Scentre Group (ASX: SCG) Provides Operational Update
Elliott Rusanow, CEO of Scentre Group, has announced the latest operational developments, expressing satisfaction with the performance in the early part of 2024.
Key highlights include:
- A total of 175 million customer visits recorded across 42 Westfield destinations in the first 18 weeks to May 5, 2024, marking an increase of 2.8 million compared to the same period in 2023.
- Business partners achieved $6.5 billion in sales in the three months ending March 31, 2024, reflecting a 2.4% increase compared to the corresponding period in 2023.
- Sales for the rolling 12-month period ending March 31, 2024, amounted to $28.5 billion, showing a $1.0 billion increase compared to the previous year.
- Cash collections for the first four months reached $902 million, up by $38 million compared to the same period in 2023, with portfolio occupancy at 99.2% as of April 30, 2024.
Regarding the unfortunate incident at Westfield Bondi on April 13, 2024, resulting in six fatalities, including a security team member, Mr. Rusanow extended condolences to the affected families. The Group continues to provide support, both financial and non-financial, to the victims’ families and the injured.
After a Community Reflection Day on April 18, Westfield Bondi resumed operations on April 19, with ongoing counseling and support services available. Despite the tragedy, customer visitation levels have remained consistent with the previous year.
Increased security measures have been implemented across the entire portfolio in collaboration with local law enforcement.
Looking ahead, Mr. Rusanow acknowledged that increased security measures and support provided to business partners post the Westfield Bondi incident will lead to higher operating expenses in 2024. The Group reaffirms its outlook for the year, with Funds From Operations expected to range between 21.75 to 22.25 cents per security, representing 3.0% to 5.4% growth. Distributions are anticipated to be at least 17.20 cents per security, reflecting a minimum 3.6% growth for the year.
