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Westfield Retail Trust FY profit falls

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Westfield Retail Trust expects to increase funds from operations by 2.8 per cent in fiscal 2014, after its 2013 profit fell slightly.

Profit after tax attributable to unitholders fell by 6.5 per cent to $777.1 million in the full year to December 2013, compared with $830.8 million in the year to December 2012.

Revenue increased by 2.1 per cent to $1.10 billion in 2013, compared with $1.08 billion in the previous year.

The group will pay a final distribution of 9.925 cents on February 28 to shareholders who were on the record on February 13.

Meanwhile, funds from operations rose by 0.9 per cent in the year to $596.8 million, compared with $591.4 million in the previous year, while funds from operations per stapled security lifted by 2.5 per cent to 19.85 cents in the year, compared with 19.367 in the prior year.

Westfield said it expects to increase funds from operations to increase by 2.8 per cent to 20.4 cents per stapled security in 2014, and pay out the full 20.4 cents per security in distributions.

The increase assumes comparable net operating income growth of 2 per cent to 2.5 per cent for Australia and 1.5 per cent to 2 per cent for the portfolio, assumes no material change in the current operating environment and excludes the impact of a previously announced merger proposal or any future capital transactions.

The group said it has the capacity and capital to deliver incremental long-term growth for securityholders.

The Trust last year announced a proposal to merge with Westfield Group's Australian and New Zealand business to form a new entity called Scentre Group, which will manage, develop and partly own Westfield branded shopping centres in Australia and New Zealand.

The 2014 proforma forecast for Scentre Group is funds from operations of 21.5 cents per stapled security in 2014.

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Revenue lifts, funds from operations expected to increase next year.

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