ASX200 Spotlight: SCG and REA Shares in the Limelight Amid Market Trends

June 17, 2025 01:26 PM AEST | By Team Kalkine Media

ASX200 Spotlight: SCG and REA Shares in the Limelight Amid Market Trends — Image source: Shutterstock

SCG (ASX:SCG): Anchored in Retail Real Estate

Scentre Group is known for its Westfield-branded shopping centres across Australia and New Zealand. As of 2025, its share price has risen approximately 4.9%. The company manages a premium portfolio of 42 centres valued at over $34 billion, supported by an impressive occupancy rate above 99% and drawing in over 500 million annual visitors.

These centres are strategically placed in high-traffic trade areas, housing tenants that span fashion, food, leisure, and entertainment. The consistent leasing demand reflects the defensive nature of SCG’s business despite evolving consumer habits.

On the financial front, SCG maintains a debt/equity ratio of 87.3%, suggesting relatively strong equity backing. It has delivered an average dividend yield of 4.8% over the last five years. However, the return on equity (ROE) for calendar year 2023 stood at 1.0%, notably lower than typical benchmarks for mature companies.

REA (ASX:REA): Digital Real Estate Powerhouse

REA Group, which operates realestate.com.au, commands a leading role in digital real estate advertising in Australia. Though the share price is currently 14.3% below its 52-week high, REA’s core strengths remain intact. It serves around 20,000 property agents and receives over 55 million monthly visits to its Australian platform alone.

While REA has expanded into nearly 10 countries, its domestic operations remain the key revenue drivers. The company also operates in adjacent segments such as mortgage broking and house-sharing platforms, supported by strong network effects and economies of scale that solidify its market leadership over smaller rivals.

From a financial standpoint, REA has increased its revenue at an annual rate of 18.6% over the past three years, reaching $1.68 billion in FY24. Net profit, however, declined slightly to $303 million from $323 million previously. Its ROE of 18.9% underscores strong capital efficiency typical of leading digital platforms.

A Broader Market Context

Both companies fall within the ASX200 category, showcasing distinct narratives—one rooted in physical retail infrastructure and the other in digital innovation. While SCG’s fundamentals reflect a stable, income-generating profile, REA’s metrics highlight a high-growth but competitive tech-based model.

As market conditions evolve, observing the performance and developments of SCG and REA offers valuable insight into Australia’s real estate and digital advertising sectors within the ASX200 landscape.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.