Vicinity Centres has reported a significant increase in profit amid higher funds from operations (FFO) for the last fiscal year.
The company’s statutory net profit after tax reached $1 billion for the 12 months ended June 30, compared to $547.1 million in the prior year.
FFO grew 1.4 per cent to $673.8 million. Adjusted FFO, which excludes one-off items and higher loss of rent from developments, was up 3.6 per cent.
Comparable net property income improved 3.7 per cent, with occupancy at 99.5 per cent and leasing spreads at over 2.5 per cent.
Retail sales were up 2.8 per cent, benefiting from population growth, strong employment, and the accumulated benefit of income tax reductions that took effect last July.
“The strategic decisions taken and investments made this year continue to be anchored by our strong conviction that premium, fortress-style assets located in strong trade areas that are well managed by retail property experts, have the potential to deliver superior and sustained income and value growth,” commented CEO and MD Peter Huddle.
During the year, Vicinity Centres made several important investment strategies, including acquiring 50 per cent of Lakeside Joondalup in Western Australia, divesting three non-strategic assets at a premium to June 2024 book value of over 5 per cent, and selectively investing in large-scale retail developments.
The company also advanced important retail developments at Chadstone and Chatswood Chase, including final negotiations with LVMH Group to open at Chatswood Chase in the fourth quarter of FY26.
For the new fiscal year, Vicinity expects FFO per security of 15 to 15.2 cents and comparable net property income growth of approximately 3 per cent.
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