Scentre Group reported a 4.4% rise in funds from operations to $612.4 million for the six months ended June 30, 2026, as annual customer visits to its Westfield shopping centers increased 3.3% to 552 million. The Australian real estate investment trust upgraded full-year FFO guidance to at least 23.79 cents per security, up from prior guidance, while lifting full-year distribution growth to 4.25%.
Operating profit increased 4.5% to $611.7 million, with statutory profit reaching $974.5 million, including $477.6 million of unrealized property revaluation gains. Distributions rose 4.9% to $481.3 million, equivalent to 9.215 cents per security for the half-year. Full-year distribution guidance was raised to 18.473 cents per security, with second-half guidance set at 9.258 cents.
Portfolio occupancy reached 99.8%, the highest level since 2013, while specialty sales grew 5.4% over the past 12 months. Business partner sales totaled $30.3 billion, up $1.0 billion from the prior year. Regional growth was led by Western Australia at 6.0% and New Zealand at 5.0%, with jewelry and health and beauty categories posting the strongest gains.
Net interest expense fell 14% to $356.8 million, and the weighted average interest rate improved to 5.4% from 5.7% a year earlier. Total funding margin declined from 2.6% to 1.6%, with senior borrowings at $11.9 billion and subordinated notes at $1.6 billion. Available liquidity stood at $3.5 billion, while net tangible assets rose to $19.4 billion.
Capital recycling included the sale of a 50% stake in Westfield Mt Gravatt for $882.5 million, alongside the redemption of $2.3 billion in senior notes and $1.8 billion in subordinated notes. Scentre issued $750 million in new six-year senior notes and renegotiated $1.7 billion in bank facilities. The group’s gearing ratio was 35.5%, with interest cover at 3.6 times and FFO to debt at 11.9%.
Development activity remains robust, with a $4.0 billion retail pipeline targeting yields of 6–7% and internal rates of return of 12–15%. Projects include Westfield Bondi ($240 million), Westfield Penrith ($30 million), and Westfield Tuggerah ($20 million), alongside a residential pipeline expansion to 25,600 units. The weighted average capitalization rate held steady at 5.45%.
CEO Elliott Rusanow said the group’s strategy hinges on attracting and retaining shoppers, while CFO Andrew Clarke highlighted capital recycling at rates below the group’s weighted average cost of capital.
