Scentre Group (ASX: $SCG) Operating Update

Scentre Group (ASX: $SCG) has released its operating update, reporting a 2.8 million increase in customer visitation and $6.5 billion sales in the first 18 weeks to 5 May 2024. The portfolio occupancy stands at 99.2% at 30 April 2024. However, the update also addressed the tragic incident at Westfield Bondi on 13 April 2024, expressing condolences and outlining the support provided to the victims' families and injured individuals. The Group continues to work closely with local police and has increased security across its Westfield destinations.

Executive Commentary on Operating Update

Our operating results in the early part of 2024 are pleasing. Customer visitation to our 42 Westfield destinations in the first 18 weeks to 5 May 2024 was 175 million, or 2.8 million more than the same period in 2023. Our business partners achieved $6.5 billion of sales in the 3 months ended 31 March 2024, up 2.4% compared to the same period in 2023. On a rolling 12-month basis to 31 March 2024, our business partners have achieved sales of $28.5 billion, $1.0 billion more than in the same period in 2023. Cash collections for the first four months were $902 million, $38 million higher than the corresponding period for 2023. Portfolio occupancy is 99.2% at 30 April 2024. On behalf of Scentre Group, we continue to extend our deepest condolences to the families and loved ones of the victims of this tragedy. We continue to provide support, both financial and non-financial, to the victims' families as well as the victims injured during this attack. I thank the Westfield Bondi and broader Scentre Group team, together with our security and cleaning teams, for their tireless efforts during this very difficult time. I also thank emergency services, our business partners and their teams, community leaders and all levels of government for the support, guidance and understanding they have extended to us throughout the past few weeks. Following a Community Reflection Day on 18 April, Westfield Bondi re-opened for trade on 19 April. Counselling and support services continue to be available to our people, customers and business partners. We are grateful for the support of our customers with visitation in the last week to Westfield Bondi at similar levels to the same time in 2023.

Summary of Scentre Group Operating Update

Scentre Group (ASX: $SCG) reported a positive operating update with increased customer visitation and $6.5 billion sales in the first 18 weeks to 5 May 2024. The tragic incident at Westfield Bondi on 13 April 2024 was also addressed, expressing condolences and outlining the support provided to the victims' families and injured individuals. The Group continues to work closely with local police and has increased security across its Westfield destinations. Looking ahead, the Group anticipates an increase in operating expenses in 2024 due to heightened security measures. It reconfirms the expected Funds From Operations to be in the range of 21.75 to 22.25 cents per security for 2024, representing 3.0% to 5.4% growth for the year. Distributions are expected to be at least 17.20 cents per security for 2024, representing at least 3.6% growth for the year.