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Vicinity Centres

ASX:VCX
Snowflake Description

Average dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VCX
ASX
A$10B
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

Vicinity Centres (Vicinity or the Group) is one of Australia’s leading retail property groups with a fully integrated asset management platform and $26 billion in retail assets under management across 66 shopping centres, making it the second largest listed manager of Australian retail property. The last earnings update was 153 days ago. More info.


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VCX Share Price and Events
7 Day Returns
-1.1%
ASX:VCX
-1.5%
AU REITs
-0%
AU Market
1 Year Returns
-1.5%
ASX:VCX
18.5%
AU REITs
5.6%
AU Market
VCX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vicinity Centres (VCX) -1.1% 4% 4% -1.5% -27.1% -
AU REITs -1.5% 0.9% 8% 18.5% 14.5% 60%
AU Market -0% 1.7% 6.2% 5.6% 20.1% 12.1%
1 Year Return vs Industry and Market
  • VCX underperformed the REITs industry which returned 18.5% over the past year.
  • VCX underperformed the Market in Australia which returned 5.6% over the past year.
Price Volatility
VCX
Industry
5yr Volatility vs Market

VCX Value

 Is Vicinity Centres undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vicinity Centres to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vicinity Centres.

ASX:VCX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:VCX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.48
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.476 (1 + (1- 30%) (45.9%))
0.751
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:VCX using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Vicinity Centres is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Vicinity Centres is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

ASX:VCX DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 578.00 Analyst x1 539.78
2021 597.00 Analyst x1 520.66
2022 600.43 Est @ 0.57% 489.03
2023 607.01 Est @ 1.1% 461.70
2024 615.87 Est @ 1.46% 437.47
2025 626.44 Est @ 1.72% 415.56
2026 638.31 Est @ 1.89% 395.43
2027 651.20 Est @ 2.02% 376.75
2028 664.93 Est @ 2.11% 359.25
2029 679.35 Est @ 2.17% 342.77
Present value of next 10 years cash flows A$4,338.41
ASX:VCX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$679.35 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$14,577.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$14,577.49 ÷ (1 + 7.08%)10
A$7,355.28
ASX:VCX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$4,338.41 + A$7,355.28
A$11,693.69
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$11,693.69 / 3,771.83
A$3.1
ASX:VCX Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$3.10
Current discount Discount to share price of A$2.61
= -1 x (A$2.61 - A$3.10) / A$3.10
15.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vicinity Centres is available for.
Intrinsic value
16%
Share price is A$2.61 vs Future cash flow value of A$3.1
Current Discount Checks
For Vicinity Centres to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vicinity Centres's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Vicinity Centres's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vicinity Centres's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vicinity Centres's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:VCX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.18
ASX:VCX Share Price ** ASX (2019-07-16) in AUD A$2.61
Australia REITs Industry PE Ratio Median Figure of 38 Publicly-Listed REITs Companies 11.69x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vicinity Centres.

ASX:VCX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:VCX Share Price ÷ EPS (both in AUD)

= 2.61 ÷ 0.18

14.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vicinity Centres is overvalued based on earnings compared to the AU REITs industry average.
  • Vicinity Centres is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Vicinity Centres's expected growth come at a high price?
Raw Data
ASX:VCX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.45x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
1.2%per year
Australia REITs Industry PEG Ratio Median Figure of 31 Publicly-Listed REITs Companies 0.86x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

ASX:VCX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.45x ÷ 1.2%

11.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vicinity Centres is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Vicinity Centres's assets?
Raw Data
ASX:VCX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$3.11
ASX:VCX Share Price * ASX (2019-07-16) in AUD A$2.61
Australia REITs Industry PB Ratio Median Figure of 42 Publicly-Listed REITs Companies 1.12x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:VCX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:VCX Share Price ÷ Book Value per Share (both in AUD)

