Highlights:

  • Customer visitation rose 3.1% to 160 million across Westfield destinations
  • Portfolio occupancy remained high at 99.8% with solid leasing activity
  • FY26 FFO and distribution growth targets of at least 4% maintained

Overview:

Scentre Group (ASX:SCG) reported a solid operating performance for early 2026, supported by rising customer visitation and strong leasing demand across its Westfield portfolio. Foot traffic reached 160 million visitors, reflecting steady growth compared to the same period last year. Retail sales momentum remained healthy, with total business partner sales increasing during the first quarter. High occupancy levels and positive rental growth further underscored the strength of its retail destinations. Despite ongoing geopolitical uncertainty and potential consumer impacts, the Group has maintained its FY26 outlook, signalling confidence in operational resilience and continued growth.

How Is Operational Performance Supporting Growth?

Scentre Group delivered strong operational metrics, with business partner sales reaching $7.0 billion for the March quarter, reflecting steady growth. Specialty retail sales also improved, while demand for space remained robust, pushing occupancy levels close to full capacity. The Group completed a high volume of leasing deals, achieving positive rental spreads and consistent rent escalations. Ongoing redevelopment initiatives, including enhancements at key flagship locations, continue to support long-term growth and elevate customer experience across its retail destinations.

What Is Driving Capital Strategy and Outlook?

The Group strengthened its capital position through strategic transactions, including the partial divestment of a stake in a flagship asset and refinancing activities in both US and domestic debt markets. These initiatives improve balance sheet flexibility and support future investments. Looking ahead, Scentre Group expects funds from operations (FFO) and distributions to grow by at least 4% in 2026. However, management remains mindful of geopolitical volatility and its potential impact on consumer spending, continuing to monitor external risks while maintaining a positive outlook.