Westfield Corp has met the forecasts made when the group restructured and created Scentre Group last year, by reporting a first-half profit of $US465.9 million (A$652 million.
Funds from operations (FFO) were $US380.3 million, in line with its forecast, with FFO per security at 18.3 US cents. The company, which is focused on shopping malls in the United States, UK and Europe, reconfirmed its full year distribution guidance of 25.1 cents per security.
“The performance of WFD’s (Westfields’s) pre-eminent portfolio remains strong. The benefits of our restructure last year can be seen in the significant progress being made on our $11.4 billion development program,” co-chief executives Peter Lowy and Steven Lowy (pictured) said.
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.
According to the co chief executives they expect to commence $US2.5 billion of projects in 2015, 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.
“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.