Vicinity Centres (ASX:VCX) sticks with FY22 guidance

Company News

by Lauren Evans

Vicinity Centres (ASX:VCX) has reaffirmed its 2022 financial year guidance following its March quarter update which was described as strong, despite effects of the Omicron strain and floods in NSW and Queensland.

The real estate investment trust expects funds from operations (FFO) per security to be in the range of 11.8 to 12.6 cents with adjusted funds from operations (AFFO) per security to be in the range of 9.5 to 10.3 cents, targeting a full-year distribution payout range of 95 to 100 per cent of AFFO.

The company said occupancy rates remained stable at 98.2 per cent by the end of the quarter, with leasing activity accelerating in late February and March following some moderation in January and early February due to the impacts of omicron.

Its March quarter sales were 11 per cent higher than the same month in 2019, prior to the pandemic.

“During the March quarter, we continued to build on the operational and financial performance delivered in the first half of FY22. Occupancy remained stable, cash collections improved and retailer confidence rebounded in late February and March,” said chief executive officer Grant Kelley.

“The quarterly results were delivered despite challenging trading conditions at times during the quarter, with the spread of Omicron, catastrophic floods in NSW and Queensland and growing geopolitical instability.”

Shares in Vicinity Centres (ASX:VCX) are trading 3.1 per cent higher at $1.89. 

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