Westfield trims outlook after profit lifts

Westfield Corporation has downgraded its outlook after the pound plunged following Brexit, but is still focusing on expansion in the London residential market.

The group, which runs shopping centres in the US and Britain and was spun off from Westfield's Australian and New Zealand shopping centres in 2014, has lifted half-year profit 5.4 per cent to $US491 million ($A645 million).

But the 11.4 per cent fall of the pound sterling since the Brexit vote has forced Westfield to trim expectations for full-year funds from operations (FFO), a key measure of cashflow.

The group now expects FFO of 33.7 to 34 US cents per share, down from 34.2 to 34.5 cents per share forecast in February.

"Assuming that that exchange rate remains as it has since Brexit ... is where our guidance is coming out at," Westfield co-chief executive Steven Lowy told investors.

Despite the currency impact of Brexit, the group remains optimistic about opportunities for expansion in the residential sector in London, where it has planning approval for more than 3000 apartments at Westfield London and Stratford City and Croydon.

Mr Lowy said one thing that was not uncertain post-Brexit vote was the undersupply of residential apartments in the UK, and London in particular.

"I think it's important to understand the structural lack of supply in London and that's really what's driving our focus there," Mr Lowy said.

Westfield also said there has been good progress on the group's projects - Century City in Los Angeles and UTC in San Diego.

It noted it was about to break ground on its expansion of the Valley Fair mall in San Jose after opening the $1.5 billion Westfield World Trade Centre in New York, which is fully leased ahead of target.

WESTFIELD'S FIRST-HALF GROWTH

* Net profit up 5.4pct to $US491m

* Revenue down 3.8pct to $US834.7m

* Interim dividend unchanged from last year at 12.55 cents per share, fully franked.