Scentre Group · ASX:SCG
Scentre — FY2021 Earnings Presentation
34 slides from Scentre's earnings presentation, Feb 23, 2022
Slide 1: Scentre Group reports 2021 full year operating profit of $846 million
ASX Announcement 23 February 2022 SCENTRE GROUP REPORTS 2021 FULL YEAR OPERATING PROFIT OF $846 MILLION UP 10.9% PER SECURITY For personal use only Scentre Group (ASX: SCG) today released its results for the 12 months to 31 December 2021 with Operating Profit of $845.8 million (16.32 cents per secur
Slide 2: ASX Announcement continued: developments, funding and sustainability
“Westfield Plus, our membership platform, has grown its membership to 2.2 million, an increase of 1.6 million in 2021. The combination of these two initiatives provides us with opportunities to learn more about the customer and deliver what they want.” Our focus on customers is integral to our devel
Slide 3: About Scentre Group and forward-looking statements
Scentre Group (ASX: SCG) owns and operates 42 Westfield Living Centres across Australia and New Zealand encompassing approximately 12,000 outlets. Our Purpose is creating extraordinary places, connecting and enriching communities. Our Plan is to create the places more people choose to come, more oft
Slide 4: Westfield Newmarket, NZ
For personal use only Full Year Results 2021 Westfield Newmarket, NZ
Slide 5: Full Year Results
Full Year Results For personal use only 31 December 2021 12 months to 12 months to $million 31 Dec 2021 31 Dec 2020 Growth %1 Gross Cash Receipts $2,680.3 $2,356.9 13.7% Net Operating Cash Flow $913.6 $732.7 24.8% Cents per security 17.62c 14.12c Operating Profit $845.8 $763.4 10.9% Cents per securi
Slide 6: Full Year Overview
Full Year Overview For personal use only Our Ambition is to be essential to people, their communities and businesses that interact with them Financial Results Projects - Gross cash inflow of $2,680 million, an increase of $323 million, - Commenced the $355 million investment in Westfield Knox, intro
Slide 7: Gross Rent Cash Collections
Gross Rent Cash Collections For personal use only The Group collected $2,258 million of gross rent during 2021, an increase of approximately $200 million compared to 2020 Full Year 2020: $2.1 billion Full Year 2021: $2.3 billion $249m Lockdowns Commenced: $238m VIC NSW ACT 28-May 26-Jun 12-Aug Reope
Slide 8: Leasing Activity
Leasing Activity We have driven strong demand for space For personal use only Occupancy has increased to 98.7% Leasing Deals New Merchants Renewals 2,625 2,497 During the year we completed 2,497 leasing deals, including 1,090 new merchant deals 848 1,090 We welcomed 267 new brands to the portfolio i
Slide 9: Rental Growth
Rental Growth For personal use only Total Portfolio 98.7% Up 20bps (7.6%) (5.9%) Occupancy across Specialty Specialty the total portfolio Leasing Spreads Leasing Spreads For the 12 months to For the six months to 31 December 2021 31 December 2021 $824 Up $5psm 6.8 years Average Rent Average Specialt
Slide 10: Total Sales
Total Sales 1 For personal use only Retailer In-Store Sales (MAT $bn) $22.0bn $22.1bn $0.4bn $0.3bn Portfolio sales have grown despite 2021 having more days of government imposed trading restrictions than 2020 Sales in the second half of 2021 were $10.9 billion Government Restriction Days weighted b
Slide 11: Scentre Group
Scentre Group For personal use only Our Purpose Leading platform of 42 Living Centres, ownership Creating extraordinary places, connecting and enriching communities of 7 of the top 10 centres in Australia and 4 of the top 5 in New Zealand Our Plan Essential social infrastructure, strategically locat
