This article is from the Australian Property Journal archive
SHOPPING centre giant Westfield is back in the black, reporting a profit after tax of $961 million for the six months ended June 30 compared to a loss of $708 million in the previous half year.
The previous result included a $3.03 billion write down in property revaluations and this half year the group recorded a $349 million gain.
However Westfield’s revenue was weaker, down from $1.78 billion to $1.66 billion.
The group’s operational earnings was $1.029 billion or 44.70 cents per security, down 2.6%. Operational EBIT was $1.384 billion, 5.4% lower than the prior corresponding period and up 4.8% on a currency adjusted basis.
Managing directors Peter Lowy and Steven Lowy said the first half of the year saw improving performances from the United States, United Kingdom and New Zealand businesses and a continuation of the strong performance from the Australian business.
For the 2010 year, Westfield is on track to achieve operational earnings of 90 cents per security.
At June 30, the group had assets under management of $61.7 billion, total assets of $50.4 billion, a gearing ratio of 37.4% and available liquidity of $7.3 billion. The distribution will be 32.00 cents per security for the half year, representing 50% of the forecast full year distribution of 64 cents per security.
For the half year, net property investment income, in local currency, grew across all regions with Australia and New Zealand up 5.8%, the United States 3.2% and the United Kingdom 15.6%.
In the US, specialty retail sales were up 7.6% with comparable specialty retail sales up 5.2%. This represents the first six consecutive months of sales growth in more than two and a half years. In the United Kingdom, industry statistics show comparable retail sales in London grew by 9.0% and were up 1.1% nationally.
In Australia, total retail sales were flat on the prior corresponding period with comparable specialty retail sales lower by 0.8%. In New Zealand total retail sales were up 2.7% with comparable specialty sales up 0.4%.
The Lowys have also reaffirmed a distribution guidance of 64 cents per security for the year.
Meanwhile the Westfield managed Carindale Property Trust announced a net profit of $19.0 million for the year ended 30 June 2010. Excluding IFRS fair value adjustments, profit was $19.4 million which represents an increase of 4.6% on the previous year.
The total distribution of $19.4 million is equivalent to 27.78 cents per unit, an increase of 4.6% on the previous year.
Net property income totalled $25.7 million which represents an increase of 6.2% on the previous year. Total retail sales for the 12 months to 30 June 2010 were $700.6 million, up 0.5% on sales for the previous year. Westfield Carindale continues to have an occupancy level of more than 99%.
The 50% interest in Westfield Carindale at 30 June 2010 was revalued $442.5 million unchanged from last year.
Australian Property Journal
