Vicinity Centres (VCX) H1 2025 earnings summary

Executive summary

• Net profit after tax rose to $492.6 million for 1H FY25, more than double the prior period, driven by strong operating metrics, property revaluation gains, and portfolio repositioning.

• Funds From Operations (FFO) was $344.1 million, broadly in line with the prior year, with AFFO at $317.7 million and adjusted FFO up 3.0% after one-off items and development-related lost rent.

• Portfolio occupancy reached 99.4%, with premium assets at 99.6%, and leasing spreads at +3.5%, led by premium and outlet assets.

• Major developments at Chadstone and Chatswood Chase are progressing on schedule, supporting long-term growth.

• Over $457 million in non-strategic asset divestments were completed at a premium to book value, exceeding FY25 targets.

Financial highlights

• Statutory net profit after tax: $492.6 million (1H FY24: $223.5 million).

• FFO: $344.1 million; AFFO: $317.7 million; distribution per security: 5.95 cents; payout ratio 85.3% of AFFO.

• Comparable NPI growth: 4.2% year-over-year, with premium assets delivering 5.7%.

• Net tangible assets per security increased to $2.35 (from $2.30 at June 2024).

• Gearing (pro forma) at 26.4%, within the 25–35% target range.

Outlook and guidance

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

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

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

• Retail sales growth expected to benefit from potential interest rate reductions and favorable fundamentals.

• Guidance assumes no material deterioration in economic conditions.