Westfield Corp Ltd (ASX: WFD) has been a remarkable performer for investors since the global Westfield Group restructure last year with the shares heavily outpacing the broader S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) in that time.
The global shopping centre giant made its debut on the Australian Securities Exchange just over 12 months ago at a price of $6.70 and has since risen more than 42% to $9.53 today. That compares to a mere 3% lift for the broader market and a 20% rise for Scentre Group Ltd (ASX: SCG), which owns and operates all Westfield-branded assets in Australia and New Zealand.
Westfield Corp, on the other hand, owns and operates Westfield's malls spread throughout the United States and Europe. Of its assets, 71% are located in the US while the remaining 29% are in the United Kingdom, with prospects of further international expansion in the future. This foreign exposure is also great for Australian investors who will benefit from a weaker Australian dollar.
The group has split its assets under management between those it considers "Flagship" and those which are "Regional" and non-core. There has been rumours that the company could consider a demerger of those regional assets at a later date, which would allow it to focus solely on the flagship offerings.
These flagship malls are located in some of the world's largest and most popular cities and generate superior returns for shareholders. Indeed, one of the most exciting prospects is the Westfield World Trade Centre mall, located at Ground Zero in New York, which some analysts expect will be its greatest asset to date.
Although it is widely recognised that Westfield Corp will benefit from a recovering US economy and a weaker Australian dollar, the stock has actually fallen recently giving investors a reasonable opportunity to buy.
The cherry on top is Westfield's dividend. It expects to distribute a total of US 25.1 cents per share this year, which equates to AU 34 cents per share or a 3.7% dividend yield. I expect that will continue to improve over the coming years as earnings continue to strengthen.
