Vicinity Centres
Market Cap
AU$9.6b
Last Updated
2020/01/20 10:36 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and fair value.
Similar Companies
Share Price & News
How has Vicinity Centres's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VCX has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.4%
VCX
2.3%
AU REITs
2.6%
AU Market
1 Year Return
-2.3%
VCX
16.9%
AU REITs
19.8%
AU Market
Return vs Industry: VCX underperformed the Australian REITs industry which returned 14.7% over the past year.
Return vs Market: VCX underperformed the Australian Market which returned 19.4% over the past year.
Shareholder returns
| VCX | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 2.3% | 2.6% |
| 30 Day | -0.4% | 3.4% | 4.0% |
| 90 Day | -2.3% | 1.7% | 5.7% |
| 1 Year | 3.9%-2.3% | 22.5%16.9% | 25.2%19.8% |
| 3 Year | 7.6%-10.5% | 53.5%31.5% | 40.7%21.9% |
| 5 Year | n/a | 87.5%45.7% | 62.0%25.5% |
Price Volatility Vs. Market
How volatile is Vicinity Centres's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Do Institutions Own Shares In Vicinity Centres (ASX:VCX)?2 months ago | Simply Wall St
Can Vicinity Centres (ASX:VCX) Improve Its Returns?2 months ago | Simply Wall St
Know This Before Buying Vicinity Centres (ASX:VCX) For Its DividendValuation
Is Vicinity Centres undervalued compared to its fair value and its price relative to the market?
27.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VCX (A$2.55) is trading below our estimate of fair value (A$3.52)
Significantly Below Fair Value: VCX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VCX is poor value based on its PE Ratio (28.2x) compared to the REITs industry average (15.8x).
PE vs Market: VCX is poor value based on its PE Ratio (28.2x) compared to the Australian market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: VCX is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: VCX is good value based on its PB Ratio (0.8x) compared to the AU REITs industry average (1.2x).
Next Steps
Future Growth
How is Vicinity Centres forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
16.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VCX's forecast earnings growth (16.6% per year) is above the savings rate (1.1%).
Earnings vs Market: VCX's earnings (16.6% per year) are forecast to grow faster than the Australian market (9.6% per year).
High Growth Earnings: VCX's earnings are forecast to grow, but not significantly.
Revenue vs Market: VCX's revenue is expected to decline over the next 3 years (-7.9% per year).
High Growth Revenue: VCX's revenue is forecast to decline over the next 3 years (-7.9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VCX's Return on Equity is forecast to be low in 3 years time (6.3%).
Next Steps
Past Performance
How has Vicinity Centres performed over the past 5 years?
8.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VCX has a large one-off loss of A$237.1M impacting its June 30 2019 financial results.
Growing Profit Margin: VCX's current net profit margins (26.5%) are lower than last year (89.5%).
Past Earnings Growth Analysis
Earnings Trend: VCX's earnings have grown by 8.5% per year over the past 5 years.
Accelerating Growth: VCX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: VCX had negative earnings growth (-71.6%) over the past year, making it difficult to compare to the REITs industry average (-16.4%).
Return on Equity
High ROE: VCX's Return on Equity (3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Vicinity Centres's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: VCX has a high level of physical assets or inventory.
Debt Coverage by Assets: VCX's debt is not covered by short term assets (assets are 0x debt).
Financial Institutions Analysis
Asset Level: VCX's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if VCX has a sufficient allowance for bad loans.
Low Risk Liabilities: VCX reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if VCX has an acceptable proportion of non-loan assets held.
Low Risk Deposits: VCX has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if VCX has an appropriate level of bad loans.
Next Steps
Dividend
What is Vicinity Centres's current dividend yield, its reliability and sustainability?
6.02%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: VCX's dividend (6.04%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).
High Dividend: VCX's dividend (6.04%) is in the top 25% of dividend payers in the Australian market (5.47%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, VCX has been paying a dividend for less than 10 years.
Growing Dividend: VCX has only been paying a dividend for 4 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (90.3%), VCX's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VCX's dividends in 3 years are forecast to be thoroughly covered by earnings (0.02% payout ratio).
Next Steps
Management
What is the CEO of Vicinity Centres's salary, the management and board of directors tenure and is there insider trading?
