Westfield — H1 2015 Earnings Presentation
25 slides from Westfield's earnings presentation, Aug 26, 2015
Slide 1: Westfield Corporation 2015 Half Year Results
Westfield Corporation 2015 Half Year Results 26 August 2015
Slide 2: Disclaimer
DISCLAIMER 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 distr
Slide 3: Results Highlights
RESULTS HIGHLIGHTS • Funds From Operations (“FFO”) and Distribution in-line with forecast 6 months to Assets under Management / As at Funds From Operations ($m) 30 Jun 15 Balance Sheet ($bn) 30 Jun 15 • Net Property Income 412 • Assets under Management 29.3 • Management Income 16 • Total Assets 19.7
Slide 4: Results Highlights (Cont'd): Development
RESULTS HIGHLIGHTS (CONT’D) DEVELOPMENT • Significant progress on the $11.4bn (WFD: $6.3bn) current and future development program. WFD expects to commence $2.5bn of projects in 2015: • $3.8bn of developments currently under construction, up $1.4bn: • $250m development (WFD: $138m) of The Village at
Slide 5: Results Highlights (Cont'd): Operating
RESULTS HIGHLIGHTS (CONT’D) OPERATING • High productivity portfolio with annual specialty retail sales of $713 psf, up 8.6% for the six months to Jun-15: • Flagship: $881 psf, up 10.0%, representing 77% of assets under management • Regional: $450 psf, up 4.9% • High levels of occupancy with portfoli
Slide 6: Results Highlights (Cont'd): Outlook for 2015
RESULTS HIGHLIGHTS (CONT’D) OUTLOOK FOR 2015: • Confirmation of full year 2015 earnings guidance: • FFO: 37.7 cents per security, including the impact of the $925m O’Connor joint venture completed in February 2015 • Distribution: 25.1 cents per security • Represents pro-forma FFO growth of 4% • Assu
Slide 7: Portfolio Summary
PORTFOLIO SUMMARY Flagship Regional Non Core Total • Centres 16 18 6 40 • Retail Outlets 3,716 2,747 949 7,412 • GLA (m sqf) 23.3 20.1 6.9 50.3 • Assets Under Management (bn) $22.7 $5.4 $1.2 $29.3 • WFD Interests (bn) $13.8 $3.1 $1.2 $18.1 • JV Partner Interests (bn) $8.9 $2.3 - $11.2 • WFD Interest
Slide 8: Portfolio Statistics
PORTFOLIO STATISTICS Average Specialty Store Specialty Rent Specialty Specialty Assets under Portfolio Retail Sales Comparable Occupancy Retail Sales Management % of Portfolio 1 Leased (MAT/ NOI Growth Cost Growth As at ($bn) 1 (%) psf) (%) 3 30 June 2015 (%) (%) 2 Amount Growth (psf) YOY (%) Flagsh
Slide 9: Specialty Retail Sales Growth
SPECIALTY RETAIL SALES GROWTH Flagship Regional1 Period ending 30 June 2015 12 months 6 months 12 months 6 months Specialties 7.6% 10.0% 4.2% 4.9% By Category: Fashion 3.0% 5.4% (0.2%) 0.3% Jewellery 10.3% 9.3% 6.0% 8.2% Leisure 10.0% 15.6% 8.3% 8.9% Food retail 4.7% 4.9% 3.3% 3.1% General retail 9.
