Vicinity Centres reported a 3.9% rise in funds from operations (FFO) to AUD 700.1 million for the 12 months ended June 30, 2026, as the company exceeded full-year guidance and upgraded its outlook for the 2027 financial year.
Statutory net profit after tax surged to AUD 1.39 billion, including AUD 691 million in valuation gains, while comparable net property income grew 4.2%. The company declared a final distribution of 6.2 cents per security, bringing the full-year payout to 12.4 cents at a 95.5% payout ratio. Shares rose 1.98% to AUD 2.58, near the top of the 52-week range of AUD 2.22 to AUD 2.73.
Adjusted FFO per security increased 4.1% to AUD 0.1521, at the upper end of the guidance band of 15.0 to 15.2 cents. Net tangible assets per security climbed 7.7% to AUD 2.59, supported by a 41% uplift in average asset values since June 2022. Portfolio occupancy reached 99.6%, with holdover income falling to a record low of 1.5%.
Vicinity raised its FY27 FFO per security guidance to AUD 0.160–0.162, implying growth of 5.3% to 6.6% year-over-year, while adjusted FFO per security is forecast at AUD 0.139–0.141. Leasing spreads are expected to moderate to around 3%, down from 4.2% in FY26.
The company executed AUD 2 billion in debt transactions during the year, including AUD 732 million in 10-year issuance and a AUD 500 million Australian medium-term note. Pro forma gearing stood at 26.5%, within the 25% to 35% target range, with undrawn facilities totaling AUD 800 million. Credit ratings remained stable at A from S&P and A2 from Moody’s.
Portfolio upgrades included the AUD 625 million transformation of Chatswood Chase, which opened its luxury precinct in April and is expected to stabilize at a yield of approximately 6.7% and an unlevered IRR near 11%. The Galleria development is scheduled to open in November 2026, adding two months of income. Vicinity also acquired the remaining 75% stake in Uptown Brisbane for AUD 212 million and purchased DFO Eastern Creek for AUD 351 million, with an additional 8,500 square meters of approved outlet expansion.
Annual retail sales exceeded AUD 18.4 billion across 380 million customer visits, with specialty and mini-major sales up 4%. Luxury sales productivity reached AUD 61,000 per square meter, while specialty sales productivity stood at AUD 13,512 per square meter. July sales were up about 3% on a comparable basis, with specialty and mini-major sales rising roughly 4%.
