Vicinity Centres
Market Cap
AU$6.2b
Last Updated
2020/10/19 10:33 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 $24 billion in retail assets under management across 64 shopping centres, making it the second largest listed manager of Australian retail property. More Details
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
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
-5.3%
VCX
-0.3%
AU REITs
0.5%
AU Market
1 Year Return
-47.5%
VCX
-15.3%
AU REITs
-5.6%
AU Market
Return vs Industry: VCX underperformed the Australian REITs industry which returned -14.3% over the past year.
Return vs Market: VCX underperformed the Australian Market which returned -5.7% over the past year.
Shareholder returns
| VCX | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.3% | -0.3% | 0.5% |
| 30 Day | -5.6% | 2.8% | 5.0% |
| 90 Day | -2.5% | 8.6% | 2.9% |
| 1 Year | -45.9%-47.5% | -11.8%-15.3% | -2.3%-5.6% |
| 3 Year | -39.8%-48.3% | 22.2%5.8% | 12.4%-1.2% |
| 5 Year | -39.5%-53.9% | 46.9%14.3% | 41.5%12.9% |
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
1 week ago | Simply Wall St
How Much Of Vicinity Centres (ASX:VCX) Do Institutions Own?1 month ago | Simply Wall St
Independent Chairman of the Board Trevor Gerber Just Bought 29% More Shares In Vicinity Centres (ASX:VCX)Valuation
Is Vicinity Centres undervalued compared to its fair value and its price relative to the market?
44.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VCX (A$1.35) is trading below our estimate of fair value (A$2.42)
Significantly Below Fair Value: VCX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VCX is unprofitable, so we can't compare its PE Ratio to the AU REITs industry average.
PE vs Market: VCX is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate VCX's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: VCX is good value based on its PB Ratio (0.6x) compared to the AU REITs industry average (1x).
Next Steps
Future Growth
How is Vicinity Centres forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
52.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VCX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).
Earnings vs Market: VCX is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: VCX's is expected to become profitable in the next 3 years.
Revenue vs Market: VCX's revenue is expected to decline over the next 3 years (-1.2% per year).
High Growth Revenue: VCX's revenue is forecast to decline over the next 3 years (-1.2% 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 (5.5%).
Next Steps
Past Performance
How has Vicinity Centres performed over the past 5 years?
-29.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VCX is currently unprofitable.
Growing Profit Margin: VCX is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: VCX is unprofitable, and losses have increased over the past 5 years at a rate of 29.4% per year.
Accelerating Growth: Unable to compare VCX's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: VCX is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (6.8%).
Return on Equity
High ROE: VCX has a negative Return on Equity (-17.06%), as it is currently unprofitable.
Next Steps
Financial Health
How is Vicinity Centres's financial position?
Financial Position Analysis
Short Term Liabilities: VCX's short term assets (A$360.9M) exceed its short term liabilities (A$356.3M).
Long Term Liabilities: VCX's short term assets (A$360.9M) do not cover its long term liabilities (A$4.3B).
Debt to Equity History and Analysis
Debt Level: VCX's debt to equity ratio (39.6%) is considered satisfactory.
Reducing Debt: VCX's debt to equity ratio has reduced from 40.7% to 39.6% over the past 5 years.
Debt Coverage: VCX's debt is not well covered by operating cash flow (11.3%).
Interest Coverage: VCX is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Vicinity Centres's current dividend yield, its reliability and sustainability?
7.32%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VCX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VCX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VCX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VCX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: VCX is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VCX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Grant Lewis Kelley (55 yo)
2.75yrs
Tenure
AU$2,266,341
Compensation
Mr. Grant Lewis Kelley has been the Chief Executive Officer, Managing Director and Director of Vicinity Centres since January 01, 2018. Mr. Kelley had been the Chief Executive Officer at City Developments ...
CEO Compensation Analysis
Compensation vs Market: Grant Lewis's total compensation ($USD1.61M) is about average for companies of similar size in the Australian market ($USD2.04M).
Compensation vs Earnings: Grant Lewis's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 2.75yrs | AU$2.27m | 0.0074% A$ 457.5k | |
| Chief Operating Officer | 1.58yrs | AU$1.45m | 0.0011% A$ 70.6k | |
| Chief Financial Officer | 1.08yrs | no data | no data | |
| Acting Chief Information Officer | 1.75yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Company Secretary | no data | no data | no data | |
| Head of Corporate Communications | no data | no data | no data | |
| Chief People & Culture Officer | 1yr | no data | no data | |
| Chief Strategy Officer | 1.83yrs | no data | no data | |
| Chief Development Officer | 1.75yrs | no data | no data | |
| Company Secretary | 2.67yrs | no data | no data | |
| Senior Investor Relations Manager | no data | no data | no data |
1.8yrs
Average Tenure
Experienced Management: VCX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 2.75yrs | AU$2.27m | 0.0074% A$ 457.5k | |
| Independent Non-Executive Director | 8.83yrs | AU$226.60k | 0.0014% A$ 86.7k | |
| Independent Chairman of the Board | 0.92yr | AU$206.00k | 0.0049% A$ 300.3k | |
| Non-Executive Director | 5.33yrs | AU$185.40k | 0.31% A$ 18.9m | |
| Independent Non Executive Director | no data | AU$226.60k | 0.00095% A$ 58.8k | |
| Non-Executive Director | 2.08yrs | AU$137.33k | 0.00071% A$ 44.0k | |
| Independent Non-Executive Director | 5.33yrs | AU$226.60k | 0.0013% A$ 78.6k | |
| Independent Non-Executive Director | 2.83yrs | AU$185.40k | 0.0014% A$ 86.1k |
2.8yrs
Average Tenure
61yo
Average Age
Experienced Board: VCX's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VCX insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21%.
Top Shareholders
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$6.191b
- Shares outstanding: 4.55b
- 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 $24 billion in retail assets under management across 64 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/19 10:33 |
| End of Day Share Price | 2020/10/19 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.