The Scentre Group (ASX: SCG) share price is in focus after the company announced that 89% of its outstanding US$1,312 million Non-Call 2030 Subordinated Notes have been tendered, and it plans to redeem the remaining notes at par. The group also reaffirmed expected funds from operations (FFO) and distribution growth for 2026.
Image source: Getty Images
What did Scentre Group report?
- US$1,169 million (A$1,598 million) of the US$1,312 million Non-Call 2030 Subordinated Notes were tendered, representing approximately 89% participation
- Settlement of the notes is scheduled for 5 May 2026 (New York City time)
- Following redemption, group liquidity will be approximately A$3.2 billion
- FFO is targeted to be at least 23.73 cents per security for 2026, representing at least 4.0% growth year on year
- Distribution per security expected to grow by 4.0% to 18.43 cents for 2026
What else do investors need to know?
Scentre Group intends to restructure its interest rate hedging to maintain coverage in 2026 while increasing hedging in 2027 and 2028. This move is designed to manage interest rate risk amid changing market environments.
The company acknowledged ongoing geopolitical volatility and its potential impact on the consumer and broader economy. Management says it will continue closely monitoring these external influences to inform business decisions and strategy.
What's next for Scentre Group?
Looking forward, Scentre Group will focus on finalising the redemption of all outstanding Non-Call 2030 Subordinated Notes. Management plans to continue adjusting its capital management and hedging strategies to support future growth and stability.
The company is sticking with its 2026 guidance for FFO and distributions, reflecting a stable and optimistic outlook despite uncertainty in the broader economic environment.
Scentre Group share price snapshot
Over the past 12 months, Scentre Group shares have risen 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
