Slide 1: Pre-eminent portfolio delivers 3.1% FFO growth
ASX Announcement 21 August 2018 PRE-EMINENT PORTFOLIO DELIVERS 3.1% FFO GROWTH For personal use only UNDERPINNED BY STRONG DEMAND FOR HIGH QUALITY RETAIL SPACE Scentre Group (ASX: SCG) today released its results for the half year to 30 June 2018, with Funds From Operations (“FFO”) of $657 million re
Slide 2: Developments and capital management
Westfield Plenty Valley in Melbourne opened in March 2018, adding 10,300 square metres of additional lettable area including a new nine screen Village cinema complex and a dining and leisure precinct featuring 13 restaurants. The precinct has been embraced by the community and is trading strongly. T
Slide 3: For personal use only
Scentre Group (ASX Code: SCG) is the owner and operator of Westfield in Australia and New Zealand with interests in 40 centres, encompassing approximately 11,600 shops and total assets under management of $52.8 billion. The financial information included in this release is based on the Scentre Group
Slide 4: Half Year Results 2018
HALF YEAR RESULTS 2018 For personal use only Westfield Plenty Valley, VIC
Slide 5: Results Overview
RESULTS OVERVIEW For personal use only 2 Westfield Plenty Valley, VIC SCENTRE GROUP HALF YEAR RESULTS 2018 2
Slide 6: Half Year Results Jun 2018
HALF YEAR RESULTS 30 Jun 2018 For personal use only Funds From Operations (FFO) $657.2 million + 3.0% “We continue to provide FFO per security 12.38 cents + 3.1% the best locations for Distribution per security 11.08 cents + 2.0% retailers to connect with customers” SCG share of AUM $37.6 billion +
Slide 7: Operating Performance
OPERATING PERFORMANCE 30 Jun 2018 For personal use only Comparable Net Operating Income (NOI) + 2.5% “High quality retail space Portfolio Leased > 99.5% that enjoys high traffic Lease Deals Completed Number 1,377 flow is in demand with occupancy across our Lease Deals Completed Area 217,610 sqm port
Slide 8: Our Purpose
OUR PURPOSE For personal use only CREATING EXTRAORDINARY PLACES, CONNECTING + ENRICHING COMMUNITIES Westfield Chermside, QLD SCENTRE GROUP HALF YEAR RESULTS 2018 5
Slide 9: Highlights
HIGHLIGHTS Customer Experience and Retail Product For personal use only – Launched ‘Westfield Local Heroes’ a new community recognition and grants programme – Leveraging our CX Loop, we are continuously listening and responding to customer needs. This has enabled us to curate a product and service m
Slide 10: Retailer In-Store Sales
RETAILER IN-STORE SALES Comparable in-store sales growth psm 1 For personal use only – Total specialty in-store sales were up 2.1% for the half year and 1.6% for the year 6 months to 30 Jun 2018 12 months to 30 Jun 2018 – > 400 sqm in-store sales were up 3.6% for the half year and 3.6% for the year
Slide 11: Retailer In-Store Sales by Region
RETAILER IN-STORE SALES Comparable specialty in-store sales growth psm by region 1 For personal use only 7.6% 4.7% 4% 3.7% 2.8% 2.5% 2.4% 2.1% 1.9% 2% 1.6% 1.3% 0.9% 0.7% 0.1% 0% (0.2%) (0.3%) 6 Months MAT (1.1%) -2% NSW QLD VIC WA SA ACT NZ Total 8 1. Total stable portfolio 8 SCENTRE GROUP HALF YEA
Slide 12: Active Developments
ACTIVE DEVELOPMENTS For personal use only – Commenced the NZ$790 million (SCG share: NZ$400m) redevelopment of Westfield Newmarket in 2018 – $1.1 billion (SCG share: $810m) of developments forecast to complete in 2018 adding more than 106,000 sqm of lettable area to the portfolio – Opened the $80 mi
Slide 13: Future Developments
FUTURE DEVELOPMENTS For personal use only 1 Albany (NZ) 2 Barangaroo (NSW) 3 Booragoon (WA)1 7 4 Eastgardens (NSW) 5 Knox (VIC) 6 Marion (SA) 7 Stirling (Innaloo) (WA) 8 Sydney (NSW) Westfield Stirling, WA 3 11 9 St Lukes (NZ) 7 12 6 2 4 1 8 10 9 10 Tea Tree Plaza (SA) 5 11 Warringah Mall – stage 2
Slide 14: Scentre Group Portfolio
SCENTRE GROUP PORTFOLIO For personal use only As at 30 Jun 2018 Total Centres 39 Gross Lettable Area (sqm) 3.6m SCG share of AUM $37.6bn 5 centres JV Partner share of AUM Assets Under Management (AUM) $15.2bn $52.8bn Brisbane $6.1bn 2 WHOLLY OWNED 3 JOINT VENTURES Cap Rates Range Average 3 Perth Ade
Slide 15: Finance Update
FINANCE UPDATE For personal use only 12 Westfield Chatswood, NSW SCENTRE GROUP HALF YEAR RESULTS 2018 12
Slide 16: Financial Performance
FINANCIAL PERFORMANCE Funds From Operations For personal use only $m Net Operating Income 6 months to 30 Jun 2018 924.2 6 months to 30 Jun 2017 907.2 Growth % 3.1% Management Income 23.2 22.6 First Half 2018 Project Income 42.2 43.6 FFO growth per security Income 989.6 973.4 1.7% Delivering 12.38 ce
Slide 17: Financial Position
FINANCIAL POSITION Balance Sheet – Proportionate For personal use only $37.6bn $m 30 Jun 2018 31 Dec 2017 Total Property Investments 37,611.9 36,228.8 Total Assets 39,187.7 37,536.0 Property Investments Total Liabilities 14,864.8 14,081.0 Net Assets before Minority Interest 24,322.9 23,455.0 $23.4bn
