2024
Annual Financial Report Trusts
Connecting and
enriching communities
Scentre Group Limited ABN 66 001 671 496
Scentre Group Trust 1
Scentre Management Limited ABN 41 001 670 579, AFSL No. 230329 as responsible entity of Scentre Group Trust 1, ARSN 090 849 746
Scentre Group Trust 2
RE1 Limited ABN 80 145 743 862, AFSL No. 380202 as responsible entity of Scentre Group Trust 2, ARSN 146 934 536
Scentre Group Trust 3
RE2 Limited ABN 41 145 744 065, AFSL No. 380203 as responsible entity of Scentre Group Trust 3, ARSN 146 934 652
SCENTRE GROUP Scentre Group Trust 12024 Annual Financial Report
Scentre Group | Directory | |
Scentre Group Limited | Auditor | |
ABN 66 001 671 496 | Ernst & Young | |
200 George Street | ||
Scentre Group Trust 1 | Sydney NSW 2000 | |
ARSN 090 849 746 | Investor Information | |
(responsible entity Scentre Management Limited | ||
ABN 41 001 670 579, AFS Licence No 230329) | Scentre Group | |
Level 30 | ||
Scentre Group Trust 2 | 85 Castlereagh Street | |
ARSN 146 934 536 | Sydney NSW 2000 | |
(responsible entity RE1 Limited | Telephone: +61 2 9358 7877 | |
ABN 80 145 743 862, AFS Licence No 380202) | ||
Facsimile: +61 2 9358 7881 | ||
Scentre Group Trust 3 | E-mail: investor@scentregroup.com | |
Website: scentregroup.com/investors | ||
ARSN 146 934 652 | ||
(responsible entity RE2 Limited | Principal Share Registry | |
ABN 41 145 744 065, AFS Licence No 380203) | ||
Computershare Investor Services Pty Limited | ||
Registered Office | 6 Hope Street | |
Ermington NSW 2115 | ||
Level 30 | GPO Box 2975 | |
85 Castlereagh Street | ||
Melbourne VIC 3001 | ||
Sydney NSW 2000 | ||
GPO Box 4004 | Telephone: +61 3 9946 4471 | |
Toll Free: 1300 730 458 (Australia Only) | ||
Sydney NSW 2001 | ||
Facsimile: +61 3 9473 2500 | ||
Australia | ||
New Zealand Office | Contact: www.investorcentre.com/contact | |
Website: www.computershare.com | ||
Level 5, Office Tower | ||
277 Broadway | Listing | |
Newmarket, Auckland 1023 | Australian Securities Exchange - SCG | |
Secretaries | Website | |
Maureen T McGrath | scentregroup.com | |
Paul F Giugni | ||
Directory | Contents | Financial Report | Independent Auditor's Report | Directors' Report | Members' Information |
ScentreGroup Trust1
Contents
Statement of Comprehensive Income | 2 |
Balance Sheet | 3 |
Statement of Changes in Equity | 4 |
Cash Flow Statement | 5 |
Notes to the Financial Statements | 6 |
Consolidated Entity Disclosure Statement | 39 |
Directors' Declaration | 40 |
Independent Auditor's Report | 41 |
Directors' Report | 45 |
Members' Information | 51 |
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SCENTRE GROUP Scentre Group Trust 12024 Annual Financial Report
Statement of Comprehensive Income
For the year ended 31 December 2024
31 Dec 24 | 31 Dec 23 | ||
Note | $million | $million | |
Revenue | |||
Property revenue | 2(b) | 626.2 | 593.8 |
626.2 | 593.8 | ||
Expenses | |||
Property expenses, outgoings and other costs | (172.7) | (153.3) | |
Overheads | (12.9) | (12.2) | |
(185.6) | (165.5) | ||
Share of after tax profits of equity accounted entities | |||
Property revenue | 2(b) | 612.1 | 588.6 |
Property expenses, outgoings and other costs | (165.9) | (144.6) | |
Net interest income | 0.9 | 0.6 | |
Property revaluations | (45.4) | (334.3) | |
Tax expense | (6.3) | (5.5) | |
6(a) | 395.4 | 104.8 | |
Interest income | 2.2 | 2.1 | |
Financing costs | 10 | (427.4) | (370.9) |
Property revaluations | 101.4 | (111.2) | |
Profit before tax | 512.2 | 53.1 | |
Tax expense | 7 | (2.9) | (2.9) |
Profit after tax for the period | 509.3 | 50.2 | |
Other comprehensive loss | |||
Movement in foreign currency translation reserve (i) | |||
- Currency movement on the translation of investment in foreign operations | (15.1) | (3.0) | |
Total comprehensive income for the period | 494.2 | 47.2 | |
