The global propeerty market bursting + a consumer spending recession (both are high probability events over the next few years) mean two things to WSF.
1. WSF will not be able to grow by acquisition 'cause they won't be able to raise funds via Westfield Trust, and Westfield America Trust (both will be trending down) to fund the acquisition of new sites/shopping centres.
2. A consumer recession will bring about increased vacancies, pressure on rents, and general margin compression across their existing business.
In sum, WSF has been a key beneficiary of the consumer & property bull markets of the last 20 years... both of which will come to an end in the near future.
WSF will be a key causalty of the bubble bursting, with a much lower growth profile in future.
In turn this new growth profile will result in the market re-evaluationg what is a fair pe multiple for WSF.The answer will be way below current levels, imho. (the market's already started this process).
