This article is from the Australian Property Journal archive
WESTFIELD shopping centre owner Scentre Group has suspended $800 million security buy-back program due to volatility in the share market.
Scentre initiated the program during 2019 and has to date purchased 126,618,867 securities for $479 million.
The group bought back $304 million of securities during 2019 at an average price of $3.88 per security.
However in the past in the past 28 days the group’s share price has been hit by the volatility in the share market with its share price falling from $3.90 at 12 February to close at $3.03 on 9 March.
SCG CEO Peter Allen said having regard to the recent increased levels of volatility being experienced throughout capital markets globally, the group is pausing the security buy-back program until further notice.
Instead he said the remaining $321 million will be utilised to reduce outstanding debt and provide the group with additional capital capacity at this time.
Scentre recently posted full year funds from operations of $1.345 billion, up 0.7% on the previous corresponding period. Operating earnings, which is the group’s FFO excluding project income, lifted 1.0% per security to $1.287 billion. Distributions lifted 2.0% on the prior year to 22.60 cents per security.
