In its First Quarter Update released on Thursday, Westfield Corporation (ASX:WFD) reported a moderate rise in sales. For the year ending on 31 March 2015, the company posted speciality retail sales of $711m, up 5.7 per cent compared to the previous corresponding period. Assets under management for the flagship division rose 77 per cent to $21.9bn. Assets under management for regional divisions rose 19 per cent to $5.4bn. The biggest year-to-year rise in sales same in the form of Jewellery in its flagship division.
The company’s report also said it had made significant progress on its $11.4bn current and future development programs. $2.4bn worth of projects are under construction and Westfield estimates a yield range of 6.5 to 7.5 per cent for these projects. The company has $9bn in future development programs with an estimated yield range of 7 to 8 per cent. The $800m redevelopment at Century City in Los Angeles is expected to commence in the second quarter of 2015. The £600m extension at Westfield London is expected to commence in the second half of 2015.
One of the company’s most expensive construction projects currently underway is the Westfield World Trade Center project in Lower Manhattan, New York. The company took ownership of the retail component of the Twin Towers a few weeks before the infamous 9/11 terrorist attacks. The project value for Westfield’s redesign of the World Trade Center totals $1.425bn and is expected to be completed in either the second half of 2015 or the beginning of 2016. Shares of WFD are up 13c, or 1.41 per cent, at $9.33 per share.
Author: Imran Valibhoy
May 14, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.