Slide 1: Westfield Corporation 2015 Full Year Results
Westfield Corporation 2015 Full Year Results 24 February 2016
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”) of 37.7 cents per security and Distribution of 25.1 cents per security in-line with forecast • Continued strong operating performance • Significant progress on development program: • Successfully completed over $1bn of developments • Commenced $2.5b
Slide 4: Results Highlights (cont'd)
RESULTS HIGHLIGHTS (CONT’D) 12 months Assets under Management / As at Funds From Operations ($m) to Dec 15 Balance Sheet ($bn) 31 Dec 15 • Net Property Income 861 • Assets under Management 29.0a • Total Assets 20.0a • Management Income 44 • Net Debt 6.3 • Project Income 124 • Gearing: • FFO 783 – En
Slide 5: Results Highlights (cont'd) - Operating
RESULTS HIGHLIGHTS (CONT’D) OPERATING • High productivity portfolio with annual specialty retail sales of $726 psf, up 6.4% for the 12 months to December 2015: • Flagship: $902 psf, up 8.0% • Regional: $454 psf, up 3.2% • High levels of occupancy with the portfolio 95.9% leased at year end, up 0.1%
Slide 6: Results Highlights (cont'd) - Development
RESULTS HIGHLIGHTS (CONT’D) DEVELOPMENT • Significant progress on the development program during 2015: • Completed over $1bn of developments including The Village at Topanga (Los Angeles) and Bradford (UK) • Commenced $2.5bn of projects including Century City, UTC and Westfield London • Current and
Slide 7: Results Highlights (cont'd) - Capital Activity and Outlook
RESULTS HIGHLIGHTS (CONT’D) CAPITAL ACTIVITY • $1bn 144A debt issue in September 2015 with duration of 5 years and coupon of 3.25% • $2.2bn in capital transactions during 2015: • Divestment of six non-core assets achieving gross proceeds of $1.3bn in late 2015 • $925m joint venture over three region
Slide 8: Portfolio Summary
PORTFOLIO SUMMARY Flagship Regional Total December 2015 Centres 16 18 34 Retail Outlets 3,769 2,711 6,480 GLA (m sqf) 23.8 19.8 43.6 Assets Under Management (bn) $23.7 $5.3 $29.0 WFD Interests (bn) $14.5 $3.0 $17.5 JV Partner Interests (bn) $9.2 $2.3 $11.5 WFD Interests (%) 61% 57% 60%
Slide 9: Portfolio Statistics
PORTFOLIO STATISTICS Average Specialty Specialty Store Rent Comparable Specialty Assets under Portfolio Specialty Retail % of Occupancy Retail Sales NOI Growth Management Leased Sales Portfolio Cost Growth (%) 1 As at ($bn) (%) (MAT/ psf) 31 December 2015 (%) (%) 1 Amount Growth (psf) YOY (%) Flagsh
Slide 10: Specialty Retail Sales Growth
SPECIALTY RETAIL SALES GROWTH Flagship Regional Period ending 31 December 2015 12 months 3 months 12 months 3 months Specialties 8.0% 4.8% 3.2% (1.1)% By Category: Fashion 5.3% 3.6% 0.4% (0.6)% Jewellery 6.1% 5.4% 7.4% 7.6% Leisure 10.9% 6.5% 3.4% (9.1)% Food retail 4.0% 1.0% 2.2% 0.8% General retai
Slide 11: Current Development Activity
CURRENT DEVELOPMENT ACTIVITY • $3.7bn of current projects (WFD: $3.0bn, of which $1.4bn incurred to date) with an estimated yield range of between 6.5% and 8.0%. In 2015 WFD: • Commenced $2.5bn of projects including Century City, UTC and Westfield London • Completed over $1bn of projects including T
Slide 12: Future Retail Development Activity
FUTURE RETAIL DEVELOPMENT ACTIVITY • Westfield Corporation is undertaking pre-development work on $6.8bn (WFD: Approx. $3bn) of future development projects with an estimated yield range of 7% - 8% Total Project WFD 2016 Valley Fair (Silicon Valley)1 $0.9bn 50% Topanga (Los Angeles) $0.15bn 55% 2
Slide 13: Funds From Operations
