Vicinity Centres profit nearly doubles
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The news: Shopping centres owner Vicinity Centres reported a 83.6% increase in full-year profit to just over $1 billion.
The numbers: This is up from $547.1 million last year and higher than analysts' forecasts of $865.58 million, according to Visible Alpha data.
Revenue rose 1.6% to $1.27 billion, below the expected $1.32 billion. Funds from operations (FFO) of 14.8 cents per share at the higher end of guidance of 14.5 cents to 14.8 cents. Adjusted funds from operations (AFFO) came in at 12.59 cents per share, at the higher end of the guidance range of 12.3 cents to 12.6 cents per share.
Vicinity declared a final distribution of 6.05 cents per share, bringing the full-year distributions to 12 cents per share, in line with market estimates. This is higher than the 11.75 cents full-year dividend declared in the previous year.
For FY26, Vicinity is guiding FFO in the range of 15 and 15.2 cents per share and is guiding AFFO in the range of 12.8 and 13 cents per share. Full year distribution guidance is expected to be within the target range of 95% to 100% of adjusted FFO.
The context: During the year, Vicinity acquired a 50% stake in Lakeside Joondalup in Western Australia for $420 million and has seen a gross valuation gain of $30 million since acquisition.
Vicinity also divested three non-strategic assets at a blended premium to June 2024 book value of more than 5%.
It was also announced that Michael Hawker will retire from Vicinity's board. He has been a non-executive director since November 2022.
