Scentre Group lifted its full-year 2026 guidance after reporting a 4.4% increase in funds from operations (FFO) to AUD 612 million for the first half, driven by record customer traffic and higher business-partner sales.
The company raised its full-year FFO guidance to at least AUD 23.79 cents per security, representing growth of at least 4.25%, while also increasing its full-year distribution guidance to AUD 18.473 cents per security, up 4.25% year-over-year. For the second half of 2026, Scentre forecast FFO of at least AUD 12.06 cents per security and distributions of AUD 9.258 cents per security, implying growth of at least 4.5% in the period.
Operational performance strengthened with 347 million customer visits in H1 2026, a 3.5% increase from the prior year. Annual customer visits reached 552 million over the 12 months to June 30, up from 408 million in 2022. Business-partner sales rose 3.7% in H1 to AUD 30.3 billion over the trailing 12 months, with specialty sales up 5.1%. Occupancy rates reached 99.8%, the highest June level in more than a decade.
Property valuations increased by 1.6% during the six-month period, while the weighted average capitalization rate remained broadly unchanged at 5.45%. Interest expenses fell AUD 58 million, or 14%, from H1 2025, and the weighted average cost of debt improved to 5.4% from 5.7% a year earlier. Available liquidity stood at AUD 3.5 billion as of June 30, 2026.
Scentre refinanced AUD 4.1 billion of high-cost borrowings, including AUD 2.3 billion of senior notes and AUD 1.8 billion of subordinated notes. The company issued a AUD 750 million six-year senior note domestically at a 1.2% margin and extended AUD 1.7 billion of bank facilities at lower margins. Divestment plans include the sale of a 50% interest in Westfield Mt Gravatt for AUD 882.5 million, expected to settle around September 30, 2026.
Redevelopment activity continues with AUD 240 million allocated to Westfield Bondi, AUD 30 million to Westfield Penrith, and repurposing at Westfield Tuggerah. The company identified more than AUD 4 billion of future redevelopment opportunities targeting yields of 6% to 7% and incremental returns of 12% to 15%. Residential development plans now include 25,600 approved or advanced dwellings across its land holdings, up from 20,200 previously.
