Vicinity Centres (VCX) AI Stock Analysis

• Market Cap: AU$11.22B
• Dividend Yield: 6.04%
• Average Volume (3M): 11.81M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.93
• Revenue Growth: 1.97%
• EPS Growth: 156.14%
• Country: AU
• Employees: 1,257
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Retail
• EPS (TTM): 0.18
• Shares Outstanding: 4,562,878,400
• 10 Day Avg. Volume: 9,365,148
• 30 Day Avg. Volume: 11,805,582
• PEG Ratio: 0.27
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$2.33
• Price Target Upside: -5.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: AU$2.50 ▲(1.63%Upside)

Vicinity Centres maintains a strong financial foundation with improving profit margins and stable leverage, which significantly contributes to its overall score. The stock's bullish technical indicators further enhance its attractiveness. Although valuation metrics show fair pricing, the stock's solid dividend yield is a plus for investors seeking income.

Vicinity Centres Business Overview & Revenue Model

Company Description

Vicinity Centres (Vicinity or the Group) is one of Australia's leading retail property groups. With a fully integrated asset management platform, and $24 billion in retail assets under management across 63 shopping centres, it is the second largest listed manager of Australian retail property. Vicinity has a Direct Portfolio with interests in 60 shopping centres (including the DFO Brisbane business) and manages 31 assets on behalf of Strategic Partners, 28 of which are co-owned by the Group. Vicinity is listed on the Australian Securities Exchange (ASX) under the code VCX and has over 28,000 securityholders. Vicinity also has European medium term notes listed on the ASX under the code VCD.

How the Company Makes Money

Vicinity Centres makes money primarily through rental income generated from leasing retail space in its shopping centers to various tenants. The company has multiple revenue streams including base rent, which is a fixed amount agreed upon in lease contracts, and turnover rent, which is a percentage of the tenant's sales revenue. Additionally, Vicinity Centres earns from ancillary services such as parking fees and advertising spaces within the centers. The company may also generate revenue through strategic partnerships and joint ventures aimed at developing and enhancing their property portfolio. These elements, combined with efficient property management and development activities, contribute to the company's earnings.

Vicinity Centres Financial Statement Overview

Summary

Vicinity Centres exhibits strong financial health with growing revenues and improving profit margins, reflecting solid operational performance. The balance sheet is stable with a conservative leverage position, though vigilance is needed regarding rising debt levels. Cash flow generation remains sound, though recent dips in free cash flow warrant attention. Overall, the company is well-positioned in the retail REIT segment, with potential for further financial strengthening.

Income Statement

Vicinity Centres has shown a positive trend in revenue growth with a 6.6% increase from 2023 to 2024. The gross profit margin stands at 69.8%, indicating strong cost control relative to revenue. The net profit margin improved significantly to 41.7% in 2024 from 22.1% in 2023, a clear sign of enhanced profitability. EBIT and EBITDA margins are robust at 61.0% and 56.1% respectively, pointing to efficient operations and management effectiveness.

Balance Sheet

The debt-to-equity ratio is 0.43, suggesting a moderate level of leverage which is typical for REITs. The return on equity is 5.1%, reflecting a reasonable return given the industry context but with room for improvement. The equity ratio is strong at 67.7%, indicating substantial equity financing and a stable financial structure. However, the increase in total debt over the years should be monitored.

