Why Are Scentre Group’s Westfield Centres Attracting More Shoppers Than Ever?
Scentre Group reports a 3.1% rise in customer visits and a $29.5 billion sales tally across its Westfield centres, while confirming its 2025 earnings and distribution targets.
- Customer visitation up 3.1% to 453 million
- Business partner sales grow 2.9% to $29.5 billion
- Portfolio occupancy reaches 99.8%, highest in recent years
- Significant redevelopments completed at Westfield Burwood and Southland
- Senior notes issued totaling approximately $1.9 billion to diversify capital
Strong Foot Traffic and Sales Growth
Scentre Group, the owner and operator of 42 Westfield shopping centres across Australia and New Zealand, has delivered a robust operating update for 2025. Customer visitation climbed 3.1% to 453 million visits over 45 weeks, reflecting sustained consumer engagement despite a challenging retail environment. Business partner sales across the portfolio reached $29.5 billion for the nine months to September, marking a 2.9% increase compared to the prior year.
This growth was driven by specialty sales, which rose 3.9%, and was supported by strong demand for retail space. The Group’s portfolio occupancy hit an impressive 99.8%, up 40 basis points year-on-year, underscoring the appeal of Westfield destinations to a diverse range of tenants.
Leasing and Rent Dynamics
Leasing activity remained vigorous with 2,366 deals completed, and average specialty rent escalations of 4.4% achieved during the first nine months of 2025. The average specialty releasing spread was a positive 3.0%, indicating landlords are successfully negotiating higher rents on new and renewed leases. This healthy leasing environment reflects the Group’s ability to attract and retain quality tenants amid evolving consumer preferences.
Strategic Redevelopments and Member Growth
Scentre Group continues to invest heavily in upgrading its centres to enhance customer experience and drive visitation. Notably, the final stage of the $48 million redevelopment at Westfield Burwood in Sydney opened recently, introducing major brands such as ALDI, JB Hi-Fi, Nike, and Rebel. Earlier in the year, a $72 million redevelopment at Westfield Southland in Melbourne delivered expanded family, dining, and entertainment precincts, with the upgraded David Jones store set to open imminently.
Westfield Bondi also saw the launch of a new health and wellness precinct featuring a global-first Virgin Active social wellness club and a Rebel rCX concept store, with further lifestyle and dining upgrades planned. These initiatives have contributed to a 600,000 increase in Westfield membership to 4.8 million, reinforcing the Group’s focus on community engagement and loyalty.
Capital Management and Outlook
On the capital front, Scentre Group issued $1 billion of 10-year senior notes in the Australian market and €500 million of 8-year senior notes in Europe, marking a strategic move to diversify funding sources. The Group reaffirmed its full-year funds from operations (FFO) guidance of 22.75 cents per security, representing 4.3% growth, and expects distributions to increase by 3.0% to 17.72 cents per security.
CEO Elliott Rusanow highlighted the Group’s ongoing commitment to creating extraordinary places that connect and enrich communities, emphasizing the importance of innovation and reinvestment in maintaining Westfield’s competitive edge.
Bottom Line?
Scentre Group’s solid operational momentum and strategic investments position it well for continued growth, but market watchers will be keen to see how evolving retail trends impact future performance.
Questions in the middle?
- How will rising interest rates affect Scentre Group’s cost of capital and future redevelopment plans?
- Can the Group sustain specialty rent growth amid increasing online retail competition?
- What impact will the expanded health and wellness precincts have on long-term customer engagement?
