AgFin Australia

Vicinity targets “fortress-style” assets amid strong FY25 Q1 results

Vicinity Centres (ASX:VCX) held its annual general meeting today. The retail property group, which manages $23bn in assets across Australia, highlighted its strategic portfolio enhancements, robust occupancy levels and positive leasing metrics.

During FY24, Vicinity acquired a 50% stake in Lakeside Joondalup in Western Australia and full ownership of Chatswood Chase in Sydney. “These acquisitions allow us to strengthen our position in premium retail locations with long-term growth potential,” stated CEO Peter Huddle, emphasising the focus on “fortress-style” assets with robust demand.

The group achieved a 3% year-to-date leasing spread. Occupancy remained high at 99.2%, with continued strong performance in CBD and Outlet locations. Huddle also noted that ongoing redevelopments at flagship properties like Chadstone and Chatswood Chase are on track, with the Chadstone project set to open in March 2025.

Vicinity reaffirmed its FY25 earnings guidance, projecting Funds From Operations (FFO) per security to fall within 14.5-14.8 cents and a distribution payout of 95-100% of Adjusted FFO.