Scentre Group’s Unfranked Dividend Raises Questions on Investor Reinvestment
Scentre Group has announced its actual ordinary dividend for the six months ended June 2025, alongside detailed currency options and dividend reinvestment plan pricing.
- Declared unfranked dividend of AUD 0.08815 per security
- Dividend payable on 29 August 2025 with record date 15 August
- Option for securityholders to receive distributions in AUD or NZD
- Dividend Reinvestment Plan (DRP) price set at AUD 3.921 with no discount
- DRP securities to be newly issued and rank pari passu
Dividend Announcement Details
Scentre Group has confirmed its ordinary dividend for the six-month period ending 30 June 2025 at AUD 0.08815 per security. This dividend is fully unfranked, reflecting the company’s current tax position. The payment date is set for 29 August 2025, with the record date established as 15 August 2025. Notably, no shareholder or regulatory approvals were required ahead of this distribution, underscoring the routine nature of this payment.
Currency Options for Securityholders
In a nod to its trans-Tasman investor base, Scentre Group offers securityholders the choice to receive their dividend payments in either Australian dollars (AUD) or New Zealand dollars (NZD). The exchange rate applied for NZD payments is AUD1.00 to NZD1.0984. This flexibility requires securityholders to submit a valid request by the record date, allowing for tailored currency preferences that could mitigate foreign exchange risk for New Zealand investors.
Dividend Reinvestment Plan (DRP) Terms
The company’s Dividend Reinvestment Plan remains active for this distribution, with a DRP price set at AUD 3.921 per security. This price is calculated as the arithmetic average of the daily volume weighted average market price over five trading days from 18 to 22 August 2025, and notably, there is no discount applied. DRP securities will be newly issued and will rank equally with existing securities from the date of issue. Securityholders who do not elect to participate will receive their dividend in cash by default.
Tax and Additional Information
While the dividend is unfranked, Scentre Group has indicated that further tax component details will be made available on its website around the payment date and included in the annual tax statement issued in March 2026. This transparency will assist investors in understanding the tax implications of their distributions.
Looking Ahead
With the dividend payment imminent, investors will be watching closely to see the uptake of the DRP and how currency election choices impact distribution flows. The absence of a DRP discount may influence participation rates, while currency preferences could affect the net returns for New Zealand-based securityholders.
Bottom Line?
As Scentre Group finalises its H1 dividend, investor decisions on reinvestment and currency choice will shape the distribution’s market impact.
Questions in the middle?
- What will be the level of participation in the DRP given the zero discount?
- How might fluctuations in the AUD/NZD exchange rate affect future dividend payments?
- Will the unfranked nature of the dividend influence investor sentiment or tax planning?
