Shopping mall giant Westfield is more upbeat about its growth prospects in the United States than Australia.
But as the world's biggest economy emerges from the global financial crisis, a weaker Australian dollar is causing the group to lose money on its investments.
Co-chief executive Steven Lowy said occupancy rates had improved in the US, with net operating income growing by 4.3 per cent in the six months to June compared with 1.8 per cent in Australia and New Zealand and just 0.2 per cent in the UK.
"In Australia, while retail conditions continue to remain subdued, our portfolio has performed well," he told analysts on Thursday.
Westfield Group is expecting full-year net operating income to grow by up to five per cent in the US and the UK, but remain at a more modest two per cent in Australia and New Zealand.
During the reporting period, the Australian dollar fell below parity with the greenback as the American economy showed more signs of recovery.
Consequently, Westfield's half year net profit fell by 36 per cent to $515 million, compared with $800 million during the corresponding period in 2012.
Morningstar analyst Tony Sherlock said much of that slide in net profit occurred as the weaker Australian dollar contributed to a $119 million loss on capital transactions along with a $128 million loss on market derivatives.
"The currency movement of that can be quite significant," he said.
"That doesn't materially impact the cash generating capacity of the business."
The group's funds from operations, which relates to cash flow, fell by three per cent to $729 million, from $751 million which was in line with market expectations.
Earnings before interest and tax fell by 2.8 per cent to $1.042 billion while revenue dropped by 0.3 per cent to $1.183 billion.
Westfield Group shares dropped eight cents to $11.05.
