Vicinity (ASX:VCX) returns to profit despite looming pandemic woes

Company News

by Lauren Evans

Vicinity (ASX:VCX) has unveiled a return to interim profit, thanks to a boost in property revaluations. However, the shopping centre's owner has flagged that pandemic related challenges continue to loom into the second half.

The group reported net profit after tax of $650.2 million for the six months to December, a rebound from its $394 million loss in the prior corresponding period. An interim dividend of 4.7 cents per share is set to be paid in March.

“The first half of FY22 was another challenging period for Vicinity, our retail partners and the retail sector more broadly. However, despite continued Covid-related disruptions and a greater proportion of our assets being in lockdown this period, our disciplined approach to cash collection and retailer support, together with higher than anticipated tenant retention and resilient ancillary income underpinned our significantly improved result, said chief executive officer Grant Kelley. 

“We were pleased to see our asset valuations increase amid a buoyant capital transaction market and a resilient underlying retail sector. DFO valuations continue to grow as tightening capitalisation rates and income growth highlight the strength of our DFO portfolio and its resilience through cycles."

Shares in Vicinity (ASX:VCX) are trading 9.1 per cent higher at $1.83. 

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