Slide 1: FY21 Annual Results for the 12 months ended 30 June 2021
FOR THE 12 MONTHS ENDED 30 JUNE 2021 18 AUGUST 2021
Slide 2: Welcome and Agenda
WELCOME AGENDA 3 FY21 overview 8 Portfolio performance 18 Financial results 24 Strategy refinement and summary 29 Appendices Grant Kelley Peter Huddle Adrian Chye CEO and Managing Director Chief Operating Officer Acting Chief Financial Officer Vicinity Centres FY21 Annual Results | 18 August 2021 2
Slide 3: Grant Kelley, CEO and Managing Director
Grant Kelley CEO and Managing Director Chadstone, VIC Vicinity Centres FY21 Annual Results | 18 August 2021 3
Slide 4: FY21 Results Overview
FY21 RESULTS OVERVIEW Strong operational execution and underlying resilience in retail sector activity; COVID-19 impacts and headwinds remain Statutory net loss of $258.0m Funds from operations (FFO)1 of $558.8m, up 7.4% on the pcp2 • FFO per security down 10.1% on expanded capital base FY21 distrib
Slide 5: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT Robust macroeconomic environment to support retail industry stabilisation and recovery Consumer sentiment index1 Residential dwelling values2 (Index = 100) (Index = 100) 120 BNE 116.8 120 ADE 116.5 109 SYD 115.9 110 110 PER 108.4 100 MEL 106.6 90 100 80 70 90 Jan-17 Jan-18
Slide 6: Vicinity's Response
VICINITY’S RESPONSE Significant focus on supporting retailers whilst managing Vicinity for long-term, sustainable growth Supported retailers and consumers during COVID-19 Centres remained open, connecting retailers and consumers safely Supported Australian economy with $231m1 of retailer assistance,
Slide 7: Leadership in Sustainability
LEADERSHIP IN SUSTAINABILITY Creating sustainable destinations within our communities and providing long-term value for securityholders Strong sustainability survey results One of only three Australian companies in CDP’s1 Climate A list Formal TCFD participant Ranked #3 Australian Retail Shopping Ce
Slide 8: Peter Huddle, Chief Operating Officer
Peter Huddle Chief Operating Officer Queen Victoria Building, NSW Vicinity Centres FY21 Annual Results | 18 August 2021 8
Slide 9: Retail Market Trends
RETAIL MARKET TRENDS Positive momentum and underlying resilience in retail market trends; COVID-19 headwinds remain Consumers Quarterly portfolio indicators showing positive momentum Quick to return to centres when COVID-19 restrictions ease FY21 1Q1 2Q1 3Q1 4Q1 Research before purchase, shopping is
Slide 10: Cash Collections
CASH COLLECTIONS Improvement in cash collections in 2H FY21; focus remains on addressing retailer debt Proportion of gross rental billings, quarterly (%)1 Cash collections improved over FY21 6 5 8 4 6 Proactive debt recovery 100 3 20 12 4 10 • Minimal outstanding rent receivable for 1H FY21 • Progre
Slide 11: Leasing
LEASING Sustained occupancy level supported by strong rebound in leasing deal activity in 2H FY21 Leasing deals completed Strong increase in leasing activity in FY21 particularly in 4Q FY21 Focus on leasing up vacancies with 348 vacant stores leased over the year FY19 690 618 1,308 Strong conversion
Slide 12: States with Minimal COVID-19 Impact Perform Strongly
STATES WITH MINIMAL COVID-19 IMPACT PERFORM STRONGLY Strong 2H FY21 sales trends across portfolio outside Victoria and CBDs; bodes well for broader recovery Strong demand for retail when lockdown disruptions are minimal Same-store sales and foot traffic outside Victoria and CBDs Strong sales growth
Slide 13: CBDs
CBDs Favourable long-term fundamentals despite expectation of a prolonged post-COVID recovery Drivers of Emporium traffic and sales (% of Nov-19) CBDs heavily impacted by COVID-19; prolonged recovery expected Visitation improved during FY21; weekend visitation more resilient CBD Sales1 worker Traffi
Slide 14: New Store Openings in FY21
