Slide 1: 2022 Annual Results
2022 ANNUAL RESULTS 17 AUGUST 2022
Slide 2: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY Vicinity acknowledges the Traditional Custodians of Country throughout Australia and their connections to the land, sea and community. We pay our respects to their Elders past and present, and extend that respect to all Aboriginal and Torres Strait Islander people with us
Slide 3: Welcome and Agenda
WELCOME AGENDA GRANT KELLEY CEO and Managing Director 04 07 16 Overview Portfolio performance Financial results PETER HUDDLE 20 23 Chief Operating Officer Sustainability, summary Appendices and FY23 guidance ADRIAN CHYE Chief Financial Officer Vicinity Centres 2022 Annual Results 17 August 2022 3
Slide 4: Overview
OVERVIEW GRANT KELLEY CEO AND MANAGING DIRECTOR
Slide 5: Results Overview
RESULTS OVERVIEW Strong FFO and NTA growth reflects strong execution, financial stewardship and a resilient retail sector EXECUTION OF STRATEGY TO DRIVE SUSTAINED GROWTH – Property management and quality leasing outcomes driving enhanced core portfolio – Strategic transactions bolster category leade
Slide 6: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT Robust macroeconomic environment to support retail industry stabilisation and recovery CONSUMER SENTIMENT INDEX1 RESIDENTIAL DWELLING VALUES2 (Index = 100) (Index = 100%) 120 150 110 140 130 100 120 90 110 80 81 100 70 90 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 20 Jul
Slide 7: Portfolio Performance
PORTFOLIO PERFORMANCE PETER HUDDLE CHIEF OPERATING OFFICER
Slide 8: Portfolio Highlights
PORTFOLIO HIGHLIGHTS Consumers continue to shop purposefully, showing confidence and capacity to spend in centres SPEND PER VISIT HIGHLIGHTS RESILIENCE AND PURPOSEFUL SHOPPING QUARTERLY PORTFOLIO INDICATORS SHOWING POSITIVE MOMENTUM – Steady improvement in visitation as COVID-19 lockdowns abate, not
Slide 9: Retail Sales
RETAIL SALES Recovery gained momentum in 2H FY22 BROAD SALES RECOVERY EVIDENT DESPITE VIC AND NSW LOCKDOWNS IN 1H FY22 ANNUAL SALES GROWTH 1 – FY22 annual growth1 of 6.7% supported by 11.5% sales growth in 2H FY222 2H FY222 FY22 FY21 FY20 FY19 – VIC and NSW mini majors and specialties driving the re
Slide 10: Cash Collections
CASH COLLECTIONS Strengthened cash collections reflect improved trading conditions PROPORTION OF GROSS RENTAL BILLINGS RECEIVED STRENGTHENED CASH COLLECTIONS AMID IMPROVED RETAIL TRADING CONDITIONS Monthly (%)1 Average of 91% of gross billings collected1 for FY22 93 92 91 92 94 94 94 94 88 90 91 86
Slide 11: Leasing
LEASING Strong and high quality leasing momentum sees occupancy improve despite significant lockdowns, and assists in future growth COMPARABLE LEASING DEALS COMPLETED 1 LEASING MOMENTUM ACCELERATED IN 4Q FY22 AS THREAT OF LOCKDOWNS ABATED – Buoyant leasing activity, notably in 2H FY22; deal count in
Slide 12: Retailer store openings
Breitling I Chadstone Manon Brasserie I Queen Victoria Building P.E Nation I The Galeries NBA Store I Emporium Melbourne Freskin Beauty I Chatswood Chase Sydney Balenciaga I QueensPlaza All Asia I Cranbourne Park Sacca’s Fine Foods | Broadmeadows Central Tommy Hilfiger I DFO South Wharf Decjuba I Ba
Slide 13: Proactive Management Driving Tenant Satisfaction
PROACTIVE MANAGEMENT DRIVING TENANT SATISFACTION Strong retailer advocation and engagement enhancing tenant satisfaction FOCUS ON BEING PARTNER OF CHOICE DROVE STRONG UPLIFT IN FY22 TENANT SATISFACTION SURVEY RESULTS – Retailer Net Promoter Score1,2 increased from #7 to #1 – Strongest lift in TenSAT
Slide 14: Development Update
