Slide 1: FY24 Interim Results
FY24 Interim Results 15 FEBRUARY 2024 Chadstone, VIC
Slide 2: Welcome and Agenda
WELCOME AGENDA 04 10 PETER HUDDLE CEO and Managing Director Overview and portfolio Financial results performance 14 19 ADRIAN CHYE Chief Financial Officer Development update Appendices and summary Vicinity Centres FY24 Interim Results | 15 February 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 Interim Results | 15 February 2024 The Strand Arcade, NSW
Slide 5: 1H FY24 Financial and Operational Highlights
1H FY24 FINANCIAL AND OPERATIONAL HIGHLIGHTS Vicinity Centres delivers resilient operational and financial results and demonstrates execution of long-term growth strategy $223.5M $345.6M 5.85C STATUTORY NET PROFIT AFTER TAX FUNDS FROM OPERATIONS (FFO)1 DISTRIBUTION PER SECURITY 1H FY23: $176.3m Down
Slide 6: Execution of Refreshed Strategy
EXECUTION OF REFRESHED STRATEGY Significant momentum set, and progress made across Vicinity’s strategic priorities in 1H FY24 ENHANCE THE INVESTMENT PORTFOLIO • Acquisition1 of 49% of Chatswood Chase Sydney; iconic, premium mall with strong growth potential • Divestment1 of c.$316m of assets at a bl
Slide 7: Enhancing the Investment Portfolio
ENHANCING THE INVESTMENT PORTFOLIO Upweighting portfolio to premium retail malls that offer superior long-term growth potential while preserving Vicinity’s strong balance sheet ACQUIRED 49% OF CHATSWOOD CHASE SYDNEY AT ATTRACTIVE DISCOUNT 49% interest in premium asset on Sydney’s North Shore acquire
Slide 8: Retail Sales
RETAIL SALES Retail sales growth remains positive however, the rate of growth continued to moderate in 1H FY24 OBSERVABLE RESILIENCE IN RETAIL SALES, WHILE NEAR-TERM UNCERTAINTY REMAINS TOTAL PORTFOLIO SALES1 VS MAT Six months Quarters PRIOR YEAR Moderating sales growth rates reflect confluence of e
Slide 9: Leasing
LEASING Acting at pace to embed earnings resilience in FY24 and beyond with high-quality, long-term leasing deals, despite moderating sales RETAILER CONFIDENCE TO COMMIT TO LONG-TERM LEASES REMAINS ROBUST LEASING STATISTICS 1H FY24 FY23 1H FY23 676 comparable deals at +3.3% leasing spread Total1 dea
Slide 10: Financial Results
FINANCIAL RESULTS ADRIAN CHYE CHIEF FINANCIAL OFFICER Vicinity Centres FY24 Interim Results | 15 February 2024 Emporium Melbourne, VIC
Slide 11: Financial Results: Income statement and FY24 earnings guidance
FINANCIAL RESULTS Income statement and FY24 earnings guidance EARNINGS PERFORMANCE 1H FY24 1H FY23 Variance Variance Statutory net profit of $223.5m ($m) ($m) ($m) (%) FFO down 3.2%, adjusted for one-off items1 FFO was up 2.9% Net property income (NPI) 451.6 459.6 (8.0) (1.7) Headline NPI down 1.7%,
Slide 12: 1H FY24 Valuations
1H FY24 VALUATIONS Long-term income growth supported by strong leasing activity, offset 90% of impact of modest capitalisation rate expansion 1H FY24 VALUATIONS DOWN 1.0% OR $143M1 No. of Valuation Variance Capitalisation Movement Weighted average capitalisation rate (WACR) softened 18 bps (2H FY23:
Slide 13: Capital Management
CAPITAL MANAGEMENT Disciplined approach to capital management maintained; balance sheet well positioned to support growth priorities PROACTIVE CAPITAL MANAGEMENT DEBT SOURCES $675m of new or extended bank debt facilities (%) 87% of drawn debt currently hedged, with a modest step down in FY25 2 8 12
Slide 14: Development Update and Summary
DEVELOPMENT UPDATE AND SUMMARY PETER HUDDLE CEO AND MANAGING DIRECTOR Vicinity Centres FY24 Interim Results | 15 February 2024 Chadstone, VIC – The Social Quarter
Slide 15: Chadstone Mixed-Use Project Opens First Stage
CHADSTONE MIXED-USE PROJECT OPENS FIRST STAGE Fully integrated mixed-use development; One Middle Road office tower with fresh food Market Pavilion and alfresco dining precinct MARKET PAVILION AND ALFRESCO DINING FIRST STAGE OPENED Coles, Aldi and nine fresh food retailers and services opened Decembe
Slide 16: Redevelopment of Chatswood Chase Sydney
REDEVELOPMENT OF CHATSWOOD CHASE SYDNEY The most exciting and transformational project to be undertaken in Australian retail property today, and into the foreseeable future FRESH FOOD AND DINING DEVELOPMENT; FIRST RETAILERS OPENED Revitalised lower ground comprises 66 stores incorporating existing a
Slide 17: 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 FOR SCOPE 1 AND SCOPE 2 EMISSIONS FOR COMMON MALL AREAS ACROSS WHOLLY-OWNED ASSETS BY 2030 (NET ZERO TARGET) 2023 SUSTAINABILITY A
Slide 18: Summary and Vicinity's Investment Proposition
