Vicinity Centres (' Vicinity', ASX: VCX) today launched its results for the 12 months ended 30 June 2025 (' FY25'). FY25 monetary and strategic highlights:

- Statutory net earnings after tax (' NPAT') of $1,004.6 m (FY24: $547.1 m).

• Funds From Operations (' FFO') up 1.4% to $673.8 m. Adjusted for one-off items1 and greater loss of rent from advancements, FFO was up 3.6%.
• At 14.8 cents, Vicinity delivered FFO per security at the top end of its assistance range of 14.5 to 14.8 cents per security.
• Final circulation of 6.05 cps, bringing FY25 circulation to 12.00 cps (FY24: 11.75 cps), representing a payout ratio of 95.4% of Adjusted-FFO (' AFFO').
• Ongoing execution of investment method; getting a premium asset, Lakeside Joondalup, with strong growth capacity at attractive prices and divesting non-strategic assets at 5%+ above book worths.
• Opened Chadstone's revitalised fresh food and dining precinct, The Market Pavilion, which is trading above expectations. Chadstone's overall visitation in 4Q FY25 up 36% on 4Q FY24 and fixed centre2 sales up +4.4% over the exact same duration.
• Transformational advancement of Chatswood Chase to northern Sydney's style capital remains on track to commence opening in 2Q FY26; renting now mainly complete.
• Comparable Net Residential Or Commercial Property Income3 (' NPI') development of +3.7%, reflecting strength of Vicinity's portfolio metrics and continued outperformance by the premium possession portfolio. Headline NPI up 3.3%.
• Strengthening retail sales, up 2.8% in FY25 and resilient portfolio metrics supported by higher quality possession portfolio, robust merchant need and occupant remixing, amid a tightening up retail supply environment.
• Occupancy at 99.5%, renting spreads at +2.5%, typical yearly escalator on brand-new leases of +4.8% and specialty and mini majors sales in 2H FY25 up 4.7% relative to 2H FY24 (1H FY25: +2.9%).
• Coupled with strong tenancy, Vicinity's specialty tenancy expense ratio (' OCR') of 14.1% highlights prospective for continued favorable leasing stress and future rent growth.
• At 26.6%, gearing is at lower end of the 25-35% target variety, making it possible for financial investment in development concerns
  
  Reflections on FY25 from CEO and Managing Director, Peter Huddle:
  
