Vicinity Centres (VCX) H1 2025 earnings summary

Executive summary

• Statutory net profit after tax for 1H FY25 was AUD 492.6 million, more than double the prior period, driven by property revaluation gains, strong operating metrics, and portfolio repositioning.

• Funds From Operations (FFO) was AUD 344.1 million, broadly in line with the prior year, with adjusted FFO up 3.0% after one-off items and development-related lost rent.

• Portfolio occupancy remained high at 99.4%, with strong leasing spreads and robust demand for premium assets.

• Portfolio repositioning continued with significant divestments of non-strategic assets and accretive acquisitions, including Lakeside Joondalup.

• Major developments at Chadstone and Chatswood Chase are progressing, with significant income already secured and staged openings planned.

Financial highlights

• Comparable Net Property Income (NPI) growth was 4.2% year-over-year, with premium assets delivering 5.7%; headline NPI up 2.6%.

• Net revaluation gain of AUD 174 million (1.2%) over six months, driven by rental growth.

• Distribution per security increased to 5.95 cents, with an 85.3% payout ratio of AFFO.

• Net tangible assets per security increased to AUD 2.35.

• Retail sales grew 2.0% in 1H FY25, with stronger 2Q performance (+2.7% YoY).

Outlook and guidance

• FY25 FFO and AFFO per security guidance reaffirmed at 14.5–14.8 cents and 12.3–12.6 cents, respectively.

• Comparable NPI growth guidance raised to 3.5–4.0% for FY25.

• Distribution payout ratio expected at the lower end of the 95–100% AFFO target range, with capital preservation prioritized.

• Weighted average cost of debt expected to be approximately 5.1% in FY25.

• Guidance assumes no material deterioration in economic conditions.