Profit after tax for the period attributable to: | |||
- Members of Scentre Group Trust 1 | 499.4 | 50.1 | |
- External non controlling interests | 9.9 | 0.1 | |
Profit after tax for the period | 509.3 | 50.2 | |
Total comprehensive income attributable to: | |||
- Members of Scentre Group Trust 1 | 484.3 | 47.1 | |
- External non controlling interests | 9.9 | 0.1 | |
Total comprehensive income for the period | 494.2 | 47.2 | |
(i) This may be subsequently transferred to the profit and loss. | |||
31 Dec 24 | 31 Dec 23 | ||
Note | cents | cents | |
Basic and diluted earnings per unit attributable to members of Scentre Group Trust 1 | 9(a) | 9.61 | 0.97 |
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Balance Sheet
As at 31 December 2024
31 Dec 24 | 31 Dec 23 | |||
Note | $million | $million | ||
Current assets | ||||
Cash and cash equivalents | 11(a) | 33.0 | 39.4 | |
Trade debtors | 3 | 1.8 | 2.9 | |
Receivables | 3 | 17.2 | 17.1 | |
Interest receivable | 62.1 | 64.4 | ||
Derivative assets | 15(a) | 479.3 | 176.6 | |
Other current assets | 12.0 | 11.7 | ||
Total current assets | 605.4 | 312.1 | ||
Non current assets | ||||
Investment properties | 4 | 8,613.1 | 8,443.1 | |
Equity accounted investments | 6(b) | 8,135.2 | 8,096.9 | |
Derivative assets | 15(a) | 126.5 | 325.0 | |
Other non current assets | 32.5 | 24.2 | ||
Total non current assets | 16,907.3 | 16,889.2 | ||
Total assets | 17,512.7 | 17,201.3 | ||
Current liabilities | ||||
Trade creditors | 65.4 | 76.2 | ||
Payables and other creditors | 12 | 1,034.3 | 1,030.4 | |
Interest payable | 97.3 | 99.8 | ||
Interest bearing liabilities | ||||
- | Senior borrowings | 13 | 2,767.2 | 3,358.7 |
Other financial liabilities | 14 | - | 174.0 | |
Lease liabilities | 0.2 | 0.2 | ||
Derivative liabilities | 15(b) | 56.1 | 61.1 | |
Total current liabilities | 4,020.5 | 4,800.4 | ||
Non current liabilities | ||||
Interest bearing liabilities | ||||
- | Senior borrowings | 13 | 5,347.8 | 5,132.9 |
- | Subordinated notes | 13 | 900.0 | - |
Lease liabilities | 8.5 | 8.2 | ||
Derivative liabilities | 15(b) | 131.9 | 216.8 | |
Total non current liabilities | 6,388.2 | 5,357.9 | ||
Total liabilities | 10,408.7 | 10,158.3 | ||
Net assets | 7,104.0 | 7,043.0 | ||
Equity attributable to members of Scentre Group Trust 1 | ||||
Contributed equity | 16(b) | 1,473.1 | 1,459.0 | |
Reserves | 17 | (0.8) | 14.3 | |
Retained profits | 18 | 5,448.6 | 5,387.5 | |
Total equity attributable to members of Scentre Group Trust 1 | 6,920.9 | 6,860.8 | ||
Equity attributable to external non controlling interests | ||||
Contributed equity | 75.3 | 74.4 | ||
Retained profits | 107.8 | 107.8 | ||
Total equity attributable to external non controlling interests | 183.1 | 182.2 | ||
Total equity | 7,104.0 | 7,043.0 |
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SCENTRE GROUP Scentre Group Trust 12024 Annual Financial Report
Statement of Changes in Equity
For the year ended 31 December 2024
Contributed | Retained | 31 Dec 24 | Contributed | Retained | 31 Dec 23 | |||||
Equity | Reserves | Profits | Total | Equity | Reserves | Profits | Total | |||
Note | $million | $million | $million | $million | $million | $million | $million | $million | ||
Changes in equity | ||||||||||
attributable to members | ||||||||||
of Scentre Group Trust 1 | ||||||||||
Balance at the beginning | ||||||||||
of the year | 1,459.0 | 14.3 | 5,387.5 | 6,860.8 | 1,459.0 | 17.3 | 5,655.3 | 7,131.6 | ||
- Profit after tax for the | ||||||||||
period (i) | - | - | 499.4 | 499.4 | - | - | 50.1 | 50.1 | ||
- | Other comprehensive | |||||||||
loss (i) (ii) | 17 | - | (15.1) | - | (15.1) | - | (3.0) | - | (3.0) | |
Transactions with owners | ||||||||||
in their capacity as | ||||||||||
owners | ||||||||||
- | Movement in | |||||||||
