Slide 1: 2018 Annual General Meeting of Vicinity Centres - Addresses and presentation
1 November 2018 Market Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam 2018 Annual General Meeting of Vicinity Centres - Addresses and presentation Please find attached copies of the Chairman’s and CEO and Managing Director’s addresses and presentation to be delivere
Slide 2: Chairman's address
ASX Announcement 1 November 2018 2018 Annual General Meeting addresses Chairman’s address Peter Hay Vicinity Centres This year, Vicinity Centres’ (Vicinity, ASX:VCX) further reinforced its position as one of Australia’s leading retail property groups, with a flagship portfolio that includes: • Austr
Slide 3: Sustainability
Sustainability We believe sustainability is key to value creation over the long term. This year, Vicinity was named third most sustainable real estate company globally in the Dow Jones Sustainability Index. Our recent sustainability achievements include: • reducing the carbon intensity of the portfo
Slide 4: FY18 financial results
Today I will go through our results for the year, and share our strategy to capture value in the new shopping centre environment. FY18 financial results For the 2018 financial year, Vicinity delivered a net profit of over $1.2 billion, consisting of $708 million of funds from operations (FFO), and a
Slide 5: Vicinity's strategy
Vicinity’s strategy In August, we announced a strategy based on three profit drivers: 1. Focusing our directly owned portfolio on market-leading destinations 2. Realising mixed-use opportunities across the portfolio, and 3. Expanding our wholesale funds platform. First and foremost, our 50 market-le
Slide 6: September 2018 sales performance
September 2018 sales performance Our September 2018 performance reinforces this strategy. During the quarter, and adjusting for the sale of the 11 non-core centres, specialty store moving annual turnover (or MAT) per square metre increased 3.9% to slightly over $10,500. Sales growth for the total po
Slide 7: Roadmap for stronger and sustainable growth
Inside Chadstone, the $50 million redevelopment of the atrium is progressing well. It will include expanded dining options, youth fashion and sporting goods stores, and the addition of Australia’s first full-line Victoria’s Secret store, which will be open in time for Christmas. Mixed-use project -
Slide 8: FY18 and September 2018 quarter in review
Chairman’s address (continued) Peter Hay FY18 and September 2018 quarter in review In summary, Vicinity delivered solid results in FY18 and we have set a clear strategy that positions us well to continue to drive strong and sustainable growth. We have already made substantial inroads to execute on t
Slide 9: 2018 Annual General Meeting
2018 Annual General Meeting 1 November 2018 Vicinity Centres | 2018 Annual General Meeting | 1 November 2018
Slide 10: Chairman's address
Chairman’s address Peter Hay Vicinity Centres | 2018 Annual General Meeting | 1 November 2018 Queen Victoria Building, NSW
Slide 11: Your Board
Your Board Peter Hay Grant Kelley Clive Appleton Dr David Thurin Janette Kendall (Chairman) (CEO and Managing Director) NOM, RC NOM, RHR NOM* Karen Penrose Peter Kahan Tim Hammon Trevor Gerber Wai Tang AUD*, RC RHR*, AUD RC*, NOM, RHR AUD, RHR AUD, RC Committee memberships: AUD = Audit, NOM = Nomina
Slide 12: Chairman's address and CEO address
Peter Hay Chairman’s address CHAIRMAN Grant Kelley CEO and CEO AND MANAGING DIRECTOR Managing Director’s address Peter Hay Formalities of the CHAIRMAN Meeting Vicinity Centres | 2018 Annual General Meeting | 1 November 2018 The Galeries, NSW
Slide 13: Vicinity Centres
Vicinity Centres A leading Australian retail property group reimagining destinations of the future Chadstone 42% Australia’s #1 retail, dining and Total return entertainment destination over past three years Unrivalled premium CBD retail offer across Australia’s three largest CBDs $73m DFOs committe
Slide 14: Delivering on strategy
Delivering on strategy Vicinity has a track record of creating value for securityholders Improvement in metrics since merger (June 2015) Current Change Average asset value (Based on Jun-18 valuations) $412m ↗72% Gearing (Jun-18) 26.4% ↘160 bps Net tangible assets per security (NTA) (Jun-18) $2.97 ↗2
