Westfield — FY2014 Earnings Presentation
26 slides from Westfield's earnings presentation, Feb 25, 2015
Slide 1: Westfield Corporation 2014 Full Year Results
Westfield Corporation 2014 Full Year Results 25 February 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 • Westfield Corporation (“WFD”) was created on 30 June 2014 with results being for the six months to 31 December 2014 • FFO and Distribution in-line with forecast 6 months to Assets under Management / As at Funds From Operations ($m) 31 Dec 14 Balance Sheet ($bn) 31 Dec 14 • Net P
Slide 4: Result Highlights (Cont'd) - Operating
RESULT HIGHLIGHTS (CONT’D) OPERATING • High productivity portfolio with annual specialty retail sales of $700 psf, up 3.9%: • Flagship: $986 psf, up 4.5% • Regional: $476 psf, up 3.3% • High levels of occupancy with portfolio leased of 95.8%, up 0.4%: • Flagship: 97.1%, up 0.3% • Regional: 94.5%, up
Slide 5: Result Highlights (Cont'd) - Development
RESULT HIGHLIGHTS (CONT’D) DEVELOPMENT • Successfully completed $90m project (WFD Share: $45m) at Montgomery in Maryland and $160m project (WFD Share: $80m) at Garden State Plaza in New Jersey on time and achieving target yields • Significant progress made on the $11.4bn (WFD share: $6.3bn) current
Slide 6: Result Highlights (Cont'd) - Capital Activity and Outlook
RESULT HIGHLIGHTS (CONT’D) CAPITAL ACTIVITY • Issued $3.5bn in 144A debt issue with weighted average duration of 9.6 years and weighted average interest rate of 3.1% • Investment of $0.5bn in development activities for six months to December 2014 • $925m joint venture with O’Connor Capital Partners
Slide 7: Portfolio Summary
PORTFOLIO SUMMARY1 Regional / Flagship Regional Total Non Core • Centres 11 23 6 40 • Retail Outlets 2,641 3,822 946 7,409 • GLA (m sqf) 16.7 26.6 6.8 50.1 • Assets Under Management (bn) $18.7 $8.6 $1.2 $28.5 • WFD Interests (bn) $11.6 $4.9 $1.2 $17.7 • JV Partner Interests (bn) $7.1 $3.7 - $10.8 •
Slide 8: Portfolio Statistics
PORTFOLIO STATISTICS Portfolio Specialty Specialty Specialty Specialty Store Rent Assets under Portfolio Comparable % of Occupancy Retail Sales Retail Sales Management Leased NOI Growth Portfolio 1 Cost (MAT/ Growth As at ($bn) 1 (%) (%) 3,4 31 Dec 2014 (%) psf) 2 (%) 3,4 Amount Growth (psf) 5 YOY (
Slide 9: Retail Sales
RETAIL SALES 12 months to 31 Dec 2014 1 Specialty Retail Sales Flagship Regional Total Specialties 4.5% 3.3% 3.9% By Category: Fashion 0.6% (0.9%) (0.1%) Jewellery 9.4% 4.8% 8.3% Leisure 5.6% 7.0% 6.5% Food retail 3.5% 3.3% 3.5% General retail 7.8% 4.9% 6.2% 1 Excludes six non-core assets 2014 FULL
Slide 10: Current Development Activity
CURRENT DEVELOPMENT ACTIVITY • $2.4bn currently under construction (WFD share $1.8bn, of which $1.2bn incurred to date) with an estimated yield range of between 6.5% and 7.5% Total Project WFD Share Anticipated Current Projects Completion $m $m The Village at Topanga (California) 250 138 2H15 We
Slide 11: Future Development Activity
FUTURE DEVELOPMENT ACTIVITY • Westfield Corporation is undertaking pre-development activity on $9bn (WFD share: $4.5bn) of future development projects with an estimated yield range of 7% - 8% Estimated Commencement Total Project WFD Share 2015 Valley Fair (California) – Stage 1 $0.1bn 50% Centur
Slide 12: Funds From Operations
FUNDS FROM OPERATIONS SIX MONTHS TO 31 DECEMBER 2014 Proportionate Adjustments to $m 1,2 3 FFO AIFRS Profit determine FFO Net Property Income United States 341 20 361 United Kingdom 98 2 100 Total Net Property Income 439 22 461 Management income 22 - 22 Project income 35 - 35 Gross Income 496 22
