Scentre Group has released its latest operating update, highlighting steady growth in foot traffic, sales, and occupancy across its Westfield destinations in Australia and New Zealand. CEO Elliott Rusanow attributed the year’s success to increased visitor numbers and robust demand from retail partners.
In the first nine months of 2024, customer visits rose by 2.1% year-over-year, totalling 429 million. Business partner sales reached $20.2 billion, marking a 2.3% increase from 2023. Notably, annual sales hit a record $28.8 billion as of 30 September 2024.
Key financial and operational highlights:
- Occupancy across Westfield properties reached 99.4%, a 0.3% increase over last year.
- The group reported a leasing spread of 1.7% and a 5.5% increase in specialty rent escalations, with 2,234 leasing deals completed.
- Collected rents totalled $2.073 billion, up $78 million from the previous year.
Scentre Group continues to progress its $4 billion pipeline of future retail development opportunities. Works continue on the reconfiguration of department store space at Westfield Bondi and Westfield Burwood in Sydney and Westfield Southland in Melbourne.
The expansion of Westfield Sydney and construction of the adjoining commercial and residential tower on the corner of Market and Castlereagh Streets in Sydney’s CBD continues to progress.
As part of the Westfield Sydney expansion, a further five levels of luxury and high-end retail will be introduced, including a new Chanel boutique. Other brands to join the expanded Westfield Sydney include Moncler, Omega and Canada Goose.
The Group has completed the $50 million repurposing of former department store space at Westfield Mt Gravatt in Brisbane, introducing new diverse uses, including Uniqlo, Harris Scarfe, Powerhouse Gym and entertainment offerings, Area 51, Holey Moley and Hijinx Hotel.
In September, the Group established the $175 million West Lakes Opportunity Trust which purchased a 50% share in Westfield West Lakes. The Group will co-manage the fund and remain as property manager and 50% co-owner of Westfield West Lakes.
Community and Outlook
The group continues its commitment to community programs, awarding grants through the Westfield Local Heroes initiative. For 2024, Scentre Group forecasts Funds from Operations (FFO) to grow between 3.0% and 5.4%, with expected distributions rising by at least 3.6%.
With steady growth and ongoing development projects, Scentre Group aims to strengthen its role as a leading retail and community destination provider across Australasia.
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