Scentre half-year profit down almost 70% after write-downs

The news: Westfield malls owner Scentre has posted a 68.9% drop in net profit to $149.4 million for the first half as property values slumped. However, it boosted its net operating income by 10% to a record $971.9 million.

The numbers: Scentre's drop in profit was largely due to a $392.5 million write-down in property valuations. Meanwhile, funds from operations grew 13.3% compared to 2H22, as visitations increased 9.8% to 314 million in the same half last year. Partner businesses recorded $13.1 billion in sales, 13.6% higher than the same half in 2019 before the pandemic struck. The group has available liquidity of $3.9 billion, which is enough to cover all debt maturities until the end of 2025, a spokesman said. Scentre shares were trading 4.2% higher at 10:50am AEST.

The context: The rise of e-commerce and the pandemic has presented significant challenges for bricks and mortar retail. Scentre has responded with a Westfield customer rewards program and events partnerships with Disney, Live Nation and Netball Australia.