Vicinity Centres has posted a 1.6 per cent uplift in portfolio sales for the third quarter ended March 31.

“Our operating metrics remain strong and continue to be underpinned by retailer demand for physical stores, particularly in our premium centres, and strong retail sales growth since the end of the pandemic,” said CEO and MD Peter Huddle.

The occupancy rate for the quarter remained at 99.1 per cent while comparable net property income was at 4 per cent, both in line with the first half of FY24.

“Furthermore, we retain our view that the medium to long-term fundamentals of the Australian retail sector remain favourable, supported by record levels of migration, a robust employment market, and stage three tax cuts becoming effective from July 1,” added Huddle.

During the quarter, the company assumed full control of Chatswood Chase and started a $620 million retail redevelopment project, which will house the largest luxury retail precinct in NSW.

The firm also divested Kurralta Central, Dianella Plaza and Roxburgh Village at a premium to their June 2023 book values.

For the full year, Vicinity continues to expect funds from operations to increase 14.1-14.5 per cent.