Slide 18: Debt Management
DEBT MANAGEMENT Capital Structure For personal use only Debt metrics Total interest bearing liabilities 30 Jun 2018 $13.0bn 31 Dec2017 $12.3bn $3.3bn 31.9 % Gearing (look through basis) 31.9% 32.1% New and Gearing Weighted average interest rate 4.4% 4.4% extended bank Weighted average debt maturity
Slide 19: Debt Management: Maturity Profile
DEBT MANAGEMENT For personal use only Maturity Profile 1,2 Facilities & liquidity 1,2 3.0 2.5 % $bn Bonds 2.0 USD 23% 3.5 EUR 26% 4.0 1.5 GBP 10% 1.5 AUD 4% 0.6 1.0 Total 63% 9.6 0.5 Bank Facilities Drawn 19% 2.8 - 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Undrawn 18% 2.7 Total 37% 5.5
Slide 20: Outlook 2018 Forecast
OUTLOOK 2018 FORECAST For personal use only Funds From Operations Growth approx. + 4% “The Group reconfirms Distribution per security 22.16 cents, + 2% its full year forecast FFO growth of Comparable NOI Growth + 2.5% to + 3% approximately 4% Weighted Average Interest Rate approx. 4.4% and distribut
Slide 21: Appendix
APPENDIX For personal use only 18 Westfield Kotara, NSW SCENTRE GROUP HALF YEAR RESULTS 2018 18
Slide 22: Developments: Westfield Carousel, WA
DEVELOPMENTS Active project For personal use only WESTFIELD CAROUSEL, WA Overview Project Cost $350m (SCG share: $350m) Commencement Q1 2017 Completion Q3 2018 Highlights Incremental Project GLA 27,500sqm Westfield Carousel, WA Completed Centre GLA 110,000sqm New Anchors David Jones, H&M, new entert
Slide 23: Developments: Westfield Coomera, QLD
DEVELOPMENTS Active project For personal use only WESTFIELD COOMERA, QLD Overview Project Cost $470m (SCG share: $235m) Commencement Q2 2017 Completion Q4 2018 Highlights Completed Centre GLA 59,000sqm Westfield Coomera, QLD New Anchors Event Cinemas, Kmart, Target, Coles, Woolworths, new dining and
Slide 24: Developments: Westfield Kotara, NSW
DEVELOPMENTS Active project For personal use only WESTFIELD KOTARA, NSW Overview Project Cost $160m (SCG share: $160m) Commencement Q3 2017 Completion Q4 2018 Highlights Incremental Project GLA 6,250sqm Westfield Kotara, NSW Westfield Kotara, NSW Completed Centre GLA 82,000sqm New Anchors H&M, Zara,
Slide 25: Developments: Westfield Newmarket, NZ
DEVELOPMENTS Active project For personal use only 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, C
Slide 26: Developments: Westfield Tea Tree Plaza, SA
DEVELOPMENTS Active project For personal use only WESTFIELD TEA TREE PLAZA, SA Overview Project Cost $50m (SCG share: $25m) Commencement Q3 2017 Completion Q4 2018 Highlights Incremental Project GLA 3,500sqm Westfield Tea Tree Plaza, SA Completed Centre GLA 99,000sqm Dining & Leisure Expanded HOYTS
Slide 27: Leasing & Retail Solutions
LEASING & RETAIL SOLUTIONS For personal use only 30 Jun 2018 Comparable Net Operating Income grew by 2.5% in the Portfolio Leased > 99.5% first half of 2018. This was primarily driven by Average Specialty Store Rent (psm) $1,638 contracted annual rent escalations of approx. CPI+2% Specialty Occupanc
Slide 28: Profit & FFO
PROFIT & FFO Reconciliation from Profit to FFO For personal use only Profit FFO FFO Financial 6 months to 6 months to Statement $m 30 Jun 2018 Adjustments 1 30 Jun 2018 Notes 1. FFO adjustments relate to property A B C = A +B revaluations, mark to market of interest Net operating income 892.2 32.0 9
Slide 29: Balance Sheet
BALANCE SHEET Balance Sheet – Proportionate 1 For personal use only $m Consolidated Equity Accounted 30 Jun 2018 A B C = A +B Cash 200.8 6.7 207.5 1. Period end AUD/NZD exchange rate Property Investments 1.0919 at 30 June 18 – Shopping centres 33,847.6 2,741.4 36,589.0 2. Includes $705.3m (31 Decemb
Slide 30: Cash Flow
CASH FLOW For personal use only Cash flows from operating activities – look throughbasis $m 30 Jun 2018 Receipts in the course of operations (including GST) 1,448.9 Payments in the course of operations (including GST) (464.0) Net operating cash flows from equity accounted entities 59.8 Income and wi
Slide 31: Interest Rate Hedging Profile
INTEREST RATE HEDGING PROFILE For personal use only $ Fixed rate debt Derivatives $ debt payable $ swap payable NZ$ swap payable NZ$ collar payable 31 December 1 $m Fixed rate $m Fixed rate NZ$m Fixed rate NZ$m Strike rate 2018 (580.0) 3.25% (8,147.3) 2.86% (460.0) 3.18% (70.0) 3.39%/5.25% 2019 (430
Slide 32: Important Notice
IMPORTANT NOTICE For personal use only All amounts in Australian dollars unless otherwise specified. The financial information included in this document is based on the Scentre Group’s IFRS financial statements. Non IFRS financial information included in this document has not been audited or reviewe