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Scentre Group’s strategy continues to drive strong operating performance

On a rolling 12-month basis, Westfield customer visitations now exceed 500 million

Scentre Group, owner and operator of 42 Westfield destinations across Australia and New Zealand, has announced its third quarter operational update for the period ended 30 September 2023.

Scentre Group Chief Executive Officer Elliott Rusanow said: “Our strategy to attract more people to our Westfield destinations has continued to drive strong operating performance for our business.

“So far this year, we have welcomed 410 million customer visitations, which is 28 million or 7.4% more than the same period in 2022. On a rolling 12-month basis customer visitations now exceed 500 million.

“Creating more reasons for customers to visit and spend their time in our Westfield destinations has generated continued business partner sales growth. Total business partner sales for the nine months to 30 September 2023 were $19.7 billion, $1.3 billion or 7.3% higher than the previous corresponding period in 2022. Total business partner sales on a rolling 12-month basis are $28.1 billion, which is $2.5 billion or 9.8% higher than the previous corresponding period in 2022.

“Demand for space in our Westfield destinations continues to be strong with portfolio occupancy increasing to 99.1% at 30 September 2023, up from 98.8% at 30 September 2022,” said Rusanow.

The relocated and reimagined food court at Westfield Knox, VIC

Average leasing spreads were up 2.9%, and average specialty rent escalations were up 7.6% in the nine months to 30 September 2023.

Cash collections during the ten months to 31 October 2023 were $2,229 million, $100 million more than the prior comparable period in 2022.

“Our Westfield membership program continues to grow and now totals 3.7 million members.

In terms of development, Rusanow said: “The $355 million transformation of Westfield Knox continues, and the next stage is on schedule to open in late November.

“We have commenced the $50 million repurposing of department store space at Westfield Mt Gravatt to introduce Uniqlo, Harris Scarfe and a range of specialty stores. This will open throughout 2024.

“Progress continues on our pathway to net zero by 2030. Rooftop solar installations were completed at Westfield Hornsby and Westfield Tuggerah, following the installations at Westfield Fountain Gate and Westfield Knox earlier in the year. Together, these installations will more than double the Group’s solar generation capacity from 5.9MW to 12.2MW.

“We were pleased to be awarded Global Sector Leader, Development in the 2023 GRESB Real Estate Assessment, ranking first amongst global retail peers for the third consecutive year.”

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