NEW STORE OPENINGS IN FY21 Sophisticated retailers consolidating stores in CBDs into single flagship stores in premium malls Vicinity Centres FY21 Annual Results | 18 August 2021 14
Slide 15: DFOs
DFOs Vicinity has the leading Outlet Centre portfolio in Australia; a segment which is resilient through economic cycles DFOs significantly impacted during COVID-19, but resilient through cycles Visitation close to zero during lockdowns due to discretionary focus • Customers quick to return followin
Slide 16: Development Overview
DEVELOPMENT OVERVIEW Mixed-use and retail project planning significantly progressed in FY21 Successful project completions in early FY21 Ellenbrook, WA – Kmart expansion; The Glen, VIC – final retail stage and residential towers1 Town planning approvals received for 12 projects Chadstone, VIC: appro
Slide 17: Mixed-Use Developments and Retail Enhancements
MIXED-USE DEVELOPMENTS AND RETAIL ENHANCEMENTS Project planning continuing with commencements to be demand-led Chadstone, VIC Galleria, WA Bankstown Central, NSW Box Hill Central, VIC Bayside, VIC Chatswood Chase Sydney, NSW Note: All images are artist’s impressions. Vicinity Centres FY21 Annual Res
Slide 18: Adrian Chye, Acting Chief Financial Officer
Adrian Chye Acting Chief Financial Officer QueensPlaza, QLD Vicinity Centres FY21 Annual Results | 18 August 2021 18
Slide 19: Financial Results
FINANCIAL RESULTS Income statement FY21 FY20 Variance Variance Statutory net loss of $258.0m primarily due to non-cash property valuation ($m) ($m) ($m) (%) decline 2H FY21: $136.5m net profit Net property income (NPI) 743.4 683.7 59.7 8.7 Material FFO impact from COVID-19 in FY21, particularly on a
Slide 20: Net Property Income, Waivers and Provisions
NET PROPERTY INCOME, WAIVERS AND PROVISIONS Material COVID-19 impact in FY21 principally due to Melbourne Stage 4 lockdown FY19 to FY21 gross rental billings FY21 collected and unpaid rent represents c.85% of FY21 gross rental billings Proportion of total (%) 1 FY20 waivers and provisions $75m more
Slide 21: Valuations
VALUATIONS Movement in valuations in 2H FY21 indicating stabilisation, COVID-19 assumptions for CBD and VIC remain Valuations at 30 June 2021 compared to 31 December 2020 38 properties externally valued, remainder internally valued Value No of Jun-212 Variance Variance Cap rate Cap rate Net valuatio
Slide 22: Capital Structure
CAPITAL STRUCTURE Strong balance sheet with limited near-term expiries Strong liquidity position of $2.4b Debt sources2 Conservative gearing position maintained 23.8% Bank debt undrawn (42%) Bank debt drawn (1%) Extension of $800m of existing bank debt facilities AMTN (15%) Weighted average cost of
Slide 23: Future Perspectives
FUTURE PERSPECTIVES Vicinity stabilises and invests for future growth; uncertainty and risks remain FY21 result benefited from several one-off items Reversal of FY20 waivers and provisions Elevated surrender payments Temporarily reduced operating costs Temporarily reduced interest costs following re
Slide 24: Grant Kelley, CEO and Managing Director
Grant Kelley CEO and Managing Director Emporium Melbourne, VIC Vicinity Centres FY21 Annual Results | 18 August 2021 24
Slide 25: Structural Shifts Drive Evolution of Our Platform
STRUCTURAL SHIFTS DRIVE EVOLUTION OF OUR PLATFORM Vicinity Centres FY21 Annual Results | 18 August 2021 25
Slide 26: Key Growth Drivers That Leverage All Assets
KEY GROWTH DRIVERS THAT LEVERAGE ALL ASSETS 26
Slide 27: Vicinity's Journey
VICINITY’S JOURNEY Vicinity transitioning to a forward-thinking real estate business, delivering long-term sustainable growth Transitioning from a retail REIT to a forward-thinking real estate business Optimising the retail portfolio to deliver enhanced performance through retailer, consumer and ope
Slide 28: Outlook
