Westfield looks to grow portfolio
Westfield Group (WDC) said it was ready to emerge from the global economic downturn this year and in the future, with pre-development activity starting on around $10 billion worth of new shopping centres. At the group's first quarter review, Westfield said that, as an ongoing benchmark, it was targeting between $500 million and $1 billion worth of development annually.
Westfield also provided evidence of the economic recovery, with sales in Australia, where it owns 44 shopping centres, up 2.1% in the year to 31 March and 2% for the March quarter, when compared to the previous corresponding period.
The real driver however was the film industry, with cinemas contributing 22% more in the March quarter over the previous corresponding period.
Other sectors weren’t as strong, with both jewellery and leisure spending in Westfield shopping centres down 1.2% in the March quarter.
In the important US sector, where Westfield has 55 centres, sales per square foot pointed to the strength of the economic recovery.
Despite year-to-date being almost across the board lower, in the three months to 31 March 2010 sales grew strongly. Spending on leisure was 14% higher than the previous corresponding period.
Jewellery, fashion and cinema spending rose 5.9%, 4.4% and 12.8% respectively in the quarter.
At the close Monday, Westfield shares were trading at $13.13.
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