contributed equity (iii) | 16(b) | 14.1 | - | - | 14.1 | - | - | - | - | |
- | Distributions paid or | |||||||||
provided for | 8(b) | - | - | (438.3) | (438.3) | - | - | (317.9) | (317.9) | |
Closing balance of equity | ||||||||||
attributable to members | ||||||||||
of Scentre Group Trust 1 | 1,473.1 | (0.8) | 5,448.6 | 6,920.9 | 1,459.0 | 14.3 | 5,387.5 | 6,860.8 | ||
Changes in equity | ||||||||||
attributable to external | ||||||||||
non controlling interests | ||||||||||
Balance at the beginning | ||||||||||
of the year | 74.4 | - | 107.8 | 182.2 | 72.7 | - | 117.2 | 189.9 | ||
- Profit after tax for the | ||||||||||
period attributable | ||||||||||
to external non | ||||||||||
controlling interests (i) | - | - | 9.9 | 9.9 | - | - | 0.1 | 0.1 | ||
- | Distributions paid or | |||||||||
provided for | - | - | (7.6) | (7.6) | - | - | (7.2) | (7.2) | ||
- | Increase/(decrease) | |||||||||
in external non | ||||||||||
controlling interest | 0.9 | - | (2.3) | (1.4) | 1.7 | - | (2.3) | (0.6) | ||
Closing balance of equity | ||||||||||
attributable to external | ||||||||||
non controlling interests | 75.3 | - | 107.8 | 183.1 | 74.4 | - | 107.8 | 182.2 | ||
Total equity | 1,548.4 | (0.8) | 5,556.4 | 7,104.0 | 1,533.4 | 14.3 | 5,495.3 | 7,043.0 |
- Total comprehensive income for the period amounts to $494.2 million (31 December 2023: $47.2 million).
- Movement in reserves attributable to members of Scentre Group Trust 1 comprises currency loss on the translation of investment in foreign operations of $15.1 million (31 December 2023: $3.0 million).
- The movement in contributed equity pertains to the issue of units under the Distribution Reinvestment Plan (DRP).
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Cash Flow Statement
For the year ended 31 December 2024
31 Dec 24 | 31 Dec 23 | ||
Note | $million | $million | |
Cash flows from operating activities | |||
Receipts in the course of operations (including Goods and Services Tax (GST)) | 711.7 | 682.5 | |
Payments in the course of operations (including GST) | (217.9) | (194.4) | |
Dividends/distributions received from equity accounted entities | 365.2 | 354.6 | |
Withholding taxes paid | (2.9) | (2.9) | |
GST paid | (46.0) | (43.7) | |
Payments of financing costs (excluding financing costs capitalised) | (379.5) | (369.7) | |
Interest received | 2.2 | 2.1 | |
Net cash inflow from operating activities | 11(b) | 432.8 | 428.5 |
Cash flows from investing activities | |||
Capital expenditure | (84.7) | (80.3) | |
Payments relating to the sale of assets | (0.4) | (0.1) | |
Net outflows for investments in equity accounted entities | (41.5) | (69.7) | |
Financing costs capitalised to qualifying development projects and construction in progress | (5.9) | (8.1) | |
Net cash outflow from investing activities | (132.5) | (158.2) | |
Cash flows from financing activities | |||
Repayment of senior borrowings and lease liabilities | 11(c) | (2,183.7) | (1,183.8) |
Proceeds from senior borrowings | 11(c) | 2,870.0 | 1,721.4 |
Proceeds from the issuance of subordinated notes | 11(c) | 900.0 | - |
Repayment of other financial liabilities | (174.0) | (162.3) | |
Funds paid to related entities | 11(c) | (1,388.5) | (454.0) |
Distributions paid | (424.2) | (317.9) | |
Distributions paid by controlled entities to external non controlling interests | (6.4) | (5.3) | |
Proceeds from settlement of derivatives related to repayment of senior borrowings | 11(c) | 100.1 | 62.8 |
Net cash outflow from financing activities | (306.7) | (339.1) | |
Net decrease in cash and cash equivalents held | (6.4) | (68.8) | |
Add opening cash and cash equivalents brought forward | 39.4 | 108.2 | |
Cash and cash equivalents at the end of the period (i) | 11(a) | 33.0 | 39.4 |
(i) Cash and cash equivalents comprise cash of $33.0 million (31 December 2023: $39.4 million).
