Slide 1: FY23 Interim Results
FY23 INTERIM RESULTS 15 FEBRUARY 2023
Slide 2: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY Vicinity Centres acknowledges the Traditional Custodians of the land and pay respect to Elders past and present. As a business that operates across many locations across the nation, we recognise and respect the cultural heritage, beliefs, and relationship with the land, wh
Slide 3: Welcome and Agenda
WELCOME AND AGENDA AGENDA PETER HUDDLE CEO and Managing Director 03 13 17 Overview, Financial Results Development and Sustainability and Earnings Guidance Portfolio Update ADRIAN CHYE Chief Financial Officer Vicinity Centres | FY23 Interim Results | 15 February 2023 3
Slide 4: Overview, Sustainability and Portfolio Update
OVERVIEW, SUSTAINABILITY AND PORTFOLIO UPDATE PETER HUDDLE
Slide 5: 1H FY23 Highlights
1H FY23 HIGHLIGHTS Resilient retail sector and focus on operational and financial execution delivers strong 1H FY23 result STRATEGIC EXECUTION DRIVES SUSTAINED GROWTH Quality asset management and leasing outcomes enhancing portfolio performance Execution of Development pipeline; Buranda Village, QLD
Slide 6: Vicinity's Investment Proposition
VICINITY’S INVESTMENT PROPOSITION STRONG DIVERSIFIED PORTFOLIO Australia’s pre-eminent retail and mixed-use destination – Chadstone, VIC Australia’s leading Outlet Centre portfolio Australia’s best premium CBD asset portfolio with strong east coast presence Resilient Core assets with non-discretiona
Slide 7: Retail Sector Resilience - Cyclical
RETAIL SECTOR RESILIENCE - CYCLICAL Macroeconomic fundamentals continue to support consumer spending despite near term uncertainty GROSS DISPOSABLE INCOME AND RETAIL TRADE1 HOUSEHOLD SAVINGS RATIO 1 RESIDENTIAL DWELLING VALUES1,2 Annual growth, quarterly (%) (%) Quarterly index: Dec 12 = 100 20 28 2
Slide 8: Retail Sector Resilience – Structural
RETAIL SECTOR RESILIENCE – STRUCTURAL Constrained retail supply in Australia and structural shift in role of the store supports sustained leasing demand in sought-after malls 2 SUPPLY/DEMAND FOR RETAIL SPACE IN AUSTRALIA REMAINS IN EQUILIBRIUM RETAIL SUPPLY GLA per capita (sqm) Demand for retail spa
Slide 9: Sustainability
SUSTAINABILITY Creating sustainable destinations within our communities and providing long-term value for securityholders Strong sustainability survey results − Vicinity again named Oceania Sector Leader and #3 globally in GRESB1 2022 SUSTAINABILITY REPORT HIGHLIGHTS − Ranked #8 in DJSI survey out o
Slide 10: Portfolio Highlights
PORTFOLIO HIGHLIGHTS Spend per visit remains elevated; improving visitation amplifying strong growth in Luxury, DFOs and price inflation CONSUMERS PREFERENCE OVERWHELMINGLY REMAINS FOR IN-STORE SHOPPING Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Nov/Dec 22 Elevated retail sales growth reflects resilient con
Slide 11: Retail Sales
RETAIL SALES Impact of rising interest rates and increasing cost of living yet to slow consumer demand in Vicinity’s centres STRONG GROWTH DELIVERED BY ALL CATEGORIES AND ALL STATES Qtr 1H FY23 2mths vs 2019 vs 1H FY20 vs 2021 Total portfolio sales in 1H FY23 were 20.0% above 1H FY20, representing a
Slide 12: Leasing
LEASING Disciplined focus on quality, long-term deals at improving spreads supports income growth BUOYANT LEASING ACTIVITY AND DISCIPLINED FOCUS ON QUALITY LEASING DEALS 1H FY22 FY22 1H FY23 833 leasing deals completed in 1H FY23, 43% higher than 1H FY20 (pre-COVID) Significantly lower holdovers; re
