Shareholders of global shopping centre giant Westfield Group (ASX: WDC) have had to remain patient in recent years with their shares significantly underperforming the broader S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO). However, the shares seem to be on the rise and are currently sitting at $10.83, which is 12% above its December low of $9.67.
Here are three reasons why Westfield Group is marching higher:
- Given the rapid rise of the online retail sector, investors have approached the brick-and-mortar retail industry with caution. However, Westfield Group has a strong focus on improving its balance sheet by divesting non-core assets and redeveloping its more iconic stores. This should boost earnings in the long-run.
- Speaking of redeveloping centres, it is currently in the process of sprucing up its World Trade Centre store, in New York, as well as Westfield London and the Croydon mall. These three centres are poised to be amongst the Group’s greatest assets and offer great exposure to the recovering US and UK economies.
- Shares in Westfield Group were also restricted due to uncertainty over the merger proposal with Westfield Retail Trust (ASX: WRT). However, the terms of the deal have been adjusted, albeit in Westfield Retail Trust’s favour, which has lessened investor uncertainty.