Slide 1: FY22 Interim Results, six months ended 31 December 2021
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021 16 FEBRUARY 2022 DFO Homebush, NSW
Slide 2: Welcome and Agenda
WELCOME AGENDA 3 Half year overview 6 Half year portfolio performance 12 Financial results 17 Sustainability, FY22 guidance and summary 21 Appendices Grant Kelley Peter Huddle Adrian Chye CEO and Managing Director Chief Operating Officer Chief Financial Officer Vicinity Centres FY22 Interim Results
Slide 3: Grant Kelley, CEO and Managing Director
Grant Kelley CEO and Managing Director Chadstone, VIC Vicinity Centres FY22 Interim Results | 16 February 2022 3
Slide 4: Half Year Overview
HALF YEAR OVERVIEW Vicinity executing strategy to drive sustained growth and deliver quality underlying results Execution of strategy Continued portfolio optimisation, reallocating capital to attractive Outlet sector Progressing mixed-use and retail development pipeline Portfolio metrics demonstrate
Slide 5: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT Robust Capacitymacroeconomic environment to spend remains to support strong, aided by low retail industry stabilisation unemployment and recovery and high household savings Consumer sentiment index1 Residential dwelling values2 (Index = 100) (Index = 100) 120 130 BNE 128.4
Slide 6: Peter Huddle, Chief Operating Officer
Peter Huddle Chief Operating Officer Chatswood Chase Sydney, NSW Vicinity Centres FY22 Interim Results | 16 February 2022 6
Slide 7: Retail Market Trends
RETAIL MARKET TRENDS Positive momentum and underlying resilience in retail market trends (ex-CBDs) Attractiveness and importance of physical retail continues Quarterly portfolio indicators showing positive momentum Consistently strong retail sales growth in COVID-unimpacted1 states Nov/Dec Quarterly
Slide 8: Cash Collections and COVID-19 Lease Variations
CASH COLLECTIONS AND COVID-19 LEASE VARIATIONS Strong rebound in retailer confidence and cash collection as COVID-19 restrictions ease; highlights resilient retail sector Proportion of gross rental billings received, monthly (%)1 Strong recovery in cash collection in months immediately following loc
Slide 9: Leasing
LEASING Strong and high quality leasing momentum keeps occupancy stable despite significant lockdowns and assists in future growth Leasing deals completed Strong leasing momentum continued into 1H FY22 Buoyant leasing activity, notably in VIC where number of deals doubled in 1H FY22 FY20 583 241 824
Slide 10: Development Overview
DEVELOPMENT OVERVIEW Major mixed-use development front-ended by important commercial projects and retail upgrades in FY22 FY22 target development expenditure remains ~$150m Chadstone car park extension and solar project completed, while mezzanine dining and entertainment project has now commenced Ba
Slide 11: 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 tower Chadstone, VIC Artist’s impression of two office towers at Bankstown Central, NSW Artist’s impression of towers at Victoria Gardens, VIC Artist’
Slide 12: Adrian Chye, Chief Financial Officer
Adrian Chye Chief Financial Officer The Strand Arcade, NSW Vicinity Centres FY22 Interim Results | 16 February 2022 12
Slide 13: Financial Results
FINANCIAL RESULTS Income statement Six months to December 1H FY22 1H FY21 Variance Variance Statutory net profit of $650.2m 1H FY21: $394m net loss ($m) ($m) ($m) (%) Funds from operations $287.7m 1H FY21: $267.1m Net property income (NPI) 381.3 344.4 36.9 10.7 Non-cash property valuation gains of $
Slide 14: Net Property Income, Waivers and Provisions
NET PROPERTY INCOME, WAIVERS AND PROVISIONS Lower waivers and provisions despite higher proportion of portfolio impacted by lockdowns vs prior corresponding period 1H FY21 and 1H FY22 gross rental billings 1H FY22 collected and unpaid rent represents ~84% of 1H FY22 gross Proportion of total (%)1 re
