Scentre Faces A$100 Million Interest Cost Headwind -- Market Talk

Dow Jones03-30

2159 GMT - Investors in Australian mall owner Scentre should be alert to an elevated level of interest-rate hedges due to expire in FY 2027, says UBS. Analyst Solomon Zhang says Scentre's interest rate hedging will fall to 38%, from 82%, over the 12 months through December 2027. "This means A$5.7 billion of interest rate hedges--which happen to have very low hedge rates of 2.6%--will expire in 2027 and step up to higher floating base rates (BBSW)," UBS says. It estimates this will create a A$100 million cost headwind across 2027/2028. UBS retains a sell call and A$3.50/share price target on Scentre, which ended last week at A$3.36. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

March 29, 2026 17:59 ET (21:59 GMT)

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It estimates this will create a A$100 million cost headwind across 2027/2028. UBS retains a sell call and A$3.50/share price target on Scentre, which ended last week at A$3.36. 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