Slide 15: Roadmap for stronger and more sustainable growth
Roadmap for stronger and more sustainable growth Active capital recycling program driving future growth In progress Completed Strong and sustainable growth Market-leading destinations Wholesale funds management Completing capital recycling strategy Mixed-use opportunities Up to $1.0b of non-core Sub
Slide 16: Sustainability
Sustainability Delivering sustainable long-term value for our communities and securityholders Third most sustainable real estate company in the world in the DJSI1 Global #3 survey by Robeco SAM Rated 3rd most sustainable Ongoing improvements in environmental efficiency company globally in DJSI1 Ener
Slide 17: CEO and Managing Director's address
CEO and Managing Director’s address Grant Kelley Vicinity Centres | 2018 Annual General Meeting | 1 November 2018 Emporium Melbourne, VIC
Slide 18: FY18 financial results
FY18 financial results Funds from operations (FFO) per security growth of 2.2% on a comparable basis1 Statutory net profit FFO per security Comparable FFO per security1 Net corporate overheads $1,218.7 million 18.2 cents 2.2% growth 2.1% reduction FFO of $708.7m and strong net Growth of 1.1% on FY17
Slide 19: FY18 financial position
FY18 financial position Strong balance sheet maintained, well positioned for the future NTA of $2.97 Total return1 Increase in investment properties2 Gearing 5.3% growth 11.1% $852.3 million 26.4% Asset valuation gains and securities 5.3% growth in NTA and Net asset valuation gains of $555.1m Up 170
Slide 20: Sydney premium asset swap
Sydney premium asset swap provides Vicinity with an unrivalled premium CBD retail offer Acquired 50% interests in Queen Victoria Building, The Galeries and The Strand Arcade Unrivalled Valuations up Settled in premium 8.5% since April 2018 CBD retail acquisition offer Queen Victoria Building, NSW Th
Slide 21: Vicinity's strategy
Vicinity’s strategy Unlocking Vicinity’s potential Vicinity’s strategy is to deliver strong and sustainable growth via focus on: 1. 1 Market-leading destinations 2. 2 Expanding our wholesale funds platform 3. 3 Realising mixed-use opportunities Destination Listed (VCX) assets Wholesale Land parcel a
Slide 22: Three strategic initiatives announced in 2018
Three strategic initiatives announced in 2018 Implementing the strategy Divestment of up to $1.0b Significant mixed-use Proposed establishment1 of Destination assets of non-core assets opportunities identified ~$1.0b wholesale fund with across portfolio Keppel Capital Mixed-use Wholesale Non-core Su
Slide 23: Market-leading destinations
Market-leading destinations Highly productive portfolio with strong growth potential Post planned divestment of ~$2.0b of assets1 Destination asset portfolio (by value)1 Flagship portfolio ~50 centres Chadstone, premium CBD and DFO Development Chadstone assets represent ~50%1 potential High potentia
Slide 24: September 2018 sales performance
September 2018 sales performance Services, leisure and food catering continue to show strong growth Specialty store MAT/sqm1,2 Retail services1,2,3 Leisure1,2,3 Food catering1,2,3 $10,531 +5.2% +5.1% +3.3% Up 3.9% compared to $10,133 at Jun-18 Hairdressing and beauty +6.5% Sporting goods +9.7% Cafes
Slide 25: Completed development – Mandurah Forum, WA
Completed development – Mandurah Forum, WA Creating the new ‘Heart of the South’ in Perth Project cost1 $320 million Completed June 2018 Project features Full centre reconfiguration and expansion New format David Jones Upgraded Kmart New H&M and Mecca Maxima Fresh food market hall Large indoor/outdo
Slide 26: Completed development – DFO Perth, WA
Completed development – DFO Perth, WA Vicinity’s highly-successful outlet centre model introduced to WA, with opening of DFO at Perth Airport Project cost1 $150 million Completed October 2018 High quality tenant mix First stores in WA – Coach, Furla, Kate Spade, Polo Ralph Lauren, Tommy Hilfiger and
Slide 27: Current development – The Glen, VIC
Current development – The Glen, VIC Stage three opened as major transformation of centre to take advantage of growing catchment continues Project cost1 $430 million Stage three opened in October 2018 100% leased fashion and lifestyle mall H&M, UNIQLO and 80 specialty stores Additional project featur
