This article is from the Australian Property Journal archive
DESPITE intensified COVID-19 conditions, Scentre Group (ASX: SCG) managed to post improved results for 2021.
For the 12 months ending 31 December 2021 Scentre’s operating profit was at $845.8 million, at 16.32 cps, a 10.9% increase from $763.4 million in the previous year.
FFO for the period was at $862.5 million, at 16.64 cps this was a 12.7% gain on the previous period’s$766.1 million.
Up significantly from $3,731.8 million, SCG’s statutory profit for the year was at $887.9 million, including $81.2 million in property revaluation gains over the year.
These results each include a non-cash Expected Credit Charge of $168.8 million from the impacts of the pandemic, down from $304 million in 2020.
SCG posted a distribution of $738.7 million or 14.25 cents per security, which is up 103.6% on 2020 and exceeds previous guidance.
“I am very pleased with the group’s performance. Our team delivered better results in 2021 than 2020, even with more COVID-19 restrictions. This demonstrates our proactive approach to generating long term value for our securityholders,” said Peter Allen, CEO of SCG.
SCG collected $2,258 million in gross rent over the year, an increase of around $200 million on 2020 levels.
“We are focused on the customer, leveraging the strengths of our leading platform and pursuing our ambition to grow by becoming essential to people, communities and the businesses that interact with them,” said Allen.
Occupancy across the portfolio increased to 98.7%, with SCG completing 2,497 lease deals over 2021, including 1,090 new tenant deals and introducing 267 new brands to its portfolio.
Across SCG’s platform, annual sales were at $22.1 billion, with 413 million recorded customer visits recorded, despite extended lockdowns across Australia and New Zealand.
The group’s net operating cashflow’s were up 24.8% per security to $913.6 million, while balance sheet gearing was at 27.5%.
With liquidity of $5.6 billion, SCG will be able to sufficiently cover all debt maturities to early 2024.
“We are focused on driving customer visitation, engagement and occupancy in order to deliver earnings growth in 2022 and future years,” added Allen.
SCG anticipates distributions of 15.0 cps for 2022, or at least 5.3% growth, with earnings expected to grow at a higher rate in 2022.
