Vicinity Centres (VCX) Q1 2025 earnings summary

Executive summary

• Advanced strategic pillars with acquisitions, divestments, and development approvals, including integrating Lakeside Joondalup and securing Kmart HQ at One Middle Road.

• Enhanced organisational purpose, vision, and values, with increased employee engagement and new sustainability initiatives.

Financial highlights

• Acquired 49% of Chatswood Chase and 50% of Lakeside Joondalup; divested seven assets.

• Lakeside Joondalup acquisition price $420m, investment yield ~6.9%, and centre occupancy at 97.5%.

• Portfolio occupancy at 99.2% in 1Q FY25; portfolio MAT growth +1.1% year-over-year.

• Issued $500m 10-year AMTNs, maintaining prudent gearing at 27.2%.

Outlook and guidance

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

• FY25 distribution payout to be within 95–100% of AFFO.

• Asset divestment target of $250m in FY25; continued focus on premium asset acquisitions.