Westfield: Sales Growth in Decline in Australia

Westfield Group (WDC) has reported that the sales growth is in decline in Australia for the third quarter of the year despite a stable condition in the United States and UK. Steven Lowy, the managing director of the company stated that he is looking forward to see the operating earnings and distributions to be within the range of 94 cents and 97 cents for each stapled security for calendar 2009. Australian portfolio has come up with a solid performance till the half of the year while the situation is stable in the US, UK and New Zealand market, Mr. Lowy added. The Westfield securities were 11 cents up at $12.79 during the early trades. The specialty stores of the company in Australia went up by 2.8 percent for the third quarter which Mr. Lowy termed as an impact of the slower growth in the month of July and August and a better growth in September where it was up by 4.2 percent. The company sale growth was recorded as 4.2 percent for the first nine months.

Although the figures indicated a slower third quarter in the Australian retail industry, the Westfield managing director claimed that the market condition is still satisfactory. It is to be mentioned that the per square foot sales of specialty stores for the 12 months to the end of September 30 was $US400 in the United States. Westfield has reduced its rents in US in an attempt to boost up occupancy, Mr. Lowy said. In UK, retail sales went up by 1.6 percent in the third quarter.

Westfield has leased 96.8 percent of its shopping portfolio at 30th of September where it was 97.3 percent in the corresponding session of the previous year. According to Mr. Lowy, The Australian and New Zealand portfolio remained resilient during the financial crisis. 92.1 percent of the US portfolio and 97.8 percent of the UK portfolio was leased.