Slide 1: Westfield Group Half Year Results Presentation
Westfield Group Half Year Results Presentation 30 June 2007 29 August 2007 1
Slide 2: 2007 Half Year Highlights
2007 Half Year Highlights Operational Segment Earnings of $844 million – up 7.4%1 47.27 cents per security – up 5.7%1 Distribution of 53.25 cents per security – represents 50% of the full year distribution forecast Net profit after tax for the half year of $1.97 billion Portfolio revaluati
Slide 3: 2007 Half Year Highlights continued
2007 Half Year Highlights continued… Solid operational performance achieved across all markets Extensive Development Program 16 major projects currently under construction – total gross value of $7.2 billion (WDC share $5.1 billion) Of the 16 projects, 10 are expected to be completed in 2007
Slide 4: Business Review
Business Review Portfolio Summary Shopping Centre Operating Performance Retail Sales Overview Global Development Activity 4
Slide 5: Portfolio Summary as at 30 June 2007
Portfolio Summary as at 30 June 2007 United United New Australia Total States Kingdom Zealand Centres 59 44 7 11 121 Retail Outlets 9,100 11,500 750 1,500 22,850 GLA (million sqm) 6.2 3.5 0.3 0.3 10.3 Westfield Asset Value (billion)1 US$16.3 $19.1 £1.0 NZ$2.7 $43.11 Assets Under Management (billion)
Slide 6: Shopping Centre Operating Performance
Shopping Centre Operating Performance Specialty Lease Deals Average Specialty Portfolio Occupancy Completed2 Store Rent Comparable Leased1 Cost1 NOI Growth2 Number Area Amount1 Growth3 Australia & $1,243 psm > 99.5% 16.3% 1,672 200,422 sqm 5.4% 6.1% New Zealand NZ$1,023 psm United States 93.5%4 14.0
Slide 7: Retail Sales Overview
Retail Sales Overview1 Period to 30 June 2007 12 months 6 months 3 months MAT Growth Growth Growth Australia Majors 3.2% 3.4% 2.7% Specialties* 5.7% 6.3% 6.4% Total $19.1 bn 4.8% 5.2% 5.0% New Zealand Specialties* 3.6% 4.4% 3.3% Total NZ$1.8 bn 3.8% 4.3% 3.2% United States2 Specialties US$7.6 bn 3.3
Slide 8: Global Development Activity
Global Development Activity 16 major projects currently under construction with an estimated total cost of $7.2 billion (WDC share $5.1 billion) No. of Estimated Target Weighted Projects Total Cost Average Yield1 United States 7 US$0.9 bn 9.3 – 9.8% Australia & New Zealand 7 $1.6 bn 8.7 – 9.1% Uni
Slide 9: Global Development Activity continued
Global Development Activity continued… Completed 3 major developments during the first half of 2007 at a gross cost of US$230 million (WDC share US$180 million) with a weighted average development yield of approximately 10.0% United States: Brandon, Garden State Plaza, and Southpark Anticipate
Slide 10: Future Major Projects
Future Major Projects United States Australia & New Zealand United Kingdom Belden Village (Ohio) Belconnen (ACT) Broadway (Bradford) Century City Phase II (California) Booragoon (WA) Merry Hill (Birmingham) Fashion Square (California) Carindale (QLD) Sprucefield (Lisburn, Northern
Slide 11: Financial Review
Financial Review Income Statement Distribution Statement Balance Sheet Property Investments 11
Slide 12: Operational Segment Analysis
Operational Segment Analysis 6 months to 30 June 2007 Jun 2007 $ million Jun 2007 Jun 2006 Jun 2006 Actual vs Actual (Constant Actual Jun 2006 currency)1 (Constant currency) Property income 1,581 1,613 1,676 (2.0)% Net contribution from equity accounted properties 149 100 104 JV project and property
Slide 13: Income Statement by Business Segment
Income Statement by Business Segment 6 months to June ‘07 $ million Operational Development Corporate Total Property income 1,581 11 - 1,592 Net contribution from equity accounted properties 149 (7) 14 156 Property revaluations – consolidated - 304 599 903 Property revaluations – equity accounted -
