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% from 1H FY25, driven by strong portfolio performance, property revaluations, and strategic execution.

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

• 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.

• Specialty and mini majors' sales grew 5.1%, with jewelry leading at 11%, and overall retail sales up 4.2% year-over-year.

• Major strategic moves included acquiring the remaining 75% of Uptown for AUD 212 million and divesting non-core assets for AUD 327 million at an 18.2% premium to book value.

Financial highlights

• Comparable net property income (NPI) grew 3.7% year-over-year, or 4.1% excluding new taxes and levies.

• Net property valuation gain of AUD 407 million (2.6%) lifted NTA per security by 4.8% to AUD 2.52.

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

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

• Portfolio occupancy reached a record 99.6%.

Outlook and guidance

• FY26 FFO and AFFO per security expected at the top end of guidance: 15.0–15.2 cents and 12.8–13.0 cents, respectively.

• Comparable NPI growth for FY26 forecast at approximately 3.5%, up from previous 3.0%.

• Full-year distribution payout ratio expected within 95%-100% of AFFO.

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

• Guidance assumes no material deterioration in economic conditions.