Australia's second largest property trust by market value, Westfield Retail Trust is in the process of taking out loans to fund its Aus$1.2 billion redevelopment plan while at the same time paying out all its profits to its shareholders.
The company would start building two malls located in New South Wales and Queensland as part of the overall redevelopment plan valued at Aus$200 million a year on current properties. According to Managing Director Domenic Panaccio, the firm can comfortably increase its debt to 28% of equity from 20.7 percent last December 31.
The company is a spin off from the Westfield Group and had reported a 2% increase in earnings amounting to Aus$572.6 million for the year ending December 31, 2011. These amounts would be paid out as dividends, costing as much as Aus$18.75 cents per share. The distributable earnings would be paid out in 2013 forecasting the value to Aus$19.85 per share.
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