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Vicinity Centres

VCX: XASX (AUS)

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Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$5.45	Tdmgv	Krbhzfyr

Vicinity Centres Earnings: Well-Prepared for a Tougher Retail Environment

Alexander Prineas

Feb 16, 2024

We increase our fair value estimate for no-moat Vicinity Centres by 4% to AUD 2.15 per security following the release of first-half earnings, driven by the time value of money and solid leasing performance. Management reaffirmed full-year guidance for funds from operations at the top end of the range of AUD 14.1 to AUD 14.5 cents per security. The distribution was AUD 5.85 cents per security in the first half. We forecast the full-year distribution to be AUD 11.5 cents, representing a yield of approximately 6% based on the prevailing security price.

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