Slide 13: Summarised AIFRS Income Statement
SUMMARISED AIFRS INCOME 1 STATEMENT SIX MONTHS TO 31 DECEMBER 2014 Proportionate Equity $m Consolidated AIFRS Profit Accounted Property revenue 650 333 317 Contribution from equity accounted investments - 443 (443) Management income 22 22 - Project income 35 35 - Total Income 707 833 (126) Property
Slide 14: Proportional Balance Sheet
PROPORTIONAL BALANCE SHEET1 2 2 $m 31 Dec 14 30 Jun 14 Cash 401 426 Property investments Shopping centres 15,425 15,490 Assets held for joint venture 439 - Construction in progress 1,209 1,126 Assets held for redevelopment 1,032 948 Total Property investments 18,105 17,564 Inventory 152 128
Slide 15: Property Investments
PROPERTY INVESTMENTS • Change in value of gross property investments: $bn 6 months to 31 Dec 14 Property investments opening balance 17.6 Revaluations 0.4 Capital expenditure 0.5 Exchange rate impact (0.4) Property investments closing balance 18.1 • Shopping centre investments and weighted average c
Slide 16: Current Financial Position
CURRENT FINANCIAL POSITION • New financing facilities totaling $7.7bn: • $3.5bn of new and renewed bilateral bank facilities upon implementation of Restructure • $3.5bn of 144A bonds • $0.7bn of secured mortgages • Strong balance sheet and liquidity position: • 35.1% gearing on a look through basis1
Slide 17: Liquidity & Debt Maturity Profile
LIQUIDITY & DEBT MATURITY PROFILE $bn Liquidity Summary $bn 4.0 Committed Facilities 10.7 Amounts Drawn (7.5) Total Undrawn Facilities 3.2 Cash 0.4 3.0 Total Liquidity 3.6 26% 26% 2.0 20% 1.0 7% 7% 5% 6% 2% 2% 0% - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2044 Bonds Mortgages Bridge Bank 20
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 Westfield London (50%) Stratford City (50%) Croydon (50%) Milan, Italy Flagship Milan (75%) Future Flagship 2014 FULL YEAR RESULTS │ 20
Slide 21: Pro Forma Net Property Income
PRO FORMA NET PROPERTY INCOME 6 months to 6 months to 12 months to 12 months to % Change Local currency millions Dec’14 Jun’14 Dec’14 Dec’13 Proforma1 UK Revenue 85 92 177 195 Expenses (24) (28) (52) (61) UK Net Property Income (£) 61 64 125 134 12% US Revenue 535 508 1,043 1,202 Expenses (1
Slide 22: Assets Under Development
ASSETS UNDER DEVELOPMENT At 31 December 2014 Construction in Assets Held for Total $ millions Progress Redevelopment Flagship 1,014 957 1,971 Regional 195 75 270 Total 1,209 1,032 2,241 2014 FULL YEAR RESULTS │ 22
Slide 23: Detailed Balance Sheet
DETAILED BALANCE SHEET $m Consolidated Equity Accounted Total Cash 309 92 401 Property investments Shopping centres 6,988 8,437 15,425 Assets held for joint venture 439 - 439 Construction in progress 1,076 133 1,209 Assets held for redevelopment 786 246 1,032 Total property investments 9,289
Slide 24: Financing Facilities
FINANCING FACILITIES • Diversified funding base comprising bonds, syndicated bank facilities and secured mortgages Bank Facilities - Undrawn 31% 144A Bonds 33% Total Facilities $10.7 billion Bank Facilities - Drawn 10% Mortgages 26% 2014 FULL YEAR RESULTS │ 24
Slide 25: Key Financial Ratios
KEY FINANCIAL RATIOS 31 Dec 141 Gearing 2 35.1% Secured Debt 14.7% Interest Coverage 5.2 times Unencumbered Leverage 261% 1 On a proportional basis 2 Pro forma for the $925 million joint venture with O’Connor over three regional assets in February 2015 2014 FULL YEAR RESULTS │ 25
Slide 26: Interest Rate Hedging Profile
INTEREST RATE HEDGING PROFILE US$ 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 (5,614.4) 3.73% (375.0) 2.68% (2,750.0) 1.80% 3,250.0 2.81% 2016 (