Vicinity Centres profit slumps, funds from operation rise

The news: Shopping centre group Vicinity Centres has posted a $271.5 million full-year profit, down from more than $1.2 billion the year before, but managed to beat expectations despite sliding asset values.

The numbers: Vicinity's funds from operations were up 14.5% on 2022 figures to $684.8 million, but they were offset by a net property valuation loss of $338.4 million. The group announced distributions of 12 cents per security, beating FY22's 10.4 cent pay-out. Vicinity shares were up 2% in early trade.

The context: Vicinity has been ramping up asset sales in recent months to pay down debt and fund new developments. Despite retail spending slipping because of increasing cost-living-pressures, Vicinity reported 98.8% occupancy and strong leasing activity throughout FY23.