SUMMARY AND VICINITY’S INVESTMENT PROPOSITION 1H FY24 a period of execution of Vicinity’s property-led strategy, intense prioritisation and focus on sustained value growth STRONG INTERIM RESULTS AND DEMONSTRATED EXECUTION OF LONG-TERM STRATEGY Results highlight laser focus on embedding resilient ear
Slide 19: Appendices
APPENDICES 20 Australian macroeconomic 21 Development pipeline 22 Direct portfolio 26 Assets under management environment 27 Financial results 30 Key dates 31 Contact details and disclaimer Vicinity Centres Vicinity Centres FY24 FY24Interim Interim Results Results || 15 15February February 2024 2024
Slide 20: Australian Macroeconomic Environment
AUSTRALIAN MACROECONOMIC ENVIRONMENT Ongoing resilience in consumer spending buoyed by tight employment market, while near-term uncertainty remains INCOME, SALES AND SAVINGS1,2 HOUSE PRICES2,3 (%) (Quarterly index: Dec-11=100) 25 280 20 250 220 15 190 10 160 5 130 0 100 -5 70 Sep 13 Sep 15 Sep 17 Se
Slide 21: Development Pipeline
DEVELOPMENT PIPELINE Near term development pipeline focused on premium retail investment while broader mixed-use development opportunities present potential upside over longer-term Asset Project Est cost ($m)1 FY24 FY25 FY26 FY27+ Chadstone Mixed-use – One Middle Road office and retail 250 Retail –
Slide 22: Direct Portfolio: Key statistics by centre type
DIRECT PORTFOLIO Key statistics by centre type Total portfolio Chadstone Premium CBDs Outlet Centres1 Core Number of retail assets 59 1 7 8 43 Gross lettable area (000’s) (sqm) 2,421 231 221 285 1,684 Total value2 ($m) 14,356 3,375 1,933 2,341 6,706 Portfolio weighting by value (%) 100 24 13 16 47 C
Slide 23: Direct Portfolio: Key tenants
DIRECT PORTFOLIO Key tenants TOP 10 BRANDS BY INCOME TOP 10 TENANT GROUPS BY INCOME No. of % of No. of % of Rank Retailer Retailer type stores income Rank Retailer leases income Brands 1 Supermarket 36 3.3 1 68 4.7 Kmart, Priceline, Priceline Pharmacy, Target, Clearskincare Clinics 2 Supermarket 35
Slide 24: Direct Portfolio: Additional leasing disclosures
DIRECT PORTFOLIO Additional leasing disclosures LEASE EXPIRY PROFILE (By income, %) 29 16 14 11 11 11 4 0 0 1 1 1 Holdover FY24 FY25 FY26 FY27 FY28+ Majors All other retailers WEIGHTED AVERAGE LEASE EXPIRY (Years) Dec-23 Jun-23 By area 4.4 4.1 By income 3.6 3.3 Nepean Village, NSW Vicinity Centres F
Slide 25: Direct Portfolio: Non-comparable centres for sales reporting
DIRECT PORTFOLIO Non-comparable centres for sales reporting Dec-23 Jun-23 Armidale Central, NSW Major changeover Major changeover Bankstown Central, NSW Development Development Box Hill Central, VIC Major changeover and pre-development Major changeover and pre-development Chatswood Chase Sydney, NSW
Slide 26: Assets Under Management
ASSETS UNDER MANAGEMENT Approximately 6,700 tenants across 59 assets under management1 ASSETS UNDER DIRECT PORTFOLIO MANAGEMENT Wholly-owned Jointly-owned Total Total1 Number of assets 30 29 59 59 Value2 ($m) 5,970 8,386 14,356 23,002 GLA (000, sqm) 887 1,535 2,421 Number of tenants 2,552 4,100 6,65
Slide 27: FFO reconciliation to statutory net profit after tax
FINANCIAL RESULTS FFO reconciliation to statutory net profit after tax 1H FY24 1H FY23 ($m) ($m) Statutory net profit after tax 223.5 176.3 Property revaluation decrement for directly owned properties 76.0 56.7 Non-distributable loss relating to equity accounted investments 29.6 21.3 Amortisation of
Slide 28: Balance sheet
FINANCIAL RESULTS Balance sheet Dec-23 Jun-23 Variance ($m) ($m) ($m) Cash and cash equivalents 95.6 192.9 (97.3) Non-current assets held for sale 273.5 - 273.5 1 Investment properties 14,012.0 14,288.4 (276.4) 1 Equity accounted investments 415.6 437.5 (21.9) Intangible assets 164.2 164.2 - Other a
Slide 29: Additional debt disclosures
FINANCIAL RESULTS Additional debt disclosures KEY DEBT STATISTICS DEC-23 JUN-23 FIXED RATE INSTRUMENTS HEDGE RATE5,8 (Weighted average, $b) (Weighted average, %) Total debt facilities $5.3b $5.0b 4,000 4.0 Drawn debt1 $3.9b $3.8b 3,500 3.5 Gearing2 26.3% 25.6% Weighted average cost of debt3 4.9% 4.6
Slide 30: Key Dates
KEY DATES1 Investor calendar 15 February 2024 20 February 2024 21 February 2024 FY24 interim results released and Ex-distribution date for FY24 interim Record date for FY24 interim distribution announcement of FY24 interim distribution distribution 7 March 2024 20 August 2024 29 October 2024 Payment
Slide 31: 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 32: Thank you
VICINITY _ — ~<=" CENTRES Thank you