Citi trims earnings, PT view for Scentre Group on high interest rate impact

Scentre

08/08/2023 21:13

** Analysts at Citi cut their earnings expectations for
Australian retail assets manager Scentre Group  SCG.AX  through
to fiscal 2025 on high interest costs and headwinds from high
interest rates
    ** Brokerage cuts PT to A$3.00 from A$3.10, retains
"neutral" rating
    ** Citi expects "underlying consumer of Scentre's shopping
centres to have remained resilient (in 1H23) benefiting from
higher savings rates during COVID"
    ** However, higher interest rates will impact affordability
in FY24 and FY25, says brokerage, adding it expects negative
leasing spreads through to FY25
    ** Citi trims FY23 core net profit view by 1.2% to A$1.08
bln ($706.00 mln), and for FY24 by 2.4% to A$1.19 bln, vs A$1.04
bln logged in FY22
    ** Seven of 12 analysts rate SCG "buy" or higher, 3 "hold",
2 "sell" or lower; median PT is A$3.09 – Refinitiv
    ** SCG down 4.2% this year, as of last close, vs a
3.2%increase in ASX 200 Real Estate index  .AXRJD  


($1 = 1.5298 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))