Westfield holds on tight in Oz

SYDNEY: Global shopping centre giant Westfield Group has announced operational segment earnings for the six months ended June 30 of $928 million, up 14.7 per cent on the previous corresponding period. Net profit, including asset revaluations and mark to market adjustments for the half year, was $1,285 million.

Announcing the result today (August 27), Westfield managing directors Peter and Steven Lowy said they were "pleased with the performance of the business in what is a challenging environment."

"Our focus on the management and redevelopment of and investment in our high quality global portfolio, together with the captial management and portfolio initiatives transacted over the last few years, has ensured the group is in a strong position to continue to deliver growth."

Operating highlights for the half included comparable retail sales growth in Australia of +4.9 per cent, and strong leasing activity globally, with over 2,445 lease deals completed, representing around 460,900 square metres of retail space.

In terms of Westfield's core portfolio, results for the half showed solid gains in the value of its Australian retail centres were offset by write-downs and the effects of adverse currency movements in its New Zealand, UK and, in particular, US shopping centres.

Westfield's results statement confirmed a new Sydney City development scheduled to commence later this year which, together with the group's new Stratford UK development, would represent around $4 billion of project starts in 2008.