Revaluations help boost Vicinity Centres half-year profit

The news: Shopping centre group Vicinity Centres' first-half profit has soared on the back of revaluations, while occupancy also rose at its key properties.

The numbers: Net profit for the six months to December jumped to $492.6 million from $223.5 million a year ago, boosted by asset valuation increases. It also divested malls worth $457 million in that period. Funds from operations (FFO) remained nearly steady at $344.1 million. It will pay an interim distribution of 5.95 cents a security, up from 5.85 cents a year ago.

The context: The landlord, which counts Melbourne’s Chadstone and Sydney’s Queen Victoria Building among its properties, said premium centre occupancy rose to 99.6% as at December 2024, up from 97.9%as at June 2021. However, retailers continue to consolidate the number of stores and seek larger format, flagship stores in Vicinity’s premium assets, chief executive Peter Huddle said.

Vicinity reaffirmed its FY25 earnings guidance with FFO per security expected to be within the range of 14.5 cents to 14.8 cents a security.