Slide 1: FY21 interim results
FY21 interim results 17 February 2021 Vicinity Centres | FY21 interim results | 17 February 2021
Slide 2: Welcome and Agenda
Welcome Agenda 3 FY21 interim results overview 7 Financial results 13 Portfolio performance 20 Development Grant Kelley Nicholas Schiffer Peter Huddle CEO AND MANAGING DIRECTOR CHIEF FINANCIAL OFFICER CHIEF OPERATING OFFICER 24 Innovation 27 Summary 29 Appendices Carolyn Viney Justin Mills CHIEF DEV
Slide 3: FY21 interim results overview
FY21 interim results overview Grant Kelley CEO AND MANAGING DIRECTOR Vicinity Centres | FY21 interim results | 17 February 2021 QueensPlaza, QLD
Slide 4: FY21 interim results overview
FY21 interim results overview Balance sheet remains strong and portfolio is stabilising, notwithstanding material impact of COVID-19 FY21 interim results materially impacted by COVID-19 Funds from operations (FFO) of $267m1 1H20: $337m FFO per security of 5.87 cents 1H20: 8.95 cents Distribution per
Slide 5: Australian market update
Australian market update Consumer confidence has returned and Vicinity is well positioned to navigate next phase of the recovery Ongoing national success containing COVID-19 driving economic recovery Australian Index of Consumer Sentiment, 2020-20211 Robust, well-managed public health response 115 G
Slide 6: Leadership in sustainability
Leadership in sustainability Creating sustainable destinations within our communities and providing long-term value for securityholders Strong 2020 sustainability survey results One of only two Australian property companies in CDP’s1 Climate A-list NABERS Energy rating Ranked #3 Australian retail co
Slide 7: Financial results
Financial results Nicholas Schiffer CHIEF FINANCIAL OFFICER Vicinity Centres | FY21 interim results | 17 February 2021 DFO Perth, WA
Slide 8: Financial results: Income statement
Financial results Income statement Statutory net loss of $394m primarily due to property valuation decline 1H21 1H20 Variance Variance ($m) ($m) ($m) (%) First half income continued to be impacted by COVID-19 Net property income (NPI) 344.4 438.9 (94.5) (21.5) Significant impact on NPI from Melbourn
Slide 9: Net property income
Net property income 1H21 NPI reduced 22% primarily as a result of COVID-19 waivers NPI ($m) waterfall 1H20 to 1H21 Estimated FY21 impact of COVID-19 on rental billings $91m 1H21 estimated waivers of $99m and provisions of $48m Partly offset by reduction in 2H20 waivers and provisions estimate by $56
Slide 10: Cash collections
Cash collections Collections trend improving as retail conditions stabilise Proportion of rental billings collected1,2 (%) Cash collection rate has picked up Centre visitation and sales increasing post lifting of restrictions 1H21: 72% 90 SME Code of Conduct (SME Code) regulations are winding down 8
Slide 11: Valuations
Valuations Valuations impacted by lingering effects of COVID-19, particularly Premium CBDs Portfolio net valuation1 decline of $572m or 4.0% Valuation movement1 (%) Decline primarily due to lower forecast specialty and mini majors rents Centre type Premium CBDs down 8.7%, impacted by slow return of
Slide 12: Capital management
Capital management Strong balance sheet with significant liquidity Liquidity Gearing Weighted avg cost of debt1 Weighted avg debt duration $2.4 billion 24.5% 2.9% (4.3% ex-swap reset) 4.7 years Only $150m of expiring debt until FY23 Conservative gearing maintained Includes benefit from short-term re
Slide 13: Portfolio performance
Portfolio performance Peter Huddle CHIEF OPERATING OFFICER Vicinity Centres | FY21 interim results | 17 February 2021 Chadstone, VIC
Slide 14: Portfolio overview
Portfolio overview Portfolio performance is recovering, however risks remain Australian retail benefiting from low COVID-19 numbers nationally Key portfolio statistics Dec-20 Jun-20 Dec-19 CBD workers gradually returning to offices Number of centres in direct portfolio 60 60 59 Restrictions generall
Slide 15: Customer visitation
Customer visitation Traffic returned strongly post lifting of restrictions across Melbourne, CBD recovery now a key focus Strong customer visitation recovery in majority of locations1 Annual growth in weekly customer visitation2 Total portfolio 85.3% (ex-CBDs: 90.6%) Weekly data to 31 January 2021 N
Slide 16: Portfolio sales performance
