Scentre Group's (ASX:SCG) tender offer for all of its outstanding $1.3 billion of subordinated non-call 2030 notes could deliver a "significant potential earnings uplift," Jefferies said in a Thursday note, adding that the redemption of expensive hybrid debt would also eliminate a key overhang on the stock.

While the notes are currently trading at a slight premium to par, Jefferies estimates upfront make-whole costs to be slightly lower than the roughly 20% level flagged earlier this year.

"Annualized interest cost savings from the make-whole of remaining subordinated hybrid notes will more than offset the upfront costs associated with redeeming them," the equity research firm said.

Jefferies calculates 400 basis points of margin saving on the roughly AU$1.8 billion of debt through capital recycling, which it said would result in around 5% annualized accretion to its fiscal year 2026 funds from operations per share forecast.

Jefferies maintained a buy rating on Scentre with a price target of AU$4.