Slide 1: Media Release and Results Presentation cover letter
24 February 2015 The Manager Company Announcements Office ASX Limited For personal use only Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam SCENTRE GROUP (ASX:SCG / ADR:SCTRY) MEDIA RELEASE AND RESULTS PRESENTATION Attached are the Media Release and Results Presentation for
Slide 2: Scentre Group forecasts FFO growth of 3.5% for 2015
MEDIA RELEASE 24 February 2015 For personal use only SCENTRE GROUP FORECASTS FFO GROWTH OF 3.5% TO 22.5 CENTS PER SECURITY FOR 2015 Scentre Group (ASX:SCG) today announced results for the six months to 31 December 2014 with Funds from Operations (FFO) of $578 million, which represents 10.88 cents pe
Slide 3: Development Activity, Financing and Statutory Statements
Development Activity Scentre Group has a vertically integrated development, design and construction platform. The Group’s development activity is expected to deliver earnings accretion and create significant long term value. For personal use only “We see the introduction of new retailers, together w
Slide 4: Strategy and Outlook
Strategy and Outlook Scentre Group’s strategy is to own interests in the highest quality shopping centres and to For personal use only optimise the returns through the redevelopment and enhancement of the centres. In November 2014, Scentre Group announced a NZ$2.1bn joint venture with GIC for five s
Slide 5: Full Year Results February 2015
For personal use only 2 0 1 4 F U L L Y E A R R E S U LT S 24 FEBRUARY 2015
Slide 6: Disclaimer
DISCLAIMER For personal use only The financial information included in this release is based on the Scentre Group’s IFRS financial statements. Non IFRS financial information has not been audited or reviewed. This release contains forward-looking statements, including statements regarding future earn
Slide 7: Key Metrics
KEY METRICS For personal use only SCENTRE GROUP Results Summary 6 months to Dec ’14 Earnings: Funds from Operations (FFO) $578m FFO per security 10.88 cents Distribution per security 10.20 cents Return on Contributed Equity 1 11.0% AIFRS profit $1,281m Portfolio: Assets Under Management $40.9bn Port
Slide 8: Highlights
HIGHLIGHTS For personal use only Establishment of Scentre Group (SCG) Scentre Group was established on 30 June 2014 following the merger of the Australian and New Zealand operations of Westfield Group with Westfield Retail Trust Financial Results This presentation focuses on Scentre Group’s inaugura
Slide 9: Highlights (continued)
HIGHLIGHTS (CONTINUED) For personal use only Development Completed $410m development at Westfield Garden City Major stage opening of $475m (SCG share: $238m) development at Westfield Miranda 3rd Party Design and Construction – opening of $440m Macquarie Centre project and continued progress on $670m
Slide 10: Strategy
STRATEGY For personal use only SCG’s strategy is to create extraordinary places connecting and enriching communities by owning, managing and developing the best retail assets in Australia and New Zealand Pre-eminent portfolio of shopping centres in Australia and New Zealand • $41 billion of retail a
Slide 11: Outlook
OUTLOOK For personal use only 2015 Full Year Forecast 22.5 cents FFO per security 3.5% growth Distribution per security 20.9 cents 2014 FULL YEAR RESULTS │ 7
Slide 12: Portfolio Overview