Slide 13: Financial Results
FINANCIAL RESULTS ADRIAN CHYE
Slide 14: Financial Results: Income statement
FINANCIAL RESULTS Income statement STATUTORY NET PROFIT AFTER TAX OF $176.3M 1H FY23 1H FY22 Variance Variance ($m) ($m) ($m) (%) SOLID FINANCIAL PERFORMANCE, AIDED BY ABSENCE OF COVID-LOCKDOWNS IN 1H FY23 − FFO up 24.1% Net property income (NPI) 459.6 381.3 78.3 20.5 − NPI up 20.5% External managem
Slide 15: Financial Results: 1H FY23 valuations
FINANCIAL RESULTS 1H FY23 valuations MODEST VALUATION DECLINE REINFORCES STRENGTH OF ASSET PORTFOLIO VALUATIONS At 31 December 2022 compared to 30 June 2022 Portfolio valuation down 0.7% or $109m1 Weighted average capitalisation rate (WACR) softened 3 bps, ex-Chadstone WACR softened 9 bps No. of Val
Slide 16: Capital Structure
CAPITAL STRUCTURE Strong balance sheet and debt profile enabling investment in growth priorities PROACTIVELY STRENGTHENED CAPITAL POSITION DEBT SOURCES Extended $575m of bank debt facilities Executed $500m of new hedges Bank debt drawn (7%) Cancelled $400m of bank debt facilities Bank debt undrawn (
Slide 17: Development and Earnings Guidance
DEVELOPMENT AND EARNINGS GUIDANCE PETER HUDDLE
Slide 18: Development Update
DEVELOPMENT UPDATE CHADSTONE UNDERWAY* UNDERWAY* UNDERWAY* UNDERWAY* THE SOCIAL QUARTER CHADSTONE PLACE – OFFICEWORKS ONE MIDDLE ROAD OFFICE TOWER FRESH FOOD AND DINING PRECINCT Exciting new dining and entertainment precinct New ~8,000 sqm corporate office for Vicinity’s first fully integrated mixed
Slide 19: Development Update
DEVELOPMENT UPDATE BOX HILL CENTRAL SOUTH BANKSTOWN CENTRAL CHATSWOOD CHASE SYDNEY COMPLETED UNDERWAY* COMPLETED UNDERWAY* COLES MALL AND RESTAURANTS OFFICE PODIUM FRESH FOOD AND MINI MAJORS FRESH FOOD AND DINING HALL New Coles supermarket anchoring fresh food New 4,000 sqm, four-level office podium
Slide 20: Summary and Guidance
SUMMARY AND GUIDANCE 1H FY23 DRIVEN BY SOLID EXECUTION AND FAVOURABLE MACROECONOMIC ENVIRONMENT Delivering leading asset management Focus on delivering quality leasing outcomes that lock in current and future rental growth Strengthened Vicinity’s position as a partner of choice for growth-oriented r
Slide 21: Appendices
APPENDICES 22 23 24 29 New tenants Development Direct Portfolio Assets under management 30 33 34 Financial Results Key dates Contact details and disclaimer Vicinity Centres | FY23 Interim Results | 15 February 2023 21
Slide 22: New Tenants
NEW TENANTS Toymate – Colonnades, SA Sarah & Sebastian – The Strand Arcade, NSW Creed – The Strand Arcade, NSW July – The Galeries, NSW X-GOLF/Hey Caddy – Northland, VIC Luxury Escapes – Chadstone, VIC Oasis – Mornington Central, VIC Maru Korean BBQ – Box Hill Central South, VIC LSKD – Chadstone, VI
Slide 23: Development Pipeline
DEVELOPMENT PIPELINE Asset Project Est cost ($m)1 FY22 1H FY23 2H FY23 FY24 FY25 FY26 FY27+ Chadstone Retail – The Social Quarter 35 Office – Officeworks 25 Retail – Fresh food and dining 145 Office – One Middle Road 80 Box Hill Central Retail – Coles, fresh food and restaurants Complete Office – Hu
Slide 24: Direct Portfolio: Key statistics by centre type
DIRECT PORTFOLIO Key statistics by centre type Total Premium Outlet portfolio Chadstone CBDs Centres1 Core Number of retail assets 59 1 7 8 43 Gross lettable area (000’s) (sqm) 2,435 237 222 286 1,689 Total value2 ($m) 14,590 3,250 2,012 2,303 7,025 Portfolio weighting by value (%) 100 22 14 16 48 C
