Australia's Scentre at 4-1/2 yr high on profit bump potential from notes buyback

Scentre

09/09/2024 05:48

** Scentre Group  SCG.AX  rises as much as 1% to A$3.535,
its highest since Feb 27, 2020
    ** Property developer priced $A900 mln ($601.2 mln) note
issue on Friday
    ** Citi raises PT to A$3.60 from A$3.50, retains "neutral"
    ** Increases FY25 and FY26 FFO/shr forecast by 1.9% and
0.7%, respectively
    ** Notes SCG has A$3.7 bln of subordinated loans and can buy
back 10% of that from Nov
    ** "These buybacks should be even more accretive as
potentially longer dated notes will be replaced potentially with
even cheaper Australian bank debt or more attractive sources of
finance"
    ** SCG now up 18% YTD, while the real estate index  .AXRE 
is up ~16%
 
 ($1 = 1.4968 Australian dollars)

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))