Why the Westfield Corp Ltd share price is heading higher

The Westfield Corp Ltd (ASX: WFD) share price is up 1 per cent to $8.01 in morning trade after the eponymous shopping centre operator delivered a trading update for the quarter ending September 30, 2017.

Across its flagship malls located primarily in London, Los Angeles, and New York it lifted average store rents 9.5% year-on-year, with retail sales growth clocking in at 3.2%.

The group is continuing its pivot away from regional malls that are suffering from the shift to online shopping, with 83% of its assets under management now under flagship malls.

The theory is that the best shopping centres  in the world’s major cities should be generally immune from the online shift, as capital flows and foot traffic will always gravitate to the world’s premier shopping locations. This is backed up by the super-strong rental occupancy rates the flagship malls are able to deliver.

Westfield also has US$3.8 billion of current residential or commercial property development projects and another US$6 billion of development projects in the pipeline. Given its track record of delivering attractive returns on invested capital over the long term, the stock may offer a reasonable mix of growth, value, and yield at today’s share price.

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Motley Fool contributor Tom Richardson owns shares of Westfield.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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