PORTFOLIO OVERVIEW For personal use only A$27.5bn1 Portfolio by GLA 38 Centres NZ 10% Brisbane - $4.5bn ACT 4% 3 Wholly Owned 3 Joint Ventures WA 5% NSW 39% NT QLD SA 8% WA 6 Sydney – $14.4bn 10 Wholly Owned 7 Joint Ventures SA QLD 15% NSW 17 3 VIC 19% 3 2 Canberra – $1.2bn Portfolio by Asset Value
Slide 13: Portfolio Detail
PORTFOLIO DETAIL For personal use only As at 31 Dec 2014 Australia New Zealand 1 Total 2 Centres 38 9 47 Retail Outlets 11,289 1,410 12,699 GLA (m sqm) 3.5 0.4 3.9 SCG Interests (bn) 3 $27.5 NZ$1.9 $29.3 JV Partner Interests (bn) 3 $10.6 NZ$1.0 $11.6 Assets Under Management (bn) 3 $38.1 NZ$2.9 $40.9
Slide 14: Operating Performance
OPERATING PERFORMANCE For personal use only Period to 31 Dec 2014 Australia New Zealand 1 Total Moving Annual Turnover (bn) $20.4 NZ$2.0 $22.3 Specialty Retail Sales (psm) $10,200 NZ$8,765 Specialty Store Rent (psm) $1,561 NZ$1,139 Comparable Specialty Retail Sales growth 3.6% 2.3% Comparable Specia
Slide 15: Comparable Retail Sales Growth
COMPARABLE RETAIL SALES GROWTH For personal use only Period to 31 Dec 2014 12 months 3 months Australia Majors (0.4)% 0.4% Mini Majors (0.8)% 0.8% Specialties 3.6% 3.6% Total 1.5% 1.6% New Zealand Majors 1.4% 2.2% Mini Majors (3.4)% 0.0% Specialties 2.3% 3.2% Total 1.3% 2.2% 2014 FULL YEAR RESULTS │
Slide 16: Development and Construction Activity
DEVELOPMENT AND CONSTRUCTION ACTIVITY For personal use only Successfully completed the $410m development at Westfield Garden City in Brisbane Opened the first two stages of the $475m development at Westfield Miranda in Sydney, and opened the $440m Macquarie Centre design and construction project in
Slide 17: New Developments
NEW DEVELOPMENTS For personal use only CHATSWOOD • Demolition and redevelopment of the existing two level Victoria Avenue Mall and creation of a new, five level mall fronting Victoria Ave • Includes the creation of five new large format tenancies for local and international mini major tenants, inclu
Slide 18: Development Opportunities
DEVELOPMENT OPPORTUNITIES For personal use only The Group is undertaking pre-development activity on future development opportunities in excess of $3bn Australia New Zealand Carousel (WA) North Lakes (QLD) Albany (NZ) Chermside (QLD) Plenty Valley (VIC) Newmarket (NZ) Hurstville (NSW) Tea Tree Plaza
Slide 19: Financing Position
FINANCING POSITION For personal use only Total debt facilities of $13.0bn at 31 December 2014 • Refinancing of $5bn bridge facility completed via: - A$3.1bn of 4, 6 and 10 year EUR bond issues and 12 year GBP bond issue in July 2014; - A$0.4bn 7 year domestic bond issue in September 2014; and - A$1.
Slide 20: Funds from Operations and Distribution
FUNDS FROM OPERATIONS AND DISTRIBUTION For personal use only SCENTRE GROUP $m 6 months to Dec ’14 1 Net Property Income 917 Management income 22 Project income 30 Gross Income 969 Overheads (49) EBIT 920 Net Interest (252) Currency derivatives (1) Earnings before tax 667 Tax (40) 2 Minority interest
Slide 21: AIFRS Income Statement
AIFRS INCOME STATEMENT For personal use only SCENTRE GROUP $m 6 months to Dec ’14 Property revenue 1,120 Contribution from equity accounted investments (excluding revaluations) 41 Management income 22 Project income 30 Total Income 1,213 Property expenses and outgoings (260) Overheads (49) Property
Slide 22: Balance Sheet
