Vicinity Centres : Appendix 4D and Half Year Financial Report

Vicinity Centres1

Appendix 4D - Results for announcement to the market

	For the six months ended 31 December 2021
					Six months to	Increase/
					31‐Dec‐21	31‐Dec‐20	(Decrease)
					$m	$m	$m	%
	Revenue from ordinary activities	581.5	582.3	(0.8)	(0.1)
	Net profit/(loss) from ordinary activities after tax attributable to securityholders	650.2	(394.1)	1,044.3	265.0
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	Funds from operations2	287.7	267.1	20.6	7.7
					As at3		Increase/
	Net tangible assets per security	31‐Dec‐21	30‐Jun‐21	(Decrease)
	$ per security	$ per security	$ per security	%
	Total		2.28	2.13	0.15	7.0
	Net assets per security	$ per security	$ per security	$ per security	%
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	Total		2.31	2.17	0.14	6.5
	Distribution per stapled security	Cents4	Record date	Payment date
	Interim distribution	4.70	22‐Feb‐22	8‐Mar‐22
	Review of results
	For further commentary on the half year results, refer to the following documents released on the ASX today:
	‐		Half Year Financial Report;
	‐		FY22 Interim Results Announcement; and
	‐		FY22 Interim Results Presentation.
	Details of associates and joint venture entities (equity accounted investments)
	Refer to Note 4 of the Half Year Financial Report.
	The information presented above is based upon the Half Year Financial Report for the six months ended 31 December 2021 which has been
	r	viewed. The independent auditor's report is included within the Half Year Financial Report.
personal
	Rohan Abeyewardene	Date: 16 February 2022
	G oup Company Secretary
	N		tes
1.	Vicinity Centres is a stapled group comprising Vicinity Limited ABN 90 114 757 783 and Vicinity Centres Trust ARSN 104 931 928 (the Trust). The Responsible
For2.	Entity of the Trust is Vicinity Centres RE Ltd ABN 88 149 781 322.
A reconciliation between net profit from ordinary activities attributable to securityholders and fund from operations (FFO) is provided in Note 1(b) of the

Half Year Financial Report.

3. Calculated as Balance Sheet net assets less intangible assets, divided by the number of stapled securities on issue at period end. Includes right of use assets and net investments in leases.

4. Details of the full year tax components of distributions will be provided in the Annual Tax Statements which will be sent to securityholders in late August 2022.

For personal use only

Vicinity Centres comprising:

Vicinity Limited - ABN 90 114 757 783 Vicinity Centres Trust - ARSN 104 931 928 and their controlled entities

Vicinity Centres

Financial report for the half year ended 31 December 2021

Vicinity Centres | Financial report for the half year ended 31 December 2021

Contents

Directors' Report

Auditor's Independence Declaration onlyStatement of Comprehensive Income

Balance Sheet

Statements of Changes in Equity

Cash Flow Statement

About This Report

Operations

use	1.	Segment information
	2.	Revenue and income
	3.	Investment properties
	4.	Equity accounted investments
Capital structure and financial risk management
personalFor	5.	Interest bearing liabilities and derivatives
6.	Contributed equity
	7.	Distributions
Working capital
	8.	Trade receivables and other assets
Other disclosures
	9.	Operating cash flow reconciliation
	10.	Other Group accounting matters
	11.	Events occurring after the reporting date

Directors' Declaration

Independent Auditor's Report

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Vicinity Centres | Financial report for the half year ended 31 December 2021

Directors' Report

The Directors of Vicinity Limited present the Financial Report of Vicinity Centres (Vicinity or the Group) for the half year ended 31 December 2021. Vicinity Centres is a stapled group comprising Vicinity Limited (the Company) and Vicinity Centres Trust only(the Trust). Although separate entities, the Stapling Deed entered into by the Company and the Trust ensures that shares in the Company and units in the Trust are 'stapled' together and are traded collectively on the Australian Securities Exchange

(ASX), under the code 'VCX'.

