by David Bodamer January 29th, 2009
Westfield Group Ltd shares were down more than six per cent after the retail property investor flagged that its shopping centre assets would depreciate by $3 billion in its full year results for calendar 2008 because of an increase in capitalisation rates.
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“It is expected that the group’s IFRS result for 2008 will include a reduction of approximately $3 billion in the value of the group’s shopping centre assets due principally to an upward movement in capitalisation rates,” Westfield said.
“However the total value of the group’s assets as at 31 December 2008 is anticipated to exceed the $50.4 billion reported as at 30 June 2008, primarily as a result of the effect of the strengthening US dollar on the value of the group’s US assets.”
Westfield managing director Steven Lowy acknowledged the group was “not immune from macro-economic factors”, telling the The Australian Financial Review that the effects of the financial crisis on them was in line with what has been happening around the world.
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“For the 12 months to 31 December 2009, assuming no material changes in currency exchange rates or economic conditions, the group expects to earn operational segment earnings per security in the range of 97 cents to 100 cents,” Westfield said.
Link.
Related Topics: International, News, REITs, Retail Real Estate |
by David Bodamer January 29th, 2009
The economic crisis is eating into high-end coffee consumption, as Starbucks found out in its fiscal first quarter.
In earnings just released, the coffeemaker said it would lay off up to 6,000 employees at its stores and let go another 700 non-store employees, half of which would come at the company’s Seattle headquarters.
Also, Starbucks said it would close 200 U.S. and 100 foreign stores. This comes in addition to the shuttering of 661 stores announced last year. Most stores are expected close this year.
Link.
Bankruptcies and Liquidations:
- Jan. 7, Goody’s liquidates, closing 287 stores
- Jan. 8, Against All Odds files for bankruptcy protection, operates 64 stores overall, plans to close West Coast stores
- Jan. 13, Shane Co. files for bankruptcy, operates 23 stores
- Jan. 14, Gottschalks files for bankruptcy, operates 58 stores
- Jan. 16, Circuit City to Liquidate, closing 567 stores
Potential Bankruptcies & Liquidation Impact: 999 stores
Announced Closings
- Jan. 8, New York & Co., 50 stores
- Jan. 8, Macy’s, 11 stores
- Jan. 9, Supervalu, 50 stores
- Jan. 13, Cost Plus, 26 stores
- Jan. 20, Yankee Candle, 28 Illuminations stores
- Jan. 21, Filene’s Basement, 11 stores
- Jan. 22, Phillips-Van Heusen, 175 stores
- Jan 22, Brown Shoe, up to 35 Famous Footwear stores
- Jan. 26, Home Depot, 48 stores
- Jan. 29, Starbucks, 200 U.S. Stores (plus 100 international)
Total Closings: 634 stores
Potential Impact of All Announcements to Date: 1,633 stores
Related Topics: News, Retail |
