reports
- Tony Sherlock
Vicinity Front and Centre in Retail Malaise. AUD 2.70 FVE Unchanged
There are still no specifics from new CEO, Grant Kelley on the assets across the portfolio that will be earmarked to undergo development to incorporate offices, hotels or apartments. That said, we think the February announcement to convert some of the pure retail malls to mixed use assets will be a value-accretive strategy. Our reasoning is many of the assets in the portfolio do not have population or income growth outlook to support a significant expansion to the retail trade area. We expect gr...
- Tony Sherlock
Book Value Barometer Loses Relevance for Vicinity and Most REIT Peers
Vicinity Centre’s recently updated valuation of 42 of its 74 directly owned malls--representing 56% by value--should see the firm record a noncash revaluation gain of AUD 408 million or AUD 11 cents per security, or cps, for the December half year. The incredibly low capitalisation rates implicit in valuations prepared by property valuers has made book values hyper sensitive to small assumption changes. We see the valuations of Vicinity and many other REITs of diminishing relevance as the high...
- Please Change Name Maurice O'Connell
Vicinity Centres: FY2017 Results Update
CORPORATES CREDIT OPINION 23 October 2017 Update RATINGS Vicinity Centres Domicile Australia Long Term Rating A2 Type LT Issuer Rating - Fgn Curr Outlook Stable Please see the ratings section  at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Maurice O'Connell +61.2.9270.8167
- Please Change Name Maurice O'Connell
- Please Change Name Maurice O'Connell
Moody's comments on Vicinity Centres announcement
Announcement: Moody's comments on Vicinity Centres announcement. Global Credit Research- 26 Jul 2017. Sydney, July 26, 2017-- Moody's Investors Service says that Vicinity Centres' announcement on 25 July of on-market buy-back of up to 5% of its ordinary securities on issue will have no impact on its A2 Issuer rating and stable outlook.
- Tony Sherlock
Vicinity Seems More Exposed Than Peers to Retail Malaise. FVE unchange...
Vicinity Centres released its third-quarter fiscal 2017 operational update, which point to a further deterioration in retail conditions. Vicinity’s comparable specialty moving annual turnover, or MAT, which is the industry benchmark, was up 1.1% in the year to March 2017, compared with 2.2% in the year to December 2016. This infers Vicinity recorded a negative sales result for the March quarter given there is 75% overlap in the two metrics. However, some of the slowdown is timing related, with...
- Tony Sherlock
Australia’s Weaker States to Weigh on Vicinity’s Rent Growth; FVE ...
Following Vicinity Centres’ first-half fiscal 2017 result, we’ve reviewed the firm’s sales performance against peers and Australia’s microeconomic outlook. Over 2016, Vicinity’s portfolio achieved comparable specialty sales growth of 2.2%, trailing Mirvac Group at 3.5%, GPT Group at 2.6%, and Scentre Group at 2.6%; nonetheless, it was slightly above metrics for Stockland (up 0.8%) and Charter Hall (up 1.6%). At a headline level, Vicinity’s specialty sales performance was slightly bel...
- Tony Sherlock
Vicinity Defers Roselands. Rising Debt Costs and Weaker Apparel Prompt...
Narrow moat-rated Vicinity has indefinitely postponed the AUD 650 million redevelopment of its 50%-owned Roselands shopping due to inability to agree commercial terms with a major tenant. The postponement is material, taking AUD 325 million or 20% out of management's previously flagged AUD 1.7 billion future capital expenditure pipeline. The postponement means Vicinity will not capture the valuation upside from the development and forego the associated fees. We revise our forecasts to exclude th...
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