The Vicinity Centres (ASX: VCX) share price is in focus after the company posted a $805.6 million statutory net profit for 1H FY26, up 63.5% from the prior period, with a 4.8% uplift in net tangible assets per security.
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What did Vicinity Centres report?
- Statutory net profit after tax: $805.6 million (1H FY25: $492.6m)
- Funds from operations (FFO): $351.0 million, up 2.0%
- Distribution per security: 6.20 cents, up 4.2%
- Comparable net property income (NPI) growth: +3.7%
- Net tangible assets (NTA) per security: $2.52, up 4.8%
- Portfolio occupancy: 99.6%
What else do investors need to know?
Vicinity Centres continued its strategy of shifting towards premium retail assets, with premium assets now making up 66% of the portfolio's value. Key moves included securing the remaining 75% interest in Brisbane's Uptown centre for $212 million, funded by divestments of non-strategic assets at a blended premium to book value.
Development plans are progressing, including the successful Stage 1 opening of Chatswood Chase and ongoing projects at Chadstone and Galleria. Strong leasing activity saw portfolio occupancy reach a record 99.6%, and leasing spreads move up to 4.6%, supporting future rent growth.
What's next for Vicinity Centres?
The group expects full-year FFO and AFFO to be at the top end of its guidance. Management is targeting continued investment in premium assets, with around $400 million allocated to capital expenditure in FY26 and a focus on mixed-use development opportunities. Comparable NPI growth is now expected to be around 3.5%, with development-related rent losses factored into guidance.
Vicinity's disciplined capital management aims to maintain flexibility for further investment, while its latest acquisitions and developments seek to boost income growth and portfolio value.
Vicinity Centres share price snapshot
Over the past 12 months, Vicinity Centres shares have risen 14%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