= 2.61 ÷ 3.11

0.84x

* Primary Listing of Vicinity Centres.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vicinity Centres is good value based on assets compared to the AU REITs industry average.
X
Value checks
We assess Vicinity Centres's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Vicinity Centres has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VCX Future Performance

 How is Vicinity Centres expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vicinity Centres expected to grow at an attractive rate?
  • Vicinity Centres's earnings growth is positive but not above the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Vicinity Centres's earnings growth is positive but not above the Australia market average.
  • Vicinity Centres's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:VCX Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:VCX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 1.2%
ASX:VCX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts -6.6%
Australia REITs Industry Earnings Growth Rate Market Cap Weighted Average -6.7%
Australia REITs Industry Revenue Growth Rate Market Cap Weighted Average -1.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.2%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:VCX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:VCX Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 924 677 695 4
2020-06-30 915 669 683 5
2019-06-30 958 703 663 5
ASX:VCX Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,369 713 698
2018-09-30 1,365 710 958
2018-06-30 1,362 706 1,219
2018-03-31 1,356 712 1,325
2017-12-31 1,349 718 1,431
2017-09-30 1,340 725 1,507
2017-06-30 1,330 731 1,584
2017-03-31 1,320 727 1,514
2016-12-31 1,311 722 1,445
2016-09-30 1,323 732 1,203
2016-06-30 1,336 742 961
2016-03-31 1,235 663 824

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vicinity Centres's earnings are expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
  • Vicinity Centres's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:VCX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Vicinity Centres Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:VCX Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.19 0.19 0.19 1.00
2020-06-30 0.19 0.19 0.18 2.00
2019-06-30 0.17 0.18 0.15 2.00
ASX:VCX Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.18
2018-09-30 0.25
2018-06-30 0.31
2018-03-31 0.34
2017-12-31 0.36
2017-09-30 0.38
2017-06-30 0.40
2017-03-31 0.38
2016-12-31 0.36
2016-09-30 0.30
2016-06-30 0.24
2016-03-31 0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Vicinity Centres is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Vicinity Centres's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vicinity Centres has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VCX Past Performance

  How has Vicinity Centres performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vicinity Centres's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vicinity Centres has delivered over 20% year on year earnings growth in the past 5 years.
  • Vicinity Centres's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Vicinity Centres's 1-year earnings growth is negative, it can't be compared to the AU REITs industry average.
Earnings and Revenue History
Vicinity Centres's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vicinity Centres Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:VCX Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,368.50 698.10 102.10
2018-09-30 1,365.30 958.40 99.85
2018-06-30 1,362.10 1,218.70 97.60
2018-03-31 1,355.75 1,324.70 98.00
2017-12-31 1,349.40 1,430.70 98.40
2017-09-30 1,339.55 1,507.15 98.55
2017-06-30 1,329.70 1,583.60 98.70
2017-03-31 1,320.40 1,514.35 98.90
2016-12-31 1,311.10 1,445.10 99.10
2016-09-30 1,323.45 1,203.00 103.00
2016-06-30 1,335.80 960.90 106.90
2016-03-31 1,234.90 823.95 102.80
2015-12-31 1,134.00 687.00 98.70
2015-09-30 1,001.45 681.05 88.05
2015-06-30 868.90 675.10 77.40
2015-03-31 835.25 649.85 69.45
2014-12-31 801.60 624.60 61.50
2014-09-30 783.05 512.35 58.20
2014-06-30 764.50 400.10 54.90
2014-03-31 753.05 378.45 54.45
2013-12-31 741.60 356.80 54.00
2013-09-30 740.80 325.90 50.55
2013-06-30 740.00 295.00 47.10
2013-03-31 739.40 314.45 46.25
2012-12-31 738.80 333.90 45.40
2012-09-30 738.70 371.55 50.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Vicinity Centres has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Vicinity Centres used its assets less efficiently than the AU REITs industry average last year based on Return on Assets.
  • Vicinity Centres has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Vicinity Centres's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vicinity Centres has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VCX Health

 How is Vicinity Centres's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vicinity Centres's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vicinity Centres's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Vicinity Centres's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Vicinity Centres's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vicinity Centres Company Filings, last reported 6 months ago.