DEVELOPMENT UPDATE FY22 focused on retail works ahead of major mixed-use projects DEVELOPMENT SHOWCASE HELD IN JUNE 2022 – $2.9b pipeline – 85% of pipeline spend concentrated across six assets – 75% weighted to mixed-use (non-retail) development – Near-term focus on retail enhancements ahead of majo
Slide 15: Development Update
DEVELOPMENT UPDATE FY23 sees a number of retail projects complete, while mixed-use development pipeline gains momentum $200-$250M OF EXPENDITURE FORECAST OVER FY23 A NUMBER OF IN-DELIVERY PROJECTS TO BE COMPLETED IN FY23 – Chadstone Place (Officeworks) refurbishment – Retail projects across Chadston
Slide 16: Financial Results
FINANCIAL RESULTS ADRIAN CHYE CHIEF FINANCIAL OFFICER
Slide 17: Financial Results
FINANCIAL RESULTS Income statement FY22 FY21 Variance Variance STATUTORY NET PROFIT OF $1,215.2M FY21: $258.0M NET LOSS ($m) ($m) ($m) (%) Net property income (NPI) 802.8 743.4 59.4 8.0 FUNDS FROM OPERATIONS NON-CASH PROPERTY VALUATION GAINS5 External management fees 52.5 45.7 6.8 14.9 $ 598.3M $ 55
Slide 18: 2H FY22 Valuations
2H FY22 VALUATIONS Buoyant transaction market supporting retail asset valuations VALUATIONS at 30 June 2022 compared to 31 December 2021 1 PORTFOLIO NET VALUATION2,3 INCREASE OF $233.4M, OR 1.6%, IN 2H FY22 No of Value – Income growth driving valuation increases across a number of Premium, Centre ty
Slide 19: Capital Structure
CAPITAL STRUCTURE Strong balance sheet with limited near-term expiries Issued inaugural Green Bond of $300m DEBT SOURCES Extended $475m of bank debt to FY28 Cancelled $800m of bank debt to optimise liquidity Bank debt drawn 5% Bank debt undrawn 27% $1.4b of liquidity AMTN 23% Robust weighted average
Slide 20: Sustainability, Summary and FY23 Guidance
SUSTAINABILITY, SUMMARY AND FY23 GUIDANCE GRANT KELLEY CEO AND MANAGING DIRECTOR
Slide 21: Leadership in Sustainability
LEADERSHIP IN SUSTAINABILITY Creating sustainable destinations within our communities and providing long-term value for securityholders Leveraged sustainability credentials and investment to date with successful issuance of Vicinity’s inaugural Green Bond Established Sustainable Finance Framework #5
Slide 22: Summary and FY23 Guidance
SUMMARY AND FY23 GUIDANCE FY22 driven by strong operational execution and financial stewardship in a supportive retail environment FY22; A YEAR OF RECOVERY, EXECUTION AND PROGRESS AT VICINITY RETAIL CONTINUES TO DEMONSTRATE RESILIENCE AMID SHIFTING MACRO-ENVIRONMENT – Execution of long-term strategy
Slide 23: Appendices
APPENDICES 24 25 28 34 Innovation Development Direct portfolio Assets under management 35 38 39 Financial results Key dates Contact details and disclaimer Vicinity Centres 2022 Annual Results 17 August 2022 23
Slide 24: Innovation
INNOVATION Leveraging our existing assets and capabilities to drive value and enhancing customer and retailer experience Invested in Proptech Innovation Fund with a selection of global Investment in Global Marketplace (owner of Click Frenzy, real estate companies Power Retail and GrabOne) Sponsor of
Slide 25: Development Pipeline
DEVELOPMENT PIPELINE $2.9b retail and mixed-use development pipeline Asset Project Status Est. cost ($m)1 FY22 FY23 FY24 FY25 FY26 FY27 Chadstone Retail – Dining and Entertainment In delivery 34 Office – Chadstone Place In delivery 21 Retail – Fresh Food and Dining In delivery 142 Office – One Middl
Slide 26: Development Projects – Current
DEVELOPMENT PROJECTS – CURRENT CHADSTONE UNDERWAY UNDERWAY UNDERWAY UNDERWAY DINING AND ENTERTAINMENT CHADSTONE PLACE ONE MIDDLE ROAD FRESH FOOD AND DINING Commenced 3Q FY22 Commenced 4Q FY22 Commenced 1Q FY23 Commenced 1Q FY23 Eight dining and entertainment operators 100% leased to Officeworks 20,0
Slide 27: Development Projects – Current
