Vicinity Centres · ASX:VCX

Vicinity Centres — 1H FY25 Earnings Presentation

35 slides from Vicinity Centres's earnings presentation, Feb 19, 2025

  1. Slide 1: FY25 Interim Results

    FY25 Interim Results 19 FEBRUARY 2025 Queen Victoria Building and The Galeries, NSW

  2. Slide 2: Welcome and Agenda

    WELCOME AGENDA 04 11 PETER HUDDLE CEO and Managing Director Highlights and Financial results portfolio performance 15 21 ADRIAN CHYE Chief Financial Officer Development update, Appendices and summary Vicinity Centres FY25 Interim Results | 19 February 2025 2

  3. Slide 3: Acknowledgement of Country

    ACKNOWLEDGEMENT OF COUNTRY Vicinity Centres acknowledges the Traditional Custodians of the land and pays respect to Elders past and present. As a business that operates in many locations across the nation, we recognise and respect the cultural heritage, beliefs, and relationship with the land, which

  4. Slide 4: Highlights and Portfolio Performance

    HIGHLIGHTS AND PORTFOLIO PERFORMANCE PETER HUDDLE CEO AND MANAGING DIRECTOR Vicinity Centres FY25 Interim Results | 19 February 2025 QueensPlaza, QLD

  5. Slide 5: Highlights

    HIGHLIGHTS Vicinity continues to curate a more resilient and higher growth retail asset portfolio and delivers robust operating metrics $492.6m $344.1m 5.95 cps STATUTORY NET PROFIT FUNDS FROM OPERATIONS 1H FY25 DISTRIBUTION 1H FY24: $223.5m 1H FY24: $345.6m 1H FY24: 5.85 cents Acquired $457m On tra

  6. Slide 6: Our Purpose: Shaping Meaningful Places Where Communities Connect

    OUR PURPOSE: SHAPING MEANINGFUL PLACES WHERE COMMUNITIES CONNECT Our vision: To prosper with our people and communities by creating Australia’s most compelling portfolio of retail-led destinations CHADSTONE, VIC QUEENSPLAZA, QLD EMPORIUM MELBOURNE, VIC 52 shopping centres c.390m customer visits HARB

  7. Slide 7: Retail Property Sector Fundamentals Increasingly Favourable

    RETAIL PROPERTY SECTOR FUNDAMENTALS INCREASINGLY FAVOURABLE Population growth and reduced investment pipeline in new GLA bodes well for owners of established, well capitalised, premium malls Australian shopping centre additions1 Retail property increasingly undersupplied (new developments and extens

  8. Slide 8: Portfolio Repositioning; Actively Curating Premium Asset Portfolio Since June 2022

    PORTFOLIO REPOSITIONING; ACTIVELY CURATING PREMIUM ASSET PORTFOLIO SINCE JUNE 2022 Enhancing portfolio quality to drive superior long-term growth via developments, acquisitions and divestments +5.7% +6.7% $15,971 $457m PREMIUM COMPARABLE NPI 1H FY25 PREMIUM SPREADS 1H FY25 PREMIUM SPECIALTY MAT PER

  9. Slide 9: Retail Sales

    RETAIL SALES Positive retail sales growth delivered in 1H FY25 propelled by strong ‘Black November’ and Christmas trading period STRONG NOVEMBER/DECEMBER TRADING PERIOD DRIVES POSITIVE PORTFOLIO SALES MAT Six months GROWTH IN 1H FY25 Portfolio sales1 Dec-24 Jun-24 Dec-24 Jun-24 Nov/Dec-24 (Growth ve

  10. Slide 10: Leasing

    LEASING Positive portfolio metrics continue to support current and future year income growth VICINITY MAINTAINS FOCUS ON QUALITY LEASING DEALS THAT UNDERPIN EARNINGS Leasing statistics 1H FY25 1H FY24 FY24 RESILIENCE Leasing deals completed – total 924 1,006 2,053 • Traditional specialty lease struc

  11. Slide 11: Financial Results

    FINANCIAL RESULTS ADRIAN CHYE CHIEF FINANCIAL OFFICER Vicinity Centres FY25 Interim Results | 19 February 2025 Chadstone, VIC – The Social Quarter

  12. Slide 12: Financial Results: Income Statement

    FINANCIAL RESULTS Income statement RESULT HEADLINES 1H FY25 1H FY24 Change Change ($m) ($m) ($m) (%) • Statutory net profit after tax at $493m, comprising FFO of $344m and $149m of statutory, non- cash and other items Net property income (NPI) 463.5 451.6 11.9 2.6 • Adjusted for one-off items1 and h