Slide 28: Current development – Chadstone Hotel, VIC
Current development – Chadstone Hotel, VIC Construction of high-quality hotel for Melbourne’s south-east progressing well Project cost1 $130 million Project completion Late 2019 Hotel features 250-room hotel with premium features Conference and meeting room facilities Two restaurants Catering for to
Slide 29: Mixed-use project – Box Hill Central, VIC
Mixed-use project – Box Hill Central, VIC Major transport hub with the potential for significant retail and a range of additional property uses on site Distance from Melbourne CBD 20 km Features Growing precinct identified as an Activity Centre by the State Government Active residential development
Slide 30: Leveraging digital to reinforce physical presence
Leveraging digital to reinforce physical presence Opportunity to use data insights and technology to drive sales Changing Want a seamless, omni-channel experience Opportunity for Vicinity to use data consumer Shift in spending towards experiences insights and technology to: preferences • Improve ret
Slide 31: Integrated energy strategy
Integrated energy strategy generating significant benefits Reducing grid reliance and exposure to volatile energy prices whilst providing strong investment returns Integrated energy strategy developed Largest retail solar investment1 Power generated by solar Strong investment returns Four pillars $7
Slide 32: Vicinity's strategy
Vicinity’s strategy Unlocking Vicinity’s potential Vicinity’s strategy is to deliver strong and sustainable growth via focus on: 1. 1 Market-leading destinations 2. 2 Expanding our wholesale funds platform 3. 3 Realising mixed-use opportunities Destination ~50 market-leading destinations assets Whol
Slide 33: Chairman's address (continued)
Chairman’s address (continued) Peter Hay Vicinity Centres | 2018 Annual General Meeting | 1 November 2018 Chatswood Chase Sydney, NSW
Slide 34: FY18 and September 2018 quarter in review
FY18 and September 2018 quarter in review Positioning for strong and sustainable growth Solid earnings growth in FY18 Clear strategy set to drive strong and sustainable growth by focusing on: Market-leading destinations Realising mixed-use opportunities Expanding our wholesale funds platform Portfol
Slide 35: FY19 guidance reiterated
FY19 guidance reiterated Comparable FFO per security growth of 3.4% to 4.6%1 No major change to the current retail environment expected over the next 12 months Portfolio well positioned to create long-term value and sustainable growth FY19 FFO per security guidance range of 18.0 to 18.2 cents2,3 Dis
Slide 36: Questions
Questions Vicinity Centres | 2018 Annual General Meeting | 1 November 2018 Chadstone, VIC
Slide 37: Formalities of the Meeting
Formalities of the Meeting Peter Hay Vicinity Centres | 2018 Annual General Meeting | 1 November 2018 QueensPlaza, QLD
Slide 38: Financial reports
1. Financial reports Item 1 To receive and consider financial reports Securityholders are asked to receive and consider the financial reports of Vicinity Centres (comprising the Company and the Trust) and the reports of the Directors and Auditor for the year ended 30 June 2018. Vicinity Centres | 20
Slide 39: Non-binding advisory vote on Remuneration Report
2. Non-binding advisory vote on Remuneration Report Item 2 Non-binding advisory vote on Remuneration Report To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: That the Company’s Remuneration Report as contained in Vicinity Centres’ Annual Report
Slide 40: Proxy votes
2. Proxy votes Item 2 Non-binding advisory vote on Remuneration Report 3,254,223,799 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,200,337,436 98.34% 5,992,098 0.18% 47,894,265 1.47% The Chairman intends to vote all undirected proxie
Slide 41: Re-election of Tim Hammon
3. Re-election and election of Directors of the Company Item 3(a) Re-elect Mr Tim Hammon as a Director of the Company To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: That Mr Tim Hammon, being a Director who retires in accordance with clauses 9
Slide 42: Proxy votes
3. Proxy votes Item 3(a) Re-elect Mr Tim Hammon as a Director of the Company 3,304,350,010 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,151,557,667 95.38% 6,003,963 0.18% 146,788,380 4.44% The Chairman intends to vote all undirected
