Scentre Group · ASX:SCG
Scentre — H1 2023 Earnings Presentation
26 slides from Scentre's earnings presentation, Aug 22, 2023
Slide 1: Scentre Group grows funds from operations to $556.6 million for first half of 2023
ASX Announcement 22 August 2023 SCENTRE GROUP GROWS FUNDS FROM OPERATIONS TO $556.6 MILLION FOR FIRST HALF OF 2023 DRIVEN BY 9.8% INCREASE IN CUSTOMER VISITATIONS Scentre Group (ASX: SCG) today released its results for the six months to 30 June 2023 with Funds From Operations (FFO) of $556.6 million
Slide 2: ASX Announcement continued: projects, sustainability, funding and outlook
Progress continues to be made on the Group’s strategic customer initiatives including our Westfield membership program which now exceeds 3.5 million members, an increase of 750,000 on the prior period. In June 2023 we successfully opened Stage 2 of the $355 million (SCG share: $178 million) investme
Slide 3: About Scentre Group
About Scentre Group We acknowledge the Traditional Owners and communities of the lands on which our business operates. We pay our respect to Aboriginal and Torres Strait Islander cultures and to their Elders past and present. We recognise the unique role of Māori as Tangata Whenua of Aotearoa/New Ze
Slide 4: Half Year Results 2023
HALF YEAR RESULTS 2023 Westfield Doncaster, VIC
Slide 5: Creating extraordinary places, connecting and enriching communities
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 6 MONTHS
Slide 6: Half Year Overview
Half Year Overview Our Ambition is to grow the business by becoming essential to people, their communities and businesses that interact with them Customer Experience Projects Financial Highlights – Welcomed 314 million customers so far this year, 9.8% – Stage 2 of the $355 million investment in West
Slide 7: Visitation
Visitation Creating the places more people choose to come, more often, for longer CUSTOMER VISITATION (YTD1) 28m Focus on strategic partnerships providing a customer +9.8% activation program including Disney pop-ups, Barbie fan- event, Lego installations in addition to community and cultural events
Slide 8: Business Partner Sales
Business Partner Sales The most efficient platform for businesses to connect with people TOTAL PORTFOLIO SALES (MAT $bn) $4.9bn 1 1 +21.6% $27.8bn For the 12 months to 30 June 2023: $2.0bn – Total sales were 21.6% or $4.9 billion higher than 2022 $24.4bn $23.5bn $23.4bn $22.9bn – Total sales were 13
Slide 9: Leasing Activity
Leasing Activity Continued strong demand for space in the first half of 2023 LEASING DEALS AVERAGE SPECIALTY LEASE TERM1 PORTFOLIO OCCUPANCY1 1,567 6.9 yrs 99.0% 585 New Merchants, 125 New Brands Increased from 6.8 yrs 20bps 1,550 1,579 1,567 1,515 AVERAGE SPECIALTY RENT ESCALATION 1,436 AVERAGE SPE
Slide 10: Gross Rent Cash Collections
Gross Rent Cash Collections The Group collected $1,332 million of gross rent, equivalent to 103% of gross billings during the first half of 2023 GROSS RENT CASH COLLECTIONS $82m NET TRADE DEBTORS $102m 6 MONTHS TO 30 JUN 2023 AS AT 30 JUN 2023 $1,332m $181m $1,250m $1,200m $151m $121m $875m $49m Jun
Slide 11: Development Opportunities
Development Opportunities Creating the places more people choose to come, more often, for longer Westfield Albany, NZ Westfield Booragoon, WA Westfield Doncaster, VIC Westfield Sydney, NSW Westfield Eastgardens, NSW Westfield Liverpool, NSW Westfield Parramatta, NSW FUTURE DEVELOPMENTS >$4.0bn Westf
Slide 12: We are a responsible, sustainable business
We are a responsible, sustainable business COMMUNITY TALENT ENVIRONMENT ECONOMIC PERFORMANCE ANNOUNCED KEY PARTNERSHIPS GENDER-EQUALITY GLOBAL LEADER RENEWABLE GENERATION $557 MILLION FFO INCREASED CUSTOMER ADVOCACY ACHIEVED 40:40:20 PROJECTS ESG RATINGS Strategic partnerships with Disney and Bloomb