Slide 14: Income Statement
Income Statement 6 months to Jun 6 months to $ million 2007 Jun 2006 Property income 1,592 1,689 Contribution from equity accounted investments 156 118 Property revaluations 1,187 2,695 Other income 47 22 Net profit from asset divestments 1 - Total Income 2,983 4,524 Total expenses (561) (560) Curre
Slide 15: Distribution Statement
Distribution Statement 6 months to 30 June 2007 $m Cents per Security Operational Segment Earnings 844 47.27c Distribution Hedging1 75 4.19c 919 51.46c Distribution 946 53.25c2 Forecast Distribution for the 12 months to December 2007 is 106.5 cents per security 1 Based on contract rates 2 Represen
Slide 16: Balance Sheet
Balance Sheet $ million 30 Jun ’07 31 Dec ’06 Cash 267 247 Property investments - Shopping centres 36,489 37,213 - Work in progress 3,007 2,330 - Property held for redevelopment 1,421 1,347 Net Investments in equity accounted entities 5,599 5,410 Other assets 2,975 2,335 Total assets 49,758 48,882 I
Slide 17: Property Investments
Property Investments Change in value of gross property investments $ billion Gross property investments as at 31 December 2006 47.9 Revaluations 1.2 Redevelopment expenditure 1.3 Acquisitions 0.1 Divestments (0.7) Gross property investments as at 30 June 2007 (pre exchange rate 49.8 impact) Exchan
Slide 18: Development Segment Assets
Development Segment Assets At 30 June 2007 $ million Property held for WIP1,2 Total redevelopment3 Australia & New Zealand 494 288 782 United States 534 550 1,084 United Kingdom 2,332 750 3,082 Total 3,360 1,588 4,948 Consolidated 4,428 Equity Accounted 520 Total 4,948 1 Work in progress – cos
Slide 19: Key Financial Ratios as at 30 June 2007
Key Financial Ratios as at 30 June 2007 Financial ratios per the Westfield Group’s bond offerings Proforma including $3.0bn Net debt as a % of assets 36.3% Entitlement Offer 30.0%1 Secured debt as a % of assets 10.8% EBITDA to interest expense 2.6 times Unsecured assets as a % of unsecured d
Slide 20: Appendix
Westfield Group Appendix Results Presentation Half Year Result ended 30 June 2007 20
Slide 21: Appendices
Appendices Page Number Net Property Income – by Region.……….……………..………………………………………………………..22 Assets Under Management...…………….……………..………………………………………………………..23 Assets by Business Segment…………………………………………………………………………………….24 Current Projects.……………………………………………………………………………………………...……25 Comparable
Slide 22: Net Property Income – by Region
Net Property Income – by Region1 6 months to 6 months to % Change2 Jun 2007 Jun 2006 Australia & New Zealand ($ million) $ 604 $ 592 2.0% United States (US$ million) US$ 466 US$ 460 1.3% United Kingdom (£ million) £ 19 £ 30 (36.7)% 1 Includes the Group’s share of equity accounted assets 2 Includes t
Slide 23: Assets Under Management
Assets Under Management $ million Property Investments as at 30 June 2007 Westfield Group Equity JV Total Assets 100% Share Accounted Total Partner Under JV Share Share Management Shopping Centres 36,489 6,630 43,119 11,906 55,025 Work in progress 3,007 353 3,360 2,408 5,768 Property held for develo
Slide 24: Assets by Business Segment
Assets by Business Segment1 6 months to June 2007 $ million Operational Development Total Shopping centres Consolidated 36,211 278 36,489 Equity accounted 6,574 56 6,630 42,785 334 43,119 Work in progress Consolidated - 3,007 3,007 Equity accounted - 353 353 Properties held for future redevelopment
Slide 25: Current Projects – United States
