Morgan BellWestfield: The Myth Continues
December 21st 2006 11:17
There is no more beautiful story of growth as the Westfield one. In 46 years Westfield has always posted solid growth figures and its saga continues. If you would like to own a share of commercial property read along.
The news today, 21 December 2006, is that “Westfield has sold 50 per cent of the Merry Hill shopping centre in Britain to Queensland Investment Corp for L524 million ($A1.3 billion), raising funds for other developments.”
“Westfield wants more joint ventures to help raise capital for its $6.9 billion of developments, after last month scrapping plans to create an Australian property fund after investors demanded too much say in how it was run.”
“The sale will not affect Westfield’s forecast 2006 dividend of $1.065 a share. Westfield shares rose 11c to $19.39. The stock has gained 6.8 per cent this year.”
““Today’s announcement continues the group’s capital initiatives, raising equity capital for reinvestment in our global redevelopment program,” managing director Steven Lowy said in a statement.”
“Peter Lowy, Steven’s brother and co-managing director, told analysts last month the company might sell assets, create joint ventures, attract buy-out firms or start funds to churn capital tied up in shopping centres.”
This news was published in the online version of The Age under the title “Westfield goes shopping for joint-venture partners” and was written by Bloomberg. Click here to open that page.
Westfield Group (ASX: WDC) is a living myth. Since it was created in 1960, Westfield has posted every year without exception an increase in net profit, earnings per share and assets under management.
Westfield develops, owns and manages commercial centres in Australia, the United Kingdom and the United States of America and its name is easily recognisable in these countries.
Westfield has been through some transformation: its structure used to be made of Westfield Holdings and a trust for the Australian operations and another for the American ones. More recently it merged these trusts in one body – Westfield Group. This, as it seems, was a reaction to competitors such as Lend Lease who consolidated their activities.
Westfield’s EPS grew from 44.8 cents in 2002 to 247.6 in 2005, an annual compound growth of 63 per cent.
Its Net Profit grew in the same period from $785.4 million to $4.247 billion.
Westfield’s Shareholders Equity is $19.466 billion and its Return on Equity is 21.8 per cent.
WDC’s price is $19.65 and its Price to Net Assets Backing is 1.6 times meaning that Westfield is valued 1.6 times above the value of its net assets. Its P/E is 7.9 times.
WDC is a fantastic growth story but I would be wary of paying at this stage 1.6 times above its net assets.
End
The news today, 21 December 2006, is that “Westfield has sold 50 per cent of the Merry Hill shopping centre in Britain to Queensland Investment Corp for L524 million ($A1.3 billion), raising funds for other developments.”
“Westfield wants more joint ventures to help raise capital for its $6.9 billion of developments, after last month scrapping plans to create an Australian property fund after investors demanded too much say in how it was run.”
“The sale will not affect Westfield’s forecast 2006 dividend of $1.065 a share. Westfield shares rose 11c to $19.39. The stock has gained 6.8 per cent this year.”
““Today’s announcement continues the group’s capital initiatives, raising equity capital for reinvestment in our global redevelopment program,” managing director Steven Lowy said in a statement.”
“Peter Lowy, Steven’s brother and co-managing director, told analysts last month the company might sell assets, create joint ventures, attract buy-out firms or start funds to churn capital tied up in shopping centres.”
This news was published in the online version of The Age under the title “Westfield goes shopping for joint-venture partners” and was written by Bloomberg. Click here to open that page.
Westfield Group (ASX: WDC) is a living myth. Since it was created in 1960, Westfield has posted every year without exception an increase in net profit, earnings per share and assets under management.
Westfield develops, owns and manages commercial centres in Australia, the United Kingdom and the United States of America and its name is easily recognisable in these countries.
Westfield has been through some transformation: its structure used to be made of Westfield Holdings and a trust for the Australian operations and another for the American ones. More recently it merged these trusts in one body – Westfield Group. This, as it seems, was a reaction to competitors such as Lend Lease who consolidated their activities.
Westfield’s EPS grew from 44.8 cents in 2002 to 247.6 in 2005, an annual compound growth of 63 per cent.
Its Net Profit grew in the same period from $785.4 million to $4.247 billion.
Westfield’s Shareholders Equity is $19.466 billion and its Return on Equity is 21.8 per cent.
WDC’s price is $19.65 and its Price to Net Assets Backing is 1.6 times meaning that Westfield is valued 1.6 times above the value of its net assets. Its P/E is 7.9 times.
WDC is a fantastic growth story but I would be wary of paying at this stage 1.6 times above its net assets.
End
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