Slide 1: 2023 Annual Results
2023 Annual Results 16 AUGUST 2023
Slide 2: Welcome and Agenda
WELCOME AGENDA 04 13 PETER HUDDLE CEO and Managing Director Overview and portfolio Financial results performance 17 22 ADRIAN CHYE Chief Financial Officer Developments, Appendices Summary and FY24 guidance Vicinity Centres 2023 Annual Results | 16 August 2023 2
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
Slide 4: Overview and Portfolio Performance
OVERVIEW AND PORTFOLIO PERFORMANCE PETER HUDDLE CEO AND MANAGING DIRECTOR Vicinity Centres 2023 Annual Results | 16 August 2023
Slide 5: FY23 Highlights
FY23 HIGHLIGHTS Vicinity Centres delivers strong FY23 result buoyed by positive operating metrics and income growth EXECUTING ON STRATEGY AND BUILDING EARNINGS RESILIENCE Strong portfolio metrics supporting current and future year Net Property Income (NPI) growth Continued execution of retail and mi
Slide 6: Vicinity's Investment Proposition
VICINITY'S INVESTMENT PROPOSITION Prized asset portfolio, long-term partnerships, strong balance sheet and proven track record of delivering value growth Chadstone is Australia’s #1 retail asset Pre-eminent CBD Australia’s leading Outlet Centre recognised globally portfolio portfolio Value accretive
Slide 7: Our Strategy
OUR STRATEGY Enhancing securityholder returns with investment decisions and capital deployment being property-led and prioritised to deliver profitable growth ENHANCE THE INVESTMENT PORTFOLIO Owning the right assets through active portfolio curation Unlock value from significant retail and mixed-use
Slide 8: Leadership in Sustainability
LEADERSHIP IN SUSTAINABILITY Creating sustainable destinations within our communities and providing long-term value for securityholders ON TRACK TO ACHIEVE NET ZERO CARBON TARGET1 BY 2030 On track to achieve our target of net zero for our Scope 1 and Scope 2 emissions for common mall areas across ou
Slide 9: Portfolio Highlights
PORTFOLIO HIGHLIGHTS Strong portfolio metrics; deliberately executed at pace in a resilient retail sector RESILIENT RETAIL SECTOR IN FY23, DESPITE COST-OF-LIVING PRESSURES Dec-22 Mar-23 Jun-23 Jun-23 Resilient retail sector benefactor of strong employment, and deployment of accumulated savings PORTF
Slide 10: Retail Sales
RETAIL SALES Resilient retail sector in FY23; all centre types and categories deliver growth in 2H FY23 Dec 22 Mar 23 Jun 23 Jun 23 $18.6B OF TOTAL SALES FROM 400M+ CUSTOMER VISITS ANNUALLY TOTAL PORTFOLIO SALES1 VS FY22 (% growth) (2 mths) (qtr) (qtr) (6 mths) TOTAL PORTFOLIO 2H FY23 SALES1 UP 8.0%
Slide 11: Leasing
LEASING Strengthened income growth profile in FY24 and beyond with high-quality, long-term leasing deals LEVERAGED RESILIENT RETAIL SECTOR TO DRIVE LONG-TERM INCOME GROWTH LEASING STATISTICS FY22 1H FY23 FY23 1,628 comparable deals at +0.3% leasing spread Total1 deals completed 2,030 1,163 2,249 Com
Slide 12: Luxury, Athleisure and Fresh Food
LUXURY, ATHLEISURE AND FRESH FOOD Strong leasing execution and capital investment across key growth categories LUXURY ATHLEISURE FRESH FOOD AND DINING Chadstone, VIC DFO South Wharf, VIC Bankstown Central, NSW PRIMED FOR CONTINUED EXPANSION GREATER CONSUMER FOCUS ON WELLNESS CONSUMER PALATE BECOMING
Slide 13: Financial Results
FINANCIAL RESULTS ADRIAN CHYE CHIEF FINANCIAL OFFICER Vicinity Centres 2023 Annual Results | 16 August 2023
Slide 14: Financial Results: Income statement
FINANCIAL RESULTS Income statement STRONG EARNINGS PERFORMANCE FY23 FY22 Variance Variance FFO up 14.5% ($m) ($m) ($m) (%) 1 NPI up 12.1% Net property income (NPI) 900.2 802.8 97.4 12.1 External management fees 60.5 52.5 8.0 15.2 KEY DRIVERS OF PERFORMANCE Total income 960.7 855.3 105.4 12.3 NPI – b
