Shopping centre operator Westfield Group has reaffirmed guidance for it fiscal 2009 operationing earnings and distribution.
Chairman Frank Lowy said while the company is facing the most challenging time in its experience its underlying business is proving resilient despite the current global economic downturn.
Shares rose slightly this morning, rising 6 cents, or 0.6%, to $10.87.
"Firstly, even though we are living through an unprecedented economic downturn, we should remember that shopping centres are irreplaceable components of urban and suburban infrastructure,'' Mr Lowy said.
"It means they are attractive to retailers and shoppers and continue to perform well relative to lesser assets, even when times are tough.
"They outperform in good times, and are resilient during economic downturns.''
Mr Lowy said while Westfield was not immune to the effects of the downturn, it managed for the long-term by anticipating events and planning accordingly.
"We have no crystal ball, but it was clear to us some time ago that the days of cheap, easily available capital and unrealistic asset prices would not last forever,'' he added.
"We began to re-position the company, starting several years ago with the merger in 2004.
"We took steps to strengthen the balance sheet, with a clear strategy to own the best shopping centres in the best markets'' and sold underperforming assets.
"And right now we are looking ahead again, planning and positioning the group for the recovery when it comes.''
Mr Lowy said Westfield was taking a very conservative approach given the economic climate.
"We expect that our net operating income for the year ahead in the US and UK will decline,'' he said. "New Zealand is also expected to be a challenging market while Australia currently shows signs of proving more resilient.
"Accordingly, I can reconfirm our February forecast that operational earnings, and distribution, will be in the range of 94 to 97 cents per security for 2009.''
AAP
