Westfield Group, the largest shopping centre owner in the world by market valuation, has announced a 7.4% increase in operating profit to AU$ 844 mln (EUR 505 mln) for the first six months of 2007. But overall net profit, including property revaluations and currency adjustments, came to AU$1.97 bn, down 42% from AU$3.37 bn in the previous half year.
Westfield Group, the largest shopping centre owner in the world by market valuation, has announced a 7.4% increase in operating profit to AU$ 844 mln (EUR 505 mln) for the first six months of 2007. But overall net profit, including property revaluations and currency adjustments, came to AU$1.97 bn, down 42% from AU$3.37 bn in the previous half year.
The group's shopping centre assets were re-valued during the period resulting in a AU$1.19 bn increase, which includes AU$501 mln of value created through development. The value increase in the balance of the portfolio was primarily driven by growth in rental income.
Westfield managing directors, Peter Lowy and Steven Lowy, said: 'The key features of this result were a solid operational performance across the global portfolio; the continuing delivery of the extensive development programme; the efficient use of capital; and the strengthening of the group's balance sheet.'
The group expects to complete AU$1.9 bn in 2007. Currently there are 16 major projects underway at a forecast investment of AU$7.2 bn, of which Westfield's share comes to AU$5.1 bn. Over the next three years, the group is scheduled to commence in excess of $10 billion of new development projects. Westfield has interests in 119 shopping centres across Australia, the US, the UK and New Zealand with a gross value of approximately AU$62 bn.