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SCENTRE GROUP Scentre Group Trust 12024 Annual Financial Report
Index of Notes to the Financial Statements
For the year ended 31 December 2024
Note | Description | Page |
1 | Basis of preparation of the Financial Report | 7 |
Operational results, assets and liabilities | ||
2 | Segment reporting | 9 |
3 | Trade debtors and receivables | 13 |
4 | Investment properties | 14 |
5 | Details of shopping centre investments | 15 |
6 | Details of equity accounted investments | 16 |
7 | Taxation | 18 |
8 | Distributions | 19 |
9 | Statutory earnings per unit | 19 |
Financing and capital management | ||
10 | Financing costs | 20 |
11 | Cash and cash equivalents | 21 |
12 | Payables and other creditors | 22 |
13 | Interest bearing liabilities | 23 |
14 | Other financial liabilities | 25 |
15 | Derivative assets and liabilities | 26 |
16 | Contributed equity | 27 |
17 | Reserves | 28 |
18 | Retained profits | 28 |
19 | Capital and financial risk management | 28 |
20 | Financial covenants | 29 |
21 | Interest bearing liabilities, interest and derivatives | |
cash flow maturity profile | 29 | |
22 | Fair value of assets and liabilities | 30 |
Other disclosures | ||
23 | Other material accounting policies | 31 |
24 | Share based payments | 32 |
25 | Lease commitments | 32 |
26 | Capital expenditure commitments | 33 |
27 | Contingent liabilities | 33 |
28 | Parent entity | 34 |
29 | Auditor's remuneration | 35 |
30 | Related party disclosures | 36 |
31 | Details and remuneration of Key Management | |
Personnel (KMP) | 37 | |
32 | Details of material and significant entities | 38 |
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Notes to the Financial Statements
For the year ended 31 December 2024
Note 1 - Basis of preparation of the Financial Report
(a) Corporate information
This financial report of Scentre Group Trust 1 (SGT1) and its controlled entities (collectively the Trust) for the year ended 31 December 2024 was approved in accordance with a resolution of the Board of Directors of Scentre Management Limited as Responsible Entity of SGT1.
SGT1 is domiciled in Australia. The nature of the operations and principal activity of the Trust are described in the Directors' Report.
(d) Basis of Accounting
This financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 (Corporations Act), Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. This financial report has also been prepared on a historical cost basis, except for investment properties, investment properties within equity accounted investments, derivative financial instruments, financial assets at fair value through profit and loss and other financial liabilities.
This financial report is presented in Australian dollars.
(b) Accounting for the Trust
The Trust is part of Scentre Group which is a stapled entity comprising Scentre Group Limited (SGL), SGT1, Scentre Group Trust 2 (SGT2), Scentre Group Trust 3 (SGT3) and their respective controlled entities. Scentre Group was established on 30 June 2014. The securities of each of SGL, SGT1, SGT2 and SGT3 are stapled and trade as one security on the Australian Securities Exchange (ASX) under the code SCG. The stapled securities of SGL, SGT1, SGT2 and SGT3 cannot be traded separately.
