Key Highlights

  • Funds From Operations increased 4.4% to $612 million, or 11.73 cents per security
  • Distributions rose 4.9% to $481 million, or 9.215 cents per security
  • Statutory profit was $975 million, including a $478 million unrealised property valuation increase, with the portfolio valued at $33.7 billion at 30 June 2026
  • Full-year 2026 FFO guidance was upgraded to at least 23.79 cents per security, representing growth of at least 4.25%

Scentre Group (ASX:SCG) reported Funds From Operations of $612 million, or 11.73 cents per security, for the six months to 30 June 2026, an increase of 4.4% on the prior corresponding period. Distributions rose 4.9% to $481 million, or 9.215 cents per security. Statutory profit for the half was $975 million, which included an unrealised property valuation increase of $478 million. The Group's portfolio was valued at $33.7 billion as at 30 June 2026.

Portfolio Valuation and Customer Visitation

Chief Executive Officer Elliott Rusanow said the Group's focus remains on generating long-term Earnings growth from its Westfield Business in Australia and New Zealand while creating value from its land holdings. The Group recorded 347 million customer visitations in the year to date, an increase of 3.5%, or 12 million, on the prior comparable period, and attracted 552 million customer visits across its 42 Westfield destinations over the past 12 months, a record for the business.

Capital Management Activity

The Group announced that Australian Retirement Trust will acquire a 50% interest in Westfield Mt Gravatt in Brisbane for $882.5 million, subject to regulatory clearance, comprising a $870.0 million property sale at a Capitalisation rate of 5.50%, representing a 3.5% premium to December 2025 book values. This follows Australian Retirement Trust's earlier Acquisition of a 19.9% interest in Westfield Sydney for $864 million. During the half, the Group refinanced all remaining senior and subordinated notes issued during the 2020 Pandemic period, including the Redemption via make-whole of US$750 million of senior notes due 2030, the issuance of a $750 million six-year senior note in the Australian domestic market, and the redemption of US$1.3 billion of non-call 2030 subordinated notes via tender and clean-up call. Senior bank facilities of $1.7 billion were also renegotiated and extended. As a result, the Group's average Debt Margin reduced from 2.6% at 31 December 2025 to 1.6% at 30 June 2026. Available Liquidity stood at $3.5 billion, sufficient to cover debt maturities until the second half of 2028.

Guidance Upgrade and Outlook

Based on its first-half performance and subject to no material change in conditions, Scentre Group upgraded its full-year 2026 FFO guidance to at least 23.79 cents per security, representing growth of at least 4.25%, with second-half FFO guidance upgraded to at least 12.06 cents per security, at least 4.5% higher than the prior corresponding period. Distribution guidance for the full year was upgraded to 18.473 cents per security, also representing growth of 4.25%, comprising 9.215 cents per security for the first half and 9.258 cents per security guided for the second half.

Conclusion

Scentre Group's H1 2026 results showed growth in Funds From Operations and distributions, supported by record customer visitation across its Westfield portfolio and a series of Capital management transactions that reduced the Group's average debt margin during the half. The proposed partial sale of Westfield Mt Gravatt to Australian Retirement Trust extends the Group's existing relationship with that investor, while the upgrade to full-year FFO and distribution guidance reflects the operating performance recorded over the first six months of the year, subject to no material change in conditions.