- Vicinity Centres (VCX) has updated the market regarding operations during the September quarter
- The shopping centre giant experienced a less-than-stellar quarter, reporting a 15.2 per cent decrease total portfolio moving annual turnover (MAT)
- However, when excluding Victorian and CBD stores, portfolio MAT was down only a slight 1.7 per cent from last year
- Unfortunately, sales were down 15.2 per cent from the prior corresponding period, but up a slight 1.1 per cent when excluding Victorian centres
- As Victorian stores start to re-open, Vicinity has introduced new technologies to complement and strengthen existing safety measures
- This includes heat-mapping technology, real-time traffic data, and a digital queuing system
- This will enable customers to still shop while abiding by COVID-19 protocols
- Finally, the company received council approvals for multiple office, apartment, entertainment, and dining buildings across Australia
- Vicinity is up a slight 0.18 per cent on the market with shares currently trading for $1.39 each
Vicinity Centres (VCX) has updated the market regarding operations during the September quarter.
The shopping centre giant cites its performance on three macro trends, with the primary one being the Government-mandated closures of most retail stores arising from COVID-19.
Centres were also impacted by the continuation of many employees continuing to work from home, and increased visitation in centres outside of Victoria compared to the June quarter.
Sales
Vicinity’s total portfolio moving annual turnover (MAT) to September 30 was down 15.2 per cent from the prior year.
Excluding Victorian and CBD centres which continue to be heavily impacted by COVID-19, portfolio MAT was down only a slight 1.7 per cent from last year.
Unfortunately, sales were down 15.2 per cent from the prior corresponding period, but up a slight 1.1 per cent when excluding Victorian centres.
Total centre visitation was up 80 for the week ending November 3, and a 96 per cent increase was recorded excluding Victorian stores.
“We are very pleased to have our Melbourne retailers reopen over the past week and have seen centre visitation return to 79 per cent of the prior year’s level across our Victorian centres,” CEO and Managing Director Grant Kelley said.
“This follows a 12-week period where 83 per cent of our Victorian tenancies were closed due to government directives,” he added.
Leases and rent
For the September quarter, 56 per cent of total rent has been collected or 76 per cent excluding Victoria and CBD centres.
“We continue to negotiate short-term lease variations for our impacted retailers in the form of rental waivers and deferrals. Our focus is on ensuring a healthy retail environment through and post the pandemic, securing income and if appropriate, extending lease tenure,” Grant said.
In-centre safety
As Victorian stores start to re-open, Vicinity has introduced new technologies to complement and strengthen existing safety measures.
A new digital queuing system will be implemented to reduce congestion, and real-time traffic data will soon be displayed to inform customers of busy periods.
Additionally, heat-mapping technology will be used to enable shopping centres to maintain effective social distancing.
“The pandemic has highlighted the importance of agility, a digital focus and data-based decision-making,” Grant commented.
Development
In July, Vicinity received council approval for five projects in Chadstone, Victoria, including a nine-story office building and upgrades to enhance select retail and dining precincts.
In September, the company received council approval for mixed-used plans at Sunshine Marketplace in Victoria with potential to add office space, apartments and an entertainment and dining hub.
Planning approval was received in October for a new eight-storey commercial office building in Bayside, Victoria.
Finally, Vicinity completed the $63 million Ellenbrook Central expansion in Western Australia during the quarter.
Vicinity is up a slight 0.18 per cent on the market with shares trading for $1.39 each at 3:02 pm AEDT.