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Scentre on track for FY guidance

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Scentre Group says it remains on track to meet its full-year funds from operations target and has unveiled the sale of four shopping centres as it reported a decline in interim profit.

In the six months to June 30, Scentre net profit attributable to shareholders fell 79.6 per cent to $1.083 billion, from $5.305bn a year earlier.

Last year, Westfield Group and its associated passive property trust, WRT, were restructured to split the company's Australian and New Zealand operations from its growing international business.

Under the new structure, Westfield Corp owns the international division, which includes flagship centres such as Westfield London, while the Australasian shopping centres are controlled by Scentre.

Stripping out the costs of the restructure and on the basis of continuing operations, profit rose 118.1 per cent to $1.097bn.

Revenue in the same period rose 72 per cent to $1.345bn. 

The shopping mall operator will pay an interim dividend of 10.45c.

Scentre also announced the sale of four Australian shopping centres with gross proceeds to total $783 million, a 3.4 per cent premium on book value at June 30 2015.  

Three of the four centres -- Figtree, Strathpine and Warrawong -- will be sold to Blackstone Real Estate Asia, while the remaining centre, North Rocks, will be sold to Challenger. 

"This is in line with our strategy to own and operate the premier retail portfolio which provides the best long term returns," Scentre said. 

Settlement of the sales is expected in the third quarter. 

Scentre maintained its forecast for funds from operations of 22.5c per security in the full-year.

Chairman Frank Lowy said the rationale for the creation of Scentre Group just over a year ago was being realised and was evident in today's results. 

“The business is operating efficiently and the underlying strength and quality of the assets mean the future prospects for Scentre Group remain promising," he said. 

Scentre shares rose 3.6 per cent to $3.74 against a benchmark index rise of 2.7 per cent.

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Shopping mall operator offloads four shopping centres for $783m, will pay dividend of 10.45c.

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