OUTLOOK Vicinity positioned for future growth as outlook improves Refined strategy to capitalise on opportunities in recovery from pandemic Strategy of creating attractive destination assets continues to evolve Build on strengths of retail core Driving growth from: 1. Adjacencies – utilising Vicinit
Slide 29: Appendices
APPENDICES 30 Development 32 Direct portfolio 39 Financial results 45 Asset summaries 49 Key dates 50 Contact details and disclaimer The Galeries, NSW Vicinity Centres FY21 Annual Results | 18 August 2021 29
Slide 30: Mixed-Use Developments and Retail Enhancements
MIXED-USE DEVELOPMENTS AND RETAIL ENHANCEMENTS Project planning continuing with commencements to be demand-led Artist’s impression of One Middle Road Artist’s impression of proposed office tower Artist’s impression Chadstone, VIC Bankstown Central, NSW Galleria, WA New car park development ($30m) wi
Slide 31: Mixed-Use Developments and Retail Enhancements
MIXED-USE DEVELOPMENTS AND RETAIL ENHANCEMENTS Project planning continuing with commencements to be demand-led Artist’s impression of South Precinct Artist’s impression Artist’s impression Box Hill Central, VIC Bayside, VIC Chatswood Chase Sydney, NSW Retail works commenced prior to mixed-use Two of
Slide 32: Direct Portfolio: Key statistics by centre type
DIRECT PORTFOLIO Key statistics by centre type Total portfolio Chadstone Premium CBDs DFOs1 Core Number of retail assets 59 1 7 7 44 Gross lettable area (000’s) (sqm) 2,421 234 222 231 1,735 Total value2 ($m) 13,468 3,016 1,965 1,745 6,742 Portfolio weighting by value (%) 100 22 15 13 50 Capitalisat
Slide 33: Portfolio Retail Sales Performance
PORTFOLIO RETAIL SALES PERFORMANCE Shoppers remain highly motivated and purpose driven Portfolio sales1 growth by store type and state Quarter growth2 MAT growth April and May sales1 showed favourable momentum, while June Jun 21 Mar 21 Dec 20 Jun 21 Dec 20 Jun 20 was impacted by snap lockdowns acros
Slide 34: Direct Portfolio: Sales by specialty category
DIRECT PORTFOLIO Sales by specialty category MM and SS2 Jun-21 Dec-20 proportion of Comparable MAT growth (%)1 total MAT MM and SS2 SS2 MM and SS2 SS2 Apparel 17 (8.5) (10.0) (33.7) (35.7) Homewares 8 (1.2) (5.5) (12.5) (28.1) Food catering 6 (12.4) (12.0) (34.2) (33.3) General retail 6 (8.5) (7.8)
Slide 35: Direct Portfolio: Key portfolio tenants
DIRECT PORTFOLIO Key portfolio tenants Top 10 tenants by income Top 10 tenant groups by income Number % of Number % of Rank Retailer Retailer type of stores income Rank Retailer of leases income Brands Big W, BWS, Dan Murphy’s, Woolworths, 1 Supermarket 37 3.5 1 61 4.3 Woolworths Liquor, Woolworths
Slide 36: Direct Portfolio: Lease expiry profile
DIRECT PORTFOLIO Lease expiry profile Lease expiry profile by income (%) 30 Majors 25 All other retailers 20 17 17 15 14 14 14 11 10 8 5 2 0 0 1 1 0 Holdover FY22 FY23 FY24 FY25 FY26+ Weighted average lease expiry (years) Jun-21 Jun-20 by Area 4.3 4.6 Northland, VIC by Income 3.3 3.6 Vicinity Centre
Slide 37: Direct Portfolio: Non-comparable centres for sales reporting
DIRECT PORTFOLIO Non-comparable centres for sales reporting Non-comparable status Centre Jun-21 Jun-20 Armidale Central, NSW Major vacated Stable/comparable Bankstown Central, NSW Pre-development Pre-development Chatswood Chase Sydney, NSW Pre-development Pre-development Ellenbrook Central, WA Post
Slide 38: 7,000 tenants across assets under management
DIRECT PORTFOLIO 7,000 tenants across 61 assets under management1 Direct portfolio1 Managed Third party/ Total Wholly-owned Co-owned Total co-owned AUM1 Number of retail assets 31 28 59 2/28 61 Gross lettable area (000’s) (sqm) 945 1,476 2,421 92 2,513 Number of tenants 2,762 3,948 6,710 271 6,981 T
Slide 39: FFO reconciliation to statutory net profit after tax
FINANCIAL RESULTS FFO reconciliation to statutory net profit after tax Jun-21 Jun-20 For the 12 months to ($m) ($m) Statutory net loss after tax (258.0) (1,801.0) Property revaluation decrement for directly owned properties 642.7 1,717.9 Non-distributable loss relating to equity accounted investment
