Slide 1: FY24 Annual Results
FY24 Annual Results 20 AUGUST 2024 The Strand Arcade, NSW
Slide 2: Welcome and Agenda
WELCOME AGENDA 04 11 PETER HUDDLE CEO and Managing Director Overview and Financial results portfolio performance 15 22 ADRIAN CHYE Chief Financial Officer Development update, Appendices FY25 guidance and summary Vicinity Centres FY24 Annual Results | 20 August 2024 2
Slide 3: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY Vicinity Centres acknowledges the Traditional Custodians of the land and pays respect to Elders past and present. As a business that operates in many locations across the nation, we recognise and respect the cultural heritage, beliefs, and relationship with the land, which
Slide 4: Overview and Portfolio Performance
OVERVIEW AND PORTFOLIO PERFORMANCE PETER HUDDLE CEO AND MANAGING DIRECTOR Vicinity Centres FY24 Annual Results | 20 August 2024 The Galeries, NSW
Slide 5: Overview
OVERVIEW Strong operating and financial results delivered, and meaningful progress made on portfolio repositioning strategy $547.1m 14.6 cps 11.75 cps STATUTORY NET PROFIT ABOVE FY24 FFO GUIDANCE RANGE FY24 DISTRIBUTION FY23: $271.5m FY23: 15.0 cents FY23: 12.0 cents Acquisitions $550m 27.2% LAKESID
Slide 6: Executing on Strategy
EXECUTING ON STRATEGY Actively delivered against each of our strategic pillars in FY24 and redefined our organisational Purpose, Vision and Values Purpose We shape meaningful places where communities connect Vision To prosper with our people and communities by creating Australia’s most compelling po
Slide 7: Portfolio Repositioning Towards Premium Retail Assets
PORTFOLIO REPOSITIONING TOWARDS PREMIUM RETAIL ASSETS Premium assets are resilient through cycles and with Vicinity’s expert property management, provide opportunity for superior, long-term income growth PROVEN TRACK RECORD OF DRIVING PERFORMANCE FROM ACQUISITIONS LAKESIDE JOONDALUP, WA CHATSWOOD CH
Slide 8: Significant Portfolio Repositioning via Acquisitions and Divestments
SIGNIFICANT PORTFOLIO REPOSITIONING VIA ACQUISITIONS AND DIVESTMENTS Enhancing portfolio quality to drive superior long-term growth while preserving Vicinity’s strong balance sheet Acquired two fortress assets Total portfolio value 50% of Lakeside Joondalup and (By centre type, Vicinity share) remai
Slide 9: Retail Sales
RETAIL SALES Medium and long-term fundamentals of the retail sector remain favourable, despite moderation of retail sales growth in 2H FY24 Near-term headwinds drive moderation of retail sales growth in 2H FY24 MAT Six months Quarters • As expected, cost of living pressures and cycling of exceptiona
Slide 10: Leasing
LEASING Acting at pace to embed earnings resilience in FY24 and beyond, with high-quality, long-term leasing deals Quality leasing deals supporting current and future income growth Leasing statistics FY24 FY23 • Structure, tenure, and value of rents on new leases written reflects focus on locking in
Slide 11: Financial Results
FINANCIAL RESULTS ADRIAN CHYE CHIEF FINANCIAL OFFICER Vicinity Centres FY24 Annual Results | 20 August 2024 Emporium Melbourne, VIC
Slide 12: Financial Results: Income Statement
FINANCIAL RESULTS Income statement Result headlines FY24 FY23 Change Change • Statutory Net Profit After Tax at $547m comprising $665m of FFO partially offset by $118m of ($m) ($m) ($m) (%) statutory, non-cash and other items Net property income (NPI) 888.4 900.2 (11.8) (1.3) • FFO down 2.9%. Adjust
Slide 13: 2H FY24 Valuations
