Scentre Group reaffirms FFO target as Westfield visitation hits 554 million
Scentre Group has reaffirmed its target for Funds From Operations (FFO) of at least 23.79 cents per security for 2026, representing at least 4.25% growth, subject to no material change in conditions. Distributions are expected to grow 4.25% to 18.473 cents per security.
The reaffirmation came alongside an operating update on 4 November 2026. Westfield destinations recorded 452 million customer visitations from the start of the year to 1 November 2026 (+3.2%, or 14 million, on the prior comparable period), and 554 million over the past 12 months (+3.1%, or 17 million).
For investors, the combination of occupancy at 99.8% and unchanged guidance points to stable earnings.
Elliott Rusanow, Chief Executive Officer
“We continue to see strong demand for space in our destinations with occupancy of 99.8% which is at its highest level in more than a decade…”
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Occupancy at 99.8% and sales of $30.5 billion
Leasing and rent momentum
Leasing metrics, reported for the 9 months to 30 September 2026 unless noted, remained firm:
- Occupancy of 99.8%, the highest level in more than a decade
- 2,085 leasing deals completed
- Average specialty releasing spreads of +3.7%
- Average specialty rent escalations of 5.6%
Sales growth by category and region
Total annual business partner sales to 30 September 2026 were $30.5 billion, up $1 billion on the same period in 2025. In the three months to 30 September 2026, total sales grew 3.5% and specialty store sales rose 4.6%.
The table below shows selected categories, with growth compared with 2025.
| Category | 12 Months to 30 Sep 2026 | 9 Months to 30 Sep 2026 | 3 Months to 30 Sep 2026 |
|---|---|---|---|
| Fashion | 5.7% | 6.5% | 7.0% |
| Dining | 5.0% | 4.8% | 3.9% |
| Health & Beauty | 8.4% | 8.8% | 8.7% |
| Jewellery | 9.1% | 8.6% | 8.2% |
| Footwear | (2.8%) | (4.3%) | (4.2%) |
| Department Stores | (0.2%) | (1.3%) | (3.7%) |
| Total Specialties | 5.3% | 5.1% | 4.6% |
| Total | 4.0% | 3.7% | 3.5% |
By region, New Zealand recorded the strongest growth at 7.3% over 12 months and 9.4% over the three months to 30 September 2026, followed by Western Australia at 6.1% and 5.4% respectively.
Westfield membership grew 10.8% to 5.4 million, and the Net Promoter Score reached 66pts, up 12pts on the prior comparable period.
Why occupancy and releasing spreads matter to investors
Occupancy measures the share of lettable space that is leased to tenants. A rate near 100% means landlords have little vacant space, which can strengthen their position when negotiating rents.
Specialty rent escalations are the scheduled rent increases built into leases with smaller retailers. Releasing spreads compare the rent on a new or renewed lease with the rent previously paid for the same space, so a positive spread (here +3.7%) means rents are resetting higher.
FFO is a property sector earnings measure that adjusts for items such as property revaluations to show cash earnings from operations. Strong occupancy, escalations and positive spreads all feed into rental income, which underpins the 23.79 cents per security FFO target.
Developments, David Jones exposure and capital management
Redevelopment pipeline
Scentre Group progressed three Sydney-area and NSW redevelopments:
- Westfield Bondi: $240 million project (SCG share $240 million). A new Kingpin entertainment offer will open to the community in December, with the remainder, including dining, opening progressively from 2027.
- Westfield Penrith: $30 million project (SCG share $15 million), expanding the entertainment and lifestyle precinct and HOYTS Cinemas complex. It is fully leased and will open progressively from Q2 2027.
- Westfield Tuggerah: $20 million project (SCG share $20 million), repurposing the former David Jones space. JD Sports and rebel are now open, with visitation up 6.2% on the prior comparable period in the eight weeks since opening, and TimeZone will open in Q2 2027.
At Westfield Eastgardens, the Group’s expression of interest has been accepted for progression as a State Significant Development through the NSW Housing Delivery Authority. The proposal has the potential to deliver up to 1,300 dwellings.
David Jones exposure quantified
The company noted recent media reports regarding David Jones and its owner Anchorage Capital Partners, and set out its exposure.
| Measure | Detail |
|---|---|
| Westfield destinations occupied | 17, approximately 200,000 square metres |
| Gross rent, calendar year 2026 (SCG share) | $45 million |
| Gross rent per square metre | $352 vs portfolio average of $942 |
| Share of Group gross rent | Approximately 1.8% |
| Share of Group FFO (annualised) | Approximately 3.6% |
David Jones has provided $45 million in bank guarantees across the Westfield Australia/New Zealand portfolio, of which the Group’s share is approximately $30 million, equivalent to 8 months gross rent. The guarantees can be applied against any unpaid rent and were put in place as a condition of the Group’s approval of Anchorage Capital Partners’ acquisition of David Jones in 2023. David Jones paid all rent up to 30 September 2026.
Balance sheet
In late September, the Group settled the divestment of a 50.0% interest in Westfield Mt Gravatt, Brisbane, to joint venture partner Australian Retirement Trust for $882.5 million.
The Westfield Mt Gravatt sale was priced at a 3.5% premium to December 2025 book value, with Scentre retaining the other half and staying on as property, leasing and development manager.
In October, it issued US$750 million (A$1,079 million) of 10-year guaranteed senior notes, marking a re-entry into the US bond market after six years. Payment obligations on the notes have been swapped to a floating rate A$ liability at a margin of 141 basis points over 3-month BBSW.
The notes carried a 6.20% fixed coupon in US dollars, which is why the swapped margin over BBSW, rather than the headline rate, is the better gauge of what the funding actually costs the Group.
Available liquidity was $3.4 billion as at 31 October 2026, sufficient to cover all maturities until the second half of 2029.
What happens next for Scentre Group
The update lists the following forward milestones:
- The Kingpin entertainment offer at Westfield Bondi is set to open to the community in December.
- The remainder of the Westfield Bondi redevelopment will open progressively from 2027.
- The Westfield Penrith redevelopment will open progressively from Q2 2027.
- TimeZone will open at Westfield Tuggerah in Q2 2027.
- FFO of at least 23.79 cents per security and distributions of 18.473 cents per security are targeted and expected for 2026, subject to no material change in conditions.
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