Slide 12: Westfield Plus
Scan to Join Westfield Plus Our membership program For personal use only Designed to drive value to our customers through personalisation and rewarding engaged members with exclusive benefits Live in all 42 Westfield Living Centres 2.2 million members We have welcomed an additional 1.6 million new m
Slide 13: Westfield Direct
Westfield Direct westfield.com.au For personal use only Launched in October 2021 to give customers more options to connect with and buy from Westfield, offering aggregated ‘Click and Collect’ and delivery across our market leading Australian portfolio Westfield Direct was launched in October, and no
Slide 14: Close Proximity to People
Close Proximity to People For personal use only The strategic locations of our portfolio enables businesses to efficiently connect with more customers 20 people million live within close proximity to a Westfield Living Centre people live within close proximity to a Westfield Living Centre Brisbane 6
Slide 15: Customer Driven Future Developments
Customer Driven Future Developments For personal use only > $4.5bn Future Developments Westfield Albany, NZ Westfield Barangaroo, NSW Westfield Booragoon, WA Westfield Doncaster, VIC Westfield Eastgardens, NSW Westfield Liverpool, NSW Westfield Sydney, NSW Westfield Warringah, NSW Westfield Parramatt
Slide 16: We are a Responsible, Sustainable Business
We are a Responsible, Sustainable Business For personal use only Improved Facilitated $4.88 million Customer Input customer advocacy to 38, up 2 points. community access to COVID-19 recognising 489 Westfield Local Leveraged customer listening tools and vaccinations. Heroes since 2018.onated to Westf
Slide 17: Operating Profit and FFO
Operating Profit and FFO For personal use only 12 months to 12 months to 31 Dec 2021 31 Dec 2020 $m Property revenue 2,269.5 2,262.3 Property expenses (527.0) (504.5) Expected Credit Charge (168.8) (303.9) Net Operating Income 1,573.7 1,453.9 Management income 44.8 41.0 Income 1,618.5 1,494.9 Overhe
Slide 18: Financial Position
Financial Position For personal use only $m 31 Dec 2021 31 Dec 2020 Total Balance Sheet Assets1 35,480.7 35,285.3 Borrowings2 (9,532.0) (9,253.8) Other (2,052.5) (2,326.2) Minority Interest (787.7) (778.7) Subordinated Notes3 (4,109.6) (4,109.6) Net Balance Sheet Assets – attributable to ordinary se
Slide 19: Funding
Funding For personal use only 31 December 2021 Funding Borrowings $9.5bn 4.0x $5.6bn Gearing 27.5% Interest Cover Liquidity Weighted average debt maturity 4.1 years Subordinated notes $4.1bn Liquidity Weighted average interest rate1 $5.6bn 4.2% 12.8% 50% Interest rate exposure hedged percentage 50%
Slide 20: Funding: Debt Maturity Profile
Funding For personal use only Available liquidity of $5.6 billion, sufficient to cover all debt maturities to early 2024 Debt Maturity Profile1 % A$bn $ billion Senior Bonds 3.0 USD 22% 4.3 EUR 20% 3.9 2.5 GBP 8% 1.5 HKD 1% 0.1 2.0 Total 51% 9.8 1.5 Bank Facilities Drawn 4% 0.8 1.0 Undrawn 24% 4.6 T
Slide 21: Outlook
Outlook For personal use only The Group is focused on driving customer visitation, engagement and occupancy in order to deliver earnings growth in 2022 and future years. Subject to no material change in conditions, the Group expects to distribute at least 15.0 cents per security for 2022, representi
Slide 22: Appendices