2H FY24 VALUATIONS Strong income growth and stabilising valuation metrics support net valuation gain in 2H FY24 and NTA uplift Net valuation increase1 of $8m, or 0.1%, supported by stabilising capitalisation rates and No. of Valuation Variance Capitalisation Movement income growth 2H Valuations1 Cen
Slide 14: Debt Capital Management
DEBT CAPITAL MANAGEMENT Diversified funding sources and tenor, with ample liquidity to meet maturities and capital requirements Proactive capital management Debt maturity profile Debt sources • Issued $500m 10-year AMTN and $675m of new/extended bank debt facilities (%) Bank drawn 12 2 6 ($m) Bank u
Slide 15: Development Update, FY25 Guidance and Summary
DEVELOPMENT UPDATE, FY25 GUIDANCE AND SUMMARY PETER HUDDLE CEO AND MANAGING DIRECTOR Vicinity Centres FY24 Annual Results | 20 August 2024 Chadstone, VIC
Slide 16: Investing in Asset Vibrancy, Quality and Future Growth: Chadstone
INVESTING IN ASSET VIBRANCY, QUALITY AND FUTURE GROWTH Grand opening of Chadstone’s major retail and mixed-use precinct to occur in March 2025 Chadstone welcomes Kmart HQ to One Middle Road office tower • In the largest Australian metro markets office deal in 2024, Kmart leased >17,000 sqm over 12 y
Slide 17: Investing in Asset Vibrancy, Quality and Future Growth: Chatswood Chase
INVESTING IN ASSET VIBRANCY, QUALITY AND FUTURE GROWTH Chatswood Chase reimagined – Sydney’s new fashion capital Chatswood Chase to become the fashion capital of Sydney • Tenant mix to include Apple, luxury, Australian-designer, new-to-market concepts, and TONG LI SUPERMARKET ASTAKOS 13,200 sqm Davi
Slide 18: Chatswood Chase on Track to Become Sydney's Fashion Capital
CHATSWOOD CHASE ON TRACK TO BECOME SYDNEY’S FASHION CAPITAL Vicinity Centres FY24 Annual Results | 20 August 2024 18
Slide 19: Vicinity's Sustainability Journey
VICINITY’S SUSTAINABILITY JOURNEY Creating sustainable destinations within our communities and providing long-term value for securityholders On track to achieve Net Zero Target1 by 2030 • Preparations underway for mandatory climate reporting Well ranked in sustainability surveys • #2 in Australia an
Slide 20: FY25 Earnings Guidance
FY25 EARNINGS GUIDANCE Continued robust comparable NPI growth partially offset by temporary impacts from development activity FY25 earnings guidance1 FY24 to FY25 FFO per security waterfall (cents per security) 14.5-14.8¢ 12.3-12.6¢ 95-100% FFO AFFO DISTRIBUTION payout of AFFO 14.8 14.5 • Adjusting
Slide 21: Summary and Outlook
SUMMARY AND OUTLOOK FY24 was a productive year at Vicinity, showcased by the achievement of operating and financial objectives and momentum of strategic execution FY24 in summary • FY24 was a productive year at Vicinity, strategically, financially and culturally • Delivered FFO and AFFO per security
Slide 22: Appendices
APPENDICES 23 Australian macroeconomic 24 Development pipeline 25 Direct portfolio 29 Assets under management environment 30 Financial results 33 Key dates 34Contacts Vicinity Centres FY24 Annual Results | 20 August 2024 22
Slide 23: Australian Macroeconomic Environment
AUSTRALIAN MACROECONOMIC ENVIRONMENT While population growth and tight employment market are providing a level of resilience, elevated living costs are weighing on consumer demand INCOME, SALES AND SAVINGS1 HOUSE PRICES2 (Seasonally adjusted, %) (Quarterly index: Dec-11=100) 25 280 20 250 15 220 190
Slide 24: Development Pipeline