  13. Slide 13: 1H FY25 Valuations

    1H FY25 VALUATIONS Strong income growth drives net valuation gain in 1H FY25 and NTA uplift Valuation Capitalisation rate NET VALUATION INCREASE1 OF $174M, OR 1.2% • Income growth continued to reflect focus on negotiating quality, long-term leasing deals, No. of Value Change Average Change increasin

  14. Slide 14: Capital Management

    CAPITAL MANAGEMENT Diversified funding sources and tenor, with ample liquidity to meet maturities and capital requirements PROACTIVE CAPITAL MANAGEMENT Debt sources1 (%) 2 Bank drawn • Issued $500m 7-year AMTN at attractive pricing, +130bps over the relevant swap rate (Jan 2025) 11 14 • $600m of new

  15. Slide 15: Development Update and Summary

    DEVELOPMENT UPDATE, AND SUMMARY PETER HUDDLE CEO AND MANAGING DIRECTOR Vicinity Centres FY25 Interim Results | 19 February 2025 Chatswood Chase, NSW

  16. Slide 16: Chadstone – Grand Opening of the Market Pavilion Set for March 2025

    CHADSTONE – GRAND OPENING OF THE MARKET PAVILION SET FOR 27 MARCH 2025 BRUNETTI* MOËT & CHANDON OYSTER BAR* $270- Adairs $290m opens in Vicinity share 4Q FY25 27 March Kmart grand opening opens in 2Q FY26 SHANGHAI RED* ONE MIDDLE ROAD* 99% >5% Leased stabilised (Retail/Office) yield 100% Retail 9-10

  17. Slide 17: Chatswood Chase – Stage 1 Fresh Food and Dining

    CHATSWOOD CHASE – STAGE 1 FRESH FOOD AND DINING DELIVER NEXT LEVEL RETAIL EXPERIENCE LOSURDÓS ASTAKOS FISH MARKET DOPA FABBRICA PASTA BAR VIC’S MEATS ALICE’S MAKAN TONGLI SUPERMARKET BUTTER BOY Vicinity Centres FY25 Interim Results | 19 February 2025 17

  18. Slide 18: Chatswood Chase – Major Retail Upgrade Progressing Well

    CHATSWOOD CHASE – MAJOR RETAIL UPGRADE PROGRESSING WELL $615- $625m ~6% development stabilised yield spend 2Q FY26 9-10% commence IRR opening 85% 45% income construction secured completed Chatswood Chase, NSW – Artist’s impression Vicinity Centres FY25 Interim Results | 19 February 2025 18

  19. Slide 19: Future Development Update

    FUTURE DEVELOPMENT UPDATE Progress made on a number of future development opportunities during 1H FY25 ‘BANKSTOWN REZONING PROPOSAL’ APPROVED • Bankstown Rezoning Proposal is part of NSW State Government’s Transport Oriented Development (‘TOD’) to create housing supply near major transport hubs • Ap

  20. Slide 20: Summary and Outlook

    SUMMARY AND OUTLOOK Strong start to FY25; simultaneously working on immediate, medium and long-term strategic priorities to support sustained value accretion over time 1H FY25 SUMMARY • Momentum of strategic, operational and financial execution continued in 1H FY25 • Continued to deliver positive po

  21. Slide 21: Appendices

    APPENDICES 22 Australian macroeconomic 23 Asset transactions summary 24 Development pipeline 25 Direct portfolio 29 Assets under management environment 30 Financial results 33 Key dates 34 Contact details Vicinity Centres FY25 Interim Results | 19 February 2025 21

  22. Slide 22: Australian Macroeconomic Environment

    AUSTRALIAN MACROECONOMIC ENVIRONMENT While population growth and tight employment market are providing a level of resilience, Australian households still contend with elevated living costs NATIONAL INCOME AND RETAIL SALES GROWTH VS HOUSEHOLD SAVINGS RATE1 HOUSE PRICES2 (Seasonally adjusted, %) (Quar

  23. Slide 23: Asset Transactions Summary

    ASSET TRANSACTIONS SUMMARY Divestments Price ($m) Settlement Premium/ (discount) to book Kurralta Central, SA 74.3 29 Feb 2024 Roxburgh Village, VIC 123.6 8 Mar 2024 Dianella Plaza, WA 76.3 8 Mar 2024 Ancillary properties 41.5 Various Reported 1H FY24 315.6 Halls Head Central, WA 34.9 5 Jul 2024 Mad

  24. Slide 24: Development Pipeline

    DEVELOPMENT PIPELINE Near-term development pipeline focused on premium retail assets while broader mixed-use development opportunities present option value Asset Project Est cost ($m)1 Status FY25 FY26 FY27+ Chadstone Mixed-use – One Middle Road office and retail 270-290 Construction Retail – luxury