Portfolio sales performance Sales by store type MAT growth1 MAT growth1 Quarter growth1 Store closures have impacted comparability of sales reporting (ex-VIC+CBDs) (ex-VIC+CBDs) Dec-20 Jun-20 Dec-20 Jun-20 Dec-20 Sep-20 Jun-20 (%) (%) (%) (%) (%) (%) (%) Portfolio (ex-VIC and CBDs) recorded two quar
Slide 17: Leasing and COVID-19 support
Leasing and COVID-19 support Rental support primarily contained to 2020 Leasing update Current status of short-term lease variations % of leases as at 10 February 2021 542 new or renewed leasing deals completed, with -12.6% spread 1H20: 583 deals completed with -4.0% spread Standard lease structure
Slide 18: Portfolio metrics by centre type
Portfolio metrics by centre type Despite short-term impact of COVID-19 on traffic and sales, retailer demand remains strong for Flagship assets Flagship1 assets – show resilience with higher leasing spreads and Core assets – maintained relatively strong traffic and sales performance stronger retaile
Slide 19: Expansions and new tenant deals
Expansions and new tenant deals Successful retailers taking the opportunity to grow their stores and network PREMIUM CENTRES CORE CENTRES DFO CENTRES Vicinity Centres | FY21 interim results | 17 February 2021 19
Slide 20: Development
Development Carolyn Viney CHIEF DEVELOPMENT OFFICER Vicinity Centres | FY21 interim results | 17 February 2021 Box Hill Central, VIC – Artist’s impression
Slide 21: Development overview
Development overview Significant progress on project planning and approvals Mixed-use and retail project planning progressing across portfolio Financial prudence remains Projects to commence selectively and be demand driven Town planning approvals received for 10 projects Chadstone (five projects) S
Slide 22: Mixed-use developments and retail enhancements
Mixed-use developments and retail enhancements Project planning continuing with commencements to be demand-led Chadstone, VIC Five town planning approvals Addition of two levels to existing car park commenced Feb-21 with rooftop shading to be provided by 1.6 MW of solar panels New office tower, expa
Slide 23: Mixed-use developments and retail enhancements
Mixed-use developments and retail enhancements Project planning continuing with commencements to be demand-led Bankstown Central, NSW Potential to add 330,000 sqm of GLA over time to 11 hectare site Adjacent to existing rail station to be upgraded to Metro rail station by 2024 First six town plannin
Slide 24: Innovation
Innovation Justin Mills CHIEF INNOVATION & INFORMATION OFFICER Vicinity Centres | FY21 interim results | 17 February 2021 Queen Victoria Building, NSW
Slide 25: Innovation
Innovation Industry-leading capabilities and new technologies facilitating a better retailer and customer experience Innovation driving Vicinity’s business and new revenue streams Data & Digital capability key to navigating during & post COVID New revenue and enhanced productivity essential to navig
Slide 26: Ancillary income
Ancillary income Rebounding from the impact of COVID-19 with focus on new growth activities -37% 1H21 ancillary income growth (comparable) Largest impacts are Managed Car Parks down 63%, Casual Mall 1 Growth platforms Short to medium term opportunities Leasing down 58% and Media down 19% offset by g
Slide 27: Summary
Summary Grant Kelley CEO AND MANAGING DIRECTOR Vicinity Centres | FY21 interim results | 17 February 2021 The Glen, VIC
Slide 28: Summary
Summary Vicinity positioned for future growth as outlook improves Strategy of creating attractive destination assets unchanged Customers have returned to centres when they are allowed Flagship assets maintain strong retailer demand Core centres have shown resilience during pandemic Strong balance sh
Slide 29: Appendices
30 Direct portfolio 39 Asset summaries Appendices 35 Assets under management 43 Key dates 36 Financial results 44 Contact details and disclaimer Vicinity Centres | FY21 interim results | 17 February 2021 Chatswood Chase Sydney, NSW
Slide 30: Direct portfolio: Key statistics by centre type
Direct portfolio Key statistics by centre type Total Portfolio Chadstone Premium CBDs DFO1 Core Number of retail assets 60 1 7 7 45 Gross lettable area (000’s)(sqm) 2,420 234 222 231 1,734 Total value2 ($m) 13,593 3,062 2,033 1,716 6,782 Portfolio weighting by value (%) 100 23 15 13 50 Capitalisatio
Slide 31: Direct portfolio: Sales by specialty category
Direct portfolio Sales by specialty category Portfolio Total portfolio (ex-VIC and CBDs) MM and SS2 Comparable MAT proportion of growth (%)1 total MAT MM and SS2 SS2 MM and SS2 SS2 Apparel 16 (33.7) (35.7) (14.5) (16.6) Homewares 7 (12.5) (28.1) 14.2 (12.8) Food catering 5 (34.2) (33.3) (14.0) (13.6