Appendices For personal use only Westfield Newmarket, NZ
Slide 23: Developments: Westfield Knox, VIC
Developments For personal use only Active project Westfield Knox, VIC Overview Project Cost $355m (SCG share: $177.5m) Commencement Q1 2022 Completion 2022 / 2023 Highlights Incremental Project GLA 4,000sqm Westfield Knox, VIC Completed Centre GLA 144,810sqm Offering Introducing a diverse mix of pre
Slide 24: Developments: Westfield Mt Druitt, NSW
Developments For personal use only Active project Westfield Mt Druitt, NSW Overview Project Cost $55m (SCG share: $27.5m) Commencement Q1 2021 Completion March 2022 Highlights Incremental Project GLA 4,000sqm Westfield Mt Druitt, NSW Completed Centre GLA 64,373sqm Offering Creation of an integrated
Slide 25: Profit & FFO
Profit & FFO For personal use only Statutory Profit FFO Financial Reconciliation from Profit to FFO 12 months to FFO 12 months to Statement $m 31 Dec 2021 Adjustments1 31 Dec 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’ (
Slide 26: Cash Flow
Cash Flow For personal use only Cash flows from operating activities – proportionate Equity 12 months to 12 months to $m Consolidated Accounted 31 Dec 2021 31 Dec 2020 Receipts in the course of operations (including GST) 2,448.5 231.8 2,680.3 2,356.9 Payments in the course of operations (including G
Slide 27: Balance Sheet
Balance Sheet For personal use only Balance Sheet – Proportionate1 Equity Debt $m Consolidated Accounted 31 Dec 2021 Reclassification 31 Dec 2021 1. Period end AUD/NZD exchange rate A B C = A +B 1.0627 at 31 December 2021 Cash 978.7 10.2 988.9 (988.9) - 2. Includes $612.0m of Property Linked Propert
Slide 28: Interest Rate Hedging
Interest Rate Hedging For personal use only As at 31 December 2021 Hedge Maturity Profile Interest Rate Hedging $ billion $bn Fixed Rate 8.0 7.0 1.96% 1.72% Fixed Rate Debt 6.0 1.48% 1.51% 1.40% $ Fixed rate debt1 0.03 3.81% 5.0 4.0 1.61% Derivatives 3.0 $ Swap payable 6.73 1.95% 2.0 2.09% 1.0 Total
Slide 29: Customer Visits
Customer Visits 1 For personal use only Weekly Customer Visits vs 2019 120 100 80 60 40 20 VIC & NZ Second Initial Lockdowns Lockdowns Various State Lockdowns Delta Lockdowns Omicron 0 Mar-20 May-20 Mar-21 May-21 Apr-20 Apr-21 Jun-20 Sep-20 Jun-21 Sep-21 Jan-20 Feb-20 Oct-20 Jan-21 Feb-21 Oct-21 Jan
Slide 30: Customer Visits by Region
For personal use only 1. 20 120 0 80 40 60 100 20 120 0 80 40 60 100 Jan-20 Legend 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 Sep-20 Sep-20 Oct-20 Oct-20 Nov-20 Denotes lockdown period Nov-20 Dec-20 Dec-20 Jan-21 Jan-21 SA Feb-21 Feb-21 Q
Slide 31: Total Sales by Region
Total Sales by Region 1 For personal use only SA ACT VIC 2 2 7 Days 2 No Days 63 Days 108 Days 2 4 Days 2 154 Days 2 $1.6b $1.7b $0.8b $0.8b $3.2b $3.6b 2020 2021 2020 2021 2020 2021 QLD NZ 14 Days 2 97 Days 2 114 Days 2 34 Days 2 $3.7b $4.0b $1.7b $1.7b 2020 2021 2020 2021 WA NSW 4 Days 2 2 No Days
Slide 32: Retailer In-Store Sales
Retailer In-Store Sales For personal use only Growth over 20201 Total in-store sales were 1.4% lower for the 3 months to December and 0.1% higher for the year compared to 2020 Specialty in-store sales were 3.4% lower for the 3 months and 2.3% higher for the year. Majors in-store sales were 1.4% lowe
Slide 33: Property Valuations
Property Valuations For personal use only 31 December 2021 AUSTRALIA (A$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% 6.15% Airport West 50% 182.5 5.85% 6.78%
Slide 34: 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