Scentre Group (ASX:SCG), the owner and operator of 42 Westfield centres across Australia and New Zealand, provided an operational update for the year to date. The company reported 429 million customer visits as of 3 November 2024, up 2.1% from the same period in 2023, while business partner sales reached $20.2bn, marking a 2.3% increase year-on-year. Total annual sales hit a record $28.8bn by 30 September 2024.
Portfolio occupancy stood at 99.4%, up 30 basis points from September 2023. Average leasing spreads for the first nine months of 2024 were positive at +1.7%, with specialty rent escalations averaging +5.5%. The group collected $2.073bn in gross rent, an increase of $78m compared to 2023.
The company highlighted progress in its $4bn retail development pipeline, with significant projects in Sydney and Melbourne, including the expansion of Westfield Sydney and reconfigurations at Westfield Bondi Junction and Southland.
Scentre issued A$900m in subordinated notes in September, refinancing US$656 million in existing debt to reduce costs. The group also co-established the $175m West Lakes Opportunity Trust, acquiring a 50% stake in Westfield West Lakes in South Australia.
Scentre reaffirmed its 2024 funds from operations forecast of 21.75 to 22.25 cents per security and distribution growth of at least 3.6%, projecting a minimum of 17.20 cents per security.