This was published 10 years ago
Westfield finds growth overseas
Westfield and its Westfield Retail Trust offshoot have reported steady sales for the third quarter, with the US and Europe eclipsing Australia with improved consumer sentiment.
For Australia, new leasing spreads remained lower than existing or renewals of leases, reflecting the tough outlook for the apparel sectors.
The results come only 45 days to Christmas, in a period that retailers are forecasting will be better than previous years, due to the lower interest rate environment an booming housing market.
Home furnishing, electrical and hardware goods are being touted as the busiest in the coming festive retail season, outpacing fashion and general apparel.
The Westfield group said that for the 12 months to September, comparable specialty retail sales were up 4.5 per cent in the United States and remained steady in Australia and New Zealand.
Westfeld's co-chief executive, Steven Lowy, said the group reconfirmed its 2013 forecast for funds from operations of 66.5 cents per security, an increase of 2.3 per cent on the previous year.
''The group remains on track to achieve its full year comparable net operating income forecast across all regions, in the range of 4 - 5 per cent in both the United States and United Kingdom portfolios; and 1.5 to 2 per cent in the Australian & New Zealand portfolios,'' Mr Lowy said.
He said the distribution forecast for the 2013 year is reconfirmed at 51.0 cents per security, representing an increase of 3% on the previous year.
''In Australia, whilst retail conditions remain consistent with prior periods the productivity of the portfolio remains high at over $9,800 per square metre (per square metre), with continuing demand for space from both domestic and international retailers,'' he said.
Average specialty rent for the Australian / New Zealand portfolio grew by 1.9 per cent from September 2012 with average rent in Australia now at $1532 per square metre and New Zealand at $NZ1129 psm.
In Australia, for the nine months almost 1700 leasing deals were completed. Excluding projects, this represented 11.5 per cent of specialty area, which were completed at rental spreads consistent with the half year, at 6 per cent lower than expiring rents.
Westfield Retail Trust, which owns half of the Australian and NZ malls with Westfield said its average specialty rental growth was 1.9 per cent for the 12 months to 30 September 2013.
Westfield Retail Trust managing director Domenic Panaccio said comparable retail sales growth for the 12 months to 30 September 2013 was 1.2 per cent in Australia. Comparable specialty retail sales growth in Australia was 0.3 per cent over the same period.