ASX:VCX Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 11,930.90 4,311.90 57.90
2018-09-30 11,930.90 4,311.90 57.90
2018-06-30 12,107.50 4,600.80 42.10
2018-03-31 12,107.50 4,600.80 42.10
2017-12-31 11,960.20 4,523.10 45.40
2017-09-30 11,960.20 4,523.10 45.40
2017-06-30 11,747.70 4,072.10 46.50
2017-03-31 11,747.70 4,072.10 46.50
2016-12-31 11,411.80 3,869.10 83.20
2016-09-30 11,411.80 3,869.10 83.20
2016-06-30 10,849.00 4,121.90 56.40
2016-03-31 10,849.00 4,121.90 56.40
2015-12-31 10,664.20 4,752.50 124.40
2015-09-30 10,664.20 4,752.50 124.40
2015-06-30 10,595.60 4,304.10 113.70
2015-03-31 10,595.60 4,304.10 113.70
2014-12-31 6,370.10 2,956.50 63.10
2014-09-30 6,370.10 2,956.50 63.10
2014-06-30 6,101.70 2,965.60 92.50
2014-03-31 6,101.70 2,965.60 92.50
2013-12-31 6,079.80 2,255.20 16.30
2013-09-30 6,079.80 2,255.20 16.30
2013-06-30 5,764.40 2,504.90 12.40
2013-03-31 5,764.40 2,504.90 12.40
2012-12-31 5,788.10 2,405.80 12.90
2012-09-30 5,788.10 2,405.80 12.90
  • Vicinity Centres's level of debt (37.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (37.2% vs 37.9% today).
  • Debt is not well covered by operating cash flow (15.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
X
Financial health checks
We assess Vicinity Centres's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vicinity Centres has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VCX Dividends

 What is Vicinity Centres's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.09%
Current annual income from Vicinity Centres dividends. Estimated to be 6.06% next year.
If you bought A$2,000 of Vicinity Centres shares you are expected to receive A$122 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vicinity Centres's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Vicinity Centres's dividend is above the markets top 25% of dividend payers in Australia (5.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:VCX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Australia REITs Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 4.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:VCX Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.16 6.00
2020-06-30 0.16 7.00
2019-06-30 0.16 7.00
ASX:VCX Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-06-12 0.159 6.161
2018-12-13 0.162 6.283
2018-06-14 0.163 6.089
2018-02-13 0.162 6.467
2017-06-14 0.173 6.442
2016-06-15 0.178 5.944
2015-12-16 0.176 5.713
2015-08-18 0.170 6.124

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Vicinity Centres has been paying a dividend for less than 10 years.
  • Vicinity Centres has only been paying a dividend for 4 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Vicinity Centres's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (4347.8x coverage).
X
Income/ dividend checks
We assess Vicinity Centres's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vicinity Centres afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vicinity Centres has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VCX Management

 What is the CEO of Vicinity Centres's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Grant Lewis Kelley
COMPENSATION A$1,774,384
AGE 54
TENURE AS CEO 1.5 years
CEO Bio

