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Westfield Group, the world's largest owner of shopping centres, reported a first-half net loss of A$708 mln (EUR 411 mln) reflecting a A$2.9 bn writedown on the value of its property portfolio.

The loss followed an A$2.6bn portfolio decline and an A$2.2 bn net loss in 2008.

Operational EBIT (earnings before interest and tax) rose 18.1% to A$1.446 bn year-on-year or 6.3% on a constant currency basis. Operational earnings were $1.04 bn, up 12.1% on the prior period and 8.3% on a constant currency basis.

Westfield Group managing directors, Peter Lowy and Steven Lowy, said: 'The group continued to deliver solid underlying earnings for the half year. The Australian portfolio is performing above our expectations while conditions are stabilising, albeit at lower levels, in the more challenging environments in the United States, the United Kingdom and New Zealand.'

The group announced it has extended US$1.4 bn of its global syndicated facility that was due to mature in January 2011 to August 2012.

'There has also been a significant shift in the capital markets in recent months with an improvement in both the availability and cost of new capital. This has enabled the group to raise approximately A$3.3 bn of equity and A$3 bn of debt since the start of the year. Consequently, the group's balance sheet is in a strong position with gearing of 34.8% and current available liquidity of A$7.5 bn,' Peter Lowy said.

The company currently has five projects under construction at a forecast investment by the group of A$4.2 bn, principally the Sydney City project and Stratford in London. To date A$1.9 bn has been spent on these projects with the balance of A$2.3 bn to be incurred over the next three years.

'Our development activity remains concentrated in the Sydney CBD and Stratford, the gateway to the London 2012 Olympics. These two projects are of the highest quality and are expected to create significant long term value,' the company said.

'Redevelopment remains a major component of our long-term value creation activity and we will continue to invest in the predevelopment of our high-quality opportunities in order to be in a position to commence these projects when conditions are appropriate,' Steven Lowy added.

In view of the current operating environment and the Group’s capital management strategy, the group does not expect to commence any new major developments until after June 2010.

The Westfield Group has investment interests in 119 shopping centres across Australia, the US, the UK and New Zealand, and 4,000 staff worldwide. With a total value of assets under management in excess of A$62 bn, the Westfield Group is the largest retail property group in the world by equity market capitalisation.