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Westfield sees demerger benefits

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Westfield Corporation says it reaping the benefits of its demerger from Scentre Group, reaffirming its full-year funds from operations (FFO) forecast.  

In the six months to June 30, Westfield posted a profit of $US465.9 million.

The company said a loss of $US797.3m posted in the previous corresponding period comprised the earnings of Westfield America Trust (WAT) only and was not comparable.

Last year, Westfield Group and its associated passive property trust, WRT, were restructured to split the company's Australian and New Zealand operations from its growing international business.

Under the new structure, Westfield Corp owns the international division, which includes flagship centres such as Westfield London, while the Australasian shopping centres are controlled by Scentre.

Revenue in the period came to $US531.5m.

In the first half, funds from operations (FFO) were $US380m, or US18.3c per security, which was in-line with forecast.

Westfield still expects FFO for fiscal 2015 of US37.7c per security. 

The company will pay an interim of US12.55c on August 31 to shareholders who were on the register at August 17.

The group's co-chief executives, Peter Lowy and Steven Lowy said the benefits of the group's restructure last year can be seen in the "significant progress" being made on its $US11.4 billion development program.

"This year we expect to commence $2.5bn of projects, having already commenced $1.6bn of redevelopments to-date in 2015 including Century City in Los Angeles and UTC in San Diego, with the expansion at Westfield London expected to commence later this year.”

WFD shares slipped 0.42 per cent to $9.48 against a 0.7 per cent benchmark lift.

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Company says demerger from Scentre aiding its development program; reaffirms FY FFO forecast.

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