Mr. Grant Lewis Kelley has been the Chief Executive Officer, Managing Director and Director of Vicinity Centres since January 01, 2018. Mr. Kelley had been the Chief Executive Officer at City Developments Limited since February 17, 2014. Mr. Kelley served as Co-head of Asia Apollo Management Asia Pacific Ltd at Apollo Global Management, LLC. He has several years of experience in funds management, corporate strategy, private equity and real estate investment in Asia, the United Kingdom and the United States. He served as Head of real estate of Asia Pacific at Apollo Global Management. Mr. Kelley served as the Chief Executive Officer and Principal at Colony Capital, LLC in Asia, from 2004 to 2008. He was responsible for its overall Asia Pacific operations. He guided the strategic planning, acquisition and asset management activities of Colony in Asia. From 2002 to 2004, he was based in New York, where he was a Principal at Colony with responsibility for the identification of distressed investment opportunities. From 2000 to 2002, he was a Principal based in Seoul and subsequently Tokyo, with responsibility for the operating performance and strategic direction of Colony's Korean and Japanese business units and guided development of its Korea-KAMCO Asset Management, LLC. Mr. Kelley served as a Management Consultant at Bain & Company. Prior to that, he worked with Booz Allen & Hamilton. He was a Principal at Booz Allen from 1997 to 2000. He has been a Director of Sentosa Leisure Group since March 1, 2007. He served as a Director of HFA Holdings Limited from February 25, 2011 to February 3, 2014. He served as a Director of CPH Management Limited at Challenger Limited since November 22, 2007. He served as a Director of Sentosa Development Corporation from March 2007 to February 2011 and served as a Director of Sentosa Leisure Holdings from May 2007 to March 2009. He received a Bachelor of Laws degree from the University of Adelaide in 1986, a Diploma in International and Comparative Politics from the London School of Economics in 1987, an Master's degree in the Faculty of Economics in International Relations from London University in 1988 and an M.B.A. from the Harvard Business School in 1994. He is also a graduate of the College of Law in Sydney, Australia. In 2008, Mr Kelley founded Holdfast Capital Limited, an Asian-based real estate investment firm, which was acquired by Apollo in 2010. Mr Kelley commenced his career in 1989 at Booz Allen & Hamilton, advising CEOs of major listed companies in the financial services, natural resources and healthcare industries. Current Directorships, Executive Positions and Advisory Roles: Chairman: Adelaide Basketball and Holdfast Assets. Director: Shopping Centre Council of Australia and Property Council of Australia. Council Member: Asia Society Policy Institute.

CEO Compensation
  • Insufficient data for Grant Lewis to compare compensation growth.
  • Grant Lewis's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Vicinity Centres management team in years:

0.5
Average Tenure
  • The average tenure for the Vicinity Centres management team is less than 2 years, this suggests a new team.
Management Team

Grant Lewis Kelley

TITLE
CEO, MD & Director
COMPENSATION
A$2M
AGE
54
TENURE
1.5 yrs

Kah Wong

TITLE
Acting CFO & General Manager of Treasury
TENURE
0.4 yrs

Peter Huddle

TITLE
Chief Operating Officer
TENURE
0.3 yrs

Ian Padgham

TITLE
Acting Chief Information Officer
TENURE
0.5 yrs

Penny Berger

TITLE
Head of Investor Relations

Carolyn Reynolds

TITLE
General Counsel

Kat Rellos

TITLE
Head of Corporate Communications

Simone Carroll

TITLE
Chief People & Transformation Officer
TENURE
3.7 yrs

Justin Mills

TITLE
Chief Strategy Officer
TENURE
0.6 yrs

Carolyn Viney

TITLE
Chief Development Officer
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Vicinity Centres board of directors in years:

4.1
Average Tenure
60.5
Average Age
  • The tenure for the Vicinity Centres board of directors is about average.
Board of Directors

Peter Algernon Hay

TITLE
Chairman of the Board
COMPENSATION
A$457K
AGE
69
TENURE
4.1 yrs

Grant Lewis Kelley

TITLE
CEO, MD & Director
COMPENSATION
A$2M
AGE
54
TENURE
1.5 yrs

Peter Kahan

TITLE
Independent Non-Executive Director
COMPENSATION
A$213K
AGE
60
TENURE
4.1 yrs

Karen Lee Penrose

TITLE
Independent Non-Executive Director
COMPENSATION
A$223K
AGE
59
TENURE
4.1 yrs

Tim Hammon

TITLE
Independent Non-Executive Director
COMPENSATION
A$223K
AGE
65
TENURE
7.6 yrs

