Scentre Group

Reported 2025 FFO was $1.18 billion, up 4.9% year over year, or $0.2282 per security; net operating income was $2.1 billion, up 3.7%, and like-for-like NOI was up 4.8%. Statutory profit was $1.78 billion, including a $456 million unrealized property revaluation gain; portfolio valuations rose 2.5% and the weighted average capitalization rate was 5.43%. Operating and leasing capital was $167 million in 2025, and management expects about $170 million in 2026. For 2026, the group targets FFO growth of at least 4% to more than $0.2373 per security and distributions up 4% to $0.1843 per security; management also said like-for-like NOI should be around 4% and weighted average cost of debt around 5.4% versus 5.6% in 2025.

Elliott Rusanow framed the strategy as growing economic activity across Westfield destinations by bringing in more visitors, extending dwell time, and broadening the mix of businesses that want to be there. He emphasized that the portfolio is premium and irreplaceable, highlighted record visitation and membership growth, and pointed to land-use optionality as a major long-term value driver. His tone was confident and expansionary, especially around the Bondi redevelopment, broader destination reinvestment, and the opportunity to repurpose land for residential and other uses.

Andrew Clarke focused on the quality of the financial result and the balance sheet. He cited $2.1 billion of NOI, $1.18 billion of FFO, $167 million of operating and leasing capex, $5.2 billion of available liquidity, and a weighted average interest rate of 5.6% in 2025, with 5.4% expected for 2026. He also detailed refinancing activity, including $2.4 billion of senior and subordinated notes refinanced, $3.2 billion of swaps executed, hedge coverage of 99% at January 2026 and 82% at December 2026, and a margin improvement from 2.8% in 2024 to 2.5% in 2025.

Analysts pressed on the funding strategy, including which subordinated notes might be bought back next, and management said it will keep monitoring refinancing opportunities but does not telegraph transactions in advance. Questions on land monetization focused on timing, partner appetite, and whether the development program would be capital-light; management said there has already been strong inbound interest and that it wants to maximize zoning value first, then decide how to monetize over time. Analysts also challenged the 4% guidance, and management explained the gap with a mix of dilution from prior JV activity, NZ FX, higher tax, lost rent from redevelopment disruption, and the non-repeat of the 2025 expected credit charge release.