Vicinity Centres is using premium retail assets to drive its booming profits, according to its half-year earnings report.
The first-half of the 2026 financial year saw Vicinity’s after-tax profits reach $805.6 million. The figure for the same period in 2025 was $492.6 million.
This 63.5 per cent increase, Vicinity’s CEO and MD Peter Huddle said, was down to an increased demand for premium retail assets in strategic locations.
“Population growth and increased household spending, together with limited incremental retail floorspace, are collectively driving a growing shortage of retail gross lettable area per capita,” Huddle added.
“Premium assets comprise 66 per cent of our total asset portfolio by value, up from 51 per cent as at June 2022.
“Furthermore, supported by our strategic and disciplined capital investments, on a proforma basis, the total value of our asset portfolio increased by 12.6 per cent, and this is despite a net reduction of 12 retail assets.”
Huddle also said that the launch of Chadstone Shopping Centre’s new fresh food precinct, and 20,000 square metre office tower, has “solidified” Chadstone as a retail-led destination. With 6,500 workers now based in Chadstone’s office space, an additional 110,000 visitors staying each year in Hotel Chadstone further diversifies Vicinity’s portfolio.
The company now boasts $16.9 billion in assets, an increase from $16.3 billion in the prior comparable period. With a further $400 million assigned to capital expenditure for the rest of the financial year, Vicinity forecasts its funds from operations (FFO) to reach the top end of its forecast at 15.2 per cent.
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