Highlights

• FFO attributable to members up 4.4% to $612.4 million for 1H26 (vs $586.6 million in 1H25).

• Pro-forma property Revenue grew 4.4% to $1,334.6 million, with profit after tax up 24.6% to $974.5 million.

• Interim distribution of 9.215 cents per stapled security declared, payable 31 August 2026.

• Group manages 42 Westfield living centres across Australia and New Zealand, representing approximately $55 billion in total asset value.

Scentre Group (ASX:SCG) is one of the world's premier retail property groups, owning and operating 42 Westfield living centres across Australia and New Zealand. With total asset value of approximately $55 billion, Scentre is Australia's largest retail REIT and one of the most visited retail destinations globally. The Group's Westfield Brand centres are positioned as community living centres integrating retail, dining, entertainment, health, and services — a strategic evolution from traditional shopping centre to a broader community ecosystem. Scentre earns income from base rent, turnover rent, and complementary income streams from its tenant base of thousands of retailers and service providers.

Recent Development

For the half-year ended 30 June 2026, Scentre Group reported FFO attributable to members of $612.4 million — up 4.4% on the prior corresponding period's $586.6 million. Pro-forma property revenue (adjusted to exclude the impact of partial divestments of Westfield Chermside and Westfield Sydney, and NZD movements) grew 4.4% to $1,334.6 million. Profit after tax (including unrealised Fair Value movements) rose 24.6% to $974.5 million. Statutory revenue was $1,204.1 million, down 8.3% on the prior period, primarily due to the impact of the Westfield Chermside and Westfield Sydney partial divestments reducing reported revenue.

The interim distribution of 9.215 cents per stapled security was declared, payable on 31 August 2026 to securityholders on the Record Date of 14 August 2026. A distribution reinvestment plan is in operation for this period, with DRP-issued securities priced at $3.6666 per security.

Sector Context

Australian retail property, particularly premium Westfield-brand shopping centres, has demonstrated strong resilience post-COVID as in-person retail experiences — especially in food, entertainment, and services — prove difficult to replicate online. The evolution of Westfield centres from pure shopping destinations to integrated community living centres has strengthened tenant demand, particularly for health, dining, and experiential categories. Australia's population growth and urban density trends support long-term visitation growth in major metropolitan centres. The partial divestment of Westfield Chermside and Sydney during the period reflects Scentre's active Capital recycling to maintain a quality portfolio while optimising capital structure.

Risks and Uncertainties

Consumer spending remains sensitive to household income pressures, cost of living, and Interest Rate settings — any sustained weakness in retail spending would flow through to turnover-rent components and impact leasing spreads on renewals. The shift of certain retail categories online continues, though the experiential and service categories anchoring Westfield's tenant mix are more structurally resilient. Currency risk affects NZD-denominated New Zealand Assets and earnings. The partial divestments of key flagship assets (Westfield Chermside and Westfield Sydney) reduce portfolio Diversification slightly.

Catalysts to Watch

The full-year FY26 result and any distribution guidance update for the second half will be key milestones. Continued occupancy and specialty retail sales growth metrics at the portfolio level will be watched closely as indicators of retail health. Any further asset recycling announcements — either divestments or acquisitions — would signal Scentre's capital allocation direction. Progress on the integration of health, digital, and community services into the Westfield living centre model could provide a longer-term re-rating catalyst if these emerging revenue streams begin to contribute meaningfully to FFO.

Final Thoughts

Scentre Group (ASX:SCG) is executing consistently, with 4.4% FFO and pro-forma property revenue growth in 1H26 demonstrating the quality and resilience of its Westfield living centre portfolio. The 24.6% profit uplift (driven by property revaluations) and maintained distribution reflect a Business firing on most cylinders, supported by Australia's structural retail and population growth tailwinds.