Slide 1: Westfield Corporation Half Year Results
WESTFIELD CORPORATION HALF YEAR RESULTS 24 August 2016 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 st
Slide 2: Slide 2
Slide 3: Results Highlights
RESULTS HIGHLIGHTS • Westfield World Trade Center opened fully leased and ahead of our target yield: • $1.2bn major stage now open • $300m balance of the project to open progressively over 2017 and 2018 • Significant progress on $9.5bn development program: • Current projects at Westfield London, Cen
Slide 4: Results Highlights (Cont'd)
RESULTS HIGHLIGHTS (CONT’D) 6 months to % Change As at Funds From Assets Under Management / Jun 16 Proforma1 30 Jun 16 Operations ($m) Balance Sheet ($bn) • Assets under Management 29.3 • Net Property Income 378 4.2%1 • Total Assets 19.7 • Management Income 13 - • Net Debt 6.9 • Project Income 61 (7
Slide 5: Current Development Activity
HIGHLIGHTS CURRENT CONT’D DEVELOPMENT ACTIVITY • $2.6bn of current projects (WFD: $1.9bn, of which $0.7bn incurred to date) with an estimated yield range of approximately 7% - 8% Total Project WFD Anticipated Current Projects $m $m Completion Westfield World Trade Center (New York) – Tower 31 300
Slide 6: Future Retail Development Activity
HIGHLIGHTS FUTURE CONT’D RETAIL DEVELOPMENT ACTIVITY • Westfield Corporation is undertaking pre-development work on $6.9bn (WFD: Approx. $3bn) of projects, with an estimated yield range of approximately 7% - 8% Anticipated Commencement Total Project WFD 2016 Valley Fair (San Jose)1 $1.1bn 50% 2017
Slide 7: Operating Portfolio Statistics
HIGHLIGHTSOPERATING PORTFOLIO CONT’D STATISTICS Average Specialty Specialty Store Rent Comparable Specialty Assets under Portfolio Specialty Retail % of Occupancy Retail Sales NOI Growth Management Leased Sales Portfolio Cost Growth (%) 2 As at ($bn) (%) (MAT/ psf) 30 June 2016 (%) (%) 1 Amount Grow
Slide 8: Outlook
HIGHLIGHTS CONT’D OUTLOOK • WFD expects to achieve for the 2016 year: • FFO: 33.7 - 34.0 cents per security. The update from the previous guidance is solely due to movements in the USD/GBP exchange rate1 • Distribution: 25.1 cents per security • Represents pro-forma FFO growth of between 3% and 4% f
Slide 9: Appendix
APPENDIX 2016 HALF YEAR RESULTS │ 9
Slide 10: Portfolio Summary
HIGHLIGHTSSUMMARY PORTFOLIO CONT’D June 20161 Flagship Regional Total Centres 17 18 35 Retail Outlets 3,781 2,706 6,487 GLA (m sqf) 23.7 19.5 43.2 Assets Under Management (bn) $23.8 $5.5 $29.3 WFD Interests (bn) $14.7 $3.1 $17.8 JV Partner Interests (bn) $9.1 $2.4 $11.5 WFD Interests (
Slide 11: Specialty Retail Sales
HIGHLIGHTSRETAIL SPECIALTY CONT’DSALES Flagship Regional Period ending 30 June 2016 12 months 6 months 12 months 6 months Specialties 4.6% 2.1% 0.3% (1.0)% By Category: Fashion 3.7% 1.9% (1.1)% (2.2)% Jewellery 2.0% 0.0% 6.3% 5.0% Leisure 4.4% 0.2% (3.3)% (5.4)% Food retail 2.4% 1.8% 1.0% 0.3% Gener
Slide 12: Assets – United States
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 New Jersey San Francisco (50%) Garden State Plaza (50%) Valley Fair (50%) Oakridge (55%) Maryla
Slide 13: Assets – UK/Europe
HIGHLIGHTS ASSETS CONT’D – UK/EUROPE London, UK London (50%) Stratford City (50%) Croydon (50%) Flagship Milan, Italy Future Flagship Milan (75%) 2016 HALF YEAR RESULTS │ 13
Slide 14: Funds From Operations
HIGHLIGHTS FUNDS FROMCONT’D OPERATIONS Jun 16 Jun 15 % Change $m Actual Actual Variance Proforma1 Net Property Income Flagship 266 269 (3) 5.0% Regional 93 134 (41) 2.8% Other Property Investment Income 19 12 7 - Total Net Property Income 378 415 (37) 4.2% Management Income 13 13 - Project Inc
