Scentre Group Shares Fall 4.4% as Investors Weigh Westfield Owner's Exposure to David Jones Collapse

SYDNEY — Shares of Scentre Group fell more than 4% on Monday, as investors continued to assess the Westfield owner's exposure to the collapse of department store chain David Jones.

Scentre shares lost 16 cents, or 4.43%, to A$3.45, after trading between A$3.41 and A$3.58. About 16.7 million shares changed hands, leaving the company valued at about A$18 billion.

No new announcement was found on Monday.

David Jones collapse

David Jones was placed in administration for the first time in its 188-year history after its private equity owner failed to strike a deal with Scentre.

Scentre is David Jones's biggest landlord, with 17 of the retailer's remaining 38 stores in its malls, and rent had not been paid since September.

Chief Executive Elliott Rusanow said the landlord had tried to keep the retailer trading. "We have made a generous offer to Anchorage Capital Partners," Rusanow told the ABC.

Limited exposure

The financial hit may be modest. Rent from David Jones stores represents about 1.8% of Scentre's gross rent and about 3.6% of its funds from operations.

Scentre holds about A$30 million in bank guarantees, equal to eight months of gross rent, which can be applied against unpaid rent.

The shares are down about 16% over the past year.