Tough retailing conditions bite landlord Vicinity

Sales of jewellery, leisure goods and services like pharmacies have underpinned earnings at mall owner Vicinity Centres, but tough retailing conditions left the shopping centre landlord with a drop in profits.

Vicinity owns or manages a portfolio of 66 shopping centres, which returned profit of $235.3 million for the half-year to December 31, well below the previous corresponding period’s $755.9 million.

Vicinity is protecting its earnings by ring-fencing it high-value malls like Chadstone.

Vicinity is protecting its earnings by ring-fencing it high-value malls like Chadstone.Credit:Erin Jonasson

Funds from operations (FFO) — a key industry metric used to determine cash flow — were down 0.9 per cent, to 9.06¢ per security, a result impacted by Vicinity selling multiple higher-yielding but non-core centres over the past 18 months.

Vicinity’s planned asset sales saw it offload a dozen malls, netting it $655 million and reducing its debt, in an effort to ring-fence its high-value fortress malls like Victoria’s Chadstone and weather Australia’s retail storm.

Источник: Theage.com.au

Источник: Corruptioner.life

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