Westfield Group (WDC) Share Trading Update

Westfield (WDC) has a reinstated Buy rating (from Hold) and an unchanged $23 share price target from analyst Citigroup Investment Research. Westfield shares have had recent price weakness and in the analyst's view this presents a buying opportunity. The analyst thinks Westfield represents good value relative to the large cap stapled securities in the Australian REIT sector. The development pipeline is robust and the retail environment for Regional Malls remains favourable. Variance in consensus EPS is high relative to the REIT sector, suggesting possible upside to earnings revisions. The analyst's Citigroup US REIT team recently upgraded Regional Mall REITs Simon and General Growth to Buy. Westfield remains good value relative to US peers, with an unjustifiably higher implied cap rate at 5.7% versus the US Regional Mall average of around 5.4%. This property developer is well hedged from weaker US dollar currency: Westfield has about 45% US assets, but with a large natural hedge (US denominated debt), and distribution hedging, the impacts of short term currency fluctuations are negligible. Development upside not priced in – A A$4.6bn pipeline is reported, though the true figure is significantly higher. In FY06, the income yield on development cost was at a substantial 380bps spread to the valuation yield. The current share price doesn't factor in enough value for Westfield's development capability and ongoing efficiency in capital use that can drive sector high EPS growth.

Westfield Limited is listed on the Australian Stock Exchange (ASX) under stock code WDC. You can view their investor website here. WDC was listed on the ASX on 5 July, 2004. The company is involved in shopping centre investment, property management, leasing and marketing, property development, design and construction, funds/asset management. Find out the meaning of the recommendations in this primer. The Westfield Group is the largest retail property group in the world by equity market capitalisation and the eighth largest entity listed on the Australian Stock Exchange. Operating on a global platform, the Westfield Group is an internally managed, vertically integrated shopping centre group, undertaking ownership, development, design, construction, funds and asset management, property management, leasing and marketing employing in excess of 4,400 staff worldwide. The Westfield Group has interests in an investment portfolio of 121 shopping centres valued in excess of A$60.7 billion (US$47.9 billion) located in Australia, the United States, New Zealand and the United Kingdom. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade WDC. Check your charts and good luck with your share trading!