David Thurin

TITLE
Non-Executive Director
COMPENSATION
A$183K
AGE
60
TENURE
4.1 yrs

Clive Appleton

TITLE
Non-Executive Director
AGE
61
TENURE
0.8 yrs

Trevor Gerber

TITLE
Independent Non-Executive Director
COMPENSATION
A$203K
AGE
61
TENURE
4.1 yrs

Wai Tang

TITLE
Independent Non-Executive Director
COMPENSATION
A$203K
TENURE
5.2 yrs

Janette Kendall

TITLE
Independent Non-Executive Director
COMPENSATION
A$106K
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
08. Apr 19 Sell UniSuper Limited Company 14. Sep 16 03. Apr 19 -103,201,710 A$3.55 A$-272,618,020
08. Apr 19 Buy UniSuper Limited Company 14. Sep 16 03. Apr 19 27,881,754 A$2.99 A$76,719,115
14. Mar 19 Buy Peter Algernon Hay Individual 13. Mar 19 13. Mar 19 5,000 A$2.49 A$12,450
14. Mar 19 Buy Janette Kendall Individual 13. Mar 19 13. Mar 19 7,970 A$2.49 A$19,845
12. Mar 19 Sell State Street Global Advisors, Inc. Company 06. Nov 18 11. Mar 19 -6,811,929 A$2.76 A$-18,693,961
12. Mar 19 Buy State Street Global Advisors, Inc. Company 02. Nov 18 08. Mar 19 41,776,095 A$2.79 A$116,230,286
26. Dec 18 Sell The Vanguard Group, Inc. Company 30. Dec 16 21. Dec 18 -57,155,141 A$2.97 A$-167,328,064
26. Dec 18 Buy The Vanguard Group, Inc. Company 30. Dec 16 21. Dec 18 89,173,333 A$3.03 A$262,505,379
24. Dec 18 Buy Peter Kahan Individual 24. Dec 18 24. Dec 18 33,000 A$2.68 A$88,423
06. Dec 18 Buy Janette Kendall Individual 29. Nov 18 29. Nov 18 9,144 A$2.74 A$25,055
07. Nov 18 Buy State Street Global Advisors, Inc. Company 05. Jul 18 01. Nov 18 11,176,511 A$2.79 A$31,178,184
14. Nov 18 Buy Wai Tang Individual 13. Nov 18 13. Nov 18 30,980 A$2.72 A$84,266
X
Management checks
We assess Vicinity Centres's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vicinity Centres has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VCX News

Simply Wall St News

Would Vicinity Centres (ASX:VCX) Be Valuable To Income Investors?

Dividend paying stocks like Vicinity Centres (ASX:VCX) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. With a four-year payment history and a 5.9% yield, many investors probably find Vicinity Centres intriguing. It sure looks interesting on these metrics - but there's always more to the story . The company also bought back stock equivalent to around 1.1% of market capitalisation this year. There are a few simple ways to reduce the risks of buying Vicinity Centres for its dividend, and we'll go through these below. Explore this interactive chart for our latest analysis on Vicinity Centres! ASX:VCX Historical Dividend Yield, July 5th 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 90% of Vicinity Centres's profits were paid out as dividends in the last 12 months. Paying out a majority of its earnings limits the amount that can be reinvested in the business. This may indicate a commitment to paying a dividend, or a dearth of investment opportunities. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Vicinity Centres paid out 89% of its cash flow last year. This may be sustainable but it does not leave much of a buffer for unexpected circumstances. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Vicinity Centres's Balance Sheet Risky? As Vicinity Centres has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. … Looking at the data, we can see that Vicinity Centres has been paying a dividend for the past four years. … However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see Vicinity Centres has been growing its earnings per share at 12% a year over the past 5 years. EPS are growing rapidly, although the company is also paying out more than three-quarters of its profits as dividends. If earnings keep growing, the dividend may be sustainable, but generally we'd prefer to see a fast growing company reinvest in further growth. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Have Insiders Been Buying Vicinity Centres (ASX:VCX) Shares This Year?

