January 27, 2009 - 4:13PM Westfield, the world's largest...

January 27, 2009 - 4:13PM
Westfield, the world's largest shopping centre manager, has been forced to cut its dividend forecast for the 2009 year.

The group, which has a December 31 balance date, warned today that while it will make its 106.5 cents per security payment for 2008, its operations earnings per security and distribution is likely to be closer to between 97 cents and 100 cents for the current year.

Further spooking investors, was the warning that the retail landlord will take a cut of about $3 billion in its assets value due to the weaker market, particularly in the United States.

In a statement, the group said there will be some upside in the results from the strengthening US dollar over the course of 2008, taking total assets to about $50.4 billion.

"The operational segment operational earnings forecast for 2009 reflects the impact of higher finance costs and the deterioration of retail fundamentals in the United States, United Kingdom and New Zealand and a continuation of the strong performance of the group's Australian portfolio,'' the statement said.

It was issued after the close of the share market. Westfield shares had ended the day 14 cents, or 1.2%, higher at $12.10.

SMH