Slide 40: Income statement – FY19 to FY21
FINANCIAL RESULTS Income statement – FY19 to FY21 FY19 FY20 FY21 For the 12 months to ($m) ($m) ($m) Net property income (NPI) 887.6 683.7 743.4 External fees 63.0 54.7 45.7 Total income 950.6 738.4 789.1 Gross corporate overheads (151.5) (116.3) (149.5) Internal charges1 83.2 74.1 63.1 Net corporat
Slide 41: Income statement – FY21 half-on-half analysis
FINANCIAL RESULTS Income statement – FY21 half-on-half analysis 1H FY21 2H FY21 Jun-21 Jun-20 For the 12 months to ($m) ($m) ($m) ($m) Net property income 344.4 399.0 743.4 683.7 External fees 21.3 24.4 45.7 54.7 Total segment income 365.7 423.4 789.1 738.4 Gross corporate overheads (69.7) (79.8) (1
Slide 42: NPI waterfall and waivers and provisions reconciliation
FINANCIAL RESULTS Net property income waterfall and waivers and provisions reconciliation – FY21 compared to FY20 NPI waterfall FY20 to FY21 Waivers and provisions FY20 to FY21 movement ($m) ($m) 800 18 ( 21 ) FY20 FY21 Total 750 reported reported (4) 66 700 FY20 waivers and provisions (169) 75 (94)
Slide 43: Balance sheet
FINANCIAL RESULTS Balance sheet Jun-21 Jun-20 Change As at ($m) ($m) ($m) Cash and cash equivalents 47.2 227.4 (180.2) Investment properties1 13,294.3 13,801.4 (507.1) Equity accounted investments 479.4 527.6 (48.2) Intangible assets 164.2 164.2 - Other assets 312.7 518.8 (206.1) Total assets 14,297
Slide 44: Capital management
FINANCIAL RESULTS Capital management Key debt statistics Hedging profile5,9 As at: Jun-21 Jun-20 3,500 5.5% Total debt facilities1 $5.7b $5.8b 3,000 5.0% Drawn debt2 $3.3b $3.9b 2,500 4.5% Gearing3 23.8% 25.5% Notional A$m Hedge rate Weighted average cost of debt4 3.6% 3.6% 2,000 4.0% Weighted avera
Slide 45: Asset Summaries: Centre statistics and valuations
ASSET SUMMARIES Centre statistics and valuations Value Net Capitalisation rate Discount rate Ownership Occupancy As at revaluation As at As at As at Centre type interest rate 30-Jun-211,2 movement1,3 30-Jun-21 31-Dec-20 Movement 30-Jun-21 (%) (%) ($m) ($m) (%) (%) (%) New South Wales Chatswood Chase
Slide 46: Asset Summaries: Centre statistics and valuations
ASSET SUMMARIES Centre statistics and valuations Value Net Capitalisation rate Discount rate Ownership Occupancy As at revaluation As at As at As at Centre type interest rate 30-Jun-211 movement1,2 30-Jun-21 31-Dec-20 Movement 30-Jun-21 (%) (%) ($m) ($m) (%) (%) (%) Queensland QueensPlaza City Centr
Slide 47: Asset Summaries: Centre statistics and valuations
ASSET SUMMARIES Centre statistics and valuations Value Net Capitalisation rate Discount rate Ownership Occupancy As at revaluation As at As at As at Centre type interest rate 30-Jun-211 movement1,2 30-Jun-21 31-Dec-20 Movement 30-Jun-21 (%) (%) ($m) ($m) (%) (%) (%) Victoria Chadstone Super Regional
Slide 48: Asset Summaries: Centre statistics and valuations
ASSET SUMMARIES Centre statistics and valuations Value Net Capitalisation rate Discount rate Ownership Occupancy As at revaluation As at As at As at Centre type interest rate 30-Jun-211 movement1,2 30-Jun-21 31-Dec-20 Movement 30-Jun-21 (%) (%) ($m) ($m) (%) (%) (%) Western Australia Galleria Major
Slide 49: Key Dates
KEY DATES Investor calendar Key dates Ex-distribution date for June 2021 distribution 29 June 2021 Record date for June 2021 distribution 30 June 2021 2021 annual results 18 August 2021 June 2021 distribution payment 31 August 2021 June 2021 distribution statements and 2021 Annual Tax Statements des
Slide 50: Contact Details and Disclaimer
CONTACT DETAILS AND DISCLAIMER For further information please contact: Jane Kenny Troy Dahms Head of 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 this doc
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