Scentre Group (STGPF) Q2 2026 Earnings Report

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.

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).