So we'll take a look at whether insiders have been buying or selling shares in Vicinity Centres (ASX:VCX). … We always take careful note of the price insiders pay when purchasing shares … Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Simply Wall St -

Imagine Owning Vicinity Centres (ASX:VCX) And Wondering If The 22% Share Price Slide Is Justified

Unfortunately, that's been the case for longer term Vicinity Centres (ASX:VCX) shareholders, since the share price is down 22% in the last three years, falling well short of the market return of around 43%. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the three years that the share price fell, Vicinity Centres's earnings per share (EPS) dropped by 4.0% each year.

Simply Wall St -

What Kind Of Shareholders Own Vicinity Centres (ASX:VCX)?

Every investor in Vicinity Centres (ASX:VCX) should be aware of the most powerful shareholder groups. … With a market capitalization of AU$9.5b, Vicinity Centres is rather large. … View our latest analysis for Vicinity Centres

Simply Wall St -

One Metric To Rule Them All: Vicinity Centres (ASX:VCX)

real estate investment trust (REIT) based in Chadstone, Australia. … REIT shares give you ownership of the company than owns and manages various income-producing property, whether it be commercial, industrial or residential. … REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities

Simply Wall St -

Does Vicinity Centres (ASX:VCX) Create Value For Shareholders?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every A$1 worth of equity in the company, it was able to earn A$0.10. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Take Comfort From Insider Transactions At Vicinity Centres (ASX:VCX)?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in Vicinity Centres (ASX:VCX). … In the last twelve months there was more buying than selling by Vicinity Centres insiders

Simply Wall St -

How Should You Analyze REIT Stock Vicinity Centres (ASX:VCX)?

real estate investment trust (REIT) based in Chadstone, Australia. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.

Simply Wall St -

Who Really Owns Vicinity Centres (ASX:VCX)?

In this analysis, my focus will be on developing a perspective on Vicinity Centres’s (ASX:VCX) latest ownership structure, a less discussed, but important factor. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices. … Therefore, it is beneficial for us to examine VCX's ownership structure in more detail.

Simply Wall St -

Should Income Investors Buy Vicinity Centres (ASX:VCX) Before Its Ex-Dividend?

If you are interested in cashing in on Vicinity Centres's (ASX:VCX) upcoming dividend of AU$0.082 per share, you only have 2 days left to buy the shares before its ex-dividend date, 28 June 2018, in time for dividends payable on the 29 August 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Vicinity Centres's latest financial data to analyse its dividend characteristics. … View out our latest analysis for Vicinity Centres

Simply Wall St -

VCX Company Info

Description

Vicinity Centres (Vicinity or the Group) is one of Australia’s leading retail property groups with a fully integrated asset management platform and $26 billion in retail assets under management across 66 shopping centres, making it the second largest listed manager of Australian retail property. The Group has a Direct Portfolio with interests in 62 shopping centres (including the DFO Brisbane business) and manages 33 assets on behalf of Strategic Partners, 29 of which are co-owned by the Group. Vicinity is listed on the Australian Securities Exchange (ASX) under the code ‘VCX’ and has over 26,000 securityholders. Vicinity also has European medium term notes listed on the ASX under the code ‘VCD’.

Details
Name: Vicinity Centres
VCX
Exchange: ASX
Founded:
A$9,844,479,437
3,771,831,202
Website: http://www.vicinity.com.au
Address: Vicinity Centres
Chadstone Tower One,
Level 4,
Chadstone,
Victoria, 3148,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX VCX Stapled Securities Australian Securities Exchange AU AUD 12. Jun 2015
OTCPK CNRA.F Stapled Securities Pink Sheets LLC US USD 12. Jun 2015
DB C98 Stapled Securities Deutsche Boerse AG DE EUR 12. Jun 2015
Number of employees
Current staff
Staff numbers
0
Vicinity Centres employees.
Industry
Retail REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 03:13
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/09
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.