This article is from the Australian Property Journal archive
WESTFIELD (ASX: WDC) has reported strong retail sales growth from its US and UK portfolio whilst the Australian portfolio increased marginally.
WDC’s global portfolio comprises 100 shopping centres reported over $40 billion in annual retail sales. The global portfolio at 31 March 2013 was 97.4% leased, up 20 basis points compared to the same period last year.
The US portfolio was 93.1% leased, up 150 basis points on the prior year with the Australian / NZ and United Kingdom portfolios at 99.5% and 99.0% leased respectively.
WDC’s global portfolio specialty sales productivity is currently $US704 per sq ft, up 1.9% on the prior year.
For the 12 months to March, comparable specialty retail sales were up 5.2% in the US, up 0.1% in Australia and down 1.3% in New Zealand.
In the US specialty retail sales grew to $US490 per sq ft up 5.0% for the quarter to $US7 billion. Sales growth has been across all categories and regions with our higher quality centres continuing to outperform.
In the UK the combined annual sales from the two London centres, Westfield London and Stratford City increased by 2.6% and 7.7% respectively to in excess of £1.9 billion.
In Australia comparable specialty sales for the quarter grew by 0.3% to $20.2 billion. Whilst retail conditions remain subdued the productivity of the portfolio remains high at $9,863 per sqm.
Average specialty rent for the Australian / NZ portfolio grew by 2.4% from March 2012 with average rent in Australia now at $1,522 per sqm and NZ at $NZ1,127 per sqm.
In Australia, for the 3 months over 380 leasing deals were completed. Excluding projects, this represented 2.2% of specialty area, which were completed at rents 5.1% lower than expiring rents.
WDC reconfirms its 2013 forecast for FFO of 66.5 cents per security. The distribution forecast for the 2013 year is 51.0 cents per security.
Meanwhile Westfield Retail Trust (ASX: WRT) recorded average specialty rental growth of 2.4% for the 12 months to 31 March 2013.
Comparable retail sales growth for the 12 months to 31 March 2013 was 0.7% in Australia and fell 1.0% in NZ. For the quarter to 31 March 2013, comparable retail sales grew 1.1% in Australia and contracted 2.9% in NZ.
Comparable specialty retail sales growth for the quarter to 31 March 2013 grew by 0.3% in Australia and contracted 2.6% in NZ.
Average specialty store rent growth for the 12 months to 31 March 2013 was 2.4% across the portfolio. Rents on new leases in Australia, representing 2.2% of specialty area (excluding projects) were 4.9% lower than expiring rents for the March quarter, driven mainly by leases for new tenants.
WRT reconfirmed its 2013 full year forecast FFO and distribution of 19.85 cents per stapled security.
Property Review
