Vicinity Centres (Vicinity) is one of Australia’s leading retail property groups.
Undervalued average dividend payer.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: VCX underperformed the Australian REITs industry which returned -31.8% over the past year.
Return vs Market: VCX underperformed the Australian Market which returned -19.2% over the past year.
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 StInsider Buying: The Vicinity Centres (ASX:VCX) Independent Chairman of the Board Just Bought AU$112k Worth Of Shares
1 month ago | Simply Wall StIf You Had Bought Vicinity Centres (ASX:VCX) Stock Three Years Ago, You'd Be Sitting On A 25% Loss, Today
2 months ago | Simply Wall StDo Institutions Own Shares In Vicinity Centres (ASX:VCX)?
Is Vicinity Centres undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VCX (A$1.08) is trading below our estimate of fair value (A$3.7)
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 (11.5x) compared to the REITs industry average (9x).
PE vs Market: VCX is good value based on its PE Ratio (11.5x) compared to the Australian market (13x).
Price to Earnings Growth Ratio
PEG Ratio: VCX is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: VCX is good value based on its PB Ratio (0.4x) compared to the AU REITs industry average (0.8x).
How is Vicinity Centres forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VCX's forecast earnings growth (11.8% per year) is above the savings rate (1.1%).
Earnings vs Market: VCX's earnings (11.8% per year) are forecast to grow faster than the Australian market (10.2% 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 (-2.9% per year).
High Growth Revenue: VCX's revenue is forecast to decline over the next 3 years (-2.9% 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 (5.3%).
How has Vicinity Centres performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VCX has a large one-off loss of A$218.3M impacting its December 31 2019 financial results.
Growing Profit Margin: VCX's current net profit margins (27.9%) are lower than last year (51%).
Past Earnings Growth Analysis
Earnings Trend: VCX's earnings have declined by -3.9% 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 (-49.3%) over the past year, making it difficult to compare to the REITs industry average (1.7%).
Return on Equity
High ROE: VCX's Return on Equity (3.1%) is considered low.
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
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.
What is Vicinity Centres's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VCX's dividend (14.33%) is higher than the bottom 25% of dividend payers in the Australian market (3.17%).
High Dividend: VCX's dividend (14.33%) is in the top 25% of dividend payers in the Australian market (8.1%)
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 5 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (89.3%), 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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Grant Lewis Kelley (54yo)
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 ($USD1.36M) is below average for companies of similar size in the Australian market ($USD2.52M).
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.
|CEO, MD & Director||2.25yrs||AU$2.27m||0.0085% A$339.0k|
|Chief Operating Officer||1.08yrs||AU$1.45m||no data|
|Chief Financial Officer||0.58yr||no data||no data|
|Acting Chief Information Officer||1.25yrs||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||0.50yr||no data||no data|
|Chief Strategy Officer||1.33yrs||no data||no data|
|Chief Development Officer||1.25yrs||no data||no data|
Experienced Management: VCX's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
|CEO, MD & Director||2.25yrs||AU$2.27m||0.0085% A$339.0k|
|Independent Non-Executive Director||8.33yrs||AU$226.60k||0.0013% A$53.6k|
|Independent Chairman of the Board||0.42yr||AU$206.00k||0.0040% A$161.1k|
|Non-Executive Director||4.83yrs||AU$185.40k||0.37% A$14.9m|
|Independent Non Executive Director||no data||AU$226.60k||0.00089% A$35.6k|
|Non-Executive Director||1.58yrs||AU$137.33k||0.00087% A$34.8k|
|Independent Non-Executive Director||4.83yrs||AU$226.60k||0.0013% A$51.2k|
|Independent Non-Executive Director||2.33yrs||AU$185.40k||0.0011% A$45.6k|
Experienced Board: VCX's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Vicinity Centres's company bio, employee growth, exchange listings and data sources
- Name: Vicinity Centres
- Ticker: VCX
- Exchange: ASX
- Industry: Retail REITs
- Sector: Real Estate
- Market Cap: AU$3.998b
- Shares outstanding: 3.72b
- Website: https://www.vicinity.com.au
Number of Employees
- Vicinity Centres
- Chadstone Tower One
- Level 4
|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|
Vicinity Centres (Vicinity) 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 63 shopping centres, it is the second largest listed manager of Australian retail property. Vicinity has a Direct Portfolio with interests in 59 shopping centres (including the DFO Brisbane business) and manages 31 assets on behalf of Strategic Partners, 27 of which are co-owned by Vicinity. 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||2020/04/05 10:37|
|End of Day Share Price||2020/04/03 00:00|
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.