Scentre Group’s 4.9% FFO Growth and $923 Million Distributions Highlight Strong 2025

Strong Financial and Operational Performance

Scentre Group has delivered a solid financial performance for the year ended 31 December 2025, with Funds From Operations (FFO) climbing 4.9% to $1,188 million and distributions increasing 3.4% to $923 million. This marks the fifth consecutive year of growth in earnings and distributions, reflecting the Group’s resilient business model and effective execution of its strategy.

Customer visitation to the Group’s 42 Westfield destinations across Australia and New Zealand rose to 540 million, an increase of 14 million visits or 2.7% compared to 2024. This foot traffic growth supported record business partner sales of $30 billion, up $1 billion or 3.6% year-on-year, with the second half of 2025 showing a 4.5% uplift.

Record Occupancy and Leasing Activity

Portfolio occupancy reached 99.8% at year-end, the highest level since 2013, driven by strong demand for retail space. The Group completed 3,090 leasing deals with specialty lease spreads of 3.2% and average specialty rent escalations of 4.5%. These metrics underscore the Group’s ability to curate a compelling tenant mix that resonates with customers and supports sustainable income growth.

Major Redevelopments and Land Use Initiatives

Significant redevelopment projects were completed or progressed during the year, including expansions at Westfield Sydney, Southland, Burwood, and Bondi. Notably, Westfield Bondi’s Level 1 redevelopment introduced a health, wellness, and fitness precinct featuring a global first Virgin Active social wellness club. Following this success, a $240 million investment to redevelop Level 6 into a lifestyle, entertainment, and dining destination has commenced.

In addition, the Group lodged planning proposals across six Westfield destinations with the potential to deliver 16,100 new dwellings, reflecting a strategic focus on leveraging its substantial land holdings to drive long-term growth and urban densification.

Sustainability Milestones and Environmental Leadership

Scentre Group exceeded its interim net zero target by achieving a 57% reduction in scope 1 and 2 greenhouse gas emissions since 2014 across wholly-owned Westfield destinations. The Group’s net zero strategy focuses on optimising centre efficiency, procuring renewable energy certificates, and addressing residual emissions. It also achieved a portfolio average Retail NABERS Energy rating of 4.5 stars, meeting its 2025 target.

Waste diversion efforts resulted in 52% of waste being diverted from landfill, consistent with the prior year, while water use decreased by 1.4% through improved monitoring and operational initiatives. These achievements highlight the Group’s commitment to responsible and sustainable operations.

Capital Management and Board Developments

Capital management initiatives included the introduction of approximately $2.2 billion of new capital through joint ventures, notably the sale of a 50% interest in Westfield Chermside and a 19.9% interest in Westfield Sydney to Australian Retirement Trust. These transactions provide the Group with enhanced capital capacity to fund future growth.

The Board welcomed new independent non-executive Director Julie Coates, who brings extensive retail and consumer goods experience. Succession planning continues with the announced retirement of Audit and Finance Committee Chair Mike Ihlein, to be succeeded by Craig Mitchell.

Outlook

Looking ahead, Scentre Group targets at least 4% growth in FFO and distributions for 2026, supported by ongoing operational excellence, redevelopment projects, and sustainability initiatives. The Group’s integrated approach to community engagement, tenant curation, and environmental stewardship positions it well for continued long-term value creation.