News – AU – Westfield Half Year Results: Westfield owner Scentre posts $ 37b loss after depreciation on shopping malls

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The mall’s landlord, Scentre, the operator of Westfield shopping malls, has released a 42 annual profit for 2021 fell 5 percent to $ 766 million after the pandemic eroded disruption into its rental collection / p>

That decline is reflected in Scenteres Funds from Operations, the property sector’s preferred earnings metric. Legal income was $ 3 billion in loss, a staggering 4 percent reversal from prior year profit, which when factoring in the $ 4 book reduction in property valuations was driven into the red 2 trillion

Peter Allen, CEO of Scentre: â € œWe were proactive and aware of the decisions we madeâ € ????

But the malls giant is looking forward to a better 2021 with the expectation of giving out at least 14 ¢ to its shareholders After having withheld distributions in 2020, it paid out 7 ¢ in the last half of the year

“2020 has been a challenging year and I’m proud of the way our people have adapted to the conditions and led the industry and our business,” Managing Director Peter Allen said

???? We have not received any funding from the Australian or New Zealand government, including the JobKeeper program. We have been an industry leader in developing the Code of Conduct, supporting small and medium-sized businesses across the industryâ ????

The retail landlord also embarked on a high profile battle with celebrity tenants, including Solomon Lews Premier Investments, to collect rents. At one point, Scentre Mosaic Brands locked out 129 stores in its Westfield malls to argue for rent / p>

These disputes resulted in some retailers pushing for a shift towards sales-related rents known as turnover rent

In the announcement of the results, however, Mr. Allen pointed out that the structure of the rental agreements had not changed and “continues to be based on the mutual agreement to pay a fixed basic rent”

Leasing spreads ???? the metric that shows the difference in rents between old and new leases? was sharply negative with 13 percent

Scentre Group

News – AU – Westfield Half Year Results: Westfield owner Scentre posts $ 37b loss after shopping center depreciation
Related Title :
Westfield Owner Scentre Calculated $ 37b loss after depreciation on shopping centers
Scentre makes big annual loss, sends payout signal for 2021

Source: https://www.afr.com/property/commercial/westfield-owner-scentre-chalks-up-3-7b-loss-after-mall-write-downs-20210223-p57589