Scentre Group’s full year net profit has jumped 10.4 per cent to $2.99 billion on the back of strong operational performance and revaluations.
The company, which operates Westfield-branded centres in Australia, says it also lifted comparative sales 2.6 per cent to an average of $11,203 per square metre in the six months to December 31.
However, Scentre’s revenue fell 12.1 per cent to $2.52 billion.
The property firm’s comparable specialty sales grew 2.6 per cent for the 12 months with average annual specialty sales of $11, 203 per square metre. It said strong sales performance was achieved across most categories, particularly in jewellery, health & beauty, food retail and technology categories.
“Total assets under management are now $45.7 billion and our portfolio provides a solid foundation for strong long-term risk-adjusted returns,” said Peter Allen, CEO, Scentre Group.
Allen said during 2016, Scentre completed major redevelopments with above-forecast yields, also commencing $605 million of new developments.
“With the completion of Westfield Warringah Mall and North Lakes, we have continued to demonstrate our ability to create extraordinary places that enable communities to come together and enjoy exciting retail experiences,” said Allen.
Allen also today announced that Scentre have commenced two new redevelopments at Westfield Carousel in Perth and Westfield Plenty Valley in Victoria.
“The $350 million project will comprise the introduction of a David Jones department store, an expanded fashion range including international mini-majors, the establishment of a new entertainment, dining and leisure precint, an upgraded Hoyts cinema and additional parking,” he said.
The $80 million redevelopment at Westfield Plenty Valley will add a new nine screen Village cinema complex, new dining precinct and an entertainment precinct including 11 restaurants.
Also in 2016, Scentre in tandem with Cbus Property purchased the David Jones Market street building in Sydney’s CBD and on completion will own the retail component that will add around 10,000 square metres of luxury retail space to Westfield Sydney.
“Our long term strategy is to own the highest quality shopping centre portfolio in Australia and New Zealand,” said Allen We have now completed the divestment of nine shopping centres that did not meet this objective, which has refined our portfolio to meet the dynamioc needs of both retailers and consumers.”
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