Westfield — FY2017 Earnings Presentation
29 slides from Westfield's earnings presentation, Feb 22, 2018
Slide 1: Forward-looking statements and basis of presentation
The financial information included in this release is based on the Westfield Corporation’s IFRS financial statements. Non IFRS financial information has not been audited or reviewed. This release contains forward-looking statements, including statements regarding future earnings and distributions th
Slide 2: Full year 2017 highlights
• Funds From Operations (“FFO”) of 34.0 cents per security, at the top end of the forecast, and Distribution of 25.5 cents per security • Solid operational performance with comparable NOI growth of 2.2%, with the Flagship portfolio at 2.7% • Significant progress on $8.5bn development program: • Succ
Slide 3: Funds from operations and balance sheet summary
Funds From 12 months Assets Under Management / As at % Change1 Operations ($m) to Dec 17 Balance Sheet ($bn) 31 Dec 17 Net Property Income 857 8.9% Assets under Management 34.5 Management Income 35 6.2% Total Assets 23.6 Project Income 104 14.4% Net Debt 8.8 FFO 707 2.3% Gearing 38.1% FFO per Securi
Slide 4: Transaction with Unibail-Rodamco
TRANSACTION WITH UNIBAIL-RODAMCO Westfield x ay WESTIE OPM 0] Y WA -FULLYEAR RESULTS
Slide 5: Proposed combination with Unibail-Rodamco
• In December 2017, Westfield announced a proposal to combine with Unibail-Rodamco (“Unibail”), creating the world’s best retail real estate platform: • Under the terms, WFD securityholders would receive US$2.67 in cash and 0.01844 securities in Unibail for each WFD security • As part of the proposa
Slide 6: Unibail-Rodamco-Westfield pro forma
Unibail- As at 12 December 2017(1) Westfield Pro forma Rodamco GMV(2) ($bn) 51.3 21.5 72.8 Development Pipeline ($bn) 8.8 5.9 14.7 # of countries 11 2 13 # of shopping centres 69 35 104 Average footfall per Flagship asset (m) 15.2 16.9 15.7 Portfolio by Segment Portfolio by Region Conventi
Slide 7: Pro forma development pipeline by segment and region
By Segment By Region $1.3bn $0.6bn $0.6bn $0.4bn $2.3bn $0.7bn 3% 9% 4% 4% 15% $0.9bn 5% $1.8bn 6% 12% $5.6bn 38% 14% $2.0bn $1.4bn 9% $14.7bn $14.7bn 15% 11% 38% $1.6bn $2.2bn 17% $5.6bn $2.5bn Retail - Greenfield / Brownfield United Kingdom United States Retail - Extension / Renovation Italy Franc
Slide 8: Combined portfolio locations
Stockholm New York Silicon Washington DC London Valley Area Los Angeles San Diego Paris Vienna Milan Madrid Barcelona
Slide 9: Westfield development and operating activity
WESTFIELD DEVELOPMENT AND OPERATING ACTIVITY Ys Westheld / A * WESTEL i ocoaraiy Al2017 | ‘A ' y \ ‘‘\s J A\\ RESULTS,
Slide 10: Current development projects
$2.4bn of current projects (WFD: $1.4bn, of which $0.6bn incurred to date) with an estimated retail yield range of approximately 7% - 8% Total Project WFD Anticipated Current Projects $m $m Completion Westfield London (UK) £600 £300 1Q18 Valley Fair (San Jose) 1,100 550 2019 Westfield World Trade Ce
Slide 11: Highlights cont'd: future retail projects
HIGHLIGHTS CONT’D Undertaking pre-development work on $6.1bn in future retail projects, as well as future residential development opportunities Retail Total Project WFD share 2018 – 2019 Milan (Italy) €1.4bn 75% Topanga (Los Angeles) $0.3bn 55% Croydon (London) £1.4bn 50% Other Future Retail P
Slide 12: Highlights cont'd: Flagship and Regional portfolio metrics
HIGHLIGHTS CONT’D Average Specialty Store Rent Assets under Specialty Specialty Specialty Comparable As at Management % of Portfolio Occupancy Retail Sales Retail Sales Amount Growth NOI Growth 31 December 2017 ($bn) Portfolio Leased (%) Cost (%) (MAT/ psf) Growth (%) 2 (psf) YOY (%) (%) 2 Flagship
Slide 13: Specialty retail sales growth by category
Flagship Regional Period ending 31 December 2017 12 months 3 months 12 months 3 months Specialties 2.7% 1.7% (0.3)% 1.7% By Category: Fashion 0.4% 0.3% (2.5)% 0.0% Jewellery 5.9% 8.4% (0.3)% 0.3% Leisure 3.4% 0.9% (0.4)% 2.5% Food retail 4.2% 3.3% 0.8% 0.0% General retail (6.8)% (3.9)% (2.7)% (2.8)%
Slide 14: Portfolio assets under management
December 2017 Flagship Regional Total Centres 17 18 35 Retail Outlets 3,874 2,691 6,565 GLA (m sqf) 24.5 19.7 44.2 Assets Under Management (bn) $29.1 $5.4 $34.5 WFD Interests (bn) $18.4 $3.0 $21.4 JV Partner Interests (bn) $10.7 $2.4 $13.1 WFD Interests (%) 63% 56% 62% Assets Under Man