Slide 15: 2H FY23 Valuations
2H FY23 VALUATIONS Strong leasing performance supports long-term income growth and provides a partial offset to softened capitalisation rates 2H FY23 VALUATIONS DOWN 1.6% OR $229M1 No. of Valuation Variance Capitalisation Movement Weighted average capitalisation rate (WACR) softened 16 bps (FY23: 19
Slide 16: Capital Structure
CAPITAL STRUCTURE Disciplined approach to capital management maintained; balance sheet well positioned to support growth priorities PROACTIVE CAPITAL MANAGEMENT1 DEBT SOURCES1 $1.0b of new and extended bank debt facilities (%) Cancelled $700m of bank debt facilities 2 7 13 Entered FY24 with 90% of d
Slide 17: Developments, Summary and FY24 Guidance
DEVELOPMENTS, SUMMARY AND FY24 GUIDANCE PETER HUDDLE CEO AND MANAGING DIRECTOR Vicinity Centres 2023 Annual Results | 16 August 2023
Slide 18: Development Overview
DEVELOPMENT OVERVIEW Driving portfolio enhancement with greater emphasis on mixed-use, food, services and experiences FIVE KEY PROJECTS DELIVERED • Chadstone – The Social Quarter and Chadstone Place Officeworks head office • Box Hill Central – Coles and services mall, and three-level Office podium l
Slide 19: Major Development Completed – The Social Quarter
MAJOR DEVELOPMENT COMPLETED – ‘THE SOCIAL QUARTER’ AT CHADSTONE New entertainment and dining precinct brings a new, leisure-orientated customer to Chadstone and extends daily trading hours NEW ENTERTAINMENT AND DINING PRECINCT Delivers additional 5,900 sqm of GLA Complements the adjacent Dining Terr
Slide 20: Major Development Underway – Chadstone Mixed-Use Project
MAJOR DEVELOPMENT UNDERWAY – CHADSTONE MIXED-USE PROJECT Fully integrated mixed-use development; One Middle Road office tower with fresh food Market Pavilion and alfresco dining precinct FULLY INTEGRATED MIXED-USE DEVELOPMENT WELL UNDERWAY Commenced in 1Q FY23 Construction progressing well and on tr
Slide 21: Summary and FY24 Guidance
SUMMARY AND FY24 GUIDANCE Operational execution and favourable retail environment in FY23 provides platform for continued income growth in FY24 FY23 – A YEAR OF GROWTH AND EMBEDDING EARNINGS RESILIENCE FY24 GUIDANCE VS FY23 FFO Deliberately executed leasing at pace while retail sector was favourable
Slide 22: Appendices
APPENDICES 23 Executive Leadership Team 24 Development 26 Australian retail 27 Direct portfolio 31 Assets under environment management 32 Financial results 35 Key dates 36 Contact details and disclaimer Vicinity Centres 2023 Annual Results | 16 August 2023 22
Slide 23: Vicinity's Executive Leadership Team
VICINITY’S EXECUTIVE LEADERSHIP TEAM PETER HUDDLE ADRIAN CHYE CAROLYN REYNOLDS DAVID MARCUN DAVID McNAMARA CEO and Managing Director Chief Financial Officer Chief Legal, Risk & ESG Officer Deputy CFO Director Funds Management JEHEON SON KIRRILY LORD TANYA SOUTHEY MATT PARKER Group Director, Developm
Slide 24: Development Projects - Completed
DEVELOPMENT PROJECTS - COMPLETED CHADSTONE BOX HILL CENTRAL BOX HILL CENTRAL BANKSTOWN CENTRAL CHADSTONE PLACE COLES MALL AND RESTAURANTS OFFICE PODIUM – HUB LOCAL COLES, THE GRAND MARKET AND MINI MAJORS REMIX COMPLETED COMPLETED COMPLETED COMPLETED • Total cost of $21m1 • Total cost of $43m1 • Tota
Slide 25: Development Pipeline
DEVELOPMENT PIPELINE Development pipeline now $3.3 billion Asset Project Est cost ($m)1 FY23 FY24 FY25 FY26 FY27+ Chadstone Retail – The Social Quarter Complete Office – Officeworks Complete Mixed-use – One Middle Road office and retail 250 Retail – luxury brand expansion 70 Office – Dandenong offic
Slide 26: Australian Retail Environment
