Sales of Scentre Group’s business partners jump AU$3.5 billion post COVID

November 12, 2022 07:00 AM AEDT | By Tamnna

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Sales of Scentre Group’s business partners jump AU$3.5 billion post COVID — Image source: © Arliftatoz2205 | Megapixl.com

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Highlights

The sales of Scentre Group’s business partners were up by AU$2.7 billion in Q3 FY22 compared with 2021.

Scentre Group has invested AU$355 million in the Westfield Knox shopping centre.

Australia-based Scentre Group’s (ASX:SCG) Westfield operations have witnessed an AU$3.5 billion increase in sales this year compared with the same period last year, as per Scentre Group’s third-quarter operational update published on the ASX on 10 November 2022. Not only this, Scentre Group’s business partners achieved sales of AU$6.4 billion in the third quarter ended on 30 September, which is a surge of AU$2.7 billion compared with Q3 FY21.

Additionally, the Australian Westfield shopping centre arm has generated 14.8% more sales in the third quarter compared with Q3 FY19, and sales have increased by 11.8% for the nine-month period compared with 2019.

This increase in business partners’ sales was pushed by customers returning to stores after the COVID-19 pandemic. The company’s 42 Westfield Living Centres in Australia received 391 million customer visits, a 16.7% increase over the same time the previous year. According to Scentre Group's Q3 update, the group anticipates reaching 500 million visits towards the end of the year.

A glance at Scentre Group’s Q3 FY22 highlights

For comparable growth compared with 2019, the business partners’ total Majors and Specialty sales were 14.8% higher for the three months to September and 11.9% higher for the nine months to September.
Compared with 2019, Westfield business partners generated 11.9% higher total Majors and Specialty sales for the three months to September and 8.7% higher for the nine months to September.
In terms of growth over 2021, total Majors and Specialty sales rocketed 69.3% higher for the three months to September and 21% higher for the nine months to September.
In addition, the group has concluded 2,464 leasing agreements, comprising 1,547 renewals and 917 new merchants. The group’s portfolio has seen the addition of more than 200 new brands in 2022.
The group collected AU$670 million in rent during the third quarter and over AU$1.92 billion since the start of the year, an increase of AU$235 and AU$285 million, respectively, over the same time the previous year.
Scentre Group’s AU$355 million investment in Westfield Knox has turned out well for the company, as per the ASX filing.
The group’s membership program saw an increase of 200,000 customers in the Q3 quarter.
The group anticipates its FFO to exceed 19.0 cents per share in 2022, while distributions are expected to be at least 5.3% higher than in 2021.

In a statement, Elliott Rusanow, the CEO of Scentre Group, said:

Image Source: © 2022 Kalkine Media ®
Data Source: Company announcement dated 10 November 2022

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