Slide 15: Appendix
APPENDIX Westhield
Slide 16: Highlights cont'd: United States assets
HIGHLIGHTS ASSETS CONT’D – UNITED STATES Chicago, IL Old Orchard Connecticut Trumbull (52.6%) Meriden Washington Southcenter (55%) New York World Trade Center South Shore Northern CA Sunrise New Roseville San Francisco (50%) New Jersey Valley Fair (50%) Garden State Plaza (50%) Oakridge (55%) Maryla
Slide 17: Highlights cont'd: UK/Europe assets
HIGHLIGHTS ASSETS CONT’D – UK/EUROPE London, UK London (50%) Stratford City (50%) Croydon (50%) Flagship Milan, Italy Future Flagship Milan (75%)
Slide 18: Funds from operations
HIGHLIGHTS FUNDS FROMCONT’D OPERATIONS Dec 17 Dec 16 $m Actual Actual Variance % Change1 Net Property Income Flagship 647 577 70 13.6% Regional & Other Property Investments 210 218 (8) (3.5)% Total Net Property Income 857 795 62 8.9% Management Income 35 33 2 6.2% Project Income 104 93 11 14.4%
Slide 19: Funds from operations: income statement
HIGHLIGHTS FUNDS FROMCONT’D OPERATIONS 12 months to 12 months to $m Dec 17 Dec 16 Variance Property revenue 1,316 1,188 128 Management income 35 33 2 Project income 104 93 11 Total Income 1,455 1,314 141 Property expenses and outgoings (513) (448) (65) Overheads (120) (116) (4) Property revaluations
Slide 20: Balance sheet
HIGHLIGHTS BALANCE CONT’D SHEET 1 $m 31 Dec 17 31 Dec 16 Cash 568 357 Investment Property Shopping centres 19,488 16,838 Construction in progress 788 1,164 Assets held for redevelopment 1,090 782 Total investment property 21,366 18,784 Other property investments 287 608 Other assets 1,418 1,36
Slide 21: Investment property
HIGHLIGHTS CONT’D INVESTMENT PROPERTY 12 months to $bn 31 Dec 17 Investment property opening balance 18.8 Capital expenditure 1.2 Revaluations 0.9 Acquisitions 0.1 Exchange rate impact 0.4 Investment property closing balance 21.4 Shopping Centres – 31 Dec 17 Weighted Average Cap Rate Shopping Centre
Slide 22: Financing activity
• Financing activity: • Raised $1.5bn comprising $500m 5-year bonds at 3.15%, £300m 8-year bonds at 2.125% and £500m 12-year bonds at 2.625% • Extended $57m mortgages (WFD: $28.5m) • Financing facilities totaling $11.4bn: • $3.4bn of bank facilities ($2.0bn undrawn) • $5.3bn of bonds • $2.7bn of sec
Slide 23: Debt maturity profile
$bn 4.0 33% 3.0 2.0 15% 15% 13% 1.0 8% 7% 5% 4% 0.0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+ Bonds Mortgages Bank
Slide 24: Proportionate IFRS profit to FFO
Proportionate Adjustments1 FFO $m IFRS Profit Net Property Income Flagship 616 31 647 Regional & Other Property Investment Income 187 23 210 Total Net Property Income 803 54 857 Management Income 35 - 35 Project Income 104 - 104 Gross Income 942 54 996 Overheads (120) - (120) EBIT 822 54 876 Gro
Slide 25: Funds from operations: consolidated and equity accounted
HIGHLIGHTS FUNDS FROMCONT’D OPERATIONS Proportionate Consolidated Equity Accounted IFRS Profit Property revenue 630 686 1,316 Contribution from equity accounted investments 672 (672) - Management income 35 - 35 Project income 104 - 104 Total Income 1,441 14 1,455 Property expenses and outgoings (283
Slide 26: Balance sheet: consolidated and equity accounted
$m Consolidated Equity Accounted Total Cash 501 67 568 Investment Property Shopping centres 8,866 10,622 19,488 Construction in progress 553 235 788 Assets held for redevelopment 559 531 1,090 Total investment property 9,978 11,388 21,366 Net investment in equity accounted entities 9,160 (9,16
Slide 27: Diversified funding base
• Diversified funding base comprising bonds, bank facilities and secured mortgages £ Bonds Bank Facilities - 9% Undrawn 18% Bank Facilities - Drawn Total 12% Facilities US$ Bonds $11.4bn 37% Mortgages 24%
Slide 28: Gearing and coverage ratios
Proportionate Basis1 31 Dec 17 Gearing 38.1% Secured Debt 11.7% Interest Coverage 3.2 times Unencumbered Leverage 229% 1Includes consolidated and equity accounted assets, liabilities and profit and loss.
Slide 29: Fixed rate debt and swaps outstanding
Outstanding US$ fixed £ fixed debt £ interest US$ interest as at debt payable payable swap payable swap receivable December US$m Fixed Rate % £m Fixed Rate % £m Fixed Rate % US$m Fixed Rate % 2017 (6,459.8) 3.70% (1,175.0) 2.52% (461.1) 3.26% 1,200.0 3.43% 2018 (6,450.4) 3.69% (1,175.0) 2.52% (461.1