Scentre Group, the company spun off from Westfield’s international business in 2014, lifted underlying profit by 3.8 per cent to $1.199 billion.
On a statutory basis net profit fell to $2.7 billion from $6.59 billion in 2014.
The 2015 result includes just the company’s Australian and New Zealand shopping centres, whereas the result for 2014 included six months worth of contributions from Westfield’s offshore malls.
Scentre said comparable speciality sales in its Australian malls grew by 5.3 per cent in 2015 with growth in particular seen in fashion, footwear, jewellery, tech and appliances and leisure.
The Group forecasts FFO growth for the 12 months ending in December 2016 to be approximately 3 per cent. This represents an underlying increase of approximately 5 per cent excluding the impact of the sale of centres in Australia and New Zealand.
“Scentre Group’s pre-eminent portfolio and unique market position have provided a strong operating performance and excellent returns for security-holders since the Group was established as a separate entity,” said Scentre Group Chairman, Frank Lowy.
Group CEO, Peter Allen, said the “secure cashflows from our shopping centres” in conjunction with the groups “accreditive development program” would provide growth income through the economic cycles.
Allen says the $830 million redevelopment projects at Casey Central, Chatswood, Hurstville, Kotara, North Lakes and Warringah Mall will add significant value to the groups future performance.
“We have already opened the redevelopments at Chatswood, Hurstville, North Lakes and Kotara which are trading strongly. These developments will be accretive to earnings and create substantial long-term value.”
At Westfield North Lakes, the group has commenced the $140 million Ikea link mall project, which connects a new Ikea store with the existing centre. The development will include a new Kmart discount department store, JB Hi-Fi Home, Rebel and approximately 50 new specialty stores over a single level with completion expected in December 2016.
AAP & Inside Retail NZ