Slide 1: Quarterly update March 2016
For personal use only Halls Head Central, WA Quarterly update March 2016 4 May 2016
Slide 2: Agenda
For personal use only Agenda 4 Group highlights 11 Ellenbrook and Livingston update 5 Retail environment 12 Development update 6 Portfolio sales 19 FY16 outlook and focus 8 DFO Perth development 20 Appendices 10 Asset divestment program 24 Contact details Emporium Melbourne, VIC
Slide 3: Strategic focus
Strategic focus Create value and sustainable growth by owning, managing and developing quality Australian assets across the retail spectrum For personal use only • Simple and transparent business model, with a single Key financial objectives (‘through cycle’ basis) sector focus • Invest in quality A
Slide 4: Group highlights
Group highlights An active year to date Joint venture agreed to develop a new DFO at Perth Airport For personal use only First transaction in asset divestment program announced • Indooroopilly Central, QLD sold for 31% premium to book value Moody’s initiated with an ‘A2/stable’ rating and S&P raised
Slide 5: Retail environment
Retail environment Economic outlook remains solid, improving consumer sentiment and a low AUD benefitting domestic retail sales Solid economic growth outlook to underpin retail sales growth Retail sales growth is expected to benefit from improving consumer sentiment For personal use only 130 12% 25%
Slide 6: Portfolio sales by store type
Portfolio sales by store type Total sales growth supported by improvements across all majors categories For personal use only Actual MAT 31-Mar-16 Comparable1 MAT growth All majors categories MAT sales improved • Individual brand performance remains mixed % of MAT portfolio 31-Mar-16 31-Dec-15 Easte
Slide 7: Portfolio specialty store performance and trends
Portfolio specialty store performance and trends Specialty store sales growth impacted by Easter (particularly in CBD centres) and warm Autumn (apparel down) For personal use only Actual MAT 31-Mar-16 Comparable1 MAT growth Apparel • Impacted by warmer than average start to Autumn % of MAT specialty
Slide 8: DFO Perth development
DFO Perth development Joint venture to create new Outlet Centre in Perth Joint venture with Perth Airport to develop a new 24,000 sqm DFO For personal use only • Over 110 specialty stores • Over 1,600 car spaces • 31-year ground lease with a 49-year option Further reinforces Vicinity’s leadership po
Slide 9: DFO Perth development
DFO Perth development Ideally located to service Perth residents and 14 million domestic and international travellers annually1 For personal use only JOONDALUP (35 mins) DIANELLA SCARBOROUGH (18 mins) (30 mins) DFO PERTH PERTH CBD (20 mins) COTTESLOE (35 mins) MURDOCH FREMANTLE (30 mins) (40 mins) A
Slide 10: Asset divestment program
Asset divestment program A strong start December 2015 announced $750m to $1b of assets to be divested For personal use only subject to market conditions1 Sale of Indooroopilly Central agreed for $85m reflecting a 31% premium to December 2015 book value and a passing yield of approximately 5.9% This
Slide 11: Ellenbrook and Livingston update
Ellenbrook and Livingston update Strong progress post acquisition in December 2015 Synergies achieved through head count and intensive asset management For personal use only approach by leveraging depth and breadth of on-the-ground team Risk and compliance training and new centre websites completed
Slide 12: Development highlights
Development highlights Significant progress on projects achieved during the period For personal use only Three projects totalling1 $120m opened during quarter Warriewood Square on track to open in June 2016 Chadstone Retail leasing well progressed $350m Mandurah Forum project commenced construction
Slide 13: Halls Head Central $55m development completed
Halls Head Central $55m development1,2 completed Centre tripled in size to become a Sub Regional shopping centre Opened fully leased in March 2016 Centre statistics Post Pre For personal use only Centre trading strongly Centre type Sub Regional Neighbourhood Alfresco restaurants have been well recei
Slide 14: Colonnades $51m development completed
Colonnades $51m development1 completed Centre expanded including new fresh food offer and introduction of Aldi All stores leased and trading2 Centre statistics Post Pre For personal use only Both Woolworths and Aldi trading strongly Majors 8 6 Fresh food tenants enjoying significant increase in patr
Slide 15: DFO South Wharf $14m development completed
DFO South Wharf $14m development1 completed Mini major reconfiguration and food court upgrade Opened in March 2016 Centre statistics Post Pre For personal use only Income achieved well above budget Mini majors 32 33 Continued strong demand for retail specialty space at the centre Total stores 214 19
Slide 16: Warriewood Square $87m project nearing completion
Warriewood Square $87m project1 nearing completion Development on track to open in June 2016 Expansion of Woolworths, a new Aldi, the introduction of two mini majors Centre statistics Post Pre For personal use only (A Mart and Cotton On Mega) and 26 additional specialty stores Kmart, Coles, Aldi, Km
Slide 17: Chadstone development progressing well
Chadstone development progressing well The evolution of Australia’s best shopping centre continues Key metrics For personal use only Cost (Retail and Office)1 $666m Initial yield >6% Expected IRR >10% World-class entertainment and leisure precinct around a central atrium with five international flag
Slide 18: Mandurah Forum development commenced
Mandurah Forum development commenced Complete centre refurbishment and expansion For personal use only Key metrics Cost1 $350m Initial yield >6% Expected IRR >10% Site mobilisation occurred in late April 2016 and major construction works commenced in first week of May 2016 Positioned to reinforce ce
Slide 19: FY16 outlook and focus
FY16 outlook and focus Well positioned to create value and sustainable growth For personal use only Underlying earnings per security (EPS) guidance unchanged at 19.1 cents1 • Payout ratio is expected to be 90% to 95% of underlying EPS Progress asset divestment program to fund value-accretive develop
Slide 20: Appendices
Appendices For personal use only 21 Asset summaries 23 Key dates 24 Contact details QueensPlaza, QLD
Slide 21: Asset summaries
Asset summaries Centre statistics – 31 March 2016 For personal use only Moving Moving annual Centre Specialty annual Centre Specialty Centre type Interest turnover sales sales Centre type Interest turnover sales sales (%) ($m) ($/sqm) ($/sqm) (%) ($m) ($/sqm) ($/sqm) New South Wales Queensland Chats
Slide 22: Asset summaries (continued)
Asset summaries Centre statistics – 31 March 2016 (continued) For personal use only Moving Moving annual Centre Specialty annual Centre Specialty Centre type Interest turnover sales sales Centre type Interest turnover sales sales (%) ($m) ($/sqm) ($/sqm) (%) ($m) ($/sqm) ($/sqm) Victoria Victoria (c
Slide 23: Key dates
Key dates For personal use only Key dates Investor Day (Melbourne) 8 June 2016 Ex-distribution date for June 2016 distribution 28 June 2016 Record date for June 2016 distribution 30 June 2016 FY16 annual results 17 August 2016 June 2016 distribution payment 30 August 2016 2016 Annual General Meeting
Slide 24: Contact details and disclaimer
Contact details and disclaimer For further information please contact: For personal use only Penny Berger Troy Dahms Head of Investor Relations Senior Investor Relations Manager T +61 2 8229 7760 T +61 2 8229 7763 E penny.berger@vicinity.com.au E troy.dahms@vicinity.com.au Disclaimer This document i