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Scentre Group
(Sydney:SCG)
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Rating:73Outperform
Price Target:
AU$4.00
â–²(11.73% Upside)
Action:Reiterated
Date:08/25/26
The score is driven primarily by improving financial performance and a strong, guidance-upgraded earnings call with robust operating/leasing momentum and balance-sheet actions. Valuation is supportive (high yield and modest P/E), but the overall score is held back by weak technical signals and the business’s history of earnings volatility plus cost/approval and cap-rate vs debt-cost risks noted on the call.
Positive Factors
High Occupancy and Rental Growth
Near-full occupancy, positive re-leasing spreads and contractual rent escalations support recurring rental income. These metrics indicate strong demand for Westfield space and provide a durable base for cash-flow growth.
Negative Factors
Meaningful Debt Reliance
Although leverage improved in 2025, Scentre remains dependent on debt to fund its large property base. This creates ongoing sensitivity to interest costs, refinancing conditions and asset values, limiting financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
High Occupancy and Rental Growth
Near-full occupancy, positive re-leasing spreads and contractual rent escalations support recurring rental income. These metrics indicate strong demand for Westfield space and provide a durable base for cash-flow growth.
Read all positive factors
Scentre Group (SCG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$18.88B
Dividend Yield5.08%
Average Volume (3M)10.13M
Price to Earnings (P/E)9.3
Beta (1Y)0.80
Revenue Growth-3.71%
EPS Growth37.55%
CountryAU
Employees2,799
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.38
Shares Outstanding5,222,977,000
10 Day Avg. Volume13,135,322
30 Day Avg. Volume10,127,293
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.16
Price to Sales (P/S)8.14
P/FCF Ratio21.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.02Price Target Upside12.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.24
Revenue Forecast (FY)AU$2.07B
Scentre Group Business Overview & Revenue Model
Company Description
Scentre Group, listed on the ASX as SCG, is the owner and manager of all Westfield properties situated across Australia and New Zealand. Its extensive holdings encompass 42 Westfield Living Centres, which collectively contain approximately 12,000 ...
How the Company Makes Money
Scentre Group primarily makes money by monetising its shopping centre portfolio through a combination of rental and property-related income streams. The core revenue model is long-term leasing of retail space to tenants (e.g., retailers and food a...
Scentre Group Earnings Call Summary
Earnings Call Date:Aug 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call presents a broadly positive operating and capital-management story: record visitation and business partner sales, very high occupancy (99.8%), robust leasing metrics (5.5% rent escalations, 3.7% re-leasing spreads), successful refinancing and improved funding margins, a growing residential pipeline, and an upgraded FY guidance. Offsetting items are largely execution/timing risks (planning approvals, ACCC sign-off on a JV), some margin pressure from higher property costs and one-off development cash flow timing, and the need to monitor the relationship between cap rates and rising cost of capital. On balance the operational momentum, balance-sheet improvements and guidance upgrade outweigh the challenges.Positive Updates
Funds from Operations and Distribution Growth
FFO for H1 2026 was $612 million, up 4.4% year-over-year. Distributions were $0.09215 per security for the half, up 4.5%.
Negative Updates
NOI Margin Slip and Higher Property Costs
Net operating income margin slipped to ~76% (about a 1 percentage point decline versus prior year). Drivers include sale of large-scale assets (affecting expense mix), higher government-related charges (e.g., Victoria fire service levy) and increased electricity network rates and charges.
Read all updates
Q2-2026 Updates
Positive
Negative
Funds from Operations and Distribution Growth
FFO for H1 2026 was $612 million, up 4.4% year-over-year. Distributions were $0.09215 per security for the half, up 4.5%.
Read all positive updates
Company Guidance
Scentre upgraded FY26 guidance, advising H2 FFO of at least $0.126 per security (H2 growth ≥4.5%) which implies full‑year FFO of at least $0.2379 per security (FY growth ≥4.25%), and H2 distributions of $0.09258 per security implying FY distributions of $0.18473 per security (growth 4.25%); this is backed by H1 FFO of $612m (+4.4%), H1 distributions of $0.09215 (+4.5%), strong operating momentum — 347m visits in H1 (+3.5%), record LTM visits 552m, LTM business partner sales $30.3bn (+4.2% YoY; +$1.0bn YoY and +$7.4bn vs 2022), specialty sales LTM +5.4% (H1 +5.1%, recent 3 months +4.7%, July +3.6%), occupancy 99.8%, average specialty rent escalations 5.5%, 1,401 leases completed with +3.7% re‑leasing spreads — and supported by balance‑sheet actions (refinanced $4.1bn high‑cost debt, $750m 6‑yr senior note at +1.2% margin, renegotiated $1.7bn facilities, WAC margin down from 2.6% to 1.6%, weighted average interest ~5.4% vs 5.7% prior, $3.5bn liquidity, $10.1bn swaps executed and hedge coverage 95% at avg base 3.26% for June 2026).Scentre Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.58B | 2.69B | 2.64B | 2.51B | 2.46B | 2.28B |
| Gross Profit | 1.82B | 1.91B | 1.84B | 1.76B | 1.64B | 1.59B |
| EBITDA | 2.79B | 2.66B | 1.93B | 1.62B | 1.75B | 1.52B |
| Net Income | 1.97B | 1.78B | 1.05B | 174.90M | 300.60M | 887.90M |
Balance Sheet | ||||||
| Total Assets | 34.56B | 35.40B | 36.35B | 35.67B | 37.01B | 36.64B |
| Cash, Cash Equivalents and Short-Term Investments | 277.80M | 529.40M | 380.60M | 296.40M | 679.00M | 978.70M |
| Total Debt | 14.03B | 15.15B | 16.77B | 15.71B | 15.87B | 15.47B |
| Total Liabilities | 14.99B | 16.32B | 18.17B | 17.65B | 18.29B | 17.46B |
| Stockholders Equity | 19.37B | 18.89B | 18.19B | 17.84B | 18.53B | 19.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.10B | 1.01B | 1.02B | 624.10M | 1.09B | 844.40M |
| Operating Cash Flow | 1.12B | 1.03B | 1.04B | 1.07B | 1.12B | 868.20M |
| Investing Cash Flow | 1.85B | 951.50M | -427.80M | -438.90M | -481.30M | -342.00M |
| Financing Cash Flow | -3.00B | -1.83B | -526.20M | -1.01B | -941.30M | 55.30M |
Scentre Group Technical Analysis
Negative
3.58
Price Trends
3.78
Negative
3.69
Negative
3.73
Negative
Market Momentum
-0.05
Positive
35.93
Neutral
16.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SCG, the sentiment is Negative. The current price of 3.58 is below the 20-day moving average (MA) of 3.76, below the 50-day MA of 3.78, and below the 200-day MA of 3.73, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 35.93 is Neutral, neither overbought nor oversold. The STOCH value of 16.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SCG.
