Scentre Group Operating Update

Scentre Group (ASX: SCG) today announced an operating update for the year-to-date.

Scentre Group Chief Executive Officer Elliott Rusanow said: “Our focus on attracting more people to our 42 Westfield destinations has seen us welcome 429 million customer visits so far this year. This is 8.7 million or 2.1% more than the same period in 2023.

“Total business partner sales for the nine months to 30 September 2024 were $20.2 billion, $0.4 billion or 2.3% higher than the previous corresponding period in 2023. A record $28.8 billion of annual sales was achieved by business partners to 30 September 2024.

“Demand for space from a diverse range of business partners is strong. Portfolio occupancy was 99.4% at 30 September 2024, up 30bps compared to 30 September 2023. Average leasing spreads were +1.7% and average specialty rent escalations were +5.5% in the nine months to 30 September 2024.”

Gross rent collections during the nine months to 30 September 2024 were $2,073 million, $78 million more than the previous corresponding period in 2023.

The Group continues to progress its $4 billion pipeline of future retail development opportunities. Works continue on the reconfiguration of department store space at Westfield Bondi and Westfield Burwood in Sydney and Westfield Southland in Melbourne.

The expansion of Westfield Sydney and construction of the adjoining commercial and residential tower on the corner of Market and Castlereagh Streets in Sydney’s CBD continues to progress. As part of the Westfield Sydney expansion, a further five levels of luxury and high-end retail will be introduced, including a new Chanel boutique. Other brands to join the expanded Westfield Sydney include Moncler, Omega and Canada Goose.

The Group has completed the $50 million repurposing of former department store space at Westfield Mt Gravatt in Brisbane, introducing new diverse uses, including Uniqlo, Harris Scarfe, Powerhouse Gym and entertainment offerings, Area 51, Holey Moley and Hijinx Hotel.

In September, the Group issued A$900 million of subordinated notes in the Australian domestic market with the proceeds used to complete the cash tender offer for US$656 million of its outstanding Subordinated Non-Call 2026 Fixed Rate Reset Notes due 2080. The strong participation by investors in this capital management initiative has enabled the Group to continue to diversify its sources of capital and to lower its overall weighted average cost of debt.

In September, the Group established the $175 million West Lakes Opportunity Trust which purchased a 50% share in Westfield West Lakes. The Group will co-manage the fund and remain as property manager and 50% co-owner of Westfield West Lakes.

In October, the Group announced the recipients of the 2024 Westfield Local Heroes program, which is in its seventh year. Since 2018, the Group has contributed $8.6 million in community grants to 865 community organisations.

Outlook

Subject to no material change in conditions, the Group reconfirms that it expects Funds from Operations to be in the range of 21.75 to 22.25 cents per security for 2024, representing 3.0% to 5.4% growth for the year.

Distributions are expected to be at least 17.20 cents per security for 2024, representing at least 3.6% growth for the year.

Authorised by the Chief Executive Officer.