Retail property giant Westfield Group
(ASX:WDC) has reported a first half loss this morning largely due to asset revaluations.
Net loss for the six months to June 30 was $708 million, compared to a profit of $1.3 million in the first half of 2008.
The result included a non-cash mark to market gains on financial instruments of $932 million and asset revaluations of $2.9 billion.
However Westfield's operating earnings, its preferred measure of profitability, rose 12 per cent to $1.04 billion with operating earnings before interest and tax up 18 per cent to $1.45 billion.
Managing directors Peter Lowy and Steven Lowy say that the company’s Australian portfolio is performing above expectations while conditions are stabilising, albeit at lower levels in the more challenging environments in the U.S, U.K, and New Zealand.
Westfield says assuming no material change in economic conditions or currency exchange rates, guidance for 2009 remains unchanged with operational earnings and distribution forecast to be in the range of 94 cents to 97 cent a security.
Westfield Group posted a $2.2 billion loss in 2008.
