)
Scentre Group (ASX: SCG), the owner and operator of Westfield living centres across Australia and New Zealand, has reported $7 billion in retail sales from its properties for the first quarter of 2026, up 5 per cent on the prior corresponding period, as foot traffic across its 42-centre portfolio continued to build.
The quarterly operating update, released today, shows specialty store sales rose 5.3 per cent for the three months to 31 March 2026, while customer visits reached 160 million year-to-date to 19 April - an increase of 4.9 million visits, or 3.1 per cent, on the same period last year.
Portfolio occupancy held at 99.8 per cent, with Scentre maintaining its full-year funds from operations guidance of at least 23.73 cents per security, representing growth of at least 4 per cent on FY25.
Distribution growth of 4 per cent is also expected, taking the full-year payout to 18.43 cents per security.
CEO Elliott Rusanow says the group has delivered a strong start to the year with visitation growth across all regions and continued momentum in sales.
“Our strategy is to grow the economic activity that occurs at each of our 42 Westfield destinations located throughout Australia and New Zealand," says Rusanow.
"This strategy continues to deliver strong operating performance and continued growth in earnings."
Rusanow says Scentre Group's current focus is to attract more people to the company's properties and "give them reasons to stay longer when they are with us".
“By doing this, we continue to improve our ability to attract a broader range of businesses to partner with us at our Westfield destinations," he says.
“Our strategy is also focused on how we better utilise our substantial and unique land holdings at our destinations, to create additional long-term growth for the group.
“Our 2025 results represent our fifth consecutive year of earnings and distributions growth and we expect these to continue to grow in the years ahead.”
In 2025, Scentre Group recorded 540 million customer visits, up 14 million or 2.7 per cent from 2024.
In the first 53 days of 2026, customer visitation was 79 million, an increase of 3.1 per cent compared to the same period in 2025
The first quarter also saw Scentre execute a series of significant capital management transactions.
The group settled the divestment of a 19.9 per cent interest in Westfield Sydney to Australian Retirement Trust for $864 million, reflecting a capitalisation rate of 4.69 per cent.
Scentre retains an 80.1 per cent interest in the flagship centre and continues to manage and operate the asset.
Proceeds from the sale were deployed in part to fund the make-whole redemption of US$750 million ($1.15 billion) in senior notes that were not due to mature until 2030, reducing the group's debt load ahead of schedule.
Scentre also issued a new $750 million six-year Australian senior note at a credit margin of 1.20 per cent, further extending its debt maturity profile.
The quarterly sales result builds on a rolling 12-month moving annual turnover that the group put at $30.3 billion to 31 March 2026, up from the $30.0 billion in total business partner sales reported for the 12 months to 31 December 2025.
Scentre's update lands against a broadly supportive consumer spending backdrop.
The Australian Bureau of Statistics' Monthly Household Spending Indicator for February 2026 showed household spending up 4.6 per cent year-on-year in current price terms, with discretionary spending also rising 4.6 per cent.
The Australian Retailers Association reported January 2026 retail spending climbed 5 per cent year-on-year to $38.63 billion, although the association's chief economist Glenn Fahey cautioned those figures predated the Reserve Bank of Australia's February rate increase and an escalation in geopolitical tensions.
During the quarter Scentre completed 523 lease deals across 80,500 square metres of gross lettable area.
The group says its leasing pipeline has more than 700 deals in active documentation for completion during the remainder of 2026.
)
