Should investors be buying Westfield?

Another opportunity has presented itself for investors to pick up shares in global shopping centre operator Westfield Group (ASX: WDC), with its shares currently trading for just $10.94.

After having climbed as high as $12.55 in May, investors have sold their shares off amid concerns regarding business and consumer confidence as well as the future of the brick and mortar retail industry against a rampaging online retail sector.

Whilst these are realistic and reasonable concerns, it seems that investors have their focuses set on the near-term, whereby revenues are likely to be affected by the sale of numerous non-core shopping centres.

The company, along with its affiliate Westfield Retail Trust (ASX: WRT), have been divesting from non-core stores and those with little redevelopment potential in order to strengthen its balance sheet. The cash raised from these sales are being put towards increasing shareholder returns as well as investing in more profitable centres.

In the long-term, this strategy should prove to be successful for the group and, as it continues towards its goal of expanding into new markets, should also reap the rewards for shareholders.

Foolish Takeaway

With some economists predicting growth in retail sales next year, business confidence should follow which would fare well for Westfield. As such, investors should consider adding a position to their portfolio or, at very least, their watchlist.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned

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