Scentre Group (ASX: SCG) today released its results for the 12 months to 31 December 2025 with Funds From Operations (FFO) of $1,188 million (22.82 cents per security), up 4.9% on the previous year. Distributions for the period are $923 million (17.72 cents per security), up 3.4%.
Statutory Profit for the period was $1,779 million.
Scentre Group Chief Executive Officer Elliott Rusanow said: “Our strategy is to grow the economic activity that occurs at each of our 42 Westfield destinations located throughout Australia and New Zealand. This strategy continues to deliver strong operating performance and continued growth in earnings.
“Our focus is to attract more people to our destinations and give them reasons to stay longer when they are with us.
“By doing this, we continue to improve our ability to attract a broader range of businesses to partner with us at our Westfield destinations.
“Our strategy is also focused on how we better utilise our substantial and unique land holdings at our destinations, to create additional long term growth for the Group.
“Our 2025 results represent our fifth consecutive year of earnings and distributions growth and we expect these to continue to grow in the years ahead.”
During 2025 the Group welcomed 540 million customer visits, an increase of 14 million or 2.7% compared to 2024. In the first 53 days of 2026, customer visitation was 79 million, an increase of 3.1% compared to the same period in 2025.
Business partners achieved a record $30.0 billion of sales during 2025. This is $1.0 billion or 3.6% more than in 2024, with the second half growing by 4.5%. For the month of January 2026, business partner sales grew by 5.4% on the comparable period.
Strong demand for space in our destinations resulted in portfolio occupancy increasing to 99.8% at 31 December 2025, representing the Group’s highest level of occupancy since 2013.
During 2025, average specialty rent escalations were 4.5% and 3,090 leasing deals were completed with new specialty lease spreads of 3.2%.
This strong operating performance has driven 4.8% growth in Net Operating Income on a like-for-like basis.
The Group continues to strengthen engagement with Westfield members with membership growing by 11% to 5 million during 2025.
Westfield destinations
The Group continues to repurpose existing space to enhance the customer experience and increase the productivity of its destinations.
During the year, the Group completed the expansion of Westfield Sydney featuring a two-level CHANEL boutique, Moncler and OMEGA. On behalf of Cbus Property, the Group has completed construction of the adjoining commercial space and expects to complete the residential component during the first half of 2026.
The Group has taken the opportunity to strategically downsize David Jones at three destinations to unlock space to introduce in-demand and highly productive stores.
The $72 million (SCG share: $36 million) redevelopment at Westfield Southland in Melbourne delivered a new family, dining and entertainment precinct, driving visitation growth of 6.5% in 2025.
The $48 million (SCG share: $24 million) redevelopment at Westfield Burwood in Sydney welcomed brands ALDI, JB Hi-Fi, Nike and rebel, underpinning visitation growth of 9.3% in 2025.
The Group completed the $28 million (SCG share: $28 million) redevelopment of Level 1 at Westfield Bondi in Sydney. The repurposed space features a health, wellness and fitness precinct, including a global first Virgin Active social wellness club and rebel rCX store, contributing to visitation growth of 8.5% in 2025.
Mr Rusanow said: “Following the success of Level 1, we are excited to announce the commencement of a $240 million investment at Westfield Bondi to redevelop Level 6 into a world-leading lifestyle, entertainment and dining destination.”
Capital and investment management
Joint venture partnerships
Mr Rusanow said: “During 2025 we introduced approximately $2.2 billion of new capital into the Group through the joint venturing of our assets, delivering on a key part of our long-term strategic plan.”
The Group successfully completed a 50% joint venture of Westfield Chermside in Brisbane with Dexus for $1.3 billion at a capitalisation rate of 5.0%.
In December, the Group announced a new strategic partnership with Australian Retirement Trust purchasing a 19.9% interest in Westfield Sydney for $864 million, at a capitalisation rate of 4.69%.
Scentre Group remains the property, leasing and development manager of both Westfield Chermside and Westfield Sydney.
Refinancing activity
In March, the Group completed the make-whole redemption of the remaining Non-Call 2026 Subordinated Notes totalling $1.0 billion with a margin of 4.7%. This was funded through a combination of a new issue of $650 million Non-Call 2031 Subordinated Notes at a margin of 2.0%, and $350 million of drawings under existing bank facilities.
In September, the Group issued $1.0 billion of 10-year senior notes in the Australian domestic market at a margin of 1.38%.
In October, the Group issued €500 million (approximately $900 million) of 8-year senior notes at a margin of 1.295%, marking a return to the European market after several years.
The Group’s level of interest rate hedging was 99% at an average base rate of 2.98% at January 2026 and 82% at an average rate of 3.01% at December 2026.
As at 31 December 2025, the Group had available liquidity of $5.2 billion.
New capital and investment management initiatives
Following the successful joint venturing of assets, the Group intends to redeem by make-whole US$750 million (approximately $1.15 billion) of 2030 senior bonds with a margin of 4.2% by drawing on existing bank facilities.
Scentre Group regularly reviews its investment in Carindale Property Trust (ASX:CDP) and considers that the acquisition of further units in CDP represents an attractive investment opportunity.
The Group intends to increase its investment in CDP, with any acquisition of units subject to prevailing market conditions and governed by the “creep provisions” of the Corporations Act.
Strategic land holdings
The Group is one of the largest land holders in the most densely populated areas across metropolitan centres in Australia and New Zealand. Our Westfield destinations are located on more than 670 hectares of land, close to major transport hubs and where millions of people live and work.
During the year, the Group lodged planning proposals at a further six Westfield destinations with the potential to deliver 16,100 dwellings.
We are focused on generating greater economic activity in and around our destinations through better use of our strategically located land.
Sustainability
The Group’s Sustainability Report has been prepared in line with new Australian Sustainability Reporting Standards requirements.
Progress continued on the Group’s environmental initiatives and its target to achieve net zero scope 1 and 2 emissions by 2030 across wholly-owned Westfield destinations. The Group exceeded its interim target of a 50% reduction in scope 1 and 2 emissions by 2025, achieving a 57% reduction across wholly-owned Westfield destinations since 2014.
The Group achieved its 2025 NABERS target of an average Retail NABERS Energy rating of 4.5 stars.
Outlook
Mr Rusanow said: “Our strategy to grow the economic activity at our Westfield destinations by attracting more people to our destinations, broadening the businesses that partner with us, and better utilising our substantial land holdings, is expected to continue to deliver sustainable long-term growth in earnings and distributions.”
Subject to no material change in conditions, the Group’s target for FFO is at least 23.73 cents per security for 2026, representing at least 4.0% growth for the year.
Distributions are expected to grow by 4.0% for 2026 to 18.43 cents per security.
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