Slide 13: Operating Profit and FFO
Operating Profit and FFO 6 months to 6 months to $m 30 Jun 2023 30 Jun 2022 Growth $ Growth % Property revenue 1,237.4 1,164.3 Property expenses (including expected credit charge) (265.5) (280.7) Net Operating Income 971.9 883.6 88.3 10.0% NET OPERATING INCOME Management income 24.3 23.7 10.0% Incom
Slide 14: Financial Position
Financial Position $m 30 Jun 2023 31 Dec 2022 Total Balance Sheet Assets1 35,735.7 35,977.0 Borrowings2 (10,280.4) (9,941.9) Other (2,751.3) (2,850.1) Minority Interest (371.9) (544.8) Subordinated Notes3 (4,109.6) (4,109.6) Net Tangible Assets4 18,222.5 18,530.6 Net Tangible Assets4 – per security
Slide 15: Funding June 2023
Funding 30 June 2023 FUNDING INTEREST COVER LIQUIDITY1 3.8x $3.9bn Borrowings $10.3bn Gearing 28.0% Weighted average facility maturity1 3.6 years Subordinated notes $4.1bn Liquidity1 $3.9bn FFO TO DEBT INTEREST RATE HEDGED 13.0% 93% Weighted average interest rate2 5.5% Interest rate exposure hedged
Slide 16: Funding
Funding1 Available liquidity of $3.9 billion, sufficient to cover all debt maturities until the end of 2025 DEBT MATURITY PROFILE2 % A$bn Margin Senior Bonds $bn USD 23% 4.3 3.0 EUR 17% 3.2 GBP 4% 0.7 2.5 HKD 1% 0.1 Total 45% 8.3 2.0 Bank Facilities 1.5 Drawn 13% 2.3 Undrawn 20% 3.6 1.0 Total 33% 5.
Slide 17: Interest Rate Hedging
Interest Rate Hedging1 As at 30 June 2023 HEDGE MATURITY PROFILE AND RATES 14.0 $bn 2.39% 2.39% 93% HEDGED AT JUNE 2023 12.0 2.80% 10.0 8.0 2.73% 89% HEDGED AT DECEMBER 2023 93% 89% 2.71% 6.0 Hedged Hedged 77% Increased interest rate hedging to 93% at Hedged 58% June 2023, and 89% at December 2023 a
Slide 18: Outlook
Outlook Subject to no material change in conditions, the Group reconfirms: – Funds From Operations 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
Slide 19: Appendices
APPENDICES Westfield Sydney, NSW Image courtesy of Warner Bros. Australia
Slide 20: Developments
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 Woolworths Completion Q4 2
Slide 21: Profit and FFO
Profit and FFO Statutory Profit FFO Financial Reconciliation from Profit to FFO 6 months to FFO 6 months to Statement $m 30 Jun 2023 Adjustments1 30 Jun 2023 Notes A B C=A+B Property revenue2 1,200.8 36.6 1,237.4 Note 2(iii) 1. The Group’s measure of FFO is based upon the National Association of Rea
Slide 22: Operating Cash Flow
Operating Cash Flow Cash flows from operating activities - proportionate Equity 6 Months to 6 Months to $m Consolidated Accounted 30 Jun 2023 30 Jun 2022 Receipts in the course of operations (including GST) 1,462.7 145.5 1,608.2 1,465.6 Payments in the course of operations (including GST) (503.7) (4
Slide 23: Balance Sheet
Balance Sheet Balance Sheet – Proportionate1 Equity Debt $m Consolidated Accounted 30 Jun 2023 Reclassification 30 Jun 2023 A B C=A+B 1. Period end AUD/NZD exchange rate 1.0894 at 30 Jun 2023 Cash 261.0 25.5 286.5 (286.5) - 2. Includes $185.0m of Property Linked Notes shown in minority interest give
Slide 24: Business Partner Sales
Business Partner Sales 6 Months to 30 Jun 2023 Total sales were 9.1% higher for the 6 months to June compared to 2022 and 13.6% higher compared to 2019 Specialty sales were 7.0% higher compared to 2022 and 18.5% higher compared to 2019 Total Portfolio Growth Growth Majors sales were 6.6% higher comp
Slide 25: Property Valuations
Property Valuations 30 June 2023 AUSTRALIA (A$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% 777.0 6.00% 6.43% Airport West 50% 192.5 6.25% 7.17% Woden 50% 310.0 5.88% 6.6
Slide 26: 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 is not SCENTRE MANAGEMENT LIMI