FUNDS FROM OPERATIONS 12 MONTHS TO 31 DECEMBER 2015 Proportionate Adjustments to $m FFO IFRS Profit1 determine FFO2 Net Property Income Flagship 554 19 573 Regional 263 25 288 Total Net Property Income 817 44 861 Management income 44 - 44 Project income 124 - 124 Gross Income 985 44 1,029 Overhea
Slide 14: Summarised IFRS Income Statement
SUMMARISED IFRS INCOME STATEMENT 12 MONTHS TO 31 DECEMBER 2015 Proportionate Equity $m Consolidated IFRS Profit Accounted Property revenue 1,224 562 662 Contribution from equity accounted investments - 791 (791) Management income 44 44 - Project income 124 124 - Total Income 1,392 1,521 (129) Proper
Slide 15: Proportionate Balance Sheet
PROPORTIONATE BALANCE SHEET1 2 2 $m 31 Dec 15 31 Dec 14 Cash 1,207 401 Property investments Shopping centres 15,034 15,425 Assets held for joint venture - 439 Construction in progress 1,432 1,209 Assets held for redevelopment 1,019 1,032 Total Property investments 17,485 18,105 Other assets
Slide 16: Property Investments
PROPERTY INVESTMENTS $bn 12 months to 31 Dec 15 Property investments opening balance 18.1 Divestments (1.8) Property investment (post joint venture with O’Connor and asset divestments) 16.3 Revaluations 0.6 Capital expenditure 0.9 Exchange rate impact (0.3) Property investments closing balance 17.5
Slide 17: Current Financial Position
CURRENT FINANCIAL POSITION • Financing activity for the year: • Retirement of bridge facility • $0.6bn (WFD: $0.4bn) of new secured mortgages • $1bn 144A debt issue in September 2015 with duration of 5 years and coupon of 3.25% • Financing facilities totaling $10.8bn: • $3.5bn of bank facilities ($3
Slide 18: Liquidity & Debt Maturity Profile
LIQUIDITY & DEBT MATURITY PROFILE $bn Liquidity Summary $bn Committed Facilities 10.8 3.0 Amounts Drawn (7.5) Total Undrawn Facilities 3.3 Cash 1.2 Total Liquidity 4.5 2.0 24% 19% 19% 15% 1.0 7% 7% 4% 3% 2% 0.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2044 Bonds Mortgage Bank 2015 FULL YEAR
Slide 19: Appendix
APPENDIX
Slide 20: Assets – United States
ASSETS – 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 New Jersey San Francisco (50%) Garden State Plaza (50%) Valley Fair (50%) Oakridge (55%) Maryland Annapolis (55%)
Slide 21: Assets – UK/Europe
ASSETS – UK/EUROPE London, UK London (50%) Stratford City (50%) Croydon (50%) Flagship Milan, Italy Milan (75%) Future Flagship 2015 FULL YEAR RESULTS │ 21
Slide 22: Detailed Balance Sheet
DETAILED BALANCE SHEET $m Consolidated Equity Accounted Total Cash 1,107 100 1,207 Property investments Shopping centres 5,503 9,531 15,034 Construction in progress 1,304 128 1,432 Assets held for redevelopment 671 348 1,019 Total property investments 7,478 10,007 17,485 Net investment in equi
Slide 23: Financing Facilities
FINANCING FACILITIES • Diversified funding base comprising bonds, bank facilities and secured mortgages Bank Facilities - Undrawn 31% 144A Bonds 42% Total Facilities $10.8bn Bank Facilities - Drawn 1% Mortgages 26% 2015 FULL YEAR RESULTS │ 23
Slide 24: Key Financial Ratios
KEY FINANCIAL RATIOS1 31 Dec 15 Gearing (enterprise value2) 29.9% Gearing (book value) 33.2% Secured Debt 14.1% Interest Coverage 4.7 times Unencumbered Leverage 258%a 1 On a proportional basis 2 Based on Market Capitalisation 2015 FULL YEAR RESULTS │ 24
Slide 25: Interest Rate Hedging Profile
INTEREST RATE HEDGING PROFILE US$ fixed £ fixed debt US$ interest £ interest US$ interest debt payable payable swap payable swap payable swap receivable Outstanding as at Dec-15 1 1 2 2 Fixed Rate Fixed Rate Fixed Rate Fixed Rate Fixed US$m £m US$m £m US$m 2 % % % % Rate % 2016 (6,596.0) 3.61% (375.