AUSTRALIAN RETAIL ENVIRONMENT High interest rates driving a moderation in retail sales growth; however house prices remain elevated, the employment market is tight and international visitors continue to return to pre-COVID levels INCOME, SALES AND SAVINGS1,2 HOUSE PRICES2,3 (%) (Quarterly index: Jun
Slide 27: Direct Portfolio: Key statistics by centre type
DIRECT PORTFOLIO Key statistics by centre type Total portfolio Chadstone Premium CBDs Outlet Centres1 Core Number of retail assets 59 1 7 8 43 Gross lettable area (000’s) (sqm) 2,437 240 222 285 1,689 Total value2 ($m) 14,382 3,325 1,966 2,338 6,754 Portfolio weighting by value (%) 100 23 14 16 47 C
Slide 28: Direct Portfolio: Key tenants
DIRECT PORTFOLIO Key tenants TOP 10 BRANDS BY INCOME TOP 10 TENANT GROUPS BY INCOME No. of % of Rank Retailer Retailer type stores income No. of % of Rank Retailer leases income Brands 1 Supermarket 36 3.3 Kmart, Priceline, Priceline Pharmacy, Target, 1 68 4.7 Clearskincare Clinics 2 Supermarket 35
Slide 29: Direct Portfolio: Additional leasing disclosures
DIRECT PORTFOLIO Additional leasing disclosures LEASE EXPIRY PROFILE COMPARABLE LEASING DEALS (By income, %) (By deal type, %) 1,800 22 20 1,600 15 11 11 12 1,400 24% New 4 1,200 28% 1 1 2 1 29% 0 30% 1,000 Holdover FY24 FY25 FY26 FY27 FY28+ 800 31% 59% Renewals Majors All other retailers 47% 40% 48
Slide 30: Direct Portfolio: Non-comparable centres for sales reporting
DIRECT PORTFOLIO Non-comparable centres for sales reporting Jun 23 Dec 22 Armidale Central, NSW Major changeover Major changeover Bankstown Central, NSW Development Development Box Hill Central, VIC Major changeover and pre-development Major changeover and pre-development Chatswood Chase Sydney, NSW
Slide 31: Assets Under Management
ASSETS UNDER MANAGEMENT Approximately 6,900 tenants across 60 assets under management1 DIRECT PORTFOLIO ASSETS UNDER MANAGEMENT Wholly-owned Jointly-owned Total Third party/co-owned Total1 Number of assets 30 29 59 1/29 60 Value2 ($m) 5,953 8,430 14,382 471/8,703 23,556 GLA (000,sqm) 885 1,552 2,437
Slide 32: FFO reconciliation to statutory net profit after tax
FINANCIAL RESULTS FFO reconciliation to statutory net profit after tax FY23 FY22 ($m) ($m) Statutory net profit after tax 271.5 1,215.2 Property revaluation decrement/(increment) for directly owned properties 195.9 (633.3) Non-distributable loss relating to equity accounted investments 71.9 10.8 Amo
Slide 33: Financial Results: Balance sheet
FINANCIAL RESULTS Balance sheet JUN 23 JUN 22 Variance ($m) ($m) ($m) Cash and cash equivalents 192.9 55.6 137.3 Investment properties1 14,288.4 14,366.4 (78.0) 1 Equity accounted investments 437.5 513.8 (76.3) Intangible assets 164.2 164.2 - Other assets 501.6 452.6 49.0 Total assets 15,584.6 15,55
Slide 34: Additional debt disclosures
FINANCIAL RESULTS Additional debt disclosures KEY DEBT STATISTICS JUN 23 JUN 22 FIXED RATE INSTRUMENTS HEDGE RATE6,9 (Weighted average, $b) (Weighted average, %) Total debt facilities1,2 $5.0b $5.1b 4.0 4.0 Drawn debt ($b) $3.8b3 $3.7b 3.5 3.5 Gearing4 25.6% 25.1% Weighted average cost of debt5 4.6%
Slide 35: Key Dates
KEY DATES1 Investor calendar 16 August 2023 21 August 2023 22 August 2023 11 September 2023 12 September 2023 FY23 annual results released and Ex-distribution date for FY23 final Record date for FY23 final distribution Payment date for FY23 final distribution 2023 AMMA statements released announceme
Slide 36: Contact Details and Disclaimer
CONTACT DETAILS AND DISCLAIMER FOR FURTHER INFORMATION P L E A S E 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
Slide 37: Thank you
YY ‘, a / Svanny \\Hh\\ y/ ~ CENTRES y y Thank you