westfields sales decline

Here is some nice reading about westFields decline in sales, while here we have a bargin with centro who released there sales last week which clearly bucks westFields trend. They must be doing some thing right. Can't wait till next week!!! Good luck to all!!!!


24th May 2008, 11:00 WST www.thewest.com.au

The number of tenants closing down due to poor sales in Westfield’s shopping centres is on the rise, according to the retail landlord’s joint managing director, Steven Lowy.

Speaking after the group’s 48th annual meeting in Sydney, Mr Lowy confirmed there was evidence of more arrears among tenants, although he said it was not causing any concern to future earnings of the business or at the centres.

“As we said at the quarterly update a couple of weeks ago, there has been a slight increase in arrears amongst tenants, more so in the United States, but also in Australia,” Mr Lowy said.

“We have got a slowdown in the US, United Kingdom and Australia, so these events are expected. But we are well positioned to ride out these conditions.

“Have we seen an increase in distressed retailers? Yes, slightly at the margin, although it’s not anything that is alarming. Cash, when you have a situation (an economic downturn), becomes a bit tighter, and we are cognisant of that.”

At the meeting, Westfield chairman Frank Lowy declared that, at 77, he had no intention of slowing down or stepping aside.

He confirmed the world’s biggest shopping centre owner by value would be paying an annual distribution of 106.5¢ per security, unchanged from the 2007 year. Westfield has a December 31 balance date.

He told shareholders that although he received a $15.88 million annual salary, it did not include any retirement benefits, and “I believe if you work hard you should be paid”.

“My salary is not small, but I do not get any other benefits. We all work hard here and we deliver the results for investors and we should be paid for it,” Mr Lowy said.

He also swept aside any concerns about the appointment as a director of John McFarlane, the former chief executive of ANZ Bank, saying Westfield’s board had “chased him the minute we heard he was leaving the bank”.

Mr Lowy said in the 2007 year there was an increase in the gross value of assets under management from $60.7 billion to $63.2 billion.

CAROLYN CUMMINS