Slide 32: Non-comparable centres for sales reporting
Direct portfolio Non-comparable centres for sales reporting Non-comparable status Centre Dec-20 Jun-20 Bankstown Central, NSW Pre-development Pre-development Chatswood Chase Sydney, NSW Pre-development Pre-development Ellenbrook Central, WA Post development Stable/comparable Emporium Melbourne, VIC
Slide 33: 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, BWS, Dan Murphy’s, Woolworths, 1 Supermarket 37 3.4 1 64 4.6 Woolworths Liquor, Woolworths
Slide 34: Lease expiry profile
Direct portfolio Lease expiry profile Lease expiry profile by income (%) 30 25 24 Majors 20 All other retailers 15 15 15 14 13 10 9 7 5 1 1 1 0 0 0 Holdover FY21 FY22 FY23 FY24 FY25+ Weighted average lease expiry (years) Dec-20 Jun-20 by Area 4.5 4.6 by Income 3.5 3.6 Castle Plaza, SA Vicinity Centr
Slide 35: Assets under management
Assets under management ~7,100 tenants across 63 assets under management1 Direct portfolio1 Managed Third party/ Total Wholly-owned Co-owned Total co-owned AUM1 Number of retail assets 32 28 60 3/28 63 Gross lettable area (000’s)(sqm) 948 1,473 2,420 112 2,533 Number of tenants 2,797 3,988 6,785 339
Slide 36: FFO reconciliation to statutory net profit after tax
Financial results FFO reconciliation to statutory net profit after tax Dec-20 Dec-19 For the six months to ($m) ($m) Statutory net (loss)/profit after tax (394.1) 242.8 Property revaluation decrement for directly owned properties 512.1 52.8 Non-distributable loss relating to equity accounted investm
Slide 37: Balance sheet
Financial results Balance sheet Dec-20 Jun-20 Change As at ($m) ($m) ($m) Cash and cash equivalents 66.7 227.4 (160.7) Investment properties1 13,330.1 13,801.4 (471.3) Equity accounted investments 495.4 527.6 (32.2) Intangible assets 164.2 164.2 - Other assets 335.1 518.8 (183.7) Total assets 14,391
Slide 38: Capital management
Financial results Capital management Key debt statistics Hedging profile5,8 As at: Dec-20 Jun-20 3,500 5.5% Total debt facilities1 $5.8b $5.8b 3,000 5.0% Drawn debt2 $3.4b $3.9b 2,500 4.5% Gearing3 24.5% 25.5% Notional A$m Hedge rate Weighted average cost of debt4 2.9% 3.6% 2,000 4.0% Weighted avera
Slide 39: Asset summaries: New South Wales
Asset summaries Centre statistics and valuations Net Value Capitalisation rate Discount rate Ownership Occupancy revaluation As at As at As at As at Centre type interest rate movement1,2 31-Dec-201 31-Dec-20 30-Jun-20 Movement 31-Dec-20 (%) (%) ($m) ($m) (%) (%) (%) New South Wales Chatswood Chase S
Slide 40: Asset summaries: Queensland
Asset summaries Centre statistics and valuations Net Value Capitalisation rate Discount rate Ownership Occupancy revaluation As at As at As at As at Centre type interest rate movement1,2 31-Dec-201 31-Dec-20 30-Jun-20 Movement 31-Dec-20 (%) (%) ($m) ($m) (%) (%) (%) Queensland QueensPlaza City Centr
Slide 41: Asset summaries: Victoria
Asset summaries Centre statistics and valuations Capitalisation rate Net Value Discount rate Ownership Occupancy revaluation As at As at As at As at Centre type interest rate movement1,2 31-Dec-201 31-Dec-20 30-Jun-20 Movement 31-Dec-20 (%) (%) ($m) ($m) (%) (%) (%) Victoria Chadstone Super Regional
Slide 42: Asset summaries: Western Australia
Asset summaries Centre statistics and valuations Net Value Capitalisation rate Discount rate Ownership Occupancy revaluation As at As at As at As at Centre type interest rate movement1,2 31-Dec-201 31-Dec-20 30-Jun-20 Movement 31-Dec-20 (%) (%) ($m) ($m) (%) (%) (%) Western Australia Galleria Major
Slide 43: Key dates
Key dates Investor calendar Key dates December 2020 distribution payment 2 March 2021 Ex-distribution date for June 2020 distribution 29 June 2021 Record date for June 2020 distribution 30 June 2021 2021 annual results 18 August 2021 June 2021 distribution payment and 2021 Annual Tax Statements desp
Slide 44: Contact details and disclaimer
Contact details and disclaimer For further information please contact: Troy Dahms Senior Investor Relations Manager T +61 2 8229 7763 E troy.dahms@vicinity.com.au Authorisation The Board has authorised that this document be given to ASX. Disclaimer This document is a presentation of general backgrou
Slide 45: Thank you
Thank you Vicinity Centres | FY21 interim results | 17 February 2021