Scentre Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$11.15B | 10.56 | 9.44% | 6.12% | 14.63% | 18.93% | |
75 Outperform | AU$2.31B | 5.86 | 13.47% | 6.57% | 31.33% | 82.16% | |
74 Outperform | AU$9.00B | 8.47 | 9.83% | 4.90% | -7.59% | 178.60% | |
74 Outperform | AU$7.30B | 10.54 | 7.30% | 5.59% | 6.20% | 897.67% | |
73 Outperform | AU$18.88B | 9.33 | 9.54% | 4.45% | -3.71% | 37.55% | |
71 Outperform | AU$11.69B | 7.98 | 11.65% | 4.66% | 2.65% | 37.05% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
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Scentre Group Corporate Events
Scentre Group lifts traffic, sales and occupancy as Westfield portfolio expansion continues
Aug 25, 2026
Scentre Group reinforced its role as a leading owner and manager of Westfield destinations by highlighting the scale of its network, which now draws more than 10.5 million weekly visits across 42 centres in Australia and New Zealand. The company&#...
Scentre Group Details Tax Components of June 2026 Distribution
Aug 25, 2026
Scentre Group has released fund payment notices detailing the tax components of its distribution for the six months ended 30 June 2026 for Scentre Group Trust 1 and Trust 2 ordinary units. The distribution for Trust 1 is 4.840 cents per unit, paya...
Scentre Group lifts half-year FFO and upgrades 2026 guidance
Aug 24, 2026
Scentre Group reported funds from operations of $612 million for the first half of 2026, up 4.4%, and distributions of $481 million, up 4.9%, supported by record annual customer visitations of 552 million and business partner sales of $30.3 billio...
Scentre Group Lifts Half-Year Profit and Maintains Investor Distributions
Aug 24, 2026
Scentre Group reported a 24.6% increase in profit after tax attributable to members for the half-year ended 30 June 2026, alongside a 4.4% rise in funds from operations, while headline revenue declined 8.3% due to prior partial divestments and cur...
Scentre Group Adds Tech and Security Expertise to Board with Temsamani Appointment
Aug 24, 2026
Scentre Group has appointed Karim Temsamani as an independent non-executive director, effective 1 September 2026, with plans for him to stand for election at the 2027 AGM. Temsamani brings extensive global leadership experience across technology, ...
Scentre Group Brings Australian Retirement Trust Into $882.5m Westfield Mt Gravatt Joint Venture
Aug 24, 2026
Scentre Group has agreed to sell a 50% interest in Westfield Mt Gravatt in Brisbane to Australian Retirement Trust for $882.5 million, comprising $870.0 million for the centre at a 5.50% capitalisation rate and $12.5 million for adjacent land, rep...
Scentre Group Announces Interim Distribution Ahead of Half-Year Results
Aug 9, 2026
Scentre Group declared a six-month distribution of AUD 0.09215 per fully paid stapled security for the period ended 30 June 2026, with an ex-date of 13 August, record date of 14 August, and payment scheduled for 31 August 2026. The group also flag...
Scentre Group Announces Lapse of 116,584 Performance Rights
Jul 14, 2026
Scentre Group has notified the market of the cessation of a tranche of performance rights, confirming that 116,584 securities have lapsed after conditions attached to those rights were not met or became incapable of being satisfied.The lapse of th...
Scentre Group Director Restructures Holding With No Change in Interest
Jun 30, 2026
Scentre Group has disclosed a change in director Michael Wilkins’s indirect holding structure, noting that his 125,000 ordinary securities were transferred from a superannuation account custodian to a family trust custodian. The group stated...
Scentre Group Grants Additional Performance Rights to CEO Elliott Rusanow
Jun 2, 2026
Scentre Group has disclosed a change in director’s interests following the issue of new performance rights to its chief executive, Elliott Rusanow, under the company’s Performance Rights Plan. The grant of 1,008,690 additional performa...
Scentre Group Issues 6.75 Million Unquoted Performance Rights Under Incentive Plan
Jun 2, 2026
Scentre Group has notified the market of the issue of 6,751,198 unquoted performance rights under its employee incentive scheme, effective 1 June 2026. The new equity awards, which will not be quoted on the ASX, underline the group’s ongoing...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.