Scentre Group: Solid Leasing Activity Keeps 2024 Outlook on Track

Scentre Group's September 2024 quarter update is in line with our expectations. Despite growth moderating, tenant sales remain solid. For the nine months to the end of September 2024, total majors and specialties sales rose 2.4% compared with the prior corresponding period. This is largely driven by categories like leisure and sports, food retail, jewelry, and supermarkets. The biggest losers are department stores, whose sales were down 2.7% on PCP, followed by homewares, down 1.7%. In the September quarter, Scentre's tenant sales growth appears to be slowing compared with the first half of the year, as cost-of-living pressures weigh on consumer spending.