Slide 15: Summarised IFRS Income Statement
HIGHLIGHTS CONT’D SUMMARISED IFRS INCOME STATEMENT 6 months to 6 months to $m Variance Jun 16 Jun 15 Property revenue 563 614 (51) Management income 13 13 - Project income 61 66 (5) Total Income 637 693 (56) Property expenses and outgoings (212) (221) 9 Overheads (59) (63) 4 Property revaluations 26
Slide 16: Balance Sheet
HIGHLIGHTS BALANCE CONT’D SHEET 1 $m 30 Jun 16 31 Dec 15 Cash 565 1,207 Investment Property Shopping centres 14,895 15,034 Construction in progress 1,943 1,432 Assets held for redevelopment 931 1,019 Total investment property 17,769 17,485 Other property investments 348 337 Other assets 1,003
Slide 17: Investment Property
HIGHLIGHTS CONT’D INVESTMENT PROPERTY $bn 6 months to 30 Jun 16 Investment property opening balance 17.5 Revaluations 0.3 Capital expenditure 0.5 Exchange rate impact (0.5) Investment property closing balance 17.8 Shopping Centres – 30 Jun 16 Weighted Average Cap Rate WFD ($bn) WFD (%) 30 Jun 16 31
Slide 18: Current Financial Position
HIGHLIGHTS CURRENT CONT’D POSITION FINANCIAL • Financing activity: • Refinanced $555m (WFD: $338m) of mortgages to August 2026 at 3.39% • Financing facilities totaling $10.7bn: • $3.5bn of bank facilities ($3.2bn undrawn) • $4.5bn of 144A bonds • $2.7bn of secured mortgages • Gearing: • 29.0% based
Slide 19: Liquidity & Debt Maturity Profile
HIGHLIGHTS LIQUIDITY CONT’D & DEBT MATURITY PROFILE Liquidity Summary $bn $bn 3.0 Committed Facilities 10.7 Amounts Drawn (7.5) Total Undrawn Facilities 3.2 Cash 0.6 Total Available Liquidity 3.8 2.0 23% 19% 19% 12% 1.0 7% 7% 5% 4% 4% 0.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2044 B
Slide 20: Funds From Operations – Six Months to June 2016
FUNDS FROMCONT’D HIGHLIGHTS OPERATIONS SIX MONTHS TO 30 JUNE 2016 Proportionate $m Adjustments1 FFO IFRS Profit Net Property Income Flagship 251 15 266 Regional 81 12 93 Other Property Investment Income 19 - 19 Total Net Property Income 351 27 378 Management income 13 - 13 Project income 61 -
Slide 21: Summarised IFRS Income Statement – Six Months to 30 June 2016
SUMMARISED IFRS INCOME STATEMENT HIGHLIGHTS CONT’D SIX MONTHS TO 30 JUNE 2016 Proportionate Equity $m Consolidated IFRS Profit Accounted Property revenue 563 233 330 Contribution from equity accounted investments - 380 (380) Management income 13 13 - Project income 61 61 - Total Income 637 687 (50)
Slide 22: Detailed Balance Sheet
HIGHLIGHTS DETAILED CONT’D SHEET BALANCE $m Consolidated Equity Accounted Total Cash 483 82 565 Investment Property Shopping centres 5,292 9,603 14,895 Construction in progress 1,767 176 1,943 Assets held for redevelopment 587 344 931 Total investment property 7,646 10,123 17,769 Net investmen
Slide 23: Financing Facilities
HIGHLIGHTSFACILITIES FINANCING CONT’D • Diversified funding base comprising bonds, bank facilities and secured mortgages Bank Facilities - Undrawn 31% 144A Bonds 42% Total Facilities $10.7bn Bank Facilities - Drawn 1% Mortgages 26% 2016 HALF YEAR RESULTS │ 23
Slide 24: Key Financial Ratios
HIGHLIGHTS KEY CONT’D FINANCIAL RATIOS 30 Jun 16 Gearing (enterprise value) 29.0% Gearing (book value) 35.8% Secured Debt 14.1% Interest Coverage 4.2 times Unencumbered Leverage 251% 2016 HALF YEAR RESULTS │ 24
Slide 25: Interest Rate Hedging Profile
HIGHLIGHTS INTEREST CONT’D RATE HEDGING PROFILE US$ fixed £ fixed debt US$ interest £ interest US$ interest debt payable payable swap payable swap payable swap receivable Outstanding as at 30 Jun 2016 Fixed Rate 1 Fixed Rate 1 Fixed Rate 2 Fixed Rate 2 Fixed Rate 2 US$m £m US$m £m US$m % % % % % 201