Slide 15: Valuations
VALUATIONS Buoyant transaction market supporting retail asset valuations Valuations at 31 December 2021 compared to 30 June 2021 Portfolio net valuation2 increase of $320.1m or 2.3% in 1H FY22 Outlet Centres benefiting from strong income growth and tightening capitalisation No of Value rates Centre
Slide 16: Capital Structure
CAPITAL STRUCTURE Strong balance sheet with limited near-term expiries Strong liquidity position of $1.8b Debt sources3 Weighted average cost of debt1 of 4.1% Bank debt drawn (11%) AMTN (15%) Sufficient tenor with weighted average debt duration EMTN (14%) of 3.9 years based on limits USPP (14%) 4.8
Slide 17: Grant Kelley, CEO and Managing Director
Grant Kelley CEO and Managing Director QueensPlaza, QLD Vicinity Centres FY22 Interim Results | 16 February 2022 17
Slide 18: Leadership in Sustainability
LEADERSHIP IN SUSTAINABILITY Creating sustainable destinations within our communities and providing long-term value for securityholders Strong sustainability survey results 2021 Oceania Sector Leader and #3 globally in the Listed Retail Shopping Centre Formal TCFD supporter #5 globally category by G
Slide 19: FY22 Guidance
FY22 GUIDANCE Earnings and distribution guidance provided demonstrates growing optimism FY22 FFO per security guidance of 11.8 to 12.6 cents1 Growing optimism in general trading conditions and Vicinity’s capacity to manage near-term demands of the pandemic in 2H FY22 Vicinity expects governments to
Slide 20: Summary
SUMMARY Quality underlying result and strong execution positions Vicinity for sustained growth in a resilient retail sector Robust result highlights operational focus and strong financial stewardship Disciplined approach to meeting the financial demands of the pandemic Quality underlying leasing out
Slide 21: Appendices
APPENDICES 22 Transactions 23 Innovation 24 Direct portfolio 30 Assets under management 31 Financial results 35 Asset summaries 39 Key dates 40 Contact details and disclaimer Emporium Melbourne, VIC Vicinity Centres FY22 Interim Results | 16 February 2022 21
Slide 22: Transactions
TRANSACTIONS Reallocating capital into attractive Outlet sector in strong Gold Coast catchment Acquired 50% of Harbour Town Premium Outlets Gold Coast Strongly performing hybrid Outlet Centre Also features Woolworths and convenience, cinema and lifestyle offers Near-term focus on strengthening preci
Slide 23: Innovation
INNOVATION Leveraging our existing assets and capabilities to drive value and enhancing customer and retailer experience Fund size doubled since Vicinity’s Logistics hub delivered 20,000 parcels at investment in August 2021 DFO Homebush in Nov/Dec-21 Centre trial with new energy provider 15 potentia
Slide 24: 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 60 1 7 8 44 Gross lettable area (000’s) (sqm) 2,459 234 222 275 1,728 Total value2 ($m) 14,252 3,063 1,987 2,197 7,005 Portfolio weighting by value (%) 100 21 14 15 49 Capitalisat
Slide 25: Direct Portfolio: Retail sales performance
DIRECT PORTFOLIO Retail sales performance Portfolio sales1 growth by store type and state • Sales rebounded strongly in Nov/Dec-21 as Month growth Quarter growth MAT growth retailer and shopper confidence strengthened Dec-21 Nov-21 Dec-21 Sep-21 Jun-21 Dec-21 Jun-21 Dec-20 vs Dec-19 vs Nov-19 vs Dec
Slide 26: Direct Portfolio: Sales by mini major and specialty category
DIRECT PORTFOLIO Sales by mini major and specialty category MM and SS3 Dec-21 Jun-21 Comparable MAT growth (%)1 proportion of COVID-unimpacted2 total MAT MM and SS2 SS2 MM and SS2 SS2 Apparel 13 14.3 15.4 17.9 18.6 General retail 6 5.2 8.1 11.2 15.8 Food catering 5 15.3 15.3 8.1 7.7 Retail services
