Scentre Group (ASX: SCG) has reported a 5.2% growth in full year Funds From Operations (FFO) for the 12 months to 31 December 2023 thanks to growing occupancy rates, higher customer visitation rates and a strategic focus on its member loyalty program.

The retail property owners reported full-year revenues of $1.09 billion, while distributions for the period hit $860.6 million, up 5.4% and above guidance. The statutory profit for the period was $174.9 million, including an unrealised property valuation decrease of $1.017bn.

A noted highlight was higher customer visitation to the Group's 42 Westfield destinations for the year at 512 million, up 6.7% on 2022. This was underpinned by an activation program including new strategic partnerships with leading brands Disney, Live Nation and Netball Australia. Business partners achieved $28.4 billion in sales, an increase of 6.4% compared to 2022.

Occupancy also increased to 99.2% at 31 December 2023 compared to 98.9% at 31 December 2022. The Group completed 3,273 leasing deals which included 307 new brands to the portfolio. Specialty rent escalations increased by 7.5% and new lease spreads improved to +3.1%.

Another highlighted in the report was the Westfield membership program, which now has over 3.8 million members, an increase of 640,000 for the year.

Elliott Rusanow, CEO of Scentre Group, said, "Our focus on creating the places and experiences that more people choose to come to, more often and for longer, has delivered strong operating performance with Net Operating Income increasing by 8.8% to $1.95bn.

"During the year we continued our focus on strategic customer initiatives including our Westfield membership program. We now have over 3.8 million members, an increase of 640,000 for the year."

There's equally investment in its physical footprint going on. The Group opened the final stage of the $355 million investment in Westfield Knox in Melbourne in November 2023. The Group is expanding Westfield Sydney, introducing 6,000 square metres of luxury retail space over five levels. The Group commenced the $50 million redevelopment at Westfield Mt Gravatt in Brisbane in 2023.

"Our strategy to create extraordinary places and experiences where people choose to spend their time, enabling more businesses and brands to connect with more customers, is expected to continue to deliver growth in earnings and distributions," Rusanow concluded.