Vicinity Centres reports strong tenant demand

Image of shopping mall

Sustained levels of retail sales delivered a “robust” third quarter for shopping mall operator Vicinity Centres.

For the three months to March 31, sales in stores across the company’s portfolio rose by 13 per cent year on year and strong tenant demand drove an increase in leasing deals.

The company completed 249 leasing deals during the quarter, a figure buoyed by positive growth in footfall in the operator’s CBD properties.

By segment, luxury and specialty turnover grew by 17.2 per cent while cafes and restaurants registered a 29.3 per cent increase.

Apparel and footwear sales extended 18.9 per cent driven by a CBD recovery and a strong performance by the outlet mall portfolio.

Vicinity’s CEO and MD, Peter Huddle, said the company’s outlook is to remain “cautious” for the upcoming financial year due to the “ongoing escalation of household living costs and the potential for consumption to soften”.

“With a flexible balance sheet and strong credit metrics, Vicinity remains well positioned to navigate market uncertainty and at the same time, invest in its growth agenda,” he said.

“Furthermore, in an increasingly capital-constrained environment, we are prioritising long-term growth and value accretion and judiciously deploying capital accordingly.”

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