Westfield model a global success

"If you can husband your resources to the economy you're operating in, you'll come out the other side," he said. "I don't think any of us are arguing that every REIT (real estate investment trust) out there will survive."

Westfield, the world's largest shopping centre owner by market value, in August reported first-half operating income rose 15% on higher sales and rents at Australian shopping centres.

"In Australia, business is still quite strong," Mr Lowy said during a panel discussion at a convention of the National Association of Real Estate Investment Trusts in San Diego.

Mr Lowy said the business model used by Westfield and other shopping centre owners continued to work worldwide.

"The underlying viability of the companies and the business is not at risk," he said. Westfield shares rose 29, or 2.1%, to $14.08 yesterday on the Australian Securities Exchange. They are down 32% in the past 12 months.

Simon Property Group chief executive David Simon said on the panel that while US retailers and shopping centre owners were going through "a tough time," he was not worried about consumer spending going into the holiday shopping season.

"We're not panicked about the retail environment," said Mr Simon, whose company is the largest US shopping centre owner. "People aren't yet shopping, but there's so much negative press that they're going to wait until the last minute for the sales."

Simon Property, based in Indianapolis, said earlier this month that third-quarter earnings dropped because a gain last year from asset sales wasn't repeated. Owners are facing a drop in consumer spending resulting from job losses and falling property values.

The cost of living fell by the most on record, the US Labor Department said yesterday. The consumer price index fell 1% last month, the most since records began in 1947.

Mr Simon said his company was better positioned to survive a drop in spending than competitor General Growth Properties, after taking on less debt than the Chicago REIT.

General Growth, the biggest US shopping centre owner after Simon Property, said earlier this month it may have to seek protection from its creditors if it was unable to refinance or extend $US958million ($A1.48billion) in debt scheduled to mature by December 1. General Growth's share price has dropped 99% since September 12, closing at US40.

Simon Property has dropped 55% in the past year.

"The better part of valour today is to be wildly conservative," Mr Simon said. He said earlier this month that Simon Property had no interest in buying General Growth