ASX:VCX

Stock Analysis Report

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.

Snowflake

Fundamentals

Average dividend payer with limited growth.


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


Market Performance


7 Day Return

-1.5%

VCX

0.08%

AU REITs

1.0%

AU Market


1 Year Return

-4.1%

VCX

14.9%

AU REITs

6.9%

AU Market

VCX underperformed the REITs industry which returned 14.8% over the past year.

VCX underperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

VCXIndustryMarket
7 Day-1.5%0.08%1.0%
30 Day3.7%-1.1%3.9%
90 Day-2.7%-2.1%1.6%
1 Year1.9%-4.1%20.7%14.9%13.1%6.9%
3 Year-2.1%-18.5%39.5%19.4%39.5%20.7%
5 Yearn/a105.2%59.6%52.8%18.7%

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 month ago | Simply Wall St

How Do Analysts See Vicinity Centres (ASX:VCX) Performing Over The Next Year?

Valuation

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

19%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Vicinity Centres is overvalued based on earnings compared to the AU REITs industry average.

Vicinity Centres is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Vicinity Centres is poor value based on expected growth next year.


Price Based on Value of Assets

Vicinity Centres is good value based on assets compared to the AU REITs industry average.


Next Steps

Future Growth

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

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vicinity Centres's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Vicinity Centres's earnings are expected to grow by 19% yearly, however this is not considered high growth (20% yearly).

Vicinity Centres's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.

Vicinity Centres's earnings growth is expected to exceed the Australia market average.

Vicinity Centres's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Vicinity Centres is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Vicinity Centres performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Vicinity Centres's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

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.


Return on Equity

Vicinity Centres has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Vicinity Centres used its assets less efficiently than the AU REITs industry average last year based on Return on Assets.


Return on Capital Employed

Vicinity Centres's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Vicinity Centres's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Vicinity Centres's level of debt (40.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (48.6% vs 40.3% today).

Debt is not well covered by operating cash flow (14.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

6.31%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Vicinity Centres's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.46%).

Vicinity Centres's dividend is above the markets top 25% of dividend payers in Australia (5.58%).

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

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 (4166.7x coverage).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Grant Lewis Kelley (54yo)

1.7yrs

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

Grant Lewis's remuneration is lower than average for companies of similar size in Australia.

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

0.7yrs

Average Tenure

The average tenure for the Vicinity Centres management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

61yo

Average Age

The tenure for the Vicinity Centres board of directors is about average.


Insider Trading

More shares have been bought than sold by Vicinity Centres individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyAU$29,77023 Aug 19
Janette Kendall
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares11,956
Max PriceAU$2.49
SellAU$272,618,02008 Apr 19
UniSuper Limited
EntityCompany
Shares103,201,710
Max PriceAU$3.55
BuyAU$76,719,11508 Apr 19
UniSuper Limited
EntityCompany
Shares27,881,754
Max PriceAU$2.99
BuyAU$19,84514 Mar 19
Janette Kendall
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares7,970
Max PriceAU$2.49
BuyAU$12,45014 Mar 19
Peter Algernon Hay
EntityIndividual
Role
Chairman of the Board
Acting Chairman
Shares5,000
Max PriceAU$2.49
BuyAU$116,230,28612 Mar 19
State Street Global Advisors, Inc.
EntityCompany
Shares41,776,095
Max PriceAU$2.79
SellAU$18,693,96112 Mar 19
State Street Global Advisors, Inc.
EntityCompany
Shares6,811,929
Max PriceAU$2.76
SellAU$167,328,06426 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares57,155,141
Max PriceAU$2.97
BuyAU$262,505,37926 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares89,173,333
Max PriceAU$3.03
BuyAU$88,42324 Dec 18
Peter Kahan
EntityIndividual
Role
Top Key Executive
Chairman (Leave of Absence)
Shares33,000
Max PriceAU$2.68
BuyAU$25,05506 Dec 18
Janette Kendall
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares9,144
Max PriceAU$2.74
BuyAU$84,26614 Nov 18
Wai Tang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares30,980
Max PriceAU$2.72
BuyAU$31,178,18407 Nov 18
State Street Global Advisors, Inc.
EntityCompany
Shares11,176,511
Max PriceAU$2.79

Ownership Breakdown


Management Team

  • Grant Lewis Kelley (54yo)

    CEO, MD & Director

    • Tenure: 1.7yrs
    • Compensation: AU$2.27m
  • Peter Kahan (60yo)

    Chairman (Leave of Absence)

    • Tenure: 0yrs
    • Compensation: AU$226.60k
  • Justin Mills

    Chief Strategy Officer

    • Tenure: 0.8yrs
  • Peter Huddle

    Chief Operating Officer

    • Tenure: 0.5yrs
    • Compensation: AU$1.45m
  • Penny Berger

    Head of Investor Relations

    • Tenure: 0yrs
  • Carolyn Viney

    Chief Development Officer

    • Tenure: 0.7yrs
  • Carolyn Reynolds

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Nick Schiffer

    Chief Financial Officer

    • Tenure: 0yrs
  • Kat Rellos

    Head of Corporate Communications

    • Tenure: 0yrs
  • Ian Padgham

    Acting Chief Information Officer

    • Tenure: 0.7yrs

Board Members

  • Tim Hammon (65yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$226.60k
  • Peter Algernon Hay (69yo)

    Acting Chairman

    • Tenure: 0.08yrs
    • Compensation: AU$463.50k
  • Grant Lewis Kelley (54yo)

    CEO, MD & Director

    • Tenure: 1.7yrs
    • Compensation: AU$2.27m
  • Trevor Gerber (61yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$206.00k
  • David Thurin (60yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$185.40k
  • Wai Tang

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$206.00k
  • Clive Appleton (61yo)

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$137.33k
  • Karen Lee Penrose (59yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$226.60k
  • Janette Kendall

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • 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$9.590b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCXASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJun 2015
CNRA.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJun 2015
C98DB (Deutsche Boerse AG)YesStapled SecuritiesDEEURJun 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 10:35
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.