This article is from the Australian Property Journal archive
WESTFIELD shopping malls owner Scentre Group’s year-to-date sales are up 7.3% on 2022, translating into rent escalations of 7.6%, it said in its quarterly update.
As a result, Scentre reaffirmed its funds from operations outlook of between 20.75c to 21.25c per security for 2023, representing 3.4% to 5.9% growth for the year. This equates to growth in FFO for the second half of 2023 of between 5.6% to 10.9%. Meanwhile, distributions are expected to be at least 16.50c per security for 2023, representing at least 4.8% growth for the year.
“Our strategy to attract more people to our Westfield destinations has continued to drive strong operating performance for our business,” Scentre Group CEO Elliott Rusanow said.
“So far this year we have welcomed 410 million customer visitations which is 28 million or 7.4% more than the same period in 2022. On a rolling 12-month basis customer visitations now exceed 500 million.
“Creating more reasons for customers to visit and spend their time in our Westfield destinations has generated continued business partner sales growth.”
Total business partner sales for the nine months to 30th September were $19.7 billion, $1.3 billion or 7.3% higher than the previous corresponding period. Total business partner sales on a rolling 12-month basis are $28.1 billion, which is $2.5 billion or 9.8% higher than the previous corresponding period.
Ongoing demand for space in Westfield shopping centres led to occupancy increasing by 0.3% to 99.1%. Average leasing spreads were 2.9% to the positive, and average specialty rent escalations were 7.6%.
Cash collections during the 10 months to the end October were $2.229 billion, $100 million more than the prior comparable period in 2022.
Westfield is progressing with its $355 million transformation of Westfield Knox in Melbourne, with the next stage on schedule to open in late November, as well as the $50 million repurposing of department store space at Westfield Mt Gravatt to introduce Uniqlo, Harris Scarfe and a range of specialty stores, which will open throughout 2024.
During the quarter, the group executed new and extended funding facilities totalling $900 million and repaid a €500 million bond that matured in September.
Rooftop solar installations were completed at Westfield Hornsby and Westfield Tuggerah as part part of its progress towards net zero by 2030, following the installations at Westfield Fountain Gate and Westfield Knox earlier in the year.