Slide 27: 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, Woolworths, Woolworths Liquor, 1 Supermarket 36 3.3 1 61 4.2 Woolworths Petrol 2 Supermarke
Slide 28: Direct Portfolio: Lease expiry profile
DIRECT PORTFOLIO Lease expiry profile Lease expiry profile by income (%) 30 Majors 25 22 All other retailers 20 16 15 15 14 12 10 10 7 5 2 0 0 1 1 0 Holdover FY22 FY23 FY24 FY25 FY26+ Weighted average lease expiry (years) Dec-21 Jun-21 by Area 4.2 4.3 Northland, VIC by Income 3.2 3.3 Vicinity Centre
Slide 29: Direct Portfolio: Non-comparable centres for sales reporting
DIRECT PORTFOLIO Non-comparable centres for sales reporting Non-comparable status Centre Dec-21 Jun-21 Armidale Central, NSW Major vacated Major vacated Bankstown Central, NSW Pre-development Pre-development Box Hill Central, VIC Major vacated and pre-development - Chatswood Chase Sydney, NSW Pre-de
Slide 30: Assets Under Management
ASSETS UNDER MANAGEMENT 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 29 60 1/29 61 Gross lettable area (000’s) (sqm) 945 1,514 2,459 69 2,528 Number of tenants 2,744 4,129 6,873 198
Slide 31: FFO reconciliation to statutory net profit after tax
FINANCIAL RESULTS FFO reconciliation to statutory net profit after tax Dec-21 Dec-20 For the six months to ($m) ($m) Statutory net profit/(loss) after tax 650.2 (394.1) Property revaluation (increment)/decrement for directly owned properties (353.7) 512.1 Non-distributable (gain)/loss relating to eq
Slide 32: NPI waterfall and waivers and provisions reconciliation
FINANCIAL RESULTS Net property income waterfall and waivers and provisions reconciliation NPI waterfall 1H FY21 to 1H FY22 Waivers and provisions 1H FY21 to 1H FY22 movement1 ($m) ($m) 400 6 1H FY21 1H FY22 YoY reported reported movement 51 (4) ( 16 ) 350 Waivers and provisions (147) (96) 51 A B A 3
Slide 33: Balance sheet
FINANCIAL RESULTS Balance sheet Dec-21 Jun-21 Change As at ($m) ($m) ($m) Cash and cash equivalents 58.2 47.2 11.0 Investment properties1 14,081.7 13,294.3 787.4 Equity accounted investments 505.3 479.4 25.9 Intangible assets 164.2 164.2 - Other assets 361.3 312.7 48.6 Total assets 15,170.7 14,297.8
Slide 34: Capital management
FINANCIAL RESULTS Capital management Key debt statistics Hedging profile5,8 As at: Dec-21 Jun-21 3,500 5.5% Total debt facilities1 $5.7b $5.7b 3,000 5.0% Drawn debt2 $3.9b $3.3b 2,500 4.5% Gearing3 26.3% 23.8% Notional A$m Hedge rate Weighted average cost of debt4 4.1% 3.6% 2,000 4.0% Weighted avera
Slide 35: Asset Summaries: New South Wales
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 31-Dec-211 movement1,2 31-Dec-21 30-Jun-21 Movement 31-Dec-21 (%) (%) ($m) ($m) (%) (%) (%) New South Wales Chatswood Chase S
Slide 36: Asset Summaries: Queensland
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 31-Dec-211 movement1,2 31-Dec-21 30-Jun-21 Movement 31-Dec-21 (%) (%) ($m) ($m) (%) (%) (%) Queensland QueensPlaza City Centr
Slide 37: Asset Summaries: Victoria
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 31-Dec-211 movement1,2 31-Dec-21 30-Jun-21 Movement 31-Dec-21 (%) (%) ($m) ($m) (%) (%) (%) Victoria Chadstone Super Regional
Slide 38: Asset Summaries: Western Australia
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 31-Dec-211 movement1,2 31-Dec-21 30-Jun-21 Movement 31-Dec-21 (%) (%) ($m) ($m) (%) (%) (%) Western Australia Galleria Major
Slide 39: Key Dates
KEY DATES Investor calendar Key dates 1H FY22 results and December 2021 distribution announcement 16 February 2022 Ex-distribution date for December 2021 distribution 21 February 2022 Record date for December 2021 distribution 22 February 2022 December 2021 distribution payment 8 March 2022 FY22 Ann
Slide 40: 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
Slide 41: DFO Homebush, NSW
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