DEVELOPMENT PROJECTS – CURRENT BOX HILL CENTRAL SOUTH BANKSTOWN CENTRAL CHATSWOOD CHASE SYDNEY UNDERWAY UNDERWAY UNDERWAY PRE-LEASING COLES MALL AND RESTAURANTS OFFICE PODIUM FRESH FOOD AND MINI MAJORS FRESH FOOD AND DINING HALL Commenced 4Q FY21 Commenced 3Q FY22 Commenced 2Q FY22 Targeted commence
Slide 28: 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) 2,422 234 222 286 1,681 Total value ($m) 2 14,524 3,138 2,001 2,265 7,122 Portfolio weighting by value (%) 100 22 14 16 49
Slide 29: Direct Portfolio: Retail sales performance
DIRECT PORTFOLIO Retail sales performance PORTFOLIO SALES1 GROWTH BY STORE TYPE AND STATE Quarter growth Quarter growth MAT growth Portfolio sales Jun 22 vs Mar 22 vs Dec 21 vs Portfolio sales Jun 22 vs Mar 22 vs Dec 21 vs Jun 22 vs Mar 22 vs Dec 21 vs compared to 2019 Jun 19 % Mar 19 % Dec 19 % com
Slide 30: Direct Portfolio: Sales by category
DIRECT PORTFOLIO Sales by mini major and specialty category Jun 22 Mar 22 Portfolio quarterly sales MM and SS 2 compared to 2019 (%)1 proportion of sales MM and SS2 SS2 MM and SS2 SS2 Apparel 23 31.4 26.9 15.8 11.9 Homewares 7 31.1 25.4 23.1 16.3 Food catering 7 23.6 21.5 (2.5) (1.8) Leisure 6 31.2
Slide 31: 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 1 Supermarket 35 3.3 1 65 4.6 Kmart, Priceline, Priceline Pharmacy, Target, Clearskincare Clinics
Slide 32: Direct Portfolio: Lease expiry profile
DIRECT PORTFOLIO Lease expiry profile LEASE EXPIRY PROFILE BY INCOME (%) 20 18 17 16 15 13 12 10 9 9 5 2 1 1 1 0 0 Holdover FY23 FY24 FY25 FY26 FY27+ Majors All other retailers WEIGHTED AVERAGE LEASE EXPIRY (Years) Jun 22 Jun 21 by Area 4.2 4.3 by Income 3.2 3.3 Emporium Melbourne, VIC Vicinity Cent
Slide 33: Non-comparable centres for sales reporting
DIRECT PORTFOLIO Non-comparable centres for sales reporting NON-COMPARABLE STATUS Centre Jun 22 Dec 21 Armidale Central, NSW Major vacated Major vacated Bankstown Central, NSW Pre-development Pre-development Box Hill Central, VIC Major vacated and pre-development Major vacated and pre-development Ch
Slide 34: Assets Under Management
ASSETS UNDER MANAGEMENT Approximately 7,000 tenants across 60 assets under management1 Direct portfolio1 Managed Wholly-owned Co-owned Total Third party/co-owned Total AUM1 Number of retail assets 31 28 59 1/28 60 Gross lettable area (000’s) (sqm) 947 1,475 2,422 69 2,491 Number of tenants 2,729 3,9
Slide 35: FFO reconciliation to statutory net profit
FINANCIAL RESULTS FFO reconciliation to statutory net profit after tax FY22 FY21 ($m) ($m) Statutory net profit/(loss) after tax 1,215.2 (258.0) Property revaluation (increment)/decrement for directly owned properties (633.3) 642.7 Non-distributable loss relating to equity accounted investments 10.8
Slide 36: Balance sheet
FINANCIAL RESULTS Balance sheet Jun 22 Jun 21 Change As at ($m) ($m) ($m) Cash and cash equivalents 55.6 47.2 8.4 Investment properties1 14,366.4 13,294.3 1,072.1 Equity accounted investments 513.8 479.4 34.4 Intangible assets 164.2 164.2 - Other assets 452.6 312.7 139.9 Total assets 15,552.6 14,297
Slide 37: Capital management
FINANCIAL RESULTS Capital management KEY DEBT STATISTICS HEDGING PROFILE 1,5,8 As at Jun 22 Jun 21 Notional A$m Hedge rate (%) Total debt facilities 1 $5.1b $5.7b 3,500 5.5 Drawn debt 1,2 $3.7b $3.3b 3,000 5.0 Gearing 3 25.1% 23.8% 2,500 4.5 Weighted average cost of debt 4 4.0% 3.6% Weighted average
Slide 38: Key Dates
KEY DATES Investor calendar 17 AUGUST 2022 22 AUGUST 2022 23 AUGUST 2022 12 SEPTEMBER 2022 FY22 annual results and June 2022 Ex-distribution date for June 2022 distribution 1 Record date for June 2022 distribution 1 June 2022 distribution 1 payment distribution 1 announcement 13 SEPTEMBER 2022 16 NO
Slide 39: 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 40: Vicinity Centres
4 —_ VICINITY CENTRES