Westfield reaps rewards of global restructure effort
SHOPPING centre giant Westfield Corporation says the group is reaping the rewards of its restructure last year as it forges ahead with its development program.
The company, which has a global portfolio of shopping centres in the US, UK and Europe, has chalked up a profit of $US465.9 million ($654.4 million) for the six months to June. Westfield Corp stapled securities fell 4¢ to $9.48, even though analysts said the results broadly met market expectations.
Westfield went through a restructure last June, spinning off its Australian and New Zealand assets into a newly created listed company called Scentre.
Westfield Corp co-chief executives Peter Lowy and Steven Lowy said the globally focused group had made good headway since the split.
“The benefits of our restructure last year can be seen in the significant progress being made on our $US11.4 billion development program,” they said in a statement.
“Our investment in the development program, which also comprises Westfield World Trade Center in New York and Valley Fair in Silicon Valley, is expected to create significant long-term value for security holders.”
Peter Lowy said projects totalling $2.5 billion were expected to start this year, with $1.6 billion of redevelopments already under way.
The group said capital investment was almost entirely weighted towards its flagship assets, which would eventually make up 85 per cent to 90 per cent of the portfolio.
The group’s highly anticipated $1.4 billion World Trade Center mall was fully leased, Westfield said, and would open in the first half of 2016.
“Our strategy is to create and operate flagship assets in leading markets that deliver great experiences for retailers and consumers,” he said.
Revenue for the six months came in at $848.2 million. An interim dividend of US12.55¢ a share is payable on August 31.