Vicinity Centres reiterates FY26 guidance after ‘encouraging’ Q1
Make us a preferred source
Make us a preferred source on Google
The news: Shopping centre owner Vicinity Centres has reiterated its FY26 guidance as portfolio retail sales lifted 4.4% in the first quarter, with CEO and managing director Peter Huddle stating that the year is off to “an encouraging start”.
The numbers: During the quarter Vicinity Centres maintained occupancy at 99.5% with first quarter leasing spread at 2.9%.
Vicinity said its speciality and mini-major retailers continued to “provide much of the heavy lift in terms of growth”, at 5.9% in the first quarter of FY26. This is compared to 6% in the fourth quarter of FY25 and 3.1% in the third quarter of FY25.
Occupancy cost ratio was 14.2% compared to 14.1% in June 2025.
Earnings guidance for FY26 was reaffirmed, with funds from operations of between 15 to 15.2 cents while adjusted funds from operations is expected in the range 12.8 to 13 cents.
The context: During the quarter, Vicinity reopened the first stage of the renovated Chatswood Chase shipping centre in Sydney while redevelopment work on the Galleria in Western Australia commenced. Galleria is expected to relaunch before Christmas 2026.
What they said: “Building on the positive momentum set in FY25, FY26 has had an encouraging start, driven by our ongoing focus on achieving key strategic milestones and delivering enhanced portfolio metrics,” Huddle said in his address to the company’s annual general meeting.
The source: ASX
