Vicinity Centres (ASX:VCX), which operates its flagship Chadstone shopping centre in Melbourne, announced a fall of 11.3 per cent in its portfolio net value in the six months to June 30, reducing its portfolio’s value by $1.79 billion to $14.1 billion.
The drop reflects the reductions in discretionary retail spending due to the impacts of Covid-19.
CEO and Managing Director Grant Kelley said a portion of the valuation decline relates to rent waivers provided by Vicinity to retailers impacted by the COVID-19 pandemic.
“This remains a highly uncertain and evolving environment, as demonstrated by current circumstances in Victoria,” he said, adding: “Any reductions in discretionary retail spending and lower retail activity may continue to have an adverse impact on the valuation of Vicinity’s assets.”
Vicinity also manages Sydney's The Strand Arcade and the Queen Victoria Building.
Shares in Vicinity Centres (ASX:VCX) are trading 2.9 per cent lower at $1.36.