDGE MATURITY PROFILE AND RATES1 $bn 16.0 14.0 2.99% 2.98% 94% at 2.99% HEDGED AT JANUARY 2025 12.0 10.0 2.99% 8.0 6.0 94% Hedged 82% Hedged 3.54% 82% at 2.98% HEDGED AT DECEMBER 2025 57% 4.0 Hedged 32% 3.79% 3.63% 2.0 Hedged 14% 3% Hedged Hedged 0.0 Jan-25 Dec-25 Dec-26 Dec-2
Slide 19: Outlook
Outlook Subject to no material change in conditions: − The Group’s target for Funds From Operations is 22.75 cents per security for 2025, representing 4.3% growth for the year. − Distributions are expected to grow by 2.5% for 2025 to 17.63 cents per security. Full Year Results 2024 16
Slide 20: Appendices
Appendices Appendices Olympic Live Site at Westfield Chermside, QLD Full Year Results 2024 17
Slide 21: Developments: Completed
Developments Completed Westfield Tea Tree Plaza, SA Westfield Mt Gravatt, QLD Customer visitation since Customer visitation since opening is opening is 8.6% higher 6.7% higher than the prior comparable than the prior comparable period period Project Cost $27m (SCG Share: $13.5m) Project Cost $50m (S
Slide 22: Developments: Westfield Sydney
Developments Active Westfield Sydney, NSW Highlights Overview Introducing a further 5 levels of luxury and high-end Project Cost $450m (SCG Share: $450m) retail, including the new CHANEL boutique. Commencement 2024 Completion Progressively from Q2 2025 Other brands to join the expanded Westfield Inc
Slide 23: Developments: Active
Developments Active Westfield Bondi, NSW Westfield Burwood, NSW Westfield Southland, VIC Project Cost $28m (SCG Share: $28m) Project Cost $48m (SCG Share: $24m) Project Cost $72m (SCG Share: $36m) Commencement 2024 Commencement 2024 Commencement 2024 Completion H2 2025 Completion Q4 2025 Completion
Slide 24: Profit and FFO
Profit and FFO Statutory Profit FFO Financial Reconciliation from Profit to FFO 12 months to FFO 12 months to Statement $m 31 Dec 2024 Adjustments1 31 Dec 2024 Notes 1. The Group’s measure of FFO is based upon the National Association of A B C=A+B Real Estate Investment Trusts’ (NAREIT, a US industr
Slide 25: Operating Cashflow
Operating Cashflow Cash flows from operating activities - proportionate Equity 12 Months to 12 Months to $m Consolidated Accounted 31 Dec 2024 31 Dec 2023 Receipts in the course of operations (including GST) 2,992.2 299.7 3,291.9 3,190.2 Payments in the course of operations (including GST) (994.6) (
Slide 26: Balance Sheet
Balance Sheet Balance Sheet - Proportionate1 Equity Debt $m Consolidated Accounted 31 Dec 2024 Reclassification 31 Dec 2024 1. Period end AUD/NZD exchange rate 1.1045 at 31 December 2024 A B C=A+B 2. Includes trade debtors and receivables, interest receivable, interest Cash 380.6 42.1 422.7 (422.7)
Slide 27: Business Partner Sales: Growth Over 2019
Business Partner Sales Growth Over 20191 Total Portfolio 12 Months to 6 Months to 3 Months to Total sales were 15.8% higher for the 12 months to December Sales Growth by Category 31 Dec 2024 31 Dec 2024 31 Dec 2024 Specialty sales were 20.2% higher for the 12 months to December Fashion 14.3% 14.2% 1
Slide 28: Business Partner Sales: Growth Over 2023
Business Partner Sales Growth Over 20231 Total Portfolio 12 Months to 6 Months to 3 Months to Total sales were 1.9% higher for the 12 months to December Sales Growth by Category 31 Dec 2024 31 Dec 2024 31 Dec 2024 * Growth has been impacted by the repurposing projects at Westfield Fashion (1.1%) (0.
Slide 29: Property Valuations December 2024
Property Valuations 31 December 2024 AUSTRALIA (A$m) Ownership Book Value Retail Cap Rate Economic Yield AUSTRALIA (A$m) Ownership Book Value Retail Cap Rate Economic Yield Australian Capital Territory South Australia Belconnen 100% 815.0 6.25% 6.69% Marion 50% 630.0 6.00% 6.94% Woden 50% 290.2 6.25
Slide 30: Important Notice
Important Notice All amounts in Australian dollars unless otherwise specified. SCENTRE GROUP LIMITED ABN 66 001 671 496 The material in this release and presentation is for general information purposes only and is given in summary form. Information in this presentation SCENTRE MANAGEMENT LIMITED is