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 and slightly overvalued.


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

-0.4%

VCX

1.1%

AU REITs

2.5%

AU Market


1 Year Return

-3.4%

VCX

21.0%

AU REITs

11.1%

AU Market

Return vs Industry: VCX underperformed the Australian REITs industry which returned 21% over the past year.

Return vs Market: VCX underperformed the Australian Market which returned 11.1% over the past year.


Shareholder returns

VCXIndustryMarket
7 Day-0.4%1.1%2.5%
30 Day0.4%3.0%0.7%
90 Day-0.8%-0.4%1.4%
1 Year2.7%-3.4%27.1%21.0%17.5%11.1%
3 Year4.7%-12.8%47.2%26.0%37.8%19.4%
5 Yearn/a104.5%59.0%51.7%17.6%

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

Valuation

Is Vicinity Centres undervalued compared to its fair value and its price relative to the market?

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VCX (A$2.58) is trading below our estimate of fair value (A$3.15)

Significantly Undervalued: VCX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VCX is poor value based on its PE Ratio (28.5x) compared to the REITs industry average (16.1x).

PE vs Market: VCX is poor value based on its PE Ratio (28.5x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: VCX is poor value based on its PEG Ratio (1.5x)


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 (1.1x).


Next Steps

Future Growth

How is Vicinity Centres forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCX's forecast earnings growth (19% per year) is above the savings rate (2.3%).

Earnings vs Market: VCX's earnings (19% per year) are forecast to grow faster than the Australian market (10.3% 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 (-7.8% per year).

High Growth Revenue: VCX's revenue is forecast to decline over the next 3 years (-7.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VCX's Return on Equity is forecast to be low in 3 years time (6.1%).


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

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 (-16.3%).


Return on Equity

High ROE: VCX's Return on Equity (3%) is considered low.


Return on Assets

ROA vs Industry: VCX's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: VCX's Return on Capital Employed has declined over the past 3 years.


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?

6.16%

Current Dividend Yield


Dividend Yield vs Market

company6.2%marketbottom25%2.5%markettop25%5.6%industryaverage4.4%forecastin3Years6.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VCX's dividend (6.16%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: VCX's dividend (6.16%) is in the top 25% of dividend payers in the Australian market (5.56%)

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?

0.8yrs

Average management tenure


CEO

Grant Lewis Kelley (54yo)

1.8yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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

0.8yrs

Average Tenure

Experienced Management: VCX's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

61yo

Average Age

Experienced Board: VCX's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: VCX insiders have bought more shares than they have sold in the past 3 months.


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: 1.8yrs
    • 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: 0.6yrs
    • Compensation: AU$1.45m
  • Penny Berger

    Head of Investor Relations

    • Tenure: 0yrs
  • Carolyn Viney

    Chief Development Officer

    • Tenure: 0.8yrs
  • Carolyn Reynolds

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Nick Schiffer

    Chief Financial Officer

    • Tenure: 0.08yrs
  • Kat Rellos

    Head of Corporate Communications

    • Tenure: 0yrs
  • Ian Padgham

    Acting Chief Information Officer

    • Tenure: 0.8yrs

Board Members

  • Tim Hammon (65yo)

    Independent Non-Executive Director

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

    Acting Chairman

    • Tenure: 0.2yrs
    • Compensation: AU$463.50k
  • Grant Lewis Kelley (54yo)

    CEO, MD & Director

    • Tenure: 1.8yrs
    • 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: 5.4yrs
    • Compensation: AU$206.00k
  • Clive Appleton (61yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • 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$9.854b
  • 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
VCXCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJun 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 Analysis2019/10/17 10:34
End of Day Share Price2019/10/17 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.