Vicinity Centres (C98) Q4 2026 Earnings Report

The earnings call conveyed a positive tone: strong financial results (net profit, FFO), very high occupancy, extended debt maturity and preserved cost of debt, upgraded asset quality and successful major developments (Chatswood Chase, DFO Eastern Creek, Uptown). Management provided confident FY'27 FFO per security guidance implying 5.3%–6.6% growth and reiterated disciplined capital deployment. Notable challenges included moderation in sales (particularly luxury), a step down in leasing spreads late in the year with FY'27 spreads guided lower (~3%), a $50 million uplift in Uptown costs, capex timing shifts, and acknowledged macro/residential risks. Overall, the positives — portfolio upgrade, valuation gains, NTA uplift, robust occupancy and clear development value creation — materially outweigh the moderating trends and execution/timing risks.

Vicinity guided FY‑27 FFO per security of $0.160–$0.162 (implying FFO per security growth of 5.3–6.6% versus FY‑26’s $0.1521) and AFFO per security of $0.139–$0.141; management said this outlook assumes leasing spreads moderate to ~3% (from FY‑26’s 4.2%), occupancy remains around 99.6%, average annual escalators of 4.8%, average new-lease tenure of ~4.6 years, specialty occupancy cost ratio ~14.4% and income on holdover ~1.5%, supported by a stronger earnings base (Chatswood Chase contributing a full year, Chadstone stabilised, Galleria opening in November and income from Uptown and DFO Eastern Creek); capital settings underpinning the guidance include pro‑forma gearing ~26.5% (30 June headline 26.1%), NTA $2.59, weighted average cost of debt ~4.98%, weighted average debt maturity extended to 5.1 years, ~87% of debt hedged in FY‑27, $800m undrawn facilities and DRP support (DRP raised $192m).