Vicinity Centres (VCX) H1 2026 earnings summary

Executive summary

• Statutory net profit after tax for 1H FY26 was AUD 805.6 million, up over 60% year-over-year, driven by strong portfolio performance, FFO growth, and significant property revaluation gains.

• FFO increased to AUD 351 million, with FFO per security up 1.3% (4.1% adjusted), and AFFO supporting a higher interim distribution.

• Portfolio retail sales grew 4.2% year-over-year, with specialty and mini majors' sales up 5.1% and specialty sales productivity rising to $13,425 per sqm.

• Premium assets now comprise 66% of the portfolio by value, up from 51% in June 2022, with a 12.6% increase in total asset value on a proforma basis.

• Strong leasing spreads (+4.6%), record occupancy (99.6%), and robust retail sales growth highlight operational momentum.

Financial highlights

• Comparable net property income (NPI) grew 3.7% year-over-year; excluding new/increased taxes and levies, NPI was up 4.1%.

• Net tangible asset (NTA) per security rose to AUD 2.52, up 4.8% in the half.

• Portfolio valuation uplift of AUD 407 million (2.6%), with 68% from cap rate compression and the remainder from income growth.

• Gearing reduced to 26.3%, at the lower end of the 25–35% target range, with $1.0b undrawn debt.

• Interim distribution of 6.20 cents per security, up 4.2% from 1H FY25, with an 88.4% payout of AFFO.

Outlook and guidance

• Upgraded FY26 comparable NPI growth guidance to 3.5% (from 3%), driven by increased rent, higher occupancy, and percentage rent.

• FFO and AFFO per security expected at the top end of guidance: 15.0–15.2 cents and 12.8–13.0 cents, respectively.

• Full-year distribution payout ratio to remain within 95–100% of AFFO.

• Weighted average cost of debt for FY26 expected to be around 5.0%.

• Guidance assumes no material deterioration in economic conditions.