Global shopping centre giant Westfield Corp Ltd (ASX: WFD) has held its first annual general meeting today, whilst also providing an update on its first quarter operations. The stock was trading 1.3% higher around noon.
The Results
Westfield Corp, which owns and operates an international portfolio of 40 shopping centres spread across the Unites States and United Kingdom, said that specialty retail sales had increased by 5.7% during the three months ended March 2015. This was bolstered by a 6.3% lift in sales at the group's 'flagship' centres, while its 'regional' centres also enjoyed a 4.2% improvement.
While the results were certainly impressive, the company's various developments deserve more attention.
Development Pipeline
In total, Westfield has $11.4 billion worth of projects in its development pipeline, $6.3 billion worth of which will be owned by Westfield itself. Currently, $2.4 billion worth of developments are underway of which Westfield Corp's share is $1.8 billion.
Westfield Corp said that it expects to begin the staged opening of its new World Trade Centre mall in New York (which some analysts believe could become the company's most important asset) by the end of 2015. Westfield Corp said that the $1.4 billion mall is now 99% leased, while its $250 million Village at Topanga, located in Los Angeles, is also 95% leased.
It is also expecting to begin works on the $800 million redevelopment of Century City in Los Angeles, together with the £600 million extension of its flagship Westfield London centre (of which Westfield Corp's share is half) later in the year.
Offshore Listing
Given that Westfield Corp is now an internationally focused entity, there is debate as to whether or not it would be better off listed internationally, rather than (or in addition to) on the ASX. Peter Lowy, who is the group's co-chief executive officer, said that it is still reviewing its options for alternative locations for listing, and that a recommendation was likely to be made by the time of the next Annual General Meeting.
Should you buy?
Since it listed on the ASX in June last year (following the global restructure), Westfield Corp's shares have risen just under 39%, while Scentre Group Ltd (ASX: SCG), which owns and operates Westfield shopping malls in Australia and New Zealand, has risen just over 19%. Both have outpaced the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) in that time.
In fact, Frank Lowy, the group's chairman, said that since the restructure was announced in December 2013, the total investment return for Westfield Group security-holders has been a remarkable 45% — nearly tripling the returns generated by the broader market.
The beautiful part about the restructure is that it has now empowered investors to invest their money where they believe the greatest growth will come from. While I believe that Westfield Corp and Scentre Group are both presenting as great buys today, Westfield Corp appears to be the superior investment given its solid growth prospects and exposure to the recovering US economy.
Better yet, it has retreated heavily in price as a result of the weaker US dollar but should bounce back when the Australian dollar eventually falls, making now an excellent time to buy.