1.0yrs
Average management tenure
CEO
Grant Lewis Kelley (54yo)
2yrs
Tenure
AU$2,266,341
Compensation
Mr. Grant Lewis Kelley has been the Chief Executive Officer, Managing Director and Director of Vicinity Centres since January 01, 2018. Mr. Kelley had been the Chief Executive Officer at City Developments ...
CEO Compensation Analysis
Compensation vs Market: Grant Lewis's total compensation ($USD1.56M) is below average for companies of similar size in the Australian market ($USD2.84M).
Compensation vs Earnings: Grant Lewis's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
1.0yrs
Average Tenure
Experienced Management: VCX's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Age and Tenure
3.3yrs
Average Tenure
60yo
Average Age
Experienced Board: VCX's board of directors are considered experienced (3.3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 11,956 |
| Max Price | AU$2.49 |
| Entity | Company |
| Shares | 27,881,754 |
| Max Price | AU$2.99 |
| Entity | Company |
| Shares | 103,201,710 |
| Max Price | AU$3.55 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 7,970 |
| Max Price | AU$2.49 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | AU$2.49 |
| Entity | Company |
| Shares | 41,776,095 |
| Max Price | AU$2.79 |
| Entity | Company |
| Shares | 6,811,929 |
| Max Price | AU$2.76 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Grant Lewis Kelley (54yo)
CEO, MD & Director
- Tenure: 2yrs
- Compensation: AU$2.27m
Justin Mills
Chief Strategy Officer
- Tenure: 1.1yrs
Peter Huddle
Chief Operating Officer
- Tenure: 0.8yrs
- Compensation: AU$1.45m
Penny Berger
Head of Investor Relations
Tanya Southey
Chief People & Culture Officer
- Tenure: 0.3yrs
Carolyn Viney
Chief Development Officer
- Tenure: 1yrs
Carolyn Reynolds
General Counsel & Company Secretary
Nick Schiffer
Chief Financial Officer
- Tenure: 0.3yrs
Kat Rellos
Head of Corporate Communications
Ian Padgham
Acting Chief Information Officer
- Tenure: 1yrs
Board Members
Tim Hammon (65yo)
Independent Non-Executive Director
- Tenure: 8.1yrs
- Compensation: AU$226.60k
Grant Lewis Kelley (54yo)
CEO, MD & Director
- Tenure: 2yrs
- Compensation: AU$2.27m
Trevor Gerber (61yo)
Independent Chairman of the Board
- Tenure: 0.2yrs
- Compensation: AU$206.00k
David Thurin (60yo)
Non-Executive Director
- Tenure: 4.6yrs
- Compensation: AU$185.40k
Wai Tang
Independent Non-Executive Director
- Tenure: 5.7yrs
- Compensation: AU$206.00k
Peter Kahan (60yo)
Independent Non Executive Director
- Compensation: AU$226.60k
Clive Appleton (62yo)
Non-Executive Director
- Tenure: 1.3yrs
- Compensation: AU$137.33k
Karen Lee Penrose (59yo)
Independent Non-Executive Director
- Tenure: 4.6yrs
- Compensation: AU$226.60k
Janette Kendall
Independent Non-Executive Director
- Tenure: 2.1yrs
- Compensation: AU$185.40k
Company Information
Vicinity Centres's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Vicinity Centres
- Ticker: VCX
- Exchange: ASX
- Founded:
- Industry: Retail REITs
- Sector: Real Estate
- Market Cap: AU$9.619b
- Shares outstanding: 3.76b
- Website: https://www.vicinity.com.au
Number of Employees
Location
- Vicinity Centres
- Chadstone Tower One
- Level 4
- Chadstone
- Victoria
- 3148
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VCX | ASX (Australian Securities Exchange) | Yes | Stapled Securities | AU | AUD | Jun 2015 |
| CNRA.F | OTCPK (Pink Sheets LLC) | Yes | Stapled Securities | US | USD | Jun 2015 |
| VCX | CHIA (Chi-X Australia) | Yes | Stapled Securities | AU | AUD | Jun 2015 |
| C98 | DB (Deutsche Boerse AG) | Yes | Stapled Securities | DE | EUR | Jun 2015 |
Biography
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 23,000 securityholders. Vicinity also has European medium term notes listed on the ASX under the code ‘VCD’.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/20 10:36 |
| End of Day Share Price | 2020/01/20 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.