Scentre shares lift despite posting $1bn write-down
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More news: Scentre shares made gains on the ASX, despite the Westfield owner recording a 41.8% drop in annual statutory profit as it absorbed a valuation decrease of $1.01 billion on its shopping centre property portfolio.
Share prices were up more than 2.5% to $3.06 at 1:45pm AEDT.
Scentre posts profit drop after $1bn write-down
The news: Westfield owner Scentre posted a 41.8% drop in statutory profit for the year to December 2023, after recording a $1 billion write-down on the value of its shopping centre portfolio.
The numbers: Scentre, which reports on a calendar year basis, reported full-year profit of $174.9 million, absorbing a property valuation decrease of $1.01 billion during the period. The group's portfolio is valued at $34.3 billion as of 31 December.
However, Scentre's revenue increased 2.1% to $2.51 billion, with funds from operations climbing 5.2% to $1.09 billion year-on-year. Its 42 Westfield stores saw record sales, up 6.4% to $28.4 billion, buoyed by a 6.7% rise in customer visits compared to the prior year.
Distributions for FY23 increased 5.4% to 16.6 cents per security, above guidance.
The context: Scentre's Q3 results showed that it had almost reached pre-COVID occupancy in its shopping centres, with total sales growth topping 2019 levels. CEO Elliott Rusanow remained upbeat on the company's FY24 outlook, forecasting 3% to 5.4% growth in funds from operations for the year.
The source: ASX announcement