DEVELOPMENT PIPELINE Near-term development pipeline focused on premium retail assets while broader mixed-use development opportunities present option value Asset Project Est cost ($m)1 Status FY25 FY26 FY27+ Chadstone Mixed-use – One Middle Road office and retail 270-290 Construction Retail – luxury
Slide 25: Direct Portfolio: Key Statistics by Centre Type
DIRECT PORTFOLIO Key statistics by centre type Total Premium Outlet portfolio Chadstone CBDs Centres1 Core Number of retail assets 56 1 7 8 40 Gross lettable area (000’s) (sqm) 2,360 231 221 285 1,622 Total value2 ($m) 14,712 3,363 1,968 2,405 6,976 Portfolio weighting (by value) (%) 100 23 13 16 47
Slide 26: Direct Portfolio: Key Tenants
DIRECT PORTFOLIO Key tenants TOP 10 BRANDS BY INCOME TOP 10 TENANT GROUPS BY INCOME No. of % of No. of % of Rank Retailer Retailer type stores income Rank Retailer leases income Brands Kmart, Priceline, Priceline Pharmacy, Target, Bunnings, 1 Supermarket 33 3.1 1 83 4.8 Australian Skin Clinics, Clea
Slide 27: Direct Portfolio: Additional Leasing Disclosures
DIRECT PORTFOLIO Additional leasing disclosures LEASE EXPIRY PROFILE (By income, %) 25 17 12 12 12 12 4 1 1 1 2 0 Holdover FY25 FY26 FY27 FY28 FY29+ Majors All other retailers WEIGHTED AVERAGE LEASE EXPIRY (Years) Jun-24 Jun-23 By area 4.3 4.1 By income 3.6 3.3 The Galeries, NSW Vicinity Centres FY2
Slide 28: Direct Portfolio: Non-comparable Centres for Sales Reporting
DIRECT PORTFOLIO Non-comparable centres for sales reporting Jun-24 Dec-23 Armidale Central, NSW Major changeover Major changeover Bankstown Central, NSW Development Development Box Hill Central, VIC Major changeover and pre-development Major changeover and pre-development Chatswood Chase Sydney, NSW
Slide 29: Assets Under Management
ASSETS UNDER MANAGEMENT Approximately 6,500 tenants across 57 assets under management1 DIRECT PORTFOLIO ASSETS UNDER MANAGEMENT Third party/co- Wholly-owned Jointly-owned Total Total1 owned Number of assets 28 28 56 1 57 Value2 ($m) 6,580 8,132 14,712 123/8,407 23,247 GLA (000, sqm) 888 1,472 2,360
Slide 30: FFO Reconciliation to Statutory Net Profit After Tax
FINANCIAL RESULTS FFO reconciliation to statutory net profit after tax FY24 FY23 ($m) ($m) Statutory net profit after tax 547.1 271.5 Property revaluation decrement for directly owned properties 38.9 195.9 Non-distributable loss relating to equity accounted investments 28.4 73.4 Amortisation of ince
Slide 31: Additional Debt Disclosures
FINANCIAL RESULTS Additional debt disclosures Key debt statistics Jun-24 Jun-23 Fixed rate instruments Hedge rate (weighted average, A$m) (Weighted average, %) Total debt facilities $5.4b $5.0b 4,000 4.0 Drawn debt $4.1b $3.8b 3,500 3.5 Available liquidity $1.4b $1.2b 3,000 3.0 Weighted average cost
Slide 32: Balance Sheet
FINANCIAL RESULTS Balance sheet Jun-24 Jun-23 Variance ($m) ($m) ($m) Cash and cash equivalents 49.6 192.9 (143.3) Investment properties held for sale 186.6 - 186.6 1 Investment properties 14,771.4 14,288.4 483.0 1 Equity accounted investments 91.8 437.5 (345.7) Intangible assets 164.2 164.2 - Other
Slide 33: Key Dates
KEY DATES1 20 August 2024 23 August 2024 26 August 2024 16 September 2024 FY24 annual results released and Ex-distribution date for FY24 final Record date for FY24 final distribution Payment date for FY24 final distribution announcement of FY24 final distribution distribution 17 September 2024 29 Oc
Slide 34: Contact Details and Disclaimer
CONTACT DETAILS AND DISCLAIMER FOR FURTHER INFORMATION P L E A S E CONTACT: JANE KENNY TROY DAHMS General Manager 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
Slide 35: Thank you
Thank you The Strand Arcade, NSW