Slide 1: Market update
For personal use only DFO Homebush, NSW Market update 14 December 2015
Slide 2: For personal use only
For personal use only 1 Overview and strategy 2 Investing across the retail spectrum 3 Implementation of the portfolio strategy 4 Capital and Strategic Partnerships 5 Summary Chadstone, VIC
Slide 3: Overview and strategy
For personal use only Overview and strategy Cranbourne Park, VIC
Slide 4: The first days…
The first 100 days… For personal use only Significant progress made on integration and strategy implementation Strategic focus unchanged Acquisition of two high quality assets for $319m – The Shops at Ellenbrook and Livingston Marketplace Portfolio review completed with approximately $750m to
Slide 5: Value creation and sustainable growth
Value creation and sustainable growth For personal use only Current focus on building the foundations Current focus Value creation and Building the foundations sustainable growth Merger Origins Complete integration High quality portfolio delivering superior returns through intensive asset management
Slide 6: Strategic focus unchanged
Strategic focus unchanged For personal use only Create value and sustainable growth by owning, managing and developing quality Australian assets across the retail spectrum Purpose Enriching community experiences Vision Delivering the leading retail property and lifestyle experience in Australia Stra
Slide 7: Group investment principles
Group investment principles For personal use only Focused on long‐term value creation and delivering sustainable earnings growth through the cycle Simple and transparent business model Key financial objectives (‘through cycle’ basis) with a single sector focus Group level Target Invest in quality Au
Slide 8: Management expertise
Management expertise For personal use only Structured to support strategy execution Chief Executive Officer and Managing Director Angus McNaughton Value drivers Enablers Intensive asset Strategic Operational Development Investment Capital Digital People management Partnerships excellence Strategic P
Slide 9: Investing
For personal use only Investing across the retail spectrum The Glen, VIC
Slide 10: Direct Portfolio snapshot
Direct Portfolio snapshot For personal use only The directly owned portfolio is well diversified by geographic and retail sub‐sector exposure 85 assets totaling $14.4b1 17 17 5 2 City Centre Major Regional 1 Regional 2 4 Regional Regional 2 Sub Regional 6 Sub Regional 2 5 Sub Regional Neighbourhood
Slide 11: Uniquely positioned across the spectrum of retail sub-sectors
Investing across the retail spectrum For personal use only Uniquely positioned to create value across the spectrum of Australian retail sub‐sectors Sub‐sector exposure versus peers1 Vicinity Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Super Regional Regional Sub Regional Neighbourhood Outlet 1. Peers
Slide 12: Vicinity will continue to be invested across the spectrum of Australian retail assets
Investing across the retail spectrum For personal use only Vicinity will continue to be invested across the spectrum of Australian retail assets Portfolio position Rationale for investment across the retail spectrum Large and diverse $22b managed portfolio of Australian retail assets Retail sub‐sect
Slide 13: Retail sub-sectors have delivered strong total returns
1 Rationale for investing across the retail spectrum For personal use only Retail sub‐sectors have delivered strong levels of total return and similar volatility Strong total return performance across all retail sub‐sectors… …with very similar levels of volatility Post‐GFC period demonstrating the T
Slide 14: Key sub-sectors exhibit favourable characteristics
2 Rationale for investing across the retail spectrum For personal use only Key sub‐sectors exhibit favourable characteristics including the ability of Vicinity to add value Characteristics Super Regional Regional Sub Regional Neighbourhood Outlet Bulky Goods Strength of tenant covenants Planning con
Slide 15: Case study – DFO Homebush, NSW
3 Rationale for investing across the retail spectrum For personal use only Vicinity’s diversification and scale provide opportunities to add value by expanding tenant relationships Case study – DFO Homebush, NSW Four DFOs, including DFO Homebush, acquired in October 2010 – Attracted by sub‐sector ch
Slide 16: Proven track record of value creation across sub-sectors
