Scentre Group (ASX: SCG), the Sydney based property management and development real estate major, today announced it's 2018 full year results. The company has delivered results in line with their forecast with FFO (Funds from operations) of $1.34 billion which translates to 25.24 cents per security, up by 3.9 percent and 2 percent uptick in the distribution of 22.16 cents per security.
Scentre Group CEO Peter Allen believes that the annual results validate the strength and robustness of the business across the business cycles. The real-estate major witnessed an increase in customer visitation by 5 million to a total of 535 million for the year 2018, and annual in-stores sales increased by 1$ billion to $24 billion. This growth was accompanied by a healthy occupancy of greater than 99 percent, which has been the company’s trend for over 20 years.
The company opened five developments during the year, and more than 50 percent of these new stores offer experiences like dining, entertainment, health, fitness and beauty services, which the customers can only consume on-site.
Peter Allen speaking on brand advocacy and influencing sales both instore and online for the year, highlighted that the group introduced 437 new brands and 317 existing brands grew their store network with Scentre Group.
The Sydney based retailer delivered profits of $2.3 billion for 2018 (included revaluation uplifts of $1.1 billion), thanks to execution of developments, uptick in net income and improvement of capitalization rates of quality assets.
Scentre group reported a total asset of $39.1 billion and assets under management of $54.2 billion and maintaining a gearing of 33.9% and interest cover of 3.5 times.
On the operations front, the company delivered 2.5 percent increase in comparable net operating income for the year; it managed to successfully complete over $1.1 billion of which Scentre group has a share of $810 million with a potential to deliver long term returns. The $1.1 billion investments added 106,000 sqm across projects.
Scentre Groups commenced redevelopment of Westfield Newmarket in Auckland with an investment of NZ$790 million.
On the capital management front, the company reported $3.8 billion in new and extended bank loan facilities and issued $800 million of long-term bonds.
Scentre Group's total specialty in-store sales growth of 1.5% was recorded for the year and the total stable portfolio in-store sales were up by 1.3% for the year.
The company forecasts a 3% increase of FFO growth for the 12 months ending 31st December 2019 and the distribution is forecasted to be 22.60 Cents per security, resulting in an increase of 2% year on year.
The CEO Peter Allen was upbeat about the future prospects of the business and believes that the group will be able to deliver on the group's purpose of ‘creating extraordinary places, connecting and enriching communities ‘and ensuring that they are a long term sustainable and responsible business for the all their stakeholders
Scentre Group’s market capitalization stands at $21.3 billion. The Stock closed the trading session on 20 February 2019 at A$3.870, down 3.49% with 52-week low as A$3.760 52 and 52-week high as A$4.535. The company reflects PE ratio of 4.99x, EPS of 0.804 AUD and Dividend yield of 5.53%.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.