Directors

The Boards of Directors of the Company and Vicinity Centres RE Ltd, as Responsible Entity (RE) of the Trust (together, the Vicinity Board) consist of the same Directors. The following persons were members of the Vicinity Board from 1 July 2021 and up to the date of this report unless otherwise stated:

(i)	Chairman
	Trevor Gerber (Independent)
(ii)	Non-executive Directors
use	Clive Appleton
David Thurin AM
Janette Kendall (Independent)
	Karen Penrose (Independent)
	Peter Kahan (Independent)
	Tim Hammon (Independent)
(iii)	Executive Director
personal	Grant Kelley (CEO and Managing Director)

Company Secretaries

Carolyn Reynolds

Rohan Abeyewardene

Principal activities

The principal activities of the Group during the period continued to be property investment, property management, property development, leasing, and funds management.

The Group has its principal place of business at Level 4, Chadstone Tower One, 1341 Dandenong Road, Chadstone, Victoria 3148.

ForDistributions

On 16 February 2022, the Directors declared a distribution in respect of the Group's earnings for the half year ended 31 December 2021 of 4.7 cents per VCX stapled security, which equates to total interim distributions of $214.0 million.

The interim distribution will be paid on 8 March 2022. The record date for determining entitlement to the interim distribution is 5pm, 22 February 2022.

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The extended lockdowns with mandated closure of non-essentialretail in New South Wales (NSW) and Victoria (VIC) from July up to late October 2021. These locations account for approximately 69% of the Group's portfolio by value.

Central business district (CBD) assets continued to experience reduced foot traffic as many CBD-basedoffice workers continued to work from home, day-tripperscontinued to shop locally, and Australia's state and international borders remained closed for the majority of the period.

The Group continued to provide rental assistance in the form of rental waivers, payment deferrals and other temporary modifications to the underlying lease agreements to eligible SME tenants and other tenants in categories and locations that continue to experience financial hardship and distress. These negotiations were undertaken in accordance with the general principles of the Australian Government's SME Commercial Code of Conduct and Leasing Principles During COVID- 19 or with the applicable regulations in Victoria and NSW (collectively referred to as the 'SME Codes').

Ongoing uncertainty in communities within which the Group operates due to the rapid increase and high number of Omicron cases since December 2021.

Vicinity Centres | Financial report for the half year ended 31 December 2021

Significant changes in state of affairs

COVID-19 pandemic

The Group's performance continued to be adversely impacted by the COVID-19 pandemic ('COVID-19' or 'the pandemic') related disruptions during the six-month period. Key factors impacting Vicinity's financial and operational performance

onlyincluded:

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The duration and full extent of the pandemic and its impacts on the economy, consumers and investment markets remain

uncertain. As a result, certain significant judgements, estimates and assumptions have been made in determining the carrying

value of certain assets and liabilities at 31 December 2021. These are further discussed in the 'About this Report' section of the personalfinancial report.

Review of results and operations

This report should be read in conjunction with the 30 June 2021 Annual Report which provides further information on Vicinity's strategy, operations, and risks.

(a) Operational update Financial results

The Group assesses operating performance based on funds from operations (FFO) and adjusted funds from operations (AFFO). FFO and AFFO are widely accepted measures of real estate operating performance which adjust statutory net profit/(loss) for fair value movements, certain unrealised and non-cash items (FFO), as well as maintenance capital expenditure and static t nant leasing costs incurred during the period (AFFO). FFO and AFFO are determined with reference to the guidelines published by the Property Council of Australia (PCA)1 and are non-IFRS measures.

The table below contains a summary of FFO, AFFO, other related metrics and a summary reconciliation of net profit after tax to FFO2.

For	31-Dec-21	31-Dec-20
$m	$m
	Net property income	381.3	344.4
	External management fees	27.8	21.3
	Corporate overheads (net of internal property management fees)	(40.6)	(38.2)
	Net interest expense	(80.8)	(60.4)
	Funds from operations (FFO)	287.7	267.1
	Property revaluation increment/(decrement) for directly owned properties	353.7	(512.1)
	Other items	8.8	(149.1)
	Statutory net profit/(loss) after tax	650.2	(394.1)

1. Voluntary best practice guidelines for disclosing FFO and AFFO, issued by the PCA in May 2019.
2. Refer to Note 1(b) to the Half Year Financial Statements for a full reconciliation of net profit after tax to FFO.

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