Vicinity Centres reported an occupancy rate of 99.1 per cent during the fiscal first half ended December 31, its highest point since 2019.

The group attributed the increase to “robust tenant demand”, up from 98.8 per cent as of June 30 last year and 98 per cent at the peak of the pandemic (December 2020).

Statutory net profit after tax rose to $223.5 million from $176.3 million in the year-ago period.

Meanwhile, funds from operations were down 3.2 per cent to $345.6 million. The group said the decrease was driven by higher reversals of prior year waivers and provisions in 1H FY23 relative to 1H FY24, as well as the disposal of a 50 per cent interest in Broadmeadows Central.

During the six months, Vicinity entered into contracts for asset sales to fully fund the acquisition of the remaining 49 per cent of Chatswood Chase Sydney shopping mall.

“1H FY24 was a busy period of strategic execution and investment, and I am delighted with the momentum that has been set and the progress we have made since we refreshed Vicinity’s strategy in June 2023,” commented CEO and MD Peter Huddle.

The company saw a 1 per cent or $143 million decline in total asset valuation for the period. Total portfolio retail sales grew 1.5 per cent, largely driven by food, sporting goods, cosmetics, and retail services.

“In the context of softening retail sales growth, notably in 2Q FY24, we are particularly pleased with the strong operating metrics delivered in the first half,” Huddle continued.

“Having anticipated a moderation in retail sales, we have acted at pace to lock in long-term leasing deals, minimise income at risk and increase occupancy to closer to pre-pandemic levels.”