Vicinity Centre shares rise on strong Q3
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More news: Vicinity Centres shares gained after it flagged that its retail sales were up and that its shopping centre occupancy remained resilient in the third quarter.
Vicinity shares rose 2.75% to $2.42 by 2:42pm AEST, ahead of the real estate sector which added 0.81%. Over the last 12 months, the stock has surged 26.96%.
The company said it is on track to meet its full-year earnings guidance.
Vicinity Centres on track for guidance after strong Q3 performance
The news: Shopping centre group Vicinity Centres is on track for its full-year earnings guidance after reporting higher portfolio sales in the third quarter.
The numbers: The company said portfolio retail sales were up 2.4% from a year ago in the March quarter, with leisure, jewellery, homewares and retail services among the outperformers. Occupancy at its shopping centres remained resilient at 99.4%, while year-to-date leasing spreads remained positive at 3.5%.
The context: The group said it now expects full-year funds from operations to be near the top end of its 14.5 to 14.8 cents a security range, largely driven by the continued strength of its portfolio metrics. Full-year distribution payout is likely to be at the lower end of its target range of 95% to 100% of adjusted funds from operations.
The landlord, which counts Melbourne’s Chadstone and Sydney’s Queen Victoria Building among its properties, said it remains focused on acquiring premium assets with strong growth potential at attractive pricing and divesting non-strategic assets at or above book value.
The source: ASX
