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% and adjusted FFO per security up 4.1% year-over-year.

• Distribution per security was 6.20 cents, up 4.2%, representing an 88.4% payout of AFFO.

• Portfolio repositioning continued, with premium assets now comprising 66% of the retail asset portfolio.

• Retail sales growth was strong across all categories, with specialty and mini majors up 5.1% and jewelry leading at 11%.

Financial highlights

• Comparable net property income (NPI) grew 3.7% year-over-year, with portfolio occupancy at 99.6% and a record leasing spread of +4.6%.

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

• Gearing reduced to 26.3%, with strong liquidity and AUD 1 billion undrawn debt.

• Net interest expense fell by AUD 2.7 million due to lower debt volume.

• FFO/Net debt: 16.1%; Interest cover ratio: 3.8x; weighted average debt maturity: 3.5 years; 91% of debt hedged.

Outlook and guidance

• Upgraded FY26 comparable NPI growth guidance to 3.5%, with 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 expected within 95%-100% of adjusted AFFO.

• Weighted average cost of debt guided at 5% for FY26.

• Cautiously optimistic sector outlook, supported by strong employment but tempered by higher interest rates and geopolitical uncertainty.