Countries: Australia
Westfield Holdings Limited today announced increased profits for the year to 30 June 1997, thereby continuing its unbroken record of profit increases over the last 37 years.
After-tax profit for the 1997 financial year was $87.7 million, up 17% on last year's result of $74.9 million.
Earnings per share were also up 17% to 89.49 cents, compared with 76.45 cents last year.
The dividend pay-out for the year will be 44.7 cents per share compared with last year's dividend of 38.2 cents per share. This year's final dividend of 23.8 cents per share (last year 20.3 cents) will be paid on 25 September 1997. All these dividends are 60% franked.
Profit before tax broke the $100 million barrier for the first time, increasing by 24% from $95.5 million in 1995/96 to $118.5 million this year.
Sales revenue for 1996/97 was $488 million, an increase of 11.5% on the previous year's figure of $438 million.
Westfield's Managing Director, Corporate & International, Mr David Lowy, said: "This result reflects a substantial increase in profit from development, construction and management in Australia and the US."
The highlight of the year was the flotation of Westfield's US shopping centre portfolio through the listing of vehicles on the Australian and New York Stock Exchanges:
- Westfield America Trust (WAT) was listed on the ASX in July
1996; and
- Westfield America, Inc. (WEA) - which is 51% owned by WAT - was
listed on the NYSE in May 1997.
A total of approximately US$800 million was raised in the two offerings from investors in Australia, US and Europe. These listed entities, with their ability to access international capital markets, provide a good basis for the expansion of the Group's shopping centre business in the US.
"During the year, we also furthered our geographic expansion by establishing operations in New Zealand with our appointment to manage and develop 10 centres owned by the St Lukes Group", Mr Lowy said.
"Westfield's management portfolio now comprises 66 shopping centres, valued at $11.8 billion, with 4 million square metres of retail space and 9,300 retailers."
The $200 million redevelopment of Marion Shoppingtown in Adelaide is near completion (with the final stage scheduled for opening in late 1997) as is stage two of the redevelopment of Garden City at Mt Gravatt in Brisbane (scheduled to open in October 1997) on behalf of the owner, AMP Society.
Two new projects are currently under way - at Tea Tree Plaza in Adelaide and Chatswood Shoppingtown in Sydney.
A $2 billion, medium-term development program is planned for Westfield centres in Australia to occur over the next five or six years. This program is being driven by strong demand from both anchor tenants and specialty retailers and will ensure that Westfield Shoppingtowns maintain their competitiveness in their respective market places.
In the United States, the second stage of the redevelopment of Garden State Plaza in New Jersey was close to completion at the end of June. The total repositioning and redevelopment of Mission Valley Mall in San Diego California was also complete and work was under way at South Shore Mall in Bayshore, New York.
During the year, Westfield added the contract to manage retail facilities in Terminal C at Boston's Logan International Airport to its two existing airport retail management projects at Dulles and National Airports in Washington DC. All three airports have been undergoing redevelopment, with their new retail facilities scheduled to open during the next 12 months.
"The development program for the US portfolio remains on schedule. Seventeen of the 23 properties owned by WEA have been identified for redevelopment, with seven projects expected to start within the next five years", Mr Lowy said.
Work is continuing on the retail component of the Kuala Lumpur City Centre project in Malaysia in which Westfield Holdings has a 10% equity interest. Westfield's primary role in this project, which is expected to open for trading in mid-1998, relates to the leasing and management of the Centre. In addition, Westfield has recently been requested to provide project management resources for the development.
Mr Lowy said the 1996/97 profit result reflected another strong
performance by the Group and he was confident that further profit
growth should be continued in the coming year.
For further information please call: Wendy Guest 61 2 9358 7426 or
61 419 414 753
Westfield Group