  25. Slide 25: Direct Portfolio: Key Statistics by Centre Type

    DIRECT PORTFOLIO Key statistics by centre type Total Premium Outlet portfolio Chadstone CBDs/SC Centres1 Core2 Number of retail assets 52 1 8 8 35 Gross lettable area (000’s) (sqm) 2,324 230 321 285 1,488 Total value3 ($m) 15,131 3,463 2,449 2,456 6,763 Portfolio weighting (by value) (%) 100 23 16 1

  26. Slide 26: Direct Portfolio: Key Tenants

    DIRECT PORTFOLIO Key tenants TOP 10 BRANDS BY INCOME TOP 10 TENANT GROUPS BY INCOME No. of % of No. of % of Rank Retailer Retailer type stores income1 Rank Retailer stores income1 Brands Kmart, Target, Officeworks, Bunnings, Priceline, 1 Supermarket 29 2.8 1 80 4.6 Priceline Pharmacy, Australian Ski

  27. Slide 27: Direct Portfolio: Additional Leasing Disclosures

    DIRECT PORTFOLIO Additional leasing disclosures LEASE EXPIRY PROFILE (By income, %) 32 13 13 13 13 8 5 0 0 1 1 2 Holdover FY25 FY26 FY27 FY28 FY29+ Majors All other retailers WEIGHTED AVERAGE LEASE EXPIRY (Years) Dec-24 Jun-24 By area 4.3 4.3 By income 3.6 3.6 DFO Homebush, NSW Vicinity Centres FY25

  28. Slide 28: Direct Portfolio: Non-comparable Centres for Sales Reporting

    DIRECT PORTFOLIO Non-comparable centres for sales reporting Dec-24 Jun-24 Armidale Central, NSW Major changeover Major changeover Bankstown Central, NSW Development Development Box Hill Central, VIC Major changeover and pre-development Major changeover and pre-development Chatswood Chase, NSW Develo

  29. Slide 29: Assets Under Management

    ASSETS UNDER MANAGEMENT Approximately 6,300 tenants across 53 assets under management1 DIRECT PORTFOLIO ASSETS UNDER MANAGEMENT Third party/ Wholly-owned Jointly-owned Total1 Total1 co-owned Number of assets 27 25 52 1 53 Value2 ($m) 6,690 8,441 15,131 123/8,719 23,974 GLA (000, sqm) 871 1,453 2,324

  30. Slide 30: FFO Reconciliation to Statutory Net Profit After Tax

    FINANCIAL RESULTS FFO reconciliation to statutory net profit after tax 1H FY25 1H FY24 ($m) ($m) Statutory net profit after tax 492.6 223.5 Property revaluation (increment)/decrement for directly owned properties (188.4) 76.0 Non-distributable (gain)/loss relating to equity accounted investments (19

  31. Slide 31: Financial Results: Balance Sheet

    FINANCIAL RESULTS Balance sheet Dec-24 Jun-24 Variance ($m) ($m) ($m) Cash and cash equivalents 109.4 49.6 59.8 Investment properties (including held for sale) 15,108.3 14,958.0 150.3 Equity accounted investments 532.8 91.8 441.0 Intangible assets 171.2 164.2 7.0 Other assets 497.8 462.2 35.6 Total

  32. Slide 32: Additional Debt Disclosures

    FINANCIAL RESULTS Additional debt disclosures Key debt statistics Dec-24 Jun-24 Fixed rate instruments Hedge rate4 (weighted average, A$m) (weighted average, %) Total debt facilities $5.9b3 $5.4b 4,000 4.0 Drawn debt $4.5b $4.1b 3,500 3.5 Undrawn limit $1.4b3 $1.3b 3,000 3.0 1 Weighted average cost

  33. Slide 33: Key Dates

    KEY DATES 19 February 2025 24 February 2025 25 February 2025 26 February 2025 FY25 interim results released and Ex-distribution date for FY25 interim Record date for FY25 interim distribution Last date for DRP election announcement of FY25 interim distribution distribution 13 March 2025 19 August 20

  34. Slide 34: Contact Details and Disclaimer

    CONTACT DETAILS AND DISCLAIMER FOR FURTHER INFORMATION PLEASE CONTACT: JANE KENNY TROY DAHMS General Manager Investor Relations Senior Investor Relations Manager T +61 3 7001 4291 T +61 2 8229 7763 E jane.kenny@vicinity.com.au E troy.dahms@vicinity.com.au AUTHORISATION The Board has authorised that

  35. Slide 35: Thank you

    Thank you Queen Victoria Building and The Galeries, NSW

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