AAP Finance

Scentre FY earnings improve, more growth ahead

By AAP Newswire

Feb 21, 2024

Westfield shopping centre sign — A major decrease in property valuations is behind a 41 per cent drop in Scentre's full year profit. -AAP Image

Westfield owner Scentre Group has claimed improved full-year earnings and says shopping centre redevelopments in Adelaide, Brisbane and Sydney provide more opportunity for growth.

Hold tight - we’re checking permissions before loading more content

Scentre on Wednesday posted a 5.2 per cent improvement in funds from operations to $1.09 billion for the 12 months to December 31.

Investors will receive a distribution of 16.6 cents per security, higher than the 15.75 cents per security paid this time last year.

Scentre prefers funds from operations as its key measure of earnings.

Net profit after tax fell 41 per cent to $174.9 million. This was due to a slump in property values.

Scentre's income was anything but slumping. The business collected $131 million more in gross rent from its tenants in FY2023 for a tally of $2,723 million.

Chief executive Elliott Rusanow said he expected more growth in earnings and distributions.

Westfield properties Tea Tree Plaza (Adelaide), Mt Gravatt (Brisbane) and Sydney are all slated to open expanded shopping areas this year.

For FY2024, Scentre has forecast up to 5 per cent growth in funds from operations and a distribution of 17.2 cents per security.

Scentre owns 42 Westfield shopping centres across Australia and New Zealand. There are 15 in NSW, the most of any state or territory.

Scentre shares on the ASX were up 3.02 per cent to $3.07 at 12.45pm (AEDT).