Business Description:
Westfield Group (WDC) is an internally managed, vertically integrated, shopping centre group established by the merger of Westfield Holdings, Westfield Trust and Westfield America Trust in July 2004. WDC has interests in and operates the shopping centre portfolio of 119 regional shopping centres in Australia, New Zealand, USA and United Kingdom, with a total value of assets under management of A$58.6 billion.

Strategy Analysis:
WDC continues to expand its portfolio, primarily through the development of super-regional centres. In order to boost return on equity, WDC has since 2010, been progressively reducing its ownership interest in its assets. This provides greater operational leverage as WDC continues to maintain ownership of the future development pipeline and centre management. Acquisitions and corporate activity are considered less attractive than development due to strong competition for quality centres. Funding is sourced from debt, equity and joint venture partners as well as strategic asset sales. Westfield Group reported NPAT down 32.3% to $650.9m for the half-year ended 30 June 2011. This is the first half-year result since the restructure of the group in 2010 with the establishment of Westfield Retail Trust. Revenues from ordinary activities were $1.36bn, down 24.5% from the same period last year. Diluted EPS was 28.18 cents compared to 41.28 cents last year. Net operating cash flow was $762.2m compared to $1.2bn last year. The interim dividend declared was 24.2 cents compared with 32.0 cents last year. During the half-year the group commenced work on $570m of new projects including the redevelopment of Fountain Gate in Australia and smaller projects across the US, the UK and Australia. Total new project commencements for 2011 are expected to be between $750m and $1.0bn.