How Did Scentre Group Achieve Record 540M Visits and Boost Distributions in 2025?

Strong Financial and Operational Performance

Scentre Group has delivered a solid financial performance for the year ended 31 December 2025, reporting Funds From Operations (FFO) of $1,188 million, a 4.9% increase on the previous year. Distributions to securityholders rose 3.4% to $923 million, reflecting the Group’s ongoing commitment to delivering shareholder value.

Customer engagement remains a key driver, with record visitation reaching 540 million visits, up 2.7% from 2024. This foot traffic has supported business partner sales of $30 billion, a $1 billion increase year-on-year. The Group’s portfolio occupancy climbed to 99.8%, the highest level since 2013, underscoring strong demand for retail space across its 42 Westfield destinations in Australia and New Zealand.

Strategic Growth and Redevelopment Initiatives

In 2025, Scentre Group continued to optimise and expand its retail destinations. Notable redevelopments include the completion of expansions at Westfield Sydney, Southland, Burwood, and Bondi, introducing new retail, dining, and wellness precincts that have driven visitation growth between 6.5% and 9.3% at these centres.

The Group also advanced its long-term land use strategy by lodging planning proposals with the potential to deliver 16,100 new dwellings across six Westfield destinations. This masterplanning effort aims to leverage the Group’s substantial land holdings to create additional economic activity and sustainable growth opportunities.

Sustainability Leadership and Net Zero Progress

Scentre Group has exceeded its interim net zero target, achieving a 57% reduction in scope 1 and 2 emissions across wholly-owned Westfield destinations since 2014. This progress is driven by operational efficiencies, renewable energy procurement, and ongoing investments in energy-saving technologies such as LED lighting and advanced building analytics.

The Group’s sustainability efforts are embedded in its governance framework, with climate-related risks and opportunities overseen by dedicated Board committees and executive teams. While the 2025 Group scorecard did not include a specific climate KPI, climate remains a strategic priority with targeted initiatives supporting business partner transitions to a low-carbon economy and enhanced community engagement.

Governance and Leadership Updates

The Board welcomed Julie Coates as an independent non-executive Director in October 2025, bringing extensive retail and consumer goods experience. Leadership changes effective from January 2026 include the appointment of Lillian Fadel as Chief Operating Officer and an expanded role for Chief Financial Officer Andrew Clarke to lead growth priorities.

Capital management remained a focus, with the Group successfully introducing approximately $2.2 billion of new capital through joint ventures, including the sale of a 50% interest in Westfield Chermside and a 19.9% interest in Westfield Sydney to Australian Retirement Trust. These transactions enhance liquidity and provide capacity for future growth.

Outlook and Guidance

Looking ahead, Scentre Group targets at least 4% growth in FFO and distributions for 2026, reflecting confidence in its strategy to grow economic activity by attracting more customers, broadening business partnerships, and leveraging land holdings. The Group maintains strong investment grade credit ratings and liquidity of $5.2 billion, positioning it well to navigate evolving market conditions.