Westfield Corporation meets targets, posts first-half profit of $US466m

Westfield Corp runs the international business, which includes Westfield London.Westfield Corp, the international retail business run by Steven and Peter Lowy has reported a first-half profit of of $US465.9 million ($652 million), which was in line with the forecasts made when the group restructured and created Scentre Group last year.

Under the restructure, Westfield Corp runs the international business which owns Westfield London and Stratford City, in the UK, the newly-develped World Trade Centre in New York and Century City in Los Angeles, among others across North America. It is also developing a mall in Milan.

Funds From Operations (FFO) came in at $US380 million while the distribution for the six months ended 30 June 2015 was 12.55 cents per security, also in-line with forecast.

Westfield’s Peter Lowy and Steven Lowy said the benefits of restructure can be seen in the progress being made on the $US11.4 billion development program.

“This year we expect to commence $US2.5 billion of projects, having already commenced $US1.6 billion of redevelopments to-date in 2015 including Century City in Los Angeles and UTC in San Diego, with the expansion at Westfield London expected to commence later this year.,” the co chief executives said.

“Our investment in the development program, which also comprises Westfield World Trade Centre in New York and Valley Fair in Silicon Valley, is expected to create significant long term value for securityholders.”

“The $US1.4 billion Westfield World Trade Centre is now fully leased and committed. This will be a spectacular shopping, dining, event and entertainment destination integrated into the World Trade Centre Transportation Hub in Lower Manhattan.”

The project will showcase a diverse mix of over 100 domestic and international fashion, dining, beauty, entertainment and technology retailers as well as a “world class” food offering, led by Eataly​, an Italian group dining. The project is now expected to open in the first half of 2016.

The distribution for the six months to June 30 was 12.55¢ per security, also in-line with forecast.

The group reconfirms its FFO forecast for the 2015 year of 37.7¢ per security, including the impact of the $US925 million O’Connor joint venture in the US completed in February 2015, being growth of 4 per cent.

The distribution forecast for the 2015 year is also reconfirmed at 25.1¢ per security.

more to come