1,2 BALANCE SHEET For personal use only $m 31 Dec ’14 30 Jun’14 Cash 190 421 Property investments Shopping centres 28,920 28,449 Construction in progress 8 331 Assets held for redevelopment 366 404 Property investments held for sale 1,005 - Total Property investments 30,299 29,184 Deferred tax asset
Slide 23: Appendices
For personal use only APPENDICES 2014 FULL YEAR RESULTS │ 19
Slide 24: Comparable Specialty Retail Sales by Region
COMPARABLE SPECIALTY RETAIL SALES BY REGION For personal use only Period to 31 Dec 2014 By Region 12 months 3 months NSW 4.6% 4.5% QLD 1.2% 0.4% VIC 5.2% 7.1% SA 3.7% 3.1% WA 0.7% (1.8)% ACT (0.1)% 0.2% Australia 3.6% 3.6% New Zealand 2.3% 3.2% 2014 FULL YEAR RESULTS │ 20
Slide 25: Comparable Sales by Category – Australia
COMPARABLE SALES BY CATEGORY – AUSTRALIA For personal use only Period to 31 Dec 2014 Retail Sales 12 months 3 months Department Stores 0.3% (0.9)% Discount Department Stores (3.5)% (0.7)% Supermarkets 1.8% 2.8% Cinemas (3.5)% (3.8)% Fashion 3.0% 2.6% Food Catering 0.8% 0.7% Food Retail 0.2% 1.7% Foo
Slide 26: Debt Facilities
DEBT FACILITIES For personal use only Diversified funding including bonds and bank facilities from 20 banks Financing Facilities 1 Facility Maturity Profile 1 GBP Bonds 3.0 6% Bank Facilities Total Committed $13.0bn - Undrawn Amount Drawn $11.6bn 11% Undrawn $1.4bn Cash 2 $1.2bn Euro Bonds Liquidity
Slide 27: Interest Rate Hedging Profile
1 INTEREST RATE HEDGING PROFILE For personal use only $ Fixed Rate Debt Derivatives Hedging Floating Rate $ & NZ$ Debt Outstanding as at 31 Dec $ debt payable $ swap payable $ swaption payable 2 NZ$ swap payable NZ$ collar payable NZ$ swaption payable 2 Fixed Fixed Strike Fixed Strike Strike $m $m $
Slide 28: FFO Reconciliation to Financial Report
FFO RECONCILIATION TO FINANCIAL REPORT For personal use only Proportionate FFO Financial Statement Total Profit FFO Adjustments 1 Dec ’14 6 months to December 2014 Notes $m A B C=A+B Net Property Income 797 15 812 4(a)(i) & 4(a)(iii) Australia 4(a)(i) & 4(a)(iii) 104 1 105 New Zealand Total Net Prop
Slide 29: Property Investments
PROPERTY INVESTMENTS For personal use only Change in value of gross property investments: SCENTRE GROUP $m 6 months to Dec ’14 Gross property investments opening balance 29,184 Revaluations 649 Capital expenditure 400 Exchange rate impact 66 Gross property investments closing balance 30,299 2014 FUL
Slide 30: Balance Sheet Reconciliation
BALANCE SHEET RECONCILIATION For personal use only At 31 December 2014 Consolidated Equity Accounted Total $m Cash 189 1 190 Property investments Shopping centres 27,638 1,282 28,920 Construction in progress 8 - 8 Assets held for redevelopment 357 9 366 Property investments held for sale 1,005 - 1,0
Slide 31: Key Ratios Under Bond Covenants
KEY RATIOS UNDER BOND COVENANTS For personal use only Bond Covenants 31 Dec’14 Net Debt / Net Assets Not greater than 65% 36.7% 1 Secured Debt / Total Assets Not greater than 45% 0.7% Interest Coverage At least 1.5 times 3.3 times 2 Unencumbered Leverage Not less than 125% 253% 1 Pro forma post New
Slide 32: Overview of Statutory Reporting
OVERVIEW OF STATUTORY REPORTING For personal use only Income Statement Scentre Group Financial Statements Full Year 2014 Continuing Operations − Westfield Group Australia and New Zealand 1st and 2nd Half − Westfield Retail Trust Australia and New Zealand 2nd Half Discontinued Operations − Westfield