Vicinity Centres (ASX: VCX) has announced an impressive forecast of its future at the annual general meeting (AGM) in 2025 (6 November 2025), where trading performance and strategic plans are covered, as well as optimisation of the portfolio. The meeting was held in hybrid mode through Chadstone National Office, Victoria, and also comprised the September quarterly update, which confirmed the good performance of operations of the company across its retail assets.
Chairman Trevor Gerber and CEO Peter Huddle discussed the company with investors and analysts, noting that retail visitation increased, occupancy rates remained high, and the company was also disciplined in its capital management. The update strengthened Vicinity Centres as one of the best proprietors and administrators of shopping centers in Australia, with a total portfolio value of over 24 billion.
Key Findings and Quarterly Highlights
Vicinity Centres’ September quarter underscored steady trading conditions supported by resilient consumer spending and strong retailer demand for prime retail space.
Key highlights from the September quarter include:
- Portfolio occupancy remained above 99%, reflecting stable tenant demand.
- Retail sales grew 3.8% year-on-year, driven by luxury, entertainment, and food categories.
- Net property income increased in line with expectations for FY2026 guidance.
- Chadstone—The Fashion Capital recorded record visitation, reaffirming its status as Australia’s premier retail destination.
- Development projects at Box Hill Central and Buranda Village progressed on schedule, adding long-term income potential.
CEO Peter Huddle stated that the company’s “core retail portfolio continues to perform well, supported by population growth and strong retailer confidence.”
Compared with peer averages across the Australian retail REIT sector, Vicinity’s occupancy and sales growth remain above industry norms, reinforcing operational resilience in a competitive market.
Economic and Strategic Benefits
Chairman Trevor Gerber emphasised the broader economic significance of Vicinity Centres’ activities. He noted that “Vicinity’s assets are at the heart of Australia’s retail ecosystem, contributing to jobs, innovation, and urban renewal.”
The company’s strategy aligns with broader consumer trends, particularly the integration of mixed-use precincts combining retail, entertainment, and commercial elements. Strong retail sales, underpinned by tourism recovery and local spending, continue to support earnings stability.
CEO Peter Huddle added that “ongoing investment in our mixed-use pipeline will enhance long-term shareholder returns while maintaining prudent balance sheet discipline.”
With interest rates stabilising and inflation moderating, Vicinity’s exposure to high-quality urban retail centres positions it favourably compared to peers facing higher debt costs or regional exposure.
Resource and Development Updates
Vicinity Centres reaffirmed its $2 billion development pipeline, prioritising retail enhancement, mixed-use integration, and ESG-aligned projects. Current projects include:
- Box Hill Central redevelopment in Victoria, progressing toward completion in FY2026.
- Buranda Village mixed-use transformation in Queensland, integrating retail, office, and residential spaces.
- Chadstone expansion, introducing luxury tenancies and sustainability upgrades.
The Environmental, Social, and Governance (ESG) practices have been the main focus of the strategy of Vicinity. The company has become carbon-neutral in its operations, and it is working on solar energy production, reduction of waste, and sustainable design.
“Embedding ESG principles into our operations creates both community and shareholder value,” Mr. Huddle noted.
Market and Strategic Context
The retail REIT sector is stabilising following a period of inflationary pressure and changing consumer dynamics. Demand for experience-led retail destinations, such as Vicinity’s Chadstone and DFO network, continues to rise amid the global shift toward experiential and omnichannel retailing.
Vicinity Centres’ scale provides a strategic advantage within Australia’s prime metropolitan markets. Compared with international peers, Vicinity benefits from stable regulation, low vacancy, and proximity to high-spending urban demographics.
Global supply chain challenges continue to ease, supporting