Westfield

Westfield sells $1.2 Worth of Non-core Assets


Westfield (ASX:WDC) will sell its non-core assets worth $1.2 billion. Non-core assets are no longer useful or essential to the company, with the proceeds of their sale used to fund extra cash or pay debt. Westfield is set to publicly announce the sale of its US shopping centres.

Westfield Plans Expansion


After "pleasing" sales results in local markets and in the United States, Westfield (ASX:WDC) has announced plans to step up expansion plans for the first quarter of this year.

In yesterday's update, Westfield's joint group managing directors Steven and Peter Lowy said the group has started its $490 million development activities in the three months to end of March.

Westfield Reaches Expected Earnings, Boost Projects


Westfield (ASX:WDC) confirms forecast earnings and will start developmens in the next two years. The company has also stated that its net operating income is in line with the first quarter share trading forecast.

Westfield Launches Online Shopping Mall


Retail heavyweight, Westfield (ASX:WDC) opened its first online shopping centre to buyers and sellers in Australia and around the world. The site had a soft launch earlier this year. Shoppers can now browse the online portal for brand names like fashion products and tax-free cosmetics, and have a choice to drop by their nearest Westfield store or just buy and pay online.

Westfield to Start Listed Property Trust


Real Estate Property group, Westfield (ASX:WDC) is starting a new listed property trust as a new separate entity called the Westfield Retail Trust. The company will e restructuring its business and there will be a pro-rata distribution of units for the new trust to Westfield's shareholders to the value of $7.3 billion.

Westfield Dividends

9 August, 2010 - 23:10

Study the historical dividends for WESTFIELD GROUP. Dividends are a portion of company profits paid out to shareholders. You are eligible to receive WDC dividends if you own the company's stock on the ex-dividend date. Investor's must have purchased the stock before the ex dividend date to be entitled to the dividend. The previous owner of the shares will receive the WDC dividend if you buy the stocks on or after the ex dividend date. The Pay Date or the Date Payable is the day when the dividend is paid to shareholders.

Westfield Affected By Global Recession


While Australian shares rose by 0.6% yesterday, Westfield (WDC) has seen a drop in share price after the announcement made by the company regarding the distribution cut. The company said that the net profit for the year 2008 till December would reflect a $3 billion charge against shopping centre assets because of an increase in capitalisation rates.

Westfield (WDC) Update


Westfield (WDC) has a Neutral 1 share trading recommendation and a $21.25 price target from Australian stockmarket analyst UBS. WDC have announced the establishment of the UK Wholesale Shopping Centre Fund as foreshadowed at the time of the $3bn equity capital raising last month. The centres include Merry Hill, Belfast, Tunbridge Wells and also Derby once its development is completed (before Oct 2009). Initial yield to be 4.3% after costs with Derby to be sold to the Fund on a yield of 5.0%. 67% of the fund has been taken up by 2 investors with the remaining third to be marketed to a wider group. Accretive but no change to DPU: Initially the establishment of the fund is on average 1.2%pa accretive assuming the proceeds are used to pay down debt (6.5%). If the proceeds are subsequently reinvested in the development pipeline yielding 9%, there is accretion of 2.9% on average. DPU guidance has been maintained at 106.5c. WDC cashing up with $7bn raised in 6months: WDC has now raised $7bn in 6 months, through equity and property sales/funds management initiatives. This will fund half of their 5 year development program (12-15% IRR unlevered) which needs $14bn+ just for WDC's interests. They expect Westfield to continue to sell more mature assets as it works through its current pipeline. Other possible asset sales include US$450m (announced as part of capital raising) and further tranches of Property Notes. The analysts' DCF valuation is $21.25 and NAV is $21.43. Their Price Target is based on a DCF model.

Westfield Update


Westfield has a Neutral 1 broker call and a $21.18 share price target from Australian Stocks analyst UBS. Earnings Upgrades post Raising: $10bn of development starts over the next 3 years: WDC have 19 projects under construction (estimated total cost A$7.6b, Westfield's share $5.4bn with the majority of the difference being 50% ownership of Westfield London). WDC expect to commence in excess of $10b (WDC's share $9bn) of new projects over the next 3 years. EPS increased by 0.5% to 3.4% in FY07 to FY11: The analysts have increased their development pipeline by $5bn, the major project being Stratford (c$4bn, c5.5%). They have also increased Westfield’s non-owned dev pipeline by $0.9bn. The EPS impact of the increased development starts & $3bn capital raising is 0.5%-3.4% from FY07-FY11e. NOI growth currently 2.5%: If they increased their forecast NOI growth across the portfolio from their base 2.5%pa to 3.0%pa or 3.5%pa it would provide on average 1.6%pa or 3.2%pa accretion. This would increase our valuation by 40c and 84c respectively. Valuation increased by 2.7%: Their revised EPS forecasts increased our Fair Value and Price Target to $20.29 and $21.18 respectively. Westfield are more focussed on maximising returns on capex of 12-15% IRR (unlevered), rather than acquiring mature assets on 8% IRR in the direct market. To that end, they expect Westfield's to continue to sell more mature assets to keep gearing below 45% as it works through its current pipeline. NAV $21.25 (exc. any premium for the Westfield brand). Their price target is based on a DCF model.

Meanwhile, another stocks analyst, Citi Investment Research have a NAV based price target of $23 and a Buy rating. WDC is raising $3bn in equity at $19.50, an 18% discount to the analysts' price target. The raising is on the back of a ramp up in the development pipeline, though the analyst expects acquisitions are on the agenda. They maintain their positive view; the substantial pipeline will drive earnings growth and value creation. Bringing forward projects such as UTC and Valley Fair will bring forward earnings accretion. Accretion will occur upon various project completions between FY09-FY11. Westfield stated they will start projects of $9b over the next 3 years. The analyst had approximately $7bn in their numbers already. A drop in gearing, potential to JV assets and issue property linked notes gives Westfield significant opportunity to pursue acquisitions. The UK will be a likely focus, assisted by a possible wholesale fund. Though no details around the timing or assets were given. It is likely stabilized assets such as any part of Royal Victoria Place, Castle Court or, once completed, White City could be included in the fund. The other UK assets are flagged for further development works. Management stated gearing will drift back to 40-45%. With the likelihood of revaluation upside and potential to JV stabilised assets, there is ample ability to fund more acquisitions while keeping gearing lower.

Which Shares Outperform When The Australian Dollar Rises?


Shares analyst UBS have a look at which shares Outperform when the Australian dollar rises. The analyst: The obvious way to measure a share's currency sensitivity is to look at its EPS sensitivity. However, the shares analyst note that this ignores what else is going on when the Australian dollar (A$) is rising.

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