Westfield Corporation (ASX:WFD) released its half year financial results ending 30 June 2015. Following the demerger from Scentre Group, the company has once again performed strongly and the future looks bright with a $2.5billion project pipeline going into the second half of 2015.
Reporting in US dollars, for the six months ending 30 June 2015, the company reported Fund from Operations (FFO) of $380 million, representing 18.3 cents per security and in-line with forecast. Dividend for the period was 12.55 cent per share and also in line with forecast.
Westfield Corporation Co CEO, Peter Lowy commented, “The performance of WFD’s pre-eminent portfolio remains strong. The benefits of our restructure last year can be seen in the significant progress being made in our $11.4 billion development program. This year we expect to commence $2.5 billion of projects, having already commenced $1.6 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.”
As of 30 June Westfield had $29.3 billion in assets under management, total assets of $19.7 billion, with a gearing ratio of 32.2 per cent and interest cover of 5.0 times. The company reported IFRS net profit of $466 for the six months.
Operationally Westfield achieved specialty sales productivity of $713 per square foot (psf) with comparable sales up 8.6 per cent for the six months ending 30 June 2015. The company’s flagship portfolio representing 77 per cent of assets under management, achieved annual specialty sales of $881 psf, up 10 per cent for the period, with the Regional portfolio achieving $450 psf, up 4.9 per cent.
The company’s comparable net operating income experienced growth of 4.2 per cent with the portfolio 95 per cent leased at 30 June. The Flagship’s portfolio experienced comparable net operating income growth of 4.3 per cent for the period with the Regional portfolio growing by 3.9 per cent.
Keep in mind WFD was only established on 30 June 2014 after the demerger with Scentre Group and as a result does not have prior comparable earnings.
Looking into the second half of 2015, WFD forecasts FFO for the full year to be 37.7 cents per security, including the impact of the $925 million O’Connor joint venture completed in February 2015, representing pro-forma growth of 4 per cent. Distribution for the 2015 year has been reconfirmed at 25.1 cents per security.
Author: Ben Visser
Aug 26, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.