Vicinity Centres (ASX:VCX) announced its financial results, with results impacted by the $229.1 million decline in total asset valuation for the six months to 30 June 2023.
The statutory net profit after tax was $271.5 million, and funds from operations at $684.8 million, delivering final distributions of 6.25 cents per security for FY23.
The shopping mall owner delivered strong leasing results, with 306 vacant stores leased in FY23, and occupancy increasing to 98.8%.
Vicinity’s CEO and Managing Director, Mr Peter Huddle said: “FY23 has been a year of resilience and growth at Vicinity. During the year, we deliberately executed at pace while the retail sector was favourable. We delivered a significant level of high-quality leasing outcomes, focused on enhancing the retail mix of each centre and reducing our income at risk, while simultaneously negotiating favourable leasing spreads which support current and future NPI growth.
“Furthermore, we have continued to invest our capital to progress development approvals and execute project activity that will ultimately deliver long-term value to our stakeholders, despite near-term, heightened macroeconomic uncertainty.”
In FY23, Vicinity continued to enhance its investment portfolio with the completion of a number of developments during the year, including a Coles supermarket, a Grand Market, and mini majors precinct at Bankstown Central. A Coles supermarket and services mall, and three-storey office podium, leased to Hub Australia, was opened at Box Hill Central, and at Chadstone, we completed The Social Quarter and the redeveloped Chadstone Place office, now fully occupied by Officeworks’ Head Office.
Vicinity expects to deliver lower distributions, in the range of 14.1¢ to 14.5¢, compared to how it performed in FY23.
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