Vicinity Centres’ Q1 FY23 Supported by Retail Resilience
Oct 28, 2022 – Vicinity Centres announced its quarterly update for the three months ended September 30, 2022.
Key highlights
- Leasing activity momentum in FY22 continued in 1Q FY23 with flat leasing spreads of -0.4% (FY22: -4.8%)
- Slight increase in occupancy to 98.4% (Jun-22: 98.3%)
- 95% of gross rental billings collected for 1Q FY23; focus remains on collection of SME tenant debt
- 1Q FY23 retail sales1 up 21.2% compared to September 2019 quarter2, representing a three-year CAGR3 of 6.6%
- Apparel & Footwear – Vicinity’s largest specialty category4 – underpinned strong retail sales and delivered positive leasing spreads
- Visitation continued to recover in 1Q FY23; total portfolio visitation (excluding CBDs) was 92% of pre-COVID levels
- Spend per visit remains elevated at 1.3x 2019 levels (FY22: 1.3x); Luxury sales and price inflation amplify impact of higher visitation and dwell times
- Development of Chadstone’s new entertaining and dining precinct (‘The Social Quarter’) remains on track for opening this coming Summer and construction of the One Middle Road office tower and the fresh food and dining precinct has commenced
- Vicinity named Oceania Sector Leader by Global Real Estate Sustainability Benchmark (‘GRESB‘)
- Vicinity reaffirmed FY23 earnings guidance with FFO per security expected to be in the range of 13.0-13.6 cents with AFFO per security expected to be in the range of 10.9-11.5 cents; targeting a full-year distribution payout range of 95-100% of AFFO.
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