Scentre Group · ASX:SCG
Scentre — FY2020 Earnings Presentation
27 slides from Scentre's earnings presentation, 2021
Slide 1: Full Year Results 2020
Full Year Results 2020 Westfield Doncaster, VIC
Slide 2: Full Year Results 31 December 2020
Full Year Results 31 December 2020 6 months to 6 months to 12 months to $million 30 Jun 2020 31 Dec 2020 Growth % 31 Dec 2020 Operating Profit $360.8 $402.6 11.6% $763.4 Cents per security 6.94c 7.76c 14.71c Funds From Operations (FFO) $361.9 $404.2 11.7% $766.1 Cents per security 6.96c 7.79c 14.76c
Slide 3: Full Year Overview
Full Year Overview Every Westfield Living Centre remained open, every day Strategic Capital Management actions, strengthening our financial - 450 million customer visits, spending $22 billion with our retail position and preserving securityholder value partners This included new and extended funding
Slide 4: Scentre Group Overview
Scentre Group Overview Our Purpose Creating extraordinary places, connecting and enriching communities Extraordinary platform of 42 Living Centres Our Plan Customer centric strategy, focused on delivering what the customers want We will create the places more people choose to come, more often, for l
Slide 5: Strategic Locations
Strategic Locations The strategic locations of our portfolio enables retail and brand partners to efficiently connect with more customers 20 million people live within close proximity to a Westfield Living Centre Brisbane 6 CENTRES Australia & Sydne New Zealand Portfolio y Perth Adelaide Sydney 42 >
Slide 6: Customer Visits
Customer Visits More than 37 million customer visits on average per month, spending close to one and half hours of their time in our centres each visit 60m Customer Dwell Time Q4: Average of 46 million customer visits per month ~1.5 Hours 50m 40m 30m 20m 10m 45m 51m 34m 16m 26m 42m 43m 28m 31m 43m 4
Slide 7: Customer Initiatives
Customer Initiatives Enhancing Customer “tbd” Engagement PETER ALLEN CEO We are giving customers more reasons to engage, more often and for longer We’re evolving the Westfield ecosystem – creating more opportunities for interaction between Scentre Group, our customers, retailers and brands Full Year
Slide 8: Westfield Plus
Westfield Plus Scan to Join 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 Now live in all 42 Westfield Living Centres 1,200,000+ members W
Slide 9: Aggregating Click & Collect
Aggregating Click & Collect We trialed a number of initiatives, such as aggregated Click & Collect that facilitated our retail partners connecting with customers during periods of Government restrictions. The learnings form the basis for strategic initiatives we are pursuing Retailers participated a
Slide 10: Retailer Activity
Retailer Activity Leasing Activity COVID Activity1 Portfolio Leased 98.5% Agreed - SME retailers (Code) 2,456 Lease Deals Number – Total Deals 2,625 To be agreed - SME retailers (Code) 144 Lease Deals Number – New Merchants 848 Agreed - other retailers 942 Lease Deals Area (sqm) – Total Deals 366,88
Slide 11: Gross Rent Cash Collections
Gross Rent Cash Collections The Group collected $2,059 million in gross rent collections, including $641 million during Q4 2020, equivalent to 100% of gross billings 1st Half 2020: 70% or $0.9 billion 2nd Half 2020: 93% or $1.2 billion 120% 111% 100% 94% 94% 96% 93% 86% 88% 80% 82% 80% 82% 60% 40% 3
Slide 12: We are a Responsible, Sustainable Business
We are a Responsible, Sustainable Business Community People Environment Economic Connecting and enriching We will be the place for talent to Net zero emissions by 20301 We will deliver long term sustainable communities thrive returns through economic cycles – All Westfield Living Centres remained –
Slide 13: Operating Profit and FFO
Operating Profit and FFO 6 months to 6 months to 12 months to 12 months to $m 30 Jun 2020 31 Dec 2020 31 Dec 2020 31 Dec 20192 Property revenue 1,146.1 1,128.5 2,274.6 2,455.3 Property expenses (249.4) (255.1) (504.5) (529.8) Net Operating Income 896.7 873.4 1,770.1 1,925.5 Management income 20.9 20