Current Projects United States – Approx US$880 million Total Cost1 Anticipated Forecast Yield Range US$ million Completion Sarasota (Florida) 60 8.5 – 9.0% Qtr 3 ‘07 Annapolis (Maryland) 150 10.0 – 10.5% Qtr 4 ’07 Old Orchard (Illinois) 40 10.5 – 11.0% Qtr 4 ’07 Plaza Bonita (California) 90 10.0 – 1
Slide 26: Current Projects – Australia & New Zealand
Current Projects Australia & New Zealand – Approx $1.6 billion Total Cost 1 Anticipated $ million Yield Range Completion Kotara (Newcastle) 170 8.8 – 9.1% Qtr 3 ’07 Albany (Auckland) NZ 210 10.6 – 10.9% Qtr 4 ’07 North Lakes (Brisbane) 2 190 9.3 – 9.6% Qtr 4 ’07 Plenty Valley (Melbourne) 2 200 9.5 –
Slide 27: Current Projects – United Kingdom
Current Projects United Kingdom – Approx £1.94 billion Total Cost Yield Range Anticipated £ million Completion Derby 3401 8.25 – 8.75% Qtr 4 ’07 London 1,6002 5.25 – 5.75% Qtr 4 ’08 1 Includes project profits. Westfield Group share 50% – approximately £170 million 2 Westfield Group share 50% – appro
Slide 28: Comparable Retail Sales Growth by Category – Australia
Comparable Retail Sales Growth by Category Australia Period to 30 June 2007 12 months 6 months 3 months Department Stores 6.0% 4.4% 2.8% Discount Department Store (0.6)% 1.2% 0.3% Supermarkets 2.8% 2.6% 2.7% Cinemas (1.5)% (2.3)% (0.4)% Fashion 4.7% 6.2% 7.4% Food Catering 4.8% 4.9% 5.0% Food Retail
Slide 29: Comparable Retail Sales Growth by Category – United States
Comparable Retail Sales Growth by Category United States Period to 30 June 2007 12 months 6 months 3 months Fashion 2.6% 2.4% (3.0)% Jewellery (1.0)% (3.5)% (3.3)% Leisure 6.2% 6.3% 6.3% Food retail 2.9% 3.6% 3.9% General retail 3.8% 2.4% 0.5% Cinemas 4.4% 3.5% 1.3% 29
Slide 30: Funding
Funding Facility Mix – 30 June 2007 Facility Maturity Profile – 30 June 2007 20% CMBS/Other Secured 15% 21% Bank Facilities 44% 10% 5% Debt Capital 0% Markets 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 35% Group liquidity as at 30 June 2007 was $6.7 billion. This excludes proceeds from
Slide 31: Operational Segment Borrowings
Operational Segment Borrowings $ million At 30 Jun 2007 At 31 Dec 2006 Interest bearing liabilities 16,874 18,470 Finance lease liabilities 86 92 Other financial instruments 2,996 1,997 Share of equity accounted interest bearing liabilities 1,650 1,727 Total borrowings 21,606 22,286 Total borrowings
Slide 32: Interest Rate Hedging Profile
Interest Rate Hedging Profile INTEREST HEDGING PROFILE* $ interest receivable US$ interest payable £ interest payable $ interest payable Fixed Fixed Fixed Fixed As at Dec $m US$m £m $m Rate % Rate % Rate % Rate % Jun 2007 5,731.0 6.59% (13,836.3) 5.43% (1,826.6) 5.45% (2,299.7) 6.78% 2007 5,732.0 6.
Slide 33: Currency Hedging Profile
Currency Hedging Profile FOREIGN CURRENCY DENOMINATED BALANCE SHEET HEDGING MATURITY PROFILE Cross currency swap receivable/(payable) Maturing during period ended Dec $m US$m £m NZ$m €m 2007 127.9 (75.0) - - - 2008 (203.0) (31.0) - 294.5 - 2009 862.7 (600.0) - - - 2010 590.2 (425.0) - - - 2011 1,024
Slide 34: Currency Hedging Profile continued
Currency Hedging Profile continued… FOREIGN CURRENCY DENOMINATED NET INCOME HEDGING MATURITY PROFILE Sell US$ Forward Exchange Contracts Sell NZ$ Forward Exchange Contracts Maturing during US$m Hedge Rate* Contract Rate NZ$m Hedge Rate* Contract Rate period ended Dec 2007 (238.7) 0.6020 0.5331 (176.
Slide 35: Exchange Rates
Exchange Rates Income Statement – average exchange rates for the 6 months to 30 June 2007: AUD/USD 0.8082 (6 months to 30 June 2006: AUD/USD 0.7434) AUD/GBP 0.4101 (6 months to 30 June 2006 : AUD/GBP 0.4151) AUD/NZD 1.1259 (6 months to 30 June 2006 : AUD/NZD 1.1556) Balance Sheet – exchang