Westfield's strategy to re-weight it's portfolio is a smart move according to analysts at Goldman and Moelis. The group has sold a number of shares in older, mature centres in the US as part of their strategy to feed its $12 billion global development pipeline to develop centres in what it considers emerging areas such as Italy's Milan and South America. Analysts at Moelis said the deal to sell the seven US non-core assets, and thereby increase the percentage of earnings from the management business, was sound because it would increase both return on equity and earnings per security (EPS). ''The transactions improve the quality of the portfolio and will not impact the funds from operation forecast for 2013.''The dilutionary impact is expected to be mitigated by the redeployment of capital and the current share buyback. We upgrade our recommendation from hold to buy.'' Moelis analysts said. Read more: (VIEW LINK)
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