Real Estate
Scentre Group (SCG)
Scentre Group (SCG) is a leading owner, manager, and developer of retail properties in Australia and New Zealand, primarily operating the iconic Westfield shopping centre portfolio. It generates income from leasing retail space, managing its centres, and undertaking development projects, focusing on creating vibrant community hubs and retail destinations.
Market Cap
A$20.9B
Shares on Issue
N/A
Price Chart
AI Analysis
Scentre Group maintains a dominant position in the Australian and New Zealand retail property market, leveraging its high-quality, centrally located Westfield portfolio. Recent performance has shown resilience, with a recovery in foot traffic and specialty retail sales growth post-pandemic, supported by strong tenant demand and high occupancy rates across its centres. The company's focus on premium retail experiences, strategic asset management, and a diversified tenant mix contributes to its stable earnings profile, measured primarily through Funds From Operations (FFO) and consistent asset revaluations.
The growth outlook for Scentre Group is centered on strategic urban regeneration projects and mixed-use developments within its existing portfolio, enhancing asset values and diversifying revenue streams beyond traditional retail. Upcoming catalysts include sustained consumer confidence, potential stability or reduction in interest rates, which would reduce financing costs and boost property valuations, and the successful integration of digital platforms to enhance the customer experience. The strategic direction involves evolving its centres into comprehensive lifestyle destinations, capable of adapting to changing consumer behaviours and preferences.
Bull Case
- • High-quality, irreplaceable asset portfolio in prime urban locations across Australia and New Zealand, providing a competitive moat and strong tenant appeal.
- • Robust recovery in consumer spending and foot traffic, coupled with high occupancy rates and positive leasing spreads, drives FFO growth and dividend stability.
- • Significant potential from mixed-use and urban regeneration development projects within existing centres, unlocking additional value and diversifying income streams.
Bear Case
- • Sensitivity to interest rate increases, which can elevate borrowing costs, impact property valuations, and reduce investor appetite for yield-sensitive assets.
- • Potential downturn in discretionary consumer spending due to economic headwinds or inflation, impacting tenant sales and their ability to pay rents.
- • Continued competition from online retail and evolving consumer preferences, requiring ongoing significant investment in centres to remain relevant and attractive.
Recent Announcements
2026 Annual General Meeting Date
FAQs
What does SCG do?
Scentre Group owns, manages, and develops Westfield shopping centres across Australia and New Zealand. Its primary business involves leasing retail space to tenants, providing property management services, and enhancing the value of its centres through strategic developments and upgrades.
Is SCG a good investment?
SCG offers investors exposure to a portfolio of high-quality, defensively positioned retail assets with a track record of stable income and strong operational management. However, its performance is sensitive to interest rate movements, consumer confidence, and the evolving retail landscape, presenting both opportunities for consistent income and risks related to economic downturns or structural retail changes.
What drives SCG's share price?
SCG's share price is primarily driven by prevailing interest rates (as a yield-sensitive asset), consumer spending levels and confidence, the occupancy rates and leasing spreads across its centres, and the valuation of its underlying property portfolio. Funds From Operations (FFO) growth and dividend expectations are also key determinants.
Key Metrics
Related Stocks
Real Estate
ABGAbacus Group
A$1.15
5.0% 1Y
Abacus Group (ASX: ABG) is a Real Estate Investment Trust (REIT) operating primarily in Australia, focusing on the development, ownership, and management of commercial and industrial properties. Key products include leasing space in its portfolio to diverse tenants and implementing property development projects to enhance yield. With operations concentrated in major Australian cities, ABG aims to provide stable income through dividends.
Real Estate
ACUAcumentis Group Limited
A$0.09
13.3% 1Y
Acumentis Group Limited is an Australian provider of independent property valuation and advisory services. Operating nationally, the company serves residential, commercial, and agribusiness clients with core services including mortgage security valuations, asset valuations for financial reporting, and property consultancy. Their offering is supported by a growing suite of property-related services such as quantity surveying and due diligence.
Real Estate
AOFAustralian Unity Office Fund
A$0.38
-57.1% 1Y
Australian Unity Office Fund (AOF) is a small-cap Equity REIT operating in the Australian real estate sector, specifically focusing on office properties. Primarily investing in and managing a diversified portfolio of Australian office assets, AOF aims to provide regular income and long-term capital growth to its investors through rental yields and property value appreciation. It is listed on the Australian Securities Exchange (ASX) and has been operating since its IPO in June 2016.