Slide 10: Current Development Activity
CURRENT DEVELOPMENT ACTIVITY • $3.8bn currently under construction (WFD: $2.9bn, of which $1.4bn incurred to date) with an estimated yield range of between 6.5% and 8.0% Total Project WFD Anticipated Current Projects Completion $m $m The Village at Topanga (California) 250 138 2H15 Westfield Wor
Slide 11: Future Retail Development Program
FUTURE RETAIL DEVELOPMENT PROGRAM • Westfield Corporation is undertaking pre-development on $7.6bn (WFD: $3.4bn) of future development projects with an estimated yield range of 7% - 8% Estimated Commencement Total Project WFD 2015 Westfield London (UK)1 £0.6bn 50% 2016 – 2018 Milan (Italy) €1.4b
Slide 12: Funds From Operations
FUNDS FROM OPERATIONS SIX MONTHS TO 30 JUNE 2015 Proportionate Adjustments to $m 1 2 FFO IFRS Profit determine FFO Net Property Income Flagship 259 10 269 Regional 131 12 143 Total Net Property Income 390 22 412 Management income 16 - 16 Project income 66 - 66 Gross Income 472 22 494 Overheads (
Slide 13: Summarised IFRS Income Statement
SUMMARISED IFRS INCOME STATEMENT SIX MONTHS TO 30 JUNE 2015 Proportionate Equity $m Consolidated IFRS Profit Accounted Property revenue 589 272 317 Contribution from equity accounted investments - 393 (393) Management income 16 16 - Project income 66 66 - Total Income 671 747 (76) Property expenses
Slide 14: Proportional Balance Sheet
PROPORTIONAL BALANCE SHEET1 2 2 $m 30 Jun 15 31 Dec 14 Cash 412 401 Property investments Shopping centres 15,741 15,425 Assets held for joint venture - 439 Construction in progress 1,441 1,209 Assets held for redevelopment 953 1,032 Total Property investments 18,135 18,105 Other assets 1,151
Slide 15: Property Investments
PROPERTY INVESTMENTS • Change in value of gross property investments: $bn 6 months to 30 Jun 15 Property investments opening balance 18.1 Disposals (0.5) Property investment (post joint venture with O’Connor) 17.6 Revaluations 0.2 Capital expenditure 0.3 Property investments closing balance 18.1 • S
Slide 16: Current Financial Position
CURRENT FINANCIAL POSITION • Financing activity: • $0.6bn (WFD: $0.4bn) of new secured mortgages • Retirement of bridge facility • Financing facilities totaling $10.1bn: • $3.5bn of bilateral bank facilities • $3.5bn of 144A bonds • $3.1bn of secured mortgages • Strong balance sheet and liquidity po
Slide 17: Liquidity & Debt Maturity Profile
LIQUIDITY & DEBT MATURITY PROFILE Liquidity Summary $bn $bn Committed Facilities 10.1 4.0 Amounts Drawn (7.5) Total Undrawn Facilities 2.6 Cash 0.4 3.0 Total Liquidity 3.0 34% 2.0 19% 15% 1.0 7% 7% 5% 6% 4% 2% 2% 0.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2044 Bonds Mortgage Bank 2015 HAL
Slide 18: Appendix
APPENDIX
Slide 19: Assets – United States
ASSETS – UNITED STATES Chicago, IL Old Orchard Fox Valley Connecticut Hawthorn Connecticut Post Trumbull (52.6%) Meriden Connecticut Washington Southcenter (55%) Vancouver New York World Trade Center South Shore Northern CA Sunrise New York Roseville New Jersey San Francisco (50%) Garden State Plaza
Slide 20: Assets – UK/Europe
ASSETS – UK/EUROPE London, UK London (50%) Stratford City (50%) Croydon (50%) Milan, Italy Flagship Milan (75%) Future Flagship 2015 HALF YEAR UPDATE│ 20
Slide 21: Assets Under Development
ASSETS UNDER DEVELOPMENT At 30 June 2015 Construction in Assets Held for Total $ millions Progress Redevelopment Flagship 1,337 862 2,199 Regional 104 91 195 Total 1,441 953 2,394 2015 HALF YEAR UPDATE│ 21
Slide 22: Detailed Balance Sheet
DETAILED BALANCE SHEET $m Consolidated Equity Accounted Total Cash 319 93 412 Property investments Shopping centres 6,588 9,153 15,741 Construction in progress 1,236 205 1,441 Assets held for redevelopment 584 369 953 Total property investments 8,408 9,727 18,135 Net investment in equity accou
Slide 23: Financing Facilities
FINANCING FACILITIES • Diversified funding base comprising bonds, syndicated bank facilities and secured mortgages Bank Facilities - Undrawn 26% 144A Bonds 35% Total Facilities $10.7 billionTotal Facilities $10.1 billion Bank Facilities - Drawn 8% Mortgages 31% 2015 HALF YEAR UPDATE│ 23
Slide 24: Key Financial Ratios
KEY FINANCIAL RATIOS 30 Jun 151 Gearing (enterprise value) 32.2%2 Gearing (book value) 36.5% Secured Debt 16.0% Interest Coverage 5.0 times Unencumbered Leverage 262% 1 On a proportional basis 2 Based on Market Capitalisation methodology which is comparable with US peers 2015 HALF YEAR UPDATE│ 24
Slide 25: Interest Rate Hedging Profile
INTEREST RATE HEDGING PROFILE US$ fixed £ fixed debt US$ interest US$ interest debt payable payable swap payable swap receivable Outstanding as at Dec 2 1 1 2 Fixed Rate Fixed Rate Fixed Rate Fixed Rate US$m £m US$m US$m % % % % 2015 (5,893.6) 3.74% (375.0) 2.69% - - 3,250.0 2.81% 2016 (5,736.0) 3.6