Friday, September 17, 2021

Westfield’s £3bn global expansion pushes profits

Shopping centre giant Westfield Corporation has posted healthy full year results following global expansion in what has been a “significant year”.

With a spate of high-profile openings around the world, including a £600 million expansion at Westfield London, Westfield‘s funds from operations (FFO) for the 12 months to December 31 stood at $700 million (£562.70 million) in line with forecasts.

Funds from operations per security was also up 3.8 per cent to 33.7 cents, alongside a distribution per security of 25.1 cents, also hitting predictions for the year.

Net profit for the year hit $1.3 billion (£1.09 billion) driven by a $9.5 billion (£7.63 billion) retail investment programme.

“2016 was a significant year for Westfield, which saw the continued execution of our strategy to transform our assets into the pre-eminent global shopping centre portfolio,” co-chief executives Peter Lowy and Steven Lowy said in a statement

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“The operating performance for the year was solid. During the year we successfully opened Westfield World Trade Center and commenced the expansion at Valley Fair in San Jose.

“We continued to make good progress on the redevelopment of Century City in Los Angeles, the expansion at UTC in San Diego and the expansion at Westfield London.

“In 2016, over $1bn of revaluation gains were achieved, driven by the value created from completed developments. Our $9.5bn retail development program is creating significant long- term value and earnings accretion for securityholders.

“Westfield is focused on creating great experiences for retailers, consumers and brands, and has significantly enhanced our resources and capability in the areas of events, entertainment, digital technology and data analytics.

“We are transforming our food, fashion, leisure and entertainment offer with a broader mix of uses including the introduction of many new concepts and brands.”

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