Vicinity Centres (VCX) H2 2026 earnings summary

Executive summary

• FY26 delivered strong financial and operational results, with statutory NPAT of $1,391.2m and FFO of $700.1m, reflecting disciplined strategy execution, capital allocation, and portfolio transformation toward premium assets.

• Major milestones included the $625m Chatswood Chase transformation, full ownership of Uptown, and significant asset recycling and targeted acquisitions in CBD and outlet centres.

• Premium assets now comprise 67% of portfolio value, up from 51% in June 2022, driving superior income and value growth.

• Portfolio metrics reflect high occupancy, robust leasing spreads, and strong retailer demand, supporting resilient income growth.

Financial highlights

• Statutory net profit after tax was $1,391.2m, up nearly $400m year-over-year; FFO increased to $700.1m, with FFO per security at 15.21 cents, at the top end of guidance.

• Comparable NPI grew 4.2% year-over-year; reported NPI up 2.2%; total return for the year was 12.8%.

• Distribution per security of 12.40 cents, representing a 95.5% payout of AFFO.

• Net tangible assets per security increased by 7.7% to $2.59.

• Portfolio valuation grew by $293m (1.8%) in 2H FY26, reaching $16.1bn.

Outlook and guidance

• FY27 FFO per security guidance: 16.0–16.2 cents, implying 5.3%–6.6% growth; AFFO per security guidance: 13.9–14.1 cents.

• Comparable NPI growth expected at 3.5% for FY27; development-related rent loss to reduce to ~$18m.

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

• Leasing spread forecast for FY27 is around 3%, reflecting moderation in sales growth.

• Cautious confidence for FY27, with stabilized Chadstone, full-year Chatswood Chase income, Galleria opening, and contributions from Uptown and DFO Eastern Creek.