Westfield loss an improvement

Westfield, Newmarket, Auckland.

The Westfield Group (WDC) today announced a FY09 net loss of A$458m, after incurring downward property revaluations of A$3.5bn for the year. The loss is a strong improvement from the A$2.2bn loss reported for the prior year.

Operational earnings of A$2.064bn, were up 6.2% on the prior year, driven by a strong performance from the company’s Australian operations.

Operational EBIT of A$2.871bn, was up 8.3% on the prior year. Operational earnings (on a hedged basis) and distribution for the year were A$2.109bn representing 94.0cps, consistent with the group's full year forecast.

Downward property revaluations of A$3.5bn were principally experienced during 1H09. In the six months to December 2009, capitalisation rates across each region stabilised and the group's statutory result, under AIFRS, was a profit of A$250m.

WDC managing directors, Peter Lowy and Steven Lowy, said, “Notwithstanding the difficult conditions in the real estate, retail and capital markets in which we operate, the group has been able to meet its forecast given in February last year.

“Overall, we have seen strong performance from the Australian business throughout the year and conditions have stabilised in the second half of the year in our United States, United Kingdom and New Zealand businesses.”

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