As we Expect FY27
Vicinity Centres (' Vicinity', ASX: VCX) today launched its outcomes for the 12 months ended 30 June 2025 (' FY25'). FY25 monetary and tactical highlights:
- Statutory net earnings after tax (' NPAT') of $1,004.6 m (FY24: $547.1 m).
- Funds From Operations (' FFO') up 1.4% to $673.8 m. Adjusted for one-off items1 and higher loss of lease from advancements, FFO was up 3.6%.
- At 14.8 cents, Vicinity provided FFO per security at the top end of its guidance variety of 14.5 to 14.8 cents per security.
- Final distribution of 6.05 cps, bringing FY25 distribution to 12.00 cps (FY24: 11.75 cps), representing a payout ratio of 95.4% of Adjusted-FFO (' AFFO').
- Ongoing execution of investment technique; getting a premium asset, Lakeside Joondalup, with strong development capacity at attractive pricing and divesting non-strategic assets at 5%+ above book worths.
- Opened Chadstone's revitalised fresh food and dining precinct, The Market Pavilion, which is trading above expectations. Chadstone's total visitation in 4Q FY25 up 36% on 4Q FY24 and fixed centre2 sales up +4.4% over the same duration.
- Transformational advancement of Chatswood Chase to northern Sydney's style capital remains on track to begin opening in 2Q FY26; leasing now mainly total.
- Comparable Net Residential Or Commercial Property Income3 (' NPI') growth of +3.7%, reflecting strength of Vicinity's portfolio metrics and continued outperformance by the premium property portfolio. Headline NPI up 3.3%.
- Strengthening retail sales, up 2.8% in FY25 and resilient portfolio metrics supported by greater quality asset portfolio, robust retailer need and renter remixing, in the middle of a tightening retail supply environment.
- Occupancy at 99.5%, leasing spreads at +2.5%, typical yearly escalator on new leases of +4.8% and specialty and mini majors sales in 2H FY25 up 4.7% relative to 2H FY24 (1H FY25: +2.9%).
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