Pipeline projects in 2015 worth $2.5 billion: Westfield Corporation

Westfield Corporation Funds From Operations (FFO) for the six months ending 30 June 2015 hit $380m, representing 18.3 cents per security and in-line with forecast.

Westfield Corporation Co-CEOs, Peter Lowy and Steven Lowy AM said this year the company expects 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.

"The benefits of our restructure last year can be seen in the significant progress being made on our $11.4bn development program,” they said.

“The performance of WFD’s pre-eminent portfolio remains strong. 

“Our investment in the development program, which also comprises Westfield World Trade Center in New York and Valley Fair in Silicon Valley, is expected to create significant long-term value for security holders. Our capital investment is almost entirely weighted towards our Flagship assets, with estimated development yields in the range of 7% - 8%. Upon completion of these projects, we expect WFD’s Flagship assets will represent 85% - 90% of the total portfolio and our business will be more evenly weighted between the US and UK/Europe.”

Westfield's comparable net operating income growth was 4.2% for the six months with the portfolio 95.0% leased as at 30 June 2015. The Flagship portfolio achieved comparable net operating income growth of 4.3% for the six months with the Regional portfolio growing by 3.9%.

Westfield reconfirmed its FFO forecast for the 2015 year of 37.7 cents per security