Westfield landlord’s wallet all zipped up

THE company which owns Westfield shopping centres in Australia has axed its first-half dividend following a collapse in shopper numbers during the past two months.

Scentre Group has revealed that at its low point during March and April, the number of consumers visiting its centres was 61 per cent down from a year earlier amid the restrictions unleashed to combat the spread of COVID-19.

In a move that could be replicated by other hard-hit shopping centre owners, Scentre will not pay a distribution to investors for the group’s first half, which ends next month.

The group said in a trading update that it believed retaining those funds would strengthen its financial position and its ability “to continue to deliver long-term returns” to its investors.

Chief executive Peter Allen said all Westfield centres in Australia had stayed open and the group was “maintaining business continuity and economic activity to the extent we possibly can”.

Scentre, in a statement lodged with the Australian Securities Exchange, said 57 per cent of retailers — accounting for 70 per cent of lettable space — were now open and more were scheduled to reopen in coming weeks. Based on the latest guidance from the national cabinet, most of the other stores were expected to reopen soon, the group said.

Major landlords had earlier pulled their forecasts for earnings and distributions to investors as the pandemic up-ended the retail industry.

Scentre said that in March, sales at specialty stores were down by 25.9 per cent from the same month last year on a comparable basis.

Turnover at department stores, many of which were closed by the pandemic, fell further — by 38.9 per cent.

At discount department stores, sales fell a more modest 3.5 per cent, while at supermarkets they surged 20.6 per cent.