Scentre Group (ASX: SCG) owns ‘extraordinary’ platforms of 41 Westfield living centres with 4 of the top 5 centres in New Zealand and 7 of the top 10 centres in Australia.
This Group operating in real estate market space has come up with its 1st Quarter Operating Update on Wednesday, 1 May 2019. SCG announced that it has $24.1 billion of annual retail in-store sales across Australia and New Zealand with ~7.5% of all retail sales occurring through the Westfield platform.
Chief Executive Officer of Scentre, Peter Allen stated that “Customer visitation continued to grow during this quarter underpinned by its strong focus on the customer experience.”
It underscores customer visitation of more than 535 million visits annually with continued growth observed during the quarter.
The company has developed a vertically integrated operating platform with proven capability in development, construction, design, leasing and management.
Total specialty in-store sales increased by 1.5% for the March 2019 quarter and 1.7% for the 12 months ended 31 March 2019. On a sales per square metre basis, total specialty in-store sales were up 0.7% for three months and 1.3% for the year with > 400 sqm in-store sales up 1.9% for the entire year. Total stable portfolio in-store sales were up 1.1% for the quarter and 1.3% to $24.1 billion for the year.
As at 31 March 2019, Scentre’s 99.3% of the portfolio was leased with 448 lease deals completed number and a total lettable area of more than 3.8 million sqm.
Allen added that “The Group continues to enhance its extraordinary platform with its Westfield Newmarket redevelopment in Auckland on track to open in stages during the second half of this year.”
The company further confirmed that Westfield Newmarket development is advancing well on track with staged openings starting early Q3 2019. The development targets the returns of > 7% yield and > 15% IRR.
As a part of $21 million redevelopment plan, Scentre has introduced six new restaurants to the South of Canberra including the recently opened Bradley Street Dining at Westfield Woden.
This development of Westfield Newmarket, New Zealand includes the project cost of NZ$790 million and incremental project GLA of 52,000sqm, taking the completion centre GLA of 88,150sqm. The project development is expected to be completed by the four quarter of 2019.
The Group further reaffirmed its FY2019 guidance for FFO of approximately 3% with the distribution for 2019 expected to increase by 2% to be 22.60 cents per security.
In 2018, the group delivered strong financial results in line with its expectation, achieving 3.9% growth in Funds from Operations to 25.24 cents per security.
SCG stock price declined by 0.524% to last trade at $3.800 on 1 May 2019. The stock closed at a price to earnings multiple of 8.860x with a market capitalisation of $20.31 billion. Over the past 12 months, the stock has plunged by 5.21% including a negative price momentum of 5.91% recorded in the last three months.
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