Westfield confirms distribution forecast
Westfield Group (WDC) reconfirmed the group’s 2010 distribution forecast of 64c per share, based on a payout level of between 70% and 75% of operational earnings. Chairman, Frank Lowy, also said in his address to members at the AGM, that the company was now seeing improvement in retail sales performance in both the United States and United Kingdom.
Mr Lowy said in previous years Westfield had paid out 100% of operational earnings and the decision to reduce the level of the group’s distribution was not taken lightly.
“However the Board decided and announced last year that a prudent way of funding our extensive development program, at least in part, was to retain part of our earnings each year – for that purpose,” Mr Lowy said.
He said the good news is that the retail property group was beginning to see more positive signs emerging in the fundamentals of the economies in which the Group operates.
”Although these are early signs, they give us some confidence that things are improving,” Mr Lowy said.
Mr Lowy said the results from the first quarter of operations this year confirm this better outlook.
As at 1121 AEST, Westfield shares were up 13c to $12.16.
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