Scentre Group has detailed its exposure to David Jones, revealing the department store pays well below the portfolio average in rent and is covered by eight months of bank guarantees.
Westfield owner Scentre Group has moved to quantify its exposure to David Jones, revealing the department store pays about a third of its portfolio’s average rent and that the landlord holds guarantees worth eight months of rent.
In a statement to the ASX today, Scentre noted recent media reports regarding David Jones and its owner, Anchorage Capital Partners.
David Jones occupies about 200,000 square metres across 17 Westfield centres. Scentre’s share of gross rent from those stores in calendar 2026 is $45 million, which equals $352 per square metre, compared with an average of $942 per square metre across all stores in the portfolio.
The David Jones stores account for about 1.8 per cent of Scentre’s gross rent and about 3.6 per cent of its funds from operations on an annualised basis.
David Jones has also lodged bank guarantees across its stores in the Westfield Australia and New Zealand portfolio. Scentre’s share of those guarantees is about $30 million, equal to eight months of gross rent, and can be applied against any unpaid rent.
Scentre noted the guarantees were put in place as a condition of its approval of Anchorage’s acquisition of David Jones in 2023. The group reported David Jones had paid all rent up to September 30 this year.
The statement follows reports that Anchorage is in intense talks with landlords, including Scentre, to settle the retailer’s long-term future before Christmas, with a plan expected to involve a substantial cut to store numbers. Westfield stores at Parramatta, Hornsby, Southland, Woden and Carousel are reportedly in focus, with the retailer reportedly weighing a network of between 12 and 20 stores.
David Jones posted a pre-tax loss of $95.5 million for FY25, up from $74.1 million the year before, and has not lodged its 2026 accounts with ASIC, with auditor PwC yet to sign off. Lender Hilco Capital has advanced funds beyond its agreed facility so the retailer can build stock ahead of Black Friday and Christmas.