Economic Value Generated and Distribution
The creation of value for its stakeholders continues to be the driving force behind the Westfield Group.
Since 1960 when the company was first publicly listed on the Australian Stock Exchange, Westfield has focused on growing its business through the simultaneous maximisation of efficiency and returns. The Group has adapted itself and its capital structure to continually position itself for growth and at 31 December 2011 operates and owns a portfolio of assets worth $61.7 billion across Australia, New Zealand, the United States and the United Kingdom.
These shopping centres are powerful generators of economic activity that create countless investment opportunities, provide employment, and function as a commercial hub locally, nationally and globally.
Within the community Westfield malls are social and commercial centres where people shop, work, gather and are entertained. Retailers conduct their trade, along with contractors and suppliers. When Westfield shopping centres are built or redeveloped, these major projects generate considerable financial impact through the creation of short-term employment during construction, new retail positions on completion and the major investment of multiple asset owners.
Financially, Westfield is an entity that has always focused on maximising investor returns. In late 2010 the Westfield Retail Trust was established, which formed a joint venture over the Group’s Australian and New Zealand portfolio – representing the latest step in Westfield’s strategy to increase return on equity through capital efficiency.
More than ever Westfield is recognising the creation of value that can be shared by all stakeholders: shoppers and retailers, local communities, employees, and investors. The interaction between the corporation and its community at large is increasingly recognised by the Group as a way to create mutual value for these different groups, so that growth of the business is seen in more than financial terms.
In each of its markets Westfield has found different ways to work with various stakeholders groups in such a way. In Australia for example, a sophisticated retailer relations program has been underway for many years, seeking to provide support to retailers in an effort to maximise their performance. In the United Kingdom, the development of Westfield London and Stratford City has seen the Group work with local communities in providing significant physical and social contributions far beyond the planning regulations’ requirements. There are numerous other initiatives in each of Westfield’s operating markets, representing the Group’s growing awareness of the meaningful opportunities that exist between a business and its society.
In 2011, Westfield Group contributed $8.4 million worth of support to its communities around the world. This was a combination of cash donations and in-kind support, increasingly through the impact of employee volunteering programs as part of strategic community partnerships.
- GRI methodology applied: figures differ materially from International Financial Reporting Standards and cannot be compared to or provide any accurate indication of the Group’s profitability as reported in its statutory accounts as at 31 December 2011 or 31 December 2010.
- Council taxes in the United Kingdom are charged by the council to the leaseholder/retailer directly. Westfield as the owner/manager has no agency role.
- Impacted by the establishment of the Westfield Retail Trust in 2010.
Westfield Group’s Corporate Governance Statement can be found at here
*Westfield has defined the benchmark for significant fines as $100,000