This article is from the Australian Property Journal archive
WESTFIELD Corporation has unveiled a full year funds from operations (FFO) of $707 million as it takes the final steps for the merger with Unibail-Rodamco to create a $73 billion group.
FFO per security was 34.0 cents, at the top end of the forecast. The full year distribution is 25.5 cps. IFRS net profit was $1,551m for the year ended 31 December 2017, including $847m of revaluations primarily driven by uplift from developments.
“2017 was a significant year for Westfield with the announcement in December of the proposal to combine Westfield with Unibail-Rodamco to create the world’s best retail real estate platform,” Westfield Corporation co-CEOs Peter and Steven Lowy said.
“We are creating great experiences for retailers, consumers and brands and continue to benefit from the addition of food, leisure and entertainment and a broader mix of uses including many new concepts, emerging technologies and online brands. In the United States we have added over 130 retailers and brands that are new to Westfield in our recently completed developments.
“Over many years we have adapted and improved our portfolio to meet the changing needs of retailers, consumers and brands, and this remains a core strength of Westfield,” they said.
WFD’s portfolio achieved specialty sales of $733 psf, up 2.0% for the year, with:
- Flagship: $908 psf, up 2.7%; and
- Regional: $455 psf, down 0.3%.
For the 12 month period, comparable net operating income for the portfolio was up 2.2%, with:
- Flagship: up 2.7%; and
- Regional: up 0.7%.
For 2018, comparable NOI growth is expected be in the range of 2.5% – 3%.
The portfolio was 93.2% leased as at 31 December 2017, with the Flagship portfolio at 94.9%.
The proposal to combine Westfield and Unibail-Rodamco will create a $73 billion portfolio comprising 104 assets, of which $61 billion or 84% are flagship. The combined portfolio will operate leading assets in the US in New York, Los Angeles, Silicon Valley and the Washington DC area, and in Europe in London, Paris, Madrid, Barcelona, Stockholm, Vienna and Milan. It will have strong growth prospects with a $14.7bn development program.
The proposal has the full support of the Lowy Family and the Westfield Board.
Documentation for the proposal is expected to be sent to securityholders in April with the vote and implementation expected to occur later in the first half of 2018.
Given the proposal to combine Westfield and Unibail-Rodamco, there will be no FFO or distribution forecasts for 2018.
Australian Property Journal
