Westfield operator Scentre Group says high interest rates are having less of an impact on shoppers' confidence than expected as the group records a bump in customers so far in 2023.
"We continue to see - despite rates pausing at least for the moment, but hopefully longer than that - rates having less of an impact than perhaps we might have expected at the start of the year," Scentre Group chairman Brian Schwartz told investors at the company's annual general meeting in Sydney on Wednesday.
The Reserve Bank decided to keep interest rates on hold at 3.6 per cent on Tuesday, its first pause in 11 board meetings. The rate remains at its highest point since 2012.
However, Mr Schwartz conceded if rates continued to rise, that could affect the Scentre's bottom line.
"Their mortgage costs go up, and they simply won't have the money to spend. Having said that, we're seeing very substantial growth in turnover," he said.
Scentre Group, which controls Westfield shopping centres around the country, saw more than 125 million customers visit in the first 13 weeks of this year compared to the same time in 2022 - a 16 per cent increase, or 17 million more customers.
Sales within the centres skyrocketed 17 per cent in the first two months of 2023 compared to the previous year and were up 10 per cent on pre-COVID levels in 2019, chief executive Elliott Rusanow announced.
The business achieved record sales in 2022, reaping in $26.7 billion from its Australian and New Zealand Westfield branches.
"Our Westfield destinations continue to be the most efficient platform for our business partners to connect with customers," Mr Rusanow said.
The group's outlook is projected to range from 20.75 to 21.25 cents per security for 2023, representing 3.4 per cent to 5.9 per cent growth.
While investor dividends are expected to be at least 16.50 cents per security, representing at least 4.8 per cent growth for the year.
Mr Schwartz will stand down as chairman of the board in October after seven years in the position.
"With the company moving forward strongly post-COVID, it is the right time for the board's leadership to also transition," he said.
ANZ and Origin Energy non-executive director, and National Gallery of Australia council member Ilana Atlas will replace Mr Schwartz as chairwoman after unanimous endorsement from the board.
