Vicinity Centres posts $1.39B FY26 profit on asset quality

• Vicinity Centres reported a statutory net profit after tax of $1.39 billion for the 12 months ended June 30.
• Securities rose by 2.57% to trade at $2.60 following the financial results presentation.
• The company attributes its performance to a targeted strategy of repositioning towards premium retail assets.

Vicinity Centres (ASX:VCX) announced a statutory net profit after tax of $1.39 billion for the 2026 financial year, supported by property revaluations and income growth.

The result compares to a statutory net profit after tax of $1 billion recorded in the previous financial year.

At 15.21 cents, funds from operations per security were at the top end of the guidance range due to the sustained strength of our portfolio metrics supporting comparable NPI growth.

For the fifth consecutive six-month period, the portfolio delivered positive valuation growth in H2 FY26, up $293 million or 1.8% to $16.1 billion.

“Since the beginning of 2023, our strategic decisions and investments have been anchored in a clear investment thesis: to own and operate a premium and differentiated retail asset portfolio capable of generating superior income and value growth through cycles,” said the Vicinity Centres CEO and Managing Director.

Funds from operations reached $700.1 million, while net tangible assets per security increased by 7.7% to reach $2.59.

Following the announcement, the Vicinity Centres share price was up at $2.60.

The board declared a final distribution of 6.20 cents per security, bringing the full-year distribution to 12.40 cents and representing a payout ratio of 95.5% of AFFO.

The company recycled capital into assets with stronger income growth potential, including the acquisition of the residual 75% interest in Uptown and the divestment of $327 million in non-strategic assets.

Management stated that the investment strategy aims to drive a step up in the earnings growth profile, with forecasted funds from operations per security expected between 16 and 16.2 cents for the 2027 financial year.