(c) Going concern
This financial report has been prepared on a going concern basis. In making this assessment, the Directors have considered:
- The Trust forms part of Scentre Group and is party to Scentre Group's cross-guarantee arrangements in respect of Scentre Group's debt facilities and bonds; and
- Scentre Group's ability to meet its financial obligations over the next twelve months, using cash flow sensitivity analysis and having regard to maturity of interest bearing liabilities, funding requirements, operating cash earnings and available financing facilities. At 31 December 2024, $3.2 billion (31 December 2023: $3.3 billion) of external financing resources and intragroup facilities within Scentre Group were available to the Trust which are sufficient to cover short term liabilities.
(e) Statement of Compliance
This financial report complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board. The accounting policies adopted are consistent with those of the previous financial year except that the Trust has adopted the following new or amended standards which became applicable on 1 January 2024:
-
AASB2020-1 Amendments to Australian Accounting Standards - Classification of Liabilities as Current or Non-current (effective from 1 January 2024)
This amends AASB 101 Presentation of Financial Statements to clarify the requirements for classifying liabilities as current or non-current.The amendments clarify that a liability is classified as non-currentif an entity has the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. This amendment did not have a material impact on the financial statements on application. -
AASB2022-5 Amendments to Australian Accounting Standards - Lease Liability in a Sale and Leaseback (effective from 1 January 2024)
This amends AASB 16 Leases to require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that does not recognise any amount of the gain or loss related to the right of use it retains.
This amendment did not have a material impact on the financial statements on application.
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SCENTRE GROUP Scentre Group Trust 12024 Annual Financial Report
Notes to the Financial Statements
Note 1 - Basis of preparation of the Financial Report (continued)
(e) Statement of Compliance (continued)
-
AASB2022-6 Amendments to Australian Accounting Standards - Non-current Liabilities with Covenants (effective from 1 January 2024)
This amends AASB 101 Presentation of Financial Statements to require disclosures if an entity classifies a liability as non-currentand that liability is subject to covenants with which the entity must comply within twelve months of the reporting date. The disclosures include: - information about the covenants (including the nature of the covenants and when the entity is required to comply with them) and the carrying amount of related liabilities; and
- facts and circumstances, if any, that indicate the entity may have difficulty complying with the covenants.
This amendment did not have a material impact on the financial statements on application.
Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Trust for the year ended
31 December 2024. The impact of these new standards or amendments to the standards and interpretations (to the extent relevant to the Trust) is as follows:
-
AASB2014-10 Amendments to Australian Accounting Standards - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (effective from 1 January 2028)
This amends AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures to address an inconsistency between the requirements of AASB 10 and AASB 128 in dealing with the sale or contribution of assets between an investor and its associate or joint venture. This amendment is not expected to have a material impact on the financial statements on application.
-
AASB2024-2 Amendments to Australian Accounting Standards - Classification and Measurement of Financial Instruments (effective 1 January 2026)
This amends AASB 7 Financial Instruments: Disclosures and AASB 9 Financial Instruments to: - clarify the date of recognition and derecognition of some financial assets and liabilities;
- clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest criterion;
- add new disclosures for certain instruments with contractual terms that can change cash flows (such as some financial instruments with features linked to the achievement of environment, social and governance targets); and
- update the disclosures for equity instruments designated at fair value through other comprehensive income.
The Trust is evaluating the impact of this standard on the financial statements on application.
-
AASB2024-3 Amendments to Australian Accounting Standards - Annual Improvements Volume 11 (effective 1 January 2026)
This makes minor improvements to address inconsistencies or to clarify requirements in: - AASB1 First-time Adoption of International Financial Reporting - to improve consistency between AASB 1 and AASB 9 in relation to the requirements for hedge accounting, and improve the understandability of AASB 1;
- AASB7 Financial Instruments: Disclosures - to improve consistency in the language used in AASB 7 with the language used in AASB 13 Fair Value Measurement;
- AASB9 Financial Instruments - to clarify how a lessee accounts for the derecognition of a lease liability when it is extinguished and address an inconsistency between AASB 9 and AASB 15 Revenue from Contracts with Customers in relation to the term 'transaction price';
- AASB10 Consolidated Financial Statements -
to clarify the requirements in relation to determining de facto agents of an entity; and - AASB107 Statement of Cash Flows - to replace the term 'cost method' with 'at cost' as the term is no longer defined in Australian Accounting Standards.
These amendments are not expected to have a material impact on the financial statements on application.
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