Vicinity Centres Earnings: Solid Result Despite Retail Sales Starting to Moderate

No-moat Vicinity Centres reported funds from operations of AUD 14.6 cents per security, down 3% year on year, largely due to lower property income and higher interest costs. The result was 1% above our forecast and the top of the guidance range. Vicinity will pay a final distribution of AUD 5.9 cents per security in September, taking total fiscal 2024 distributions to AUD 11.75 cents, down 2%. Guidance was also better than we expected. We now forecast fiscal 2025 FFO per security of AUD 14.6 cents per security and distributions of AUD 12.4 cents per security, both toward the lower end of the guided ranges. We had previously forecast small reductions in both.