The Sydney-based Scentre Group Limited (ASX: SCG) is engaged in the development, designing, construction, ownership, operations, asset management and marketing activities for a large diversified portfolio of retail real estate properties and shopping centers located across Australia and New Zealand.
With a market capitalisation of AUD 20.42 billion and 5.32 billion outstanding shares, the SCG stock last traded at a price of AUD 3.840, with ~ 11.91 million shares traded until the end of the market session on Friday, 17th May 2019. The stock has a 52-week high of AUD 4.535 and a 52-week low of AUD 3.630. The company’s annual dividend yield is also high at around 5.77%.
Recently, Scentre Group Limited released its 1st quarter operating update for the three months to 31st March 2019, whereby the percentage of portfolio leased stood at 99.3%, and around 448 lease deals were completed. The customer visits per annum grew over 535 million.
Besides, the total speciality in-store sales were up 1.5% for the quarter and 1.7% for the year.
Source: Company’s 1st Quarter Operating Update
Commenting on the results, the CEO, Peter Allen quoted, “Customer visitation continued to grow during this quarter underpinned by our strong focus on the customer experience”.
Scentre Group’s active projects include the Westfield Newmarket in New Zealand. The works for the same commenced in the first quarter of 2018 (Q1 2018) and expected to be completed by the fourth quarter of 2019 (Q4 2019). It has a total project cost of NZD 790 million (SCG’s share: NZD 400 million).
The Group has also recapitulated its forecast for the FFO growth at ~3% for the twelve months to 31st December 2019. In addition, the distribution for 2019 is also estimated to be 22.60 cents per security.
As per the Group’s results for the full-year to 31st December 2018, the funds from operations totalled to ~ $ 1.34 billion reflecting 25.24 cps, an increase of 3.9% and a distribution of 22.16 cents per security, which was also up 2%.
Scentre Group’s CEO Peter Allen, commented on the annual results and explained that they were immensely pleased with the strong results delivered so far, which are also consistent with their forecast. This is a reflection of the Group’s platform quality, coupled with the execution of its strategy.
He further added that the Group added 437 new brands and expanded the store network for 317 existing brands during 2018. This demonstrates the significance of physical stores in seeking and retaining customers, building brand loyalty as well as and influencing sales, both in-store and online.
The statutory profit for the period was recorded at around $ 2,287.2 million, and the Assets Under Management (AUM) rose 6.3% to $ 54.2 billion.
The customer visits per annum were crossed over 535 million, an increase of 5 million and the total annual retail sales amounted to $ 24 billion, an increase of $ 1 billion.
As for the capital management initiatives during the full year, the Group added new and extended bank loan facilities of $ 3.8 billion and issued ~$ 800 million of long-term bonds.
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