Earnings call transcript: Vicinity Centres posts strong FY 2026 as outlook brightens

Vicinity Centres reported strong full-year earnings for FY 2026, with funds from operations reaching the top of guidance and net profit boosted by property revaluations. The Australian shopping-center operator noted a stronger balance sheet and an expanding pipeline of development projects, contributing to a 1.98% rise in its shares to $2.58.

Premium assets now comprise 67% of the portfolio value, up from 51% in June 2022, as the company continues to recycle capital from smaller and slower-growing properties. Sales reached over AUD 18.4 billion, with 380 million customer visits. Comparable NPI rose 4.2%, and leasing spreads hit 4.2%, marking the strongest annual result yet.

Management attributed these results to disciplined tenant curation, strong demand for quality space, and a supply-constrained retail market. The company delivered a 12.8% total return for the year, with net tangible assets per security increasing by 7.7% to AUD 2.59. Vicinity's dividends have been consistent for 15 consecutive years.

Management forecast FY 2027 FFO per security to range from AUD 0.16 to AUD 0.162, suggesting a 5.3% to 6.6% growth from FY 2026.