Cash Flow

Operating cash flow to net income ratio is 1.26, demonstrating that the company generates ample cash relative to its net income. However, free cash flow has decreased by 3.9% from 2023 to 2024, which may signal a need for more efficient capital expenditures. The free cash flow to net income ratio is 0.65, indicating the company’s ability to generate cash after capital investments but could be healthier.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.37B	1.31B	1.23B	1.18B	1.11B	1.22B
	Gross Profit
950.10M	916.50M	880.80M	851.50M	758.20M	898.70M
	EBIT
836.60M	800.80M	791.70M	780.20M	500.30M	692.10M
	EBITDA
793.90M	736.00M	745.10M	785.70M	514.90M	-1.19B
	Net Income Common Stockholders
816.20M	547.10M	271.50M	1.22B	-256.80M	-1.80B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
109.40M	49.60M	192.90M	55.60M	36.20M	227.40M
	Total Assets
16.42B	15.73B	15.58B	15.55B	14.34B	15.24B
	Total Debt
5.17B	4.62B	4.46B	4.14B	3.63B	4.25B
	Net Debt
5.06B	4.57B	4.27B	4.09B	3.59B	4.02B
	Total Liabilities
5.56B	5.09B	4.95B	4.67B	4.33B	4.68B
	Stockholders Equity
10.86B	10.64B	10.64B	10.89B	10.01B	10.56B
Cash Flow		Free Cash Flow
701.50M	353.10M	367.50M	334.90M	598.70M	470.80M
	Operating Cash Flow
702.00M	690.10M	702.20M	589.50M	599.90M	472.00M
	Investing Cash Flow
-734.90M	-435.70M	-203.20M	-512.30M	-126.50M	-175.20M
	Financing Cash Flow
46.70M	-397.70M	-361.70M	-68.80M	-655.30M	-104.30M

Vicinity Centres Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VCX, the sentiment is Positive. The current price of 2.46 is above the 20-day moving average (MA) of 2.41, above the 50-day MA of 2.34, and above the 200-day MA of 2.18, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 62.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:VCX.

Vicinity Centres Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCX	72 Outperform	AU$11.22B	13.72	7.73%	6.04%	1.97%	156.14%
Sector *	61 Neutral	$2.83B	10.92	0.41%	8438.90%	5.75%	-21.03%
DEXSF		$4.87B	―	-9.22%	5.89%	―	―
GPTGF		$6.08B	―	-1.94%	4.97%	―	―
MRVGF		$5.91B	―	-6.29%	5.14%	―	―
STGPF		$12.57B	18.10	5.94%	4.70%	―	―
STKAF		$8.54B	27.80	4.54%	4.70%	―	―

Vicinity Centres Corporate Events

AustralianSuper Increases Stake in Vicinity Centres

AustralianSuper Pty Ltd has increased its voting power in Vicinity Centres from 6.04% to 7.36%, as indicated in a recent change of interests notice. This increase in voting power reflects AustralianSuper’s growing influence within Vicinity Centres, potentially impacting the company’s strategic decisions and signaling confidence in its market position.

The most recent analyst rating on (AU:VCX) stock is a Sell with a A$2.35 price target. To see the full list of analyst forecasts on Vicinity Centres stock, see the AU:VCX Stock Forecast page.

Vicinity Centres Reports Strong 3Q FY25 Performance Amid Strategic Growth

Vicinity Centres reported a robust third quarter for FY25, driven by strong retailer and shopper confidence. The company highlighted the successful opening of ‘The Market Pavilion’ at Chadstone, stable occupancy rates, and increased retail sales, particularly in specialties and mini majors. Vicinity continues to focus on strategic investments and divestments, maintaining a low proforma gearing of 27.5%, which supports its growth agenda. The company expects its FY25 FFO and AFFO per security to be at the top end of its guidance range, reflecting the strength of its portfolio metrics.

Vicinity Centres Announces Director’s Interest Change

Vicinity Centres has announced a change in the director’s interest for Peter Huddle, involving the sale of fully paid ordinary stapled securities. This transaction is aimed at financing tax obligations arising from the vesting of performance and restricted rights, as well as the release of securities linked to short-term incentive awards. This move reflects the company’s ongoing management of executive compensation and its impact on the company’s financial operations.

Vicinity Centres Reports Cessation of Securities

Vicinity Centres announced the cessation of certain securities, specifically 464,671 performance rights and 111,697 restricted rights, due to unmet conditions as of March 31, 2025. This development may impact the company’s capital structure and could have implications for stakeholders, reflecting challenges in meeting performance or other conditional criteria.

Vicinity Centres Announces Quotation of New Securities on ASX

Vicinity Centres has announced the quotation of 10,602,864 fully paid ordinary units stapled securities on the Australian Securities Exchange (ASX) as of March 13, 2025. This move is part of a dividend or distribution plan, potentially enhancing the company’s capital structure and providing additional value to its stakeholders.