Scentre Group · ASX:SCG
Scentre — H1 2021 Earnings Presentation
31 slides from Scentre's earnings presentation, 2021
Slide 1: Half Year Results 2021
Half Year Results 2021 Westfield Chermside, QLD
Slide 2: Half Year Results
Half Year Results 30 June 2021 6 months to 6 months to $million 30 Jun 2021 30 Jun 2020 Growth % Operating Profit $460.1 $360.8 Cents per security 8.88c 6.94c 28.0% Funds From Operations (FFO) $463.4 $361.9 Cents per security 8.94c 6.96c 28.4% Receipts in the course of operations $1,383.9 $1,059.4 3
Slide 3: Half Year Overview
Half Year Overview Our Westfield Living Centre platform is essential to people, Capital Management communities and businesses The Group currently has available liquidity of $5.7 billion, sufficient to cover During the 6 months to June 2021 we experienced a strong all debt maturities to early 2024. o
Slide 4: Customer Visits by Region
1. 20 120 0 80 40 140 60 100 20 120 0 80 40 60 100 Legend Jan-20 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 Denotes lockdown period Sep-20 Sep-20 Oct-20 Oct-20 SA Nov-20 Nov-20 ACT Dec-20 Dec-20 Jan-21 Jan-21 Feb-21 Feb-21 Mar-21 Mar-21 A
Slide 5: Total Sales
Total Sales 1 Our business partners experienced a strong rebound in sales as soon as government restrictions were eased Retailer In-Store Sales $11.8b $0.8b $11.2b When restrictions are removed, customers want to return $0.1b to our centres to purchase and consume goods, services $9.8b and experienc
Slide 6: Total Sales by Region
Total Sales by Region 1 Our business partners experienced a strong rebound in sales as soon as government restrictions were eased SA - No Lockdown Days 2 NZ - 7 Days 2 NSW - 15 Days 2 $0.8b $0.7b $0.8b $0.7b $0.7b $0.9b $4.6b $3.7b $4.4b H119 H120 H121 H119 H120 H121 H119 H120 H121 ACT - No Lockdown
Slide 7: Leasing Activity
Leasing Activity We have experienced strong demand for space Leasing Deals New Leases Renewals Demand for space in our Living Centres is strong 1,515 1,189 During the first half, we have completed 1,515 leasing deals, 619 including 619 new merchant deals 576 596 613 293 896 We have welcomed 139 new
Slide 8: Gross Rent Cash Collections
Gross Rent Cash Collections The Group collected $1.2 billion of gross rent during the first half of 2021 250 1st Half 2020: $875 million 1st Half 2021: $1.2 billion 200 $200m $200m $200m $199m $202m $201m $198m $200m $174m $168m 150 100 $74m 50 $59m - January February March April May June January Fe
Slide 9: Long-Term Growth in Total Rental Income
Long-Term Growth in Total Rental Income Total Portfolio1 Space (GLA square metres) Our leading platform, expertise and focus on curating an offer that our customers want has delivered long-term 3.9m growth 3.6m Since 2010, we have consistently grown rental income. This 3.4m has been achieved through
Slide 10: Scentre Group Overview
Scentre Group Overview Our Purpose Extraordinary platform of 42 Living Centres, Creating extraordinary places, connecting and enriching communities ownership 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 c
Slide 11: Strategic Locations
Strategic Locations The strategic locations of our portfolio enables businesses to efficiently connect with more customers With a total population of 30 million, there is further opportunity for the business and platform to reach more people 20 people million live within close proximity to a people
Slide 12: Customer Initiatives
Customer Initiatives Enhancing Customer “tbd” Engagement PETER ALLEN CEO We continue to give customers more reasons to engage, more often and for longer We’re expanding the Westfield ecosystem – creating more opportunities for interaction between Scentre Group, our customers and business partners Ha
Slide 13: Westfield Plus
Scan to Join Westfield Plus Introducing Westfield Plus Our membership program Designed to drive value for our customers by removing friction in centre, personalising communications and rewarding engaged members with exclusive benefits Live in all 42 Westfield Living Centres 1.9 million members We ha
Slide 14: Westfield Direct
Westfield Direct Aggregated Click & Collect Following the successful pilot during 2020, we are on track to launch Westfield Direct in the second half of 2021. Designed as an extension of the Westfield in-centre experience Offering customers aggregated click & collect through our Living Centres from
Slide 15: Development Activity