4 Rationale for investing across the retail spectrum For personal use only Vicinity has deep capability and a proven track record of value creation across retail sub‐sectors Super Regional – Chadstone, Chadstone, VIC VIC Sub Regional – Cranbourne Chadstone, VIC Park, VIC Chadstone, Neighbourhood VIC
Slide 17: Implementation of the portfolio strategy
For personal use only Implementation of the portfolio strategy QueensPlaza, QLD
Slide 18: Portfolio strategy execution
Portfolio strategy execution For personal use only Value creation from investing across the retail spectrum 1 Clear investment criteria defined for assessing asset quality for the existing portfolio and future investment opportunities 2 Significant value‐accretive investment opportunities including
Slide 19: Investment criteria for assessing asset quality
1 Investment criteria for assessing asset quality For personal use only Quantitative and qualitative factors are used to evaluate asset quality and performance Favourable demographics Resilience to competition in trade area High sales productivity and growth Optimal occupancy costs or opport
Slide 20: Extensive development pipeline provides opportunity to create value
2 Investment opportunities For personal use only Extensive development pipeline provides opportunity to create value $3.0b development pipeline ($1.5b Vicinity share) Vicinity share Partner share Total Chadstone Retail and Office 2 311 622 Warriewood Square 2 44 87 Current Colonnades (Stage 1) 2 26
Slide 21: Broad ranging developments creating value
2 Investment opportunities For personal use only Broad ranging developments across the retail spectrum creating value Super Regional – Chadstone, Chadstone, VIC VIC Sub Regional –Chadstone, WarriewoodVIC Square, NSW Neighbourhood – Halls Head Chadstone, VIC Central, WA World‐class retail asset with
Slide 22: Recent and future acquisitions
2 Investment opportunities For personal use only Recent and future acquisitions to enhance portfolio and consolidate market positions Consolidating market leadership Recent acquisitions The Shops at Ellenbrook Livingston Marketplace position in Outlet centres is a key priority for future investments
Slide 23: Opportunity to recycle capital into value-accretive investments
3 Asset recycling For personal use only Opportunity to recycle capital into value‐accretive investments Portfolio review Financial impact of asset sales and FY16 guidance Comprehensive asset review process undertaken No change to FY16 Underlying Earnings guidance of 18.8 to 19.1 cents per security1
Slide 24: Capital and Strategic Partnerships
For personal use only Capital and Strategic Partnerships Emporium Melbourne, VIC
Slide 25: Strategic Partnerships pursued selectively
Strategic Partnerships For personal use only Strategic Partnerships pursued selectively Existing joint venture and wholesale fund relationships are important Capital sourced from existing and future relationships is a key capital management tool Will selectively pursue joint ventures with aligned pa
Slide 26: Capital management approach
Capital management approach For personal use only A strong and conservative capital structure underpins growth initiatives through the cycle Maintain access to equity and debt funding in all market conditions to enable investment in existing assets and new opportunities through the cycle Metric Prin
Slide 27: Refinancing update
Refinancing update For personal use only Bridge facility to be repaid by 31 December 2015 Repayment of the $1.8b bridge facility by 31 December 2015 Expected movement in debt profile ($b) enabled through: 6.6 – Existing bank debt facilities – Establishment of $700m of new 3 and 5 year bank debt 6.0
Slide 28: Summary
For personal use only Galleria, WA Summary
Slide 29: Well positioned to create value and deliver sustainable growth
Summary For personal use only Well positioned to create value and deliver sustainable growth Strategic focus unchanged ‐ create value Significant value‐accretive opportunities in and sustainable growth by owning, the pipeline managing and developing quality Australian assets across the retail sp
Slide 30: Contact details and disclaimer
Contact details and disclaimer For personal use only For further information please contact: Investor enquiries: Media enquiries: Penny Berger Brandon Phillips Head of Investor Relations GM External Affairs T +61 2 8229 7760 T +61 3 9236 6321 E penny.berger@vicinity.com.au E brandon.phillips@vicinit