The Vicinity Centres (ASX: VCX) share price is in focus today as the company hosted its 2026 Capability Showcase, highlighting the completed redevelopments at Chadstone and Chatswood Chase – two of the Group's flagship retail assets.
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What did Vicinity Centres report?
- Chadstone's total value now stands at $7.26 billion, with annual retail sales (MAT) of $2.74 billion, and specialty sales per sqm rising to $28,000.
- Chatswood Chase occupancy reached 99.7%, with +15% foot traffic and +26% same-store sales since redevelopment.
- Premium assets comprise 67% of Vicinity's retail portfolio, up from 51% in 2022.
- Gearing at 26.1% and interest cover at 4.1x, with 87% of debt hedged into FY27.
- Development pipeline of $2.5 billion invested since 2022, with stabilised project yields of 5.6% (Chadstone) and 6.7% (Chatswood Chase).
What else do investors need to know?
Vicinity emphasised its ongoing capital recycling strategy, shifting more of its portfolio toward premium centres and outlets. The company reported strong leasing demand and productivity lifts after major redevelopments, with Chadstone maintaining its title as Australia's top retail centre and Chatswood Chase achieving rapid re-leasing and income growth.
The capability showcase also spotlighted Vicinity's disciplined balance sheet management, with continued access to diversified funding and a focus on maintaining investment-grade credit ratings. The Group reaffirmed its commitment to ESG, reporting a 45% reduction in emissions intensity since FY16 and remaining on track for Net Zero 2030 target.
What did Vicinity Centres management say?
CEO and Managing Director Peter Huddle said:
Our strategy of concentrating capital into premium, differentiated assets is delivering superior value and resilience for investors, retailers and communities.
What's next for Vicinity Centres?
Vicinity says it will continue to focus investment on its development pipeline, including the on-time and on-budget delivery of the Galleria project and revitalisation of Uptown set for early 2027. Management also flagged early-stage planning for large-scale residential opportunities at Chatswood Chase and further mixed-use projects across the portfolio, aiming to unlock additional value and support future growth.
The Group will maintain its disciplined capital approach, keeping gearing and liquidity in check while seeking risk-adjusted returns above industry benchmarks. Its strategy remains anchored in asset renewal and balancing defensive income with growth, despite changing market conditions.
Vicinity Centres share price snapshot
Over the past 12 months, Vicinity Centres shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 9% over the same period.
