Scentre Group Lifts Half-Year Net Profit to $1.4 billion

Scentre Group, the ASX-listed owner of Westfield Shopping Centres in Australia, has lifted its half-year profit to $1.4 billion with a net profit up 22 per cent from the previous corresponding period.

Giving guidance that it is on track to deliver its forecast for full year growth in funds from operations of approximately 4.25%, the result included $929 million of revaluation gains driven primarily through continued growth in operating income across the portfolio and the completion of Brisbane’s Westfield Chermside redevelopment.

“I think investors should really see Scentre Group as being the pre-eminent shopping centre owner and operator in the Australia-New Zealand market,” Scentre Group chief executive Peter Allen told Sky News Business.

“I think that we've got the prime locations, the best locations in the market, we've been able to capture market share in an enlarged market and a growing market - which is really exciting.

“We're trying to curate the right retail mix for each of our centres to be able to meet the needs for the market.”

The group has assets under management of $47.4 billion (3.6% growth) and during the half commenced $900 million in developments with expected total returns in excess of 15%.

Scentre owns 39 Westfield shopping centres in Australia and New Zealand, and said its portfolio remains more than 99.5 per cent leased. Total sales were $22.9 billion.

[Related reading: Westfield record half-year 18% increase in revenue]The company said in regard to development the strategy is “growing the business by strategically investing in the redevelopment of our high quality shopping centre portfolio”.

Scentre also highlighted the commencement of the $470m Coomera development in Queensland, its first greenfield development in 12 years.

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