Slide 14: Financial Position
Financial Position Balance Sheet $m 31 Dec 2020 31 Dec 2019 Total Assets1 35,296.7 39,096.2 Borrowings2 (9,253.8) (12,902.3) Other (2,326.2) (1,957.0) Minority Interest (778.7) (898.3) Subordinated Notes3 (4,109.6) - Net Assets - attributable to ordinary securityholders 18,828.4 23,338.6 Net Assets
Slide 15: Funding
Funding 31 December 2020 Funding Borrowings $9.3bn 3.1x $6.9bn Gearing 27.7% Interest Cover Liquidity Weighted average debt maturity 4.6 years Subordinated notes $4.1bn Liquidity Weighted average interest rate1 $6.9bn 4.4% 12.0% 71% Interest rate exposure hedged percentage 71% FFO to Debt Interest I
Slide 16: Funding
Funding Available liquidity of $6.9 billion, sufficient to cover all debt maturities to early 2024 Debt Maturity Profile1 % $bn $ billion Senior Bonds 4.5 USD 25% 5.0 EUR 19% 3.9 4.0 GBP 7% 1.5 3.5 AUD 2% 0.4 3.0 HKD 1% 0.1 2.5 Total 54% 10.9 2.0 Bank Facilities 1.5 Drawn 5% 1.0 Undrawn 21% 4.3 1.0
Slide 17: Outlook
Outlook - Scentre Group is well positioned to deliver long-term growth for “We remain customer securityholders obsessed and focused on delivering what the - Subject to no material change in conditions, the Group expects to distribute customer wants. We will at least 14.00 cents per security for 2021
Slide 18: Appendices
Appendices Westfield Bondi Junction, NSW
Slide 19: Development Activity
Development Activity Total Completion Project Cost SCG Share $m $m Completed Projects Doncaster 30 15 2 Nov 2020 Carindale 50 16 10 Sep 2020 Active Projects Mt Druitt 55 28 Q4 2021 Total Projects 135 59 Target returns from development of greater than 7% yield and greater than 15% IRR 3rd Party Desig
Slide 20: Future Retail Developments
Future Retail Developments Albany (NZ) > $3bn 1 2 Barangaroo (NSW) Future Retail Developments 3 Booragoon (WA) 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 In addition, the Group has potential opportuni
Slide 21: Retailer In-Store Sales
Retailer In-Store Sales Like-for-like in-store sales Total in-store sales were up 2.7% for the 2 months to Specialty 2 months to 3 months to 12 Months to December and 3.5% lower for the year Sales by Region 31 Dec 20201 31 Dec 20202 31 Dec 20203 NSW (3.3%) (4.1%) (6.7%) Specialty in-store sales were
Slide 22: Profit & FFO
Profit & FFO Statutory Profit FFO Financial Reconciliation from Profit to FFO 12 months to FFO 12 months to Statement $m 31 Dec 2020 Adjustments1 31 Dec 2020 Notes A B C=A+B 1. The Group’s measure of FFO is based upon the Property revenue2 2,206.0 68.6 2,274.6 Note 2(iii) National Association of Rea
Slide 23: Cash Flow
Cash Flow Cash flows from operating activities – proportionate Equity 12 months to 6 months to 6 months to $m Consolidated Accounted 31 Dec 2020 30 Jun 2020 31 Dec 2020 Receipts in the course of operations (including GST) 2,136.0 220.9 2,356.9 1,059.4 1,297.5 Payments in the course of operations (in
Slide 24: Balance Sheet
Balance Sheet Balance Sheet – Proportionate1 Equity Debt $m Consolidated Accounted 31 Dec 2020 Reclassification 31 Dec 2020 A B C = A +B Cash 378.1 26.7 404.8 (404.8) — 1. Period end AUD/NZD exchange rate Short term deposits at bank 2,222.8 — 2,222.8 (2,222.8) — 1.0666 at 31 Dec 2020 Property Invest
Slide 25: Interest Rate Hedging
Interest Rate Hedging 31 December 2020 Hedge Maturity Profile Interest Rate Hedging $ billion 12.0 $bn Fixed Rate Borrowings 9.3 10.0 2.18% Subordinated notes 4.1 8.0 1.99% 1.76% Fixed Rate Debt 1.53% 6.0 $ Fixed rate debt1 0.4 3.31% 1.44% 1.14% 4.0 Derivatives 2.0 1.20% $ Swap Payable 8.3 2.11% NZ$
Slide 26: Property Valuations
Property Valuations 31 December 2020 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% 760.0 5.75% 6.15% Airport West 50% 177.5 6.00% 6.94% Woden 50% 305.0 5.75%
Slide 27: 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