Slide 43: Re-election of Wai Tang
3. Re-election and election of Directors of the Company Item 3(b) Re-elect Ms Wai Tang as a Director of the Company To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: That Ms Wai Tang, being a Director who retires in accordance with clauses 9.1(d
Slide 44: Proxy votes
3. Proxy votes Item 3(b) Re-elect Ms Wai Tang as a Director of the Company 3,304,430,922 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,293,550,990 99.67% 6,006,864 0.18% 4,873,068 0.15% The Chairman intends to vote all undirected pro
Slide 45: Election of Janette Kendall
3. Re-election and election of Directors of the Company Item 3(c) Elect Ms Janette Kendall as a Director of the Company To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: That Ms Janette Kendall, being a Director who ceases to hold office in acco
Slide 46: Proxy votes
3. Proxy votes Item 3(c) Elect Ms Janette Kendall as a Director of the Company 3,304,228,958 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,292,476,209 99.64% 5,926,204 0.18% 5,826,545 0.18% The Chairman intends to vote all undirected
Slide 47: Election of Clive Appleton
3. Re-election and election of Directors of the Company Item 3(d) Elect Mr Clive Appleton as a Director of the Company To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: That Mr Clive Appleton, being a Director who ceases to hold office in accord
Slide 48: Proxy votes
3. Proxy votes Item 3(d) Elect Mr Clive Appleton as a Director of the Company 3,304,292,817 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,291,142,809 99.60% 6,119,078 0.19% 7,030,930 0.21% The Chairman intends to vote all undirected
Slide 49: Proposed equity grant to CEO and Managing Director
4. Proposed equity grant to CEO and Managing Director Item 4 Approval of proposed equity grant to CEO and Managing Director To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company and the Trust: That, for the purposes of ASX Listing Rule 10.14 and all
Slide 50: Proxy votes
4. Proxy votes Item 4 Approval of proposed equity grant to CEO and Managing Director 3,287,607,021 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,060,032,072 93.08% 5,929,282 0.18% 221,645,667 6.74% The Chairman intends to vote all un
Slide 51: Insertion of Partial Takeovers Provisions in Company constitution
5. Insertion of Partial Takeovers Provisions in Company constitution Item 5 Insertion of Partial Takeovers Provisions in Company constitution To consider and, if thought fit, pass the following resolution as a special resolution of the Company, in accordance with sections 136(2) and 648G of the Corp
Slide 52: Proxy votes
5. Proxy votes Item 5 Insertion of Partial Takeovers Provisions in Company constitution 3,300,999,923 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,288,754,257 99.63% 6,137,804 0.19% 6,107,862 0.19% The Chairman intends to vote all u
Slide 53: Insertion of Partial Takeovers Provisions in Trust constitution
6. Insertion of Partial Takeovers Provisions in Trust constitution Item 6 Insertion of Partial Takeovers Provisions in Trust constitution To consider and, if thought fit, pass the following resolution as a special resolution of the Trust, in accordance with sections 601GC(1)(a) and 648G of the Corpo
Slide 54: Proxy votes
6. Proxy votes Item 6 Insertion of Partial Takeovers Provisions in Trust constitution 3,300,970,517 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,288,682,276 99.63% 6,145,582 0.19% 6,142,659 0.19% The Chairman intends to vote all und
Slide 55: Close of Meeting
Close of Meeting Vicinity Centres | 2018 Annual General Meeting | 1 November 2018 Northland, VIC
Slide 56: Key dates
Key dates Investor calendar Key dates Ex-distribution date for December 2018 distribution 28 December 2018 Record date for December 2018 distribution 31 December 2018 FY19 interim results 15 February 2019 December 2018 distribution payment 4 March 2019 Ex-distribution date for June 2019 distribution
Slide 57: Contact details and disclaimer
Contact details and disclaimer For further information please contact: 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 is a presentation of ge