This article is from the Australian Property Journal archive
WESTFIELD is mulling over the sale of $2 billion worth of assets in the US, UK and NZ as it ventures into new markets such as Milan and Brazil, following the spinoff of Westfield Retail Trust.
Westfield delivered an AIFRS net profit for the six months of $650.9 million and funds from operations of $732.7 million or 31.8 cents per security.
This is the first half profit following the restructure, before the demerger, Westfield made a net profit of $A961 million.
The result was driven by net property income increasing 6% during the half year and a 50% increase in the group’s management and development income. Return on contributed equity was 11.4%, on an annualised basis, for the period.
The group’s AIFRS net profit for the half year included property revaluations of $149 million of which $39 million were development gains. Distribution for the six months was $557 million or 24.2 cents per security. The group will retain $175 million, which will be invested in WDC’s future capital activities.
Operational segment earnings for the half year were $850 million representing 36.9 cents per security.
For the half year, net property income, in local currency terms was up 8% in Australia and NZ, up 1% in the US and up 36% in the UK.
The portfolio at 30 June 2011 was 96.7% leased, with the US portfolio at 92.0%, the UK at 98.5% and the Australian and NZ portfolio at over 99.5%.
In the US, comparable specialty retail sales for the six months to June 2011 were up 6.0%, continuing the strong trend in sales last year. In Australia, comparable specialty retail sales for the six months were up 1.8% and up 1.0% in NZ.
At Westfield London, sales for the first six months of the year were up approximately 20% and the centre is on track to achieve annual sales of almost £1 billion in 2011.
Westfield’s CEOs Peter and Steven Lowy confirmed a 2011 full year forecast for FFO of between 64 and 65 cents per security, operational segment earnings of 74.6 cents per security and distribution per security of 48.4 cents.
Meanwhile Westfield Retail Trust reported AIFRS profit after tax from 2 November to 30 June 2011 of $571.3 million. For the six month period from 1 January 2011 to 30 June 2011 profit after tax was $446.9 million or 14.63 cents per security.
Distributable earnings were $274.9 million or 9.00 cents per security, after adjusting for property revaluations of $165.2 million, mark to market of derivatives of $2.6 million and deferred tax of $4.1 million.
WRT managing director Domenic Panaccio announced a distribution of 8.10 cps and said it is on track to deliver on the 2011 forecast distributable earnings of 18.3 cents per security and distribution of 16.5 cents per security.
The Westfield managed Carindale Property Trust made an AIFRS net profit after of $19.4 million. Excluding IFRS fair value adjustments of $0.6 million, profit was $20.0 million which represents an increase of 2.7% on the previous year.
The centre is currently undergoing a major redevelopment which has impacted trading performance. Total retail sales for the 12 months to 30 June 2011 were $685.1 million, down 2.2% on sales for the previous year primarily as a result of the redevelopment.
Net property income for the period totalled $26.2 million which represents an increase of 1.8% on the previous year. This result includes the impact of the redevelopment and the benefit of non recurring items of $1 million, primarily an adjustment relating to Queensland land tax in the first half.
The total distribution for the period is $19.5 million or 27.80 cents per unit which is in line with our previous guidance.
Australian Property Journal