  Strategic execution FY25 has been another important year for Vicinity. The tactical decisions taken and financial investments made this year continue to be anchored by our strong conviction that premium, fortress-style properties located in strong trade locations that are well handled by retail residential or commercial property experts, have the potential to deliver superior and continual earnings and worth growth. Our conviction continues to be enhanced by the emerging shortage of retail Gross Lettable Area (' GLA') per capita in Australia4 arising from population growth, building sector restrictions and minimal major renter growth. In this context, we have actually continued to perform our financial investment technique in FY25, obtaining 50% of Lakeside Joondalup in Western Australia, a premium possession with strong growth potential at attractive prices ($ 420 million), divesting 3 non-strategic properties at a blended premium to June 2024 book worth of > 5%, and selectively investing in essential, big scale retail advancements. Also during the year, we advanced crucial and transformational retail advancements at Chadstone and Chatswood Chase, with Chadstone's reimagined fresh food and dining precinct, The marketplace Pavilion, and new, 20,000 sqm workplace tower, One Middle Road, effectively finished in 2H FY25. We were delighted to finish last settlements with the LVMH Group to open at Chatswood Chase in 4Q FY26. For any high-end retail precinct, the existence of LVMH's house of brands is crucial. Formalising the extension of our close and successful collaboration with the LVMH Group to include Chatswood Chase supports the successful reimagination of Chatswood Chase as northern Sydney's new fashion capital. Maintaining our conservative and disciplined method to managing gearing and retaining our credit scores continues to be a directing concept when handling and deploying capital. Importantly, we have been able to make meaningful improvements to our possession portfolio, while at the very same time ensuring tailoring stays at the lower end of our 25% -35% target variety, at 26.6%. Also supporting our gearing was the 1.2%, or $175 million, uplift in overall portfolio valuations in the second half. We are delighted to report that for the third consecutive six-month period, the portfolio provided favorable net residential or commercial property assessment development in 2H FY25, underpinned by regularly strong income growth and steady valuation metrics. On a full year basis, the total value of our portfolio increased by $349 million (1H FY25: up $174 million, 2H FY25: up $175 million). In January 2025, Vicinity established a Distribution Reinvestment Plan (' DRP') as a potential alternate source of financing and versatility for securityholders. The DRP was in operation for the FY25 interim circulation, achieving a 9% uptake and supplying Vicinity with $23 countless additional capital. The DRP remains in operation for the FY25 last circulation with a 1.0% to be applied. Further details were provided to the ASX today. Operating environment and portfolio efficiency FY25 has actually shown to be a durable year in regards to retail sales growth, gaining from the confluence of population growth, strong work, the collected benefit of earnings tax reductions effective 1 July 2024, Federal Government initiatives to minimize the expense of living throughout FY25 (e.g., energy cost rebates), as well as two rates of interest decreases and the likelihood of additional rates of interest reductions in 2025. Following +2.0% retail sales5 development in 1H FY25, growth sped up to +3.8% in 2H FY25, providing a strong +2.8% MAT uplift for the full year. Against this background, our portfolio metrics remained favorable and continue to support current and future year income growth. Occupancy lifted to 99.5% (Jun-24: 99.3%) and we are continuing to write high quality leases; renting spreads stayed beneficial at +2.5% (FY24: +1.1%), average annual escalators on deals finished stay healthy at 4.8% (FY24: 4.8%) and the proportion of income on holdover is now at a historical low for Vicinity of 2.1% 6. At 3.7% in FY25 (FY24: 4.1%), comparable NPI growth continued to be driven by superior portfolio metrics provided by our premium possessions. In FY25, our premium asset portfolio7 provided 4.9% equivalent NPI growth, leasing spreads of +6.1%, occupancy at 99.6% and +4.3% growth in mini major and specialty retail sales in 2H FY25. Notably, improving portfolio quality and strategic occupant remixing provided by our residential or commercial property, leasing and development groups have supported 18% development in specialized sales productivity given that FY19. Together with growing sales efficiency and high portfolio occupancy, Vicinity's specialized tenancy expense ratio of 14.1% highlights potential for continued favorable leasing stress and future rent growth. Developments and mixed-use update Our desire and our ability to purchase the vibrancy and quality of our possession portfolio remains a key differentiator and a source of competitive advantage, particularly in the context of tightening supply of retail floorspace and ongoing capacity constraints in Australia's building sector. On 27 March 2025, we opened Chadstone's revitalised fresh food and dining precinct, The marketplace Pavilion, which continues to trade above expectations. After an extended period of disruption from development activities, the opening of The Market Pavilion ushers in a brand-new age for food and dining at Chadstone, enhancing the asset as Australia's premier location for shopping, dining and entertainment. Showcasing the favorable effect on the possession more broadly, Chadstone's overall visitation in 4Q FY25 was up by 36% on 4Q FY24 and similarly, fixed centre retail sales have favorably rebounded, up 4.4% over the exact same duration. In June 2025, we at Vicinity, and the Chadstone centre more broadly, were thrilled to officially welcome Adairs' head office group to the One Middle Road workplace tower. Kmart is now fitting out its office space and is anticipated to formally open in early 2026. With One Middle Road inhabited, Chadstone will take advantage of approximately 2,000 more office employees throughout the week who will use the property's incomparable shopping, dining, leisure and home entertainment features, all conveniently located and housed under the one roofing system. The Chatswood Chase major redevelopment is considerably advanced with significant structural works now total and the brand-new shopping mall reconfigurations taking shape. Notably, the pre-leasing is now mostly complete. Our strategies for a staged opening stay unchanged, with the redeveloped Ground and Level 2 on track to open in 2Q FY26, in time for Christmas. Following extensive lease settlements and an intricate fit-out process, the Luxury precinct on Level 1 is expected to be open and trading by 4Q FY26. The Board has authorized the start of the home entertainment and way of life redevelopment of Galleria in Western Australia, which will consist of a complete shopping center revitalisation and introduction of an improved dining and home entertainment deal. As we look ahead to FY27, retail advancement is most likely to be less transformational in nature and more concentrated on targeted, little to medium scale developments that ensure our properties continue to offer an engaging proposal for our clients. From a wider mixed-use advancement viewpoint, following the NSW Government's approval of the Bankstown Rezoning Proposal in November 2024 as part of the Transport Oriented Development program, Vicinity is well placed to advance domestic development surrounding to our Bankstown Central property and the brand-new Metro station, which is because of commence services in 2026. Chatswood Chase likewise provides an interesting near-term blended usage development opportunity, with Vicinity owning 2 residential or commercial properties that are directly surrounding to the centre. Sites at both centres proposed for high density property have actually been endorsed for addition in the Housing Development Authority's accelerated evaluation path, offering an accelerated preparation procedure. Both Bankstown Central and Chatswood Chase represent two of Vicinity's the majority of tactically situated and amazing properties with prospective to deliver new housing in high-demand metropolitan precincts. These chances line up with government top priorities, while presenting Vicinity with the opportunity to more densify the area surrounding crucial assets. Vicinity continues to consider numerous operating and financing models appropriate for these mixed-use chances, while at the exact same time, preserving optionality in regards to how and when we unlock the very best risk adjusted return for Vicinity and its securityholders. Conclusion
  
