Global Real Estate Firm Westfield Corp Reports On 2016 Results
March 5, 2017
The real estate development firm Westfield Corporation released its 2016 end of year company report on February 14, 2017. Peter Lowy – Chief Executive Officer, stated that “2016 was a significant year for Westfield, which saw the continued execution of our strategy to transform our assets into the pre-eminent global shopping centre portfolio.”
The company’s performance was especially strong in the following areas:
2016 was a year in which the corporation began or continued a number of operations. The Lowys felt that Westfield’s performance here was “solid”. Among the projects cited in the news release was the grand opening of the upscale shopping mall Westfield World Trade Center. Steven Lowy singled this project out for particular praise, stating that “the (World Trade) Centre is one of the strongest developments in our portfolio.” The mall, located in New York City, opened on schedule. Several California projects were specifically mentioned in the Lowy’s press release. The corporation began the expansion of the Valley Fair shopping center in San Jose. Westfield’s redevelopment of Century City in Los Angeles continued to go well and on schedule. Two other facility expansions undertaken by the corporation in 2016 were at San Diego’s UTC and Westfield London. The company is also working on non-retail projects, and is currently making good progress on a residential building in Milan, Italy.
The Lowys indicated that due to 2016’s strong performance schedule in completing projects, the corporation was able to achieve more than one billion dollars in revaluation gains. Westfield has invested more than nine billion dollars in creating shopping/dining/entertainment complexes, and that such investing is resulting in “significant” earnings and value gains for stake holders.
The Lowys indicated that the Westfield Corporation’s goal would be to continue to offer shoppers a wide range of high-end shopping, dining, and entertainment options using a variety of methods, including digital technologies. Data analysis is among the many techniques that are currently employed in order to insure a consistent Westfield experience.
The corporation ended 2016 in robust financial health. Its funds from operations (FFO) for the months 31 December 2015- December 2016 were seven hundred million dollars, which were consistent with predictions. The corporation’s FFO per security was just under thirty-four cents, up just under four percent on a pro forma basis. The forecast for distribution over this twelve month period was just under twenty-six cents per security, which performed as expected. At the end of 2016, Westfield showed balance sheet assets slightly over twenty-one billion dollars. This sum has a gearing ratio of slightly over thirty-five percent, and just under three billion dollars of this amount was available in liquid assets. The corporation’s International Financial Reporting Standards (IFRS) net profit was slightly over one million, three hundred dollars for the twelve month period ending in December of 2016. Westfield also has other assets under management which are worth slightly over thirty billion dollars. Most of these (eighty-two percent) are classified as flagship assets.