AGM: Westfield on track

SYDNEY: Westfield Holdings' Annual General Meeting (AGM) confirmed the group's solid performance despite challenging economic conditions.

Addressing the AGM today (Friday May 23) at Sydney's Sofitel Wentworth Hotel, chairman Frank Lowy said Westfield Group remained "strong and stable".

"Our stability is built on three things – high quality assets with stable cash flows; financial strength and discipline; and experienced management which plans for the long-term."

For 2007 the group's operational segment earnings were up 11.6 per cent to $1.79 billion. This represented earnings of 96.12 cents per security, an increase of six per cent on a constant currency basis. There was also an increase in the gross value of assets under management from $60.7 billion to $63.2 billion.

In the first few months of 2008 retail sales had slowed, Lowy said, meaning it was "important to understand the features of our business which have kept us strong through various economic cycles over our 48-year history."

"The first thing to appreciate is that we manage very high quality assets. Our shopping centres have strong positions in their particular markets and we continually redevelop them to make sure they maintain that position. We also continually review our portfolio and from time to time sell centres that don’t fit with our long-term plans, or acquire new centres where they can add value."

Secondly, Westfield's assets were geographically diverse, he said.

"We have 118 centres spread across four countries, which means that each market is affected to varying degrees during a global downturn. Over the past few months for example, the Australian retail sales have been somewhat more resilient than those in the US or UK."

Following the completion this year of the Doncaster centre in Melbourne, as well as enhancements to Westfield Geelong, Lowy reported "good progress" towards three new centres "of international significance".

"In Sydney, we expect to commence construction on the site of our CBD property – to be known as Westfield Sydney City – towards the end of this year. Sydney City will provide a fantastic retail and community asset and finally give the heart of Sydney a retail centre to match its status as Australia’s 'global' city."

The development of two more centres located in the London (UK) area was also progressing well, he said.