The Vicinity Centres (ASX: VCX) share price is in focus today after the company reported statutory net profit of $1.0 billion for FY25—up from $547.1 million last year. Funds From Operations reached $674 million, with annual distribution rising to 12.0 cents per security.
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What did Vicinity Centres report?
- Statutory net profit: $1,004.6 million (FY24: $547.1 million)
- Funds From Operations (FFO): $674 million; 14.8 cents per security (top end of guidance)
- Annual distribution: 12.0 cents per security (FY24: 11.75 cps), payout ratio of 95.4% of Adjusted FFO
- Portfolio occupancy: 99.5% (up from 99.3% in June 2024)
- Gearing: 26.6% (improved from 27.2%)
- Comparable net property income growth: +3.7% (FY24: +4.1%)
- Divested $457 million of non-strategic assets and acquired 50% of Lakeside Joondalup
What else do investors need to know?
Vicinity made several strategic moves during the year, including the acquisition of a 50% stake in Lakeside Joondalup for $420 million and the successful launch of major projects such as Chadstone's Market Pavilion and One Middle Road office tower. Stage 1 of Chatswood Chase's redevelopment also reopened, welcoming over 60 retailers.
The company exceeded its asset sales target, raising nearly $460 million during FY25 and accelerating its portfolio shift toward premium assets. Portfolio occupancy remains high at 99.5%, with a leasing spread of +2.9% in Q1 FY26, reflecting robust ongoing demand for its retail spaces.
What did Vicinity Centres management say?
Peter Huddle, CEO and Managing Director said:
It continues to be my privilege to lead Vicinity and share with you in more detail today, what I believe are our key achievements in recent months and provide a high-level update on our first quarter of FY26.
What's next for Vicinity Centres?
Looking ahead, Vicinity reaffirmed its FY26 earnings guidance, with FFO per security expected in the 15.0–15.2 cents range and Adjusted FFO at 12.8–13.0 cents. The company has started the revitalisation of its Galleria centre in Perth, set to complete before Christmas 2026.
Ongoing focus areas include remixing its portfolio, growing premium asset exposure, and maintaining financial discipline to support further rent growth. Management notes an optimistic outlook for the retail sector, citing strong population growth and limited new supply.
Vicinity Centres share price snapshot
Over the past 12 months, the Vicinity Centres share price has increased 17%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.
