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VCX: Divestment Of Smaller Malls Will Support Focus On Larger Destinations

E-Commerce Headwinds Will Dismantle Overpriced Retail Projections

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VCX
AnalystConsensusTarget
Not Invested
Published 09 Feb 2025

Update shared on 27 Nov 2025

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Analysts have modestly raised their price target for Vicinity Centres to $2.58 per share. This change is attributed to minor adjustments to their discount rate assumptions, while other key outlook factors remain steady.

What's in the News

  • Vicinity Centres is seeking to sell three subregional shopping centres, with expectations of raising around $250 million (Key Developments).
  • The listed centres include Gympie Central and Whitsunday Plaza in Queensland, and Armidale Central in New South Wales (Key Developments).
  • This move is part of a strategy to exit smaller malls. The company is focusing on transforming larger properties into luxury and mixed-use destinations (Key Developments).
  • The properties are expected to attract both nimble and larger fund managers. Investors have shown increased interest in mid-sized retail centres for their steady returns (Key Developments).
  • Vicinity Centres continues to expand its luxury retail offerings at major locations such as Chadstone in Melbourne and new developments at Chatswood Chase in Sydney (Key Developments).

Valuation Changes

  • Fair Value estimate remains unchanged at A$2.58 per share.
  • Discount Rate has risen slightly from 7.39% to 7.42%.
  • Revenue Growth forecast remains unchanged at -6.89%.
  • Net Profit Margin remains steady at 70.34%.
  • Future P/E ratio has increased marginally from 18.72x to 18.73x.

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Disclaimer

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