  In the context of major advancements and an active financial investment technique, FY26 will be another year where we stay steadfastly concentrated on driving strong and superior property performance while we at the same time complete and deliver Chatswood Chase, advance the redevelopment of Galleria, and cycle the short-term profits effect from our strategic divestments to date. Importantly, our balance sheet remains a key enabler of our capability to invest in our development top priorities, both organic and inorganic, that will ultimately deliver sustained worth accretion for all our stakeholders. FY26 Earnings Guidance8
  
  - FY26 FFO and Adjusted FFO per security expected to be within the varieties of 15.0 to 15.2 cents and 12.8 to 13.0 cents, respectively
• Vicinity expects its full year circulation payout to be within the target variety of 95-100% of Adjusted FFO
• Adjusting for one-off items9 and lower development-related loss of lease, FY26 FFO development expected to be 2.0% - 3.5%.
• Comparable NPI growth anticipated to be c. 3% in FY26. Excluding the impact of brand-new taxes and levies, comparable NPI in FY26 would be anticipated to be c. 3.5%.
• Development-related loss of rent10 c.$ 25m in FY26 (FY27: c.$ 15m).
• Weighted average cost of financial obligation in FY26 expected to be c. 5.0% (FY25: 5.1%).
• Maintenance capital investment and leasing incentives of c.$ 100m.
• Investment capital investment anticipated to be in the range of $400m to $450m (FY25: c.$ 350m)
  
  * * * This file needs to be checked out in conjunction with Vicinity's FY25 annual outcomes presentation and 2025 Annual Report launched to the ASX today. A rundown by management elaborating on this announcement will be webcast from 10.15 am (AEST) today and can be accessed by means of vicinity.com.au/ investors. 1 Transactions and turnaround of previous year provisions. 2 Excludes retailers in The Market Pavilion. 3 Comparable net residential or commercial property earnings growth leaves out reversal of previous year arrangements, transactions and advancement impacts. 4 CBRE Research, Australia. 5 Sales are reported for similar centres, which omits divestments and development-impacted centres in accordance with Shopping Centre Council of Australia standards. Unless otherwise stated, sales growth is reported versus the same period a year previously.