Vicinity Centres 3Q FY24 Update

Vicinity Centres (ASX: $VCX) has released its quarterly update for the three months ended 31 March 2024 ('3Q FY24'). The update highlights positive portfolio retail sales, strong leasing spreads, robust occupancy, and the settlement of key acquisitions and divestments. Vicinity reaffirms its earnings guidance for FY24, expecting FFO and AFFO per security to be around the top end of the specified ranges.

Executive Commentary on 3Q FY24 Performance

Continuing the momentum of execution delivered in 1H FY24, Vicinity Centres CEO and Managing Director, Mr Peter Huddle, expressed satisfaction with another quarter of robust operating metrics and further execution of the investment strategy. He emphasized the strong retailer demand for physical stores, particularly in premium centres, and the positive retail sales growth post-pandemic. Mr Huddle also highlighted the company's confidence in the medium to long term fundamentals of the Australian retail sector, supported by migration levels, employment market strength, and upcoming tax cuts.

Summary of 3Q FY24 Update and Outlook

Vicinity Centres' 3Q FY24 update reflects positive operating metrics and continued progress in executing its investment strategy. The company's focus on premium retail assets, such as Chatswood Chase, is evident through the settlement of key acquisitions and divestments. The commencement of major retail redevelopment projects and the strong demand for medium term notes demonstrate Vicinity's commitment to enhancing its portfolio and capital structure. The reaffirmation of earnings guidance for FY24 indicates the company's confidence in delivering strong FFO and AFFO per security. Vicinity's outlook remains optimistic, with a favorable view on the Australian retail sector's medium to long term fundamentals, supported by economic conditions and consumer trends.