Fund Manager Summary on Scentre Group (ASX:SCG)
Scentre Group (ASX:SCG) presents a nuanced investment opportunity, highlighted by recent remarks from fund managers. Antares Capital added SCG to its portfolio in August 2025, citing a robust occupancy rate exceeding 99% and a lack of significant national shopping centre development, which could enhance retail leverage as sales improve. Conversely, Infinity Asset Management’s October 2025 commentary reflects a reduction in position due to the diminishing impact of initial strategic advantages, such as higher occupancy and positive releasing spreads. This suggests that while SCG benefits from structural support in a strengthening retail environment, investors should consider the risks of market saturation and the potential limitations on future rental growth, making careful assessments of market dynamics essential for maximizing returns.
Commentary From The Managers
There are 3 insights from 3 fund managers regarding their investment in Scentre Group (ASX:SCG) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Infinity Asset Management
31 Oct 2025
$4.07
Summary
- Scentre Group remains a high-quality business.
- Infinity Asset Management has reduced their position in Scentre Group.
- The original investment thesis included expectations for higher occupancy rates.
- Positive releasing spreads have materialized as anticipated.
- Inflation-linked specialty rental escalations have largely played out.
Antares Capital
31 Aug 2025
$4.09
Summary
- Antares Capital has added Scentre Group (SCG) to the portfolio.
- This investment provides property exposure and balance.
- Antares Capital sees significant optionality within the SCG portfolio.
- Occupancy rates are over 99%.
- No major shopping centre developments are occurring nationally.
- Retail sales are improving, providing SCG with leverage with retailers.
Oracle Advisory Group
31 Mar 2024
$3.38
Summary
- Scentre Group is the largest owner of Westfield shopping centres in Australia.
- Expectations of a decline in physical retail earnings due to online shopping post-COVID have not materialized.
- In-store sales reported at 14% higher than pre-COVID levels.
- Visiting shopping centres remains a popular leisure activity for Australians, often combined with dining, movies, and shopping.
- Scentre has a robust development pipeline valued at over $4bn.
- Current valuations do not reflect the potential uplift in net tangible assets (NTA) post-completion of developments.
- Scentre achieved a return of 15.41% for the quarter.
- Oracle Advisory Group continues to hold positive views based on these insights.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in Scentre Group (ASX:SCG)?
Fund managers including Oracle Advisory Group, Antares Capital and Infinity Asset Management have invested in Scentre Group (ASX:SCG).
Why do fund managers invest in Scentre Group?
Fund managers invest in Scentre Group due to its high occupancy rate surpassing 99% and its strong position in the retail sector. The company offers solid growth prospects with improving retail sales, which can enhance leverage with retailers. Additionally, Scentre Group is viewed as a high-quality business with stable asset performance, appealing dividend yield considerations, and a favorable risk/reward profile, despite some recent adjustments to positions based on market conditions.
What happened to Scentre Group (ASX:SCG)?
Fund managers view Scentre Group as a high-quality business, citing past successes in achieving higher occupancy and positive releasing spreads. However, they have reduced their positions as these initial investment theses have largely been realized, indicating a shift in focus towards new opportunities.
What is the short interest in Scentre Group (ASX:SCG)?
The short interest in Scentre Group (ASX:SCG) is 0.16% which makes it the 370th most shorted stock on the ASX. Of the 5.2B shares that Scentre Group has on issue, 8.3M have been sold short.
What does Scentre Group (ASX:SCG) do?
Scentre Group engages in the business of owning, managing, leasing, and developing Westfield destinations in Australia and New Zealand. It operates under the Property Investment, and Property Management and Construction segments. The Property Investment segment includes net property income from shopping centers. The Property Management and Construction segment focuses on external fee income from third parties primarily property management and development fees, and associated business expenses. The company was founded in July 1959 and is headquartered in Sydney, Australia.