Scentre Provides First Quarter Update; FFO Growth Forecast For 12 months For ~ 3%

  • May 02, 2019 AEST
  • Team Kalkine
Scentre Provides First Quarter Update; FFO Growth Forecast For 12 months For ~ 3%

Scentre Group (ASX: SCG), the real estate giant is based out at Castlereagh Street, Sydney, Australia. It runs shopping centres in Australia and New Zealand, including the Westfield shopping centres. The company primarily deals with the management and development of the property.

The retail group laid down its 1st Quarter Operating Update on 1 May 2019. As on 31 March 2019, 99.3% of portfolios were leased by the company. 448 lease deals were successfully completed pertaining to an area of 71,084sqm.

On the outlook front, the company certified the forecast of FFO growth for 12 months (ending 31 December 2019) for around 3%.

On the in-store sales front, the total speciality in-store sales were up 1.5% for Q1 and 1.7% for the year. Specialities catering to areas less than 400 sqm recorded a total sale of $11,236 psm, up 0.8% for the quarter and 1.3% for the year. The sales in areas more than 400 sqm were up 1.0% for the quarter and 1.9% for the year. The majors, in-store sales were up 2.3% for the quarter and 1.8% for the year. The total portfolio sales soared up 1.3% and stood at $24.1 bn.

On the development activity front, the group stated that the Westfield Newmarket development is advancing at a great pace and is expected to witness openings, beginning in early Q3 2019. Westfield Newmarket, NZ is an NZ$790m project, with SCG’s share being NZ$400m. The completion of this project has been forecasted to be done by Q4 2019. Adding on to their growth metrics, SCG recently opened the Bradley Street Dining precinct special project at Westfield Woden. It consists of 6 fresh restaurants catering to South of Canberra forming part of $21 million redevelopment program.

On 4 April 2019, the group addressed the shareholders in their Annual General Meeting, where it highlighted the delivery of the strong financial results for 2018, which was in line with their forecast. They stated that customer visitation has increased across their portfolio which now numbers to 535 million. The yearly in-store sales were up by $1 billion and denoted 7.5% of all retail sales in Australian region, and their platform in Australia and New Zealand nations located within 30 minutes of 65% of the population.

The group also defined the strength of their balance sheet, with assets under management standing at $54.2 billion and Group assets noted at $39.1 billion, gearing at 33.9%. The company is focussed on the gender parity as well, where 41% women represent all people managers.

SCG is known as one of the most interesting stocks, as its business has grown into a significant platform which consists of 41 Westfield living centres, making it the 15th largest company on ASX as per the market capitalisation. The company also established a Level 1 American Depositary Receipt (ADR) program, allowing customers to trade via the US traded security.

In its trading update released in May 2019, SCG notified the market about an entire $24.1 billion worth annual retail in-store sales throughout Australian and New Zealand region out of which, 7.5% of the retail sales taking place through the ever-progressing Westfield platform.

On the technical front, the stock of the company last traded down by 1.316% and priced at A$3.760 as on 2 May 2019.


Disclaimer

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. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

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.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK