Westfield announces its strong cash flow position as more stores close
On Thursday, shopping centre giant, Westfield confirmed its “strong liquidity position” amid the growing Coronavirus epidemic. Prior to this statement, Westfield had said on Monday that measures taken by international governments to contain the spread of COVID-19 has affected the business by limiting its operations in several of its markets.
On Thursday, the company said that “the duration and extent of the situation and its impact on the group’s earnings remain uncertain."
However, as concerns around the cash flow positions of some shopping mall landlords increase, Westfield said that it has taken “all precautionary measures needed to ensure its access to liquidity (and) now has €10.2 billion in cash on hand and undrawn credit lines, which provides it with the liquidity needed to cover all expected funding needs, even under an extreme ‘stress test’ scenario."
The shopping mall giant has also been working to actively reduce non-staff expenses, defer non-essential capital expenditure and make use of any key facilities or arrangements provided by national authorities to help companies through the crisis.
Westfield added that “the group is already prepared to increase the scope of these measures if the crisis were to persist for an extended period”.