Westfield Spinoff Scentre Sees Second-Half Earnings as Expected

Scentre Group (SCG), the Australia and New Zealand-focused mall operator spun off from Westfield Group and its managed trust, said funds from operations will be 10.88 Australian cents a share for the six months to Dec. 31.

The company, which began trading in June, expects to pay a dividend of 10.2 cents a share in the second half, it said in a regulatory filing today. Scentre, which didn’t report first-half funds from operations today, said comparable net operating income grew 2.3 percent in the six months to June 30.

Scentre has seen its share price jump 11 percent since it began trading, compared with a 3.9 percent gain in the benchmark S&P/ASX 200 index. Westfield co-founder billionaire Frank Lowy created Scentre, now Australia’s biggest property trust, to offer a clear choice for investors wanting to focus on Australasian malls, giving those seeking only overseas exposure that option in the new Westfield Corp.

“The Australian business and platform has proved highly resilient, and the high quality portfolio has delivered excellent sales productivity, almost full occupancy and continued growth in average rents and comparable net property income,” Peter Allen, chief executive officer of Scentre, said in the statement.

Westfield Corp. reports first-half results tomorrow. Lowy is Australia’s fourth-richest person with a net worth of $5.5 billion, according to the Bloomberg Billionaires Index.

To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net

To contact the editors responsible for this story: Andreea Papuc at apapuc1@bloomberg.net Tomoko Yamazaki, Edward Johnson

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