Slide 25: Direct Portfolio: Sales by category
DIRECT PORTFOLIO Sales by mini major and specialty store category Proportion of total Qtr 1H FY23 2mths portfolio sales vs 2019 vs 1H FY20 vs 2021 Mini major and specialty store sales combined MAT Jun 22 Sep 22 Dec 22 CAGR1 Nov/Dec 22 (%) (%) (%) (%) (%) (%) Apparel & Footwear 21 31.4 29.5 24.8 8.2
Slide 26: Direct Portfolio: Key tenants
DIRECT PORTFOLIO Key tenants TOP 10 TENANTS BY INCOME TOP 10 TENANT GROUPS BY INCOME Number % of Number % of Rank Retailer Retailer type of stores income Rank Retailer of stores income Brands Kmart, Priceline, Priceline Pharmacy, Target, Clearskincare 1 Supermarket 36 3.4 1 67 4.6 Clinics 2 Supermar
Slide 27: Direct Portfolio: Lease expiry profile
DIRECT PORTFOLIO Lease expiry profile LEASE EXPIRY PROFILE BY INCOME (%) 27 19 15 13 10 7 5 1 1 2 0 0 Holdover FY23 FY24 FY25 FY26 FY27+ Majors All other retailers WEIGHTED AVERAGE LEASE EXPIRY (Years) Dec 22 Jun 22 by Area 4.2 4.2 by Income 3.3 3.2 Chatswood Chase Sydney, NSW Vicinity Centres | FY2
Slide 28: Direct Portfolio: Non-comparable centres
DIRECT PORTFOLIO Non-comparable centres for sales reporting Dec 22 Jun 22 Armidale Central, NSW Major changeover Major vacated Bankstown Central, NSW Development Pre-development Box Hill Central, VIC Major changeover and pre-development Major vacated and pre-development Chatswood Chase Sydney, NSW P
Slide 29: Assets Under Management
ASSETS UNDER MANAGEMENT Approximately 7,000 tenants across 60 assets under management1 Direct portfolio1 Managed Total Third party/ assets under Wholly-owned Co-owned Total co-owned management1 Number of retail assets 31 28 59 1/28 60 Gross lettable area (000’s) (sqm) 949 1,486 2,435 69 2,504 Number
Slide 30: FFO reconciliation to statutory net profit after tax
FINANCIAL RESULTS FFO reconciliation to statutory net profit after tax Dec 22 Dec 21 ($m) ($m) Net profit after tax 176.3 650.2 Property revaluation decrement/(increment) for directly-owned properties 56.7 (353.7) Non-distributable loss/(gain) relating to equity accounted investments 21.3 (2.8) Amor
Slide 31: Financial Results: Balance sheet
FINANCIAL RESULTS Balance sheet Dec 22 Jun 22 Variance ($m) ($m) ($m) Cash and cash equivalents 51.9 55.6 (3.7) Investment properties1 14,443.2 14,366.4 76.8 Equity accounted investments 495.3 513.8 (18.5) Intangible assets 164.2 164.2 - Other assets 469.0 452.6 16.4 Total assets 15,623.6 15,552.6 7
Slide 32: Capital management
FINANCIAL RESULTS Capital management KEY DEBT STATISTICS HEDGING PROFILE4,8 (%) As at Dec 22 Jun 22 Notional $Am Hedge rate (%) Total debt facilities $5.1b $5.1b7 4,000 4.0 Drawn debt1 $3.8b $3.7b 3,500 3.5 Gearing2 25.7% 25.1% 3,000 3.0 Weighted average cost of debt3 4.3% 4.0% 2,500 2.5 Weighted av
Slide 33: Key Dates
KEY DATES Investor calendar 15 FEBRUARY 2023 20 FEBRUARY 2023 21 FEBRUARY 2023 FY23 interim results and FY23 interim Ex-distribution date for FY23 interim Record date for FY23 interim distribution distribution announcement distribution 7 MARCH 2023 16 AUGUST 2023 1 NOVEMBER 2023 FY23 interim distrib
Slide 34: Contact Details and Disclaimer
CONTACT DETAILS AND DISCLAIMER FOR FURTHER INFORMATION PLEASE CONTACT: JANE KENNY TROY DAHMS Acting Chief Corporate Affairs Officer 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 t