Are listed landlords prepared for the valuation reckoning?
In the depths of the pandemic, Scentre turned to hybrid capital to protect its balance sheet. Now, some argue office landlords should follow the mall operator’s example.
September 2020 was not a good time to own $35 billion worth of shopping centres in Australia and New Zealand. The world was deep in lockdown, and while consumers had money to spend, this was no use to bricks and mortar retailers.
It was, however, a good time to raise high-yield debt. So Scentre, which operates Westfield malls, pushed ahead with a rare $US3 billion ($4.6 billion) hybrid or subordinated debt raising to help it navigate the uncertainty ahead.
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