Development Activity Total Completion Project Cost SCG Share $m $m Active Projects Mt Druitt 55 28 Q1 2022 Total Projects 55 28 3rd Party Design and Construction 101 Castlereagh Street residential and commercial project on behalf of Cbus Property 2023 Total Special Projects 25 25 Future Developments
Slide 16: Future Developments
Future Developments Albany (NZ) > $4.5bn 1 2 Barangaroo (NSW) 3 Booragoon (WA) Future Developments 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 Half Year Results 2021 16
Slide 17: We are a Responsible, Sustainable Business
We are a Responsible, Sustainable Business Open & Safe Delivered $4.88 million Customer First Westfield living centres remain open, first vaccination hub in Westfield donated to Westfield Local Heroes Leveraged customer listening tools (CX operating with COVID Safe protocols. Chermside with provider
Slide 18: Operating Profit and FFO
Operating Profit and FFO 6 months to 6 months to Change Funds From Operations 30 Jun 2021 30 Jun 2020 $m Property revenue 1,136.6 1,139.9 Property expenses (258.9) (249.4) Expected Credit Charge (44.5) (232.1) Net Operating Income 833.2 658.4 26.5% Management income 23.1 20.9 Income 856.3 679.3 26.1
Slide 19: Assets Under Management
Assets Under Management The Group manages 42 Westfield Living Centres, with $50 billion of assets under management including $16 billion of 3rd party funds $15.8b JV Partners Scentre Group has perpetual management rights on these assets. The total annual management fees are approximately $160 millio
Slide 20: Financial Position
Financial Position $m 30 Jun 2021 31 Dec 2020 Total Balance Sheet Assets1 35,241.2 35,285.3 Borrowings2 (9,397.8) (9,253.8) Other (2,089.4) (2,326.2) Minority Interest (787.4) (778.7) Subordinated Notes3 (4,109.6) (4,109.6) Net Balance Sheet Assets - attributable to ordinary securityholders 18,857.0
Slide 21: Funding
Funding 30 June 2021 Funding Borrowings $9.4bn 3.3x $5.7bn Gearing 27.9% Interest Cover Liquidity Weighted average debt maturity 4.5 years Subordinated notes $4.1bn Liquidity Weighted average interest rate1 $5.7bn 4.8% 12.0% 55% Interest rate exposure hedged percentage 55% FFO to Debt Interest rate
Slide 22: Funding
Funding Available liquidity of $5.7 billion, sufficient to cover all debt maturities to early 2024 Debt Maturity Profile1 % $bn $ billion Senior Bonds 3.5 USD 22% 4.3 3.0 EUR 20% 3.9 GBP 8% 1.5 2.5 HKD 1% 0.1 2.0 Total 51% 9.8 Bank Facilities 1.5 Drawn 5% 0.9 Undrawn 23% 4.5 1.0 Total 28% 5.4 0.5 To
Slide 23: Outlook
Outlook The Group continues to target a distribution of 14 cents per security for the year to 31 December 2021. This is based on the assumption that the current government restrictions substantially ease by the end of October 2021. Half Year Results 2021 23
Slide 24: Appendices
Appendices Westfield Coomera, QLD
Slide 25: Profit & FFO
Profit & FFO Statutory Profit FFO Financial Reconciliation from Profit to FFO 6 months to FFO 6 months to Statement $m 30 Jun 2021 Adjustments1 30 Jun 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 bo
Slide 26: Cash Flow
Cash Flow Cash flows from operating activities – proportionate Equity 6 months to 6 months to $m Consolidated Accounted 30 Jun 2021 30 Jun 2020 Receipts in the course of operations (including GST) 1,257.7 126.2 1,383.9 1,059.4 Payments in the course of operations (including GST) (379.2) (36.8) (416.
Slide 27: Balance Sheet
Balance Sheet Balance Sheet – Proportionate1 Equity Debt $m Consolidated Accounted 30 Jun 2021 Reclassification 30 Jun 2021 1. Period end AUD/NZD exchange rate A B C = A +B 1.0741 at 30 Jun 2021 Cash 406.8 27.0 433.8 (433.8) - 2. Includes $613.6m of Property Linked Short term deposits at bank 805.9
Slide 28: Interest Rate Hedging
Interest Rate Hedging 30 June 2021 Hedge Maturity Profile Interest Rate Hedging $ billion $bn Fixed Rate 8.0 2.06% Borrowings 9.40 1.96% 1.72% Subordinated notes 4.11 6.0 1.48% 1.40% Fixed Rate Debt 4.0 1.11% $ Fixed rate debt1 0.03 3.81% 2.0 1.22% Derivatives $ Swap payable 7.44 2.06% 0.0 Jun-21 De
Slide 29: Retailer In-Store Sales
Retailer In-Store Sales Growth over 20191 Total Majors and Specialty in-store sales were up 0.9% for the 6 months to June and 0.8% lower for the year compared to 20191, 2 Specialty in-store sales were up 2.3% for the 6 months and 0.8% lower for the year. Majors in-store sales were 1.3% lower for the
Slide 30: Property Valuations
Property Valuations 30 June 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% 6.14% Airport West 50% 182.5 5.85% 6.77% Woden 50% 305.0 5.75% 6.5
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