Westfield shopping centre owner and operator Scentre Group’s shares have dropped after flagging operating earnings growth for the year following a drop in net profit.
The group, which has 42 Westfield centres, has posted a full year net profit of $1.179 billion, down 48.4 per cent from $2.287 billion a year ago after big costs including property revaluations dragged the number down.
But the company’s funds from operations (FFO), the primary earnings metric of the company, came in at $1.344 billion, up 0.4 per cent from $1.3395 billion in 2018.
That was 3.2 per cent higher than the prior year on a pro forma basis, which adjusts for sales and acquisitions during the year including the $1.52 billion divestment of Sydney office towers.
Chief executive Peter Allen was pleased with their financial performance and said earnings and distributions grew in line with guidance.
Distribution per security will be 22.60 cents for the full 2019 financial year compared to 22.16 cents in 2018.
The company is forecasting distribution for 2020 at 23.28 cents per security.
Scentre believes its operating earnings for the 2020 full year will be between 24.75 and 24.80 cents per security, or about 3.1 per cent higher.
The group’s shares were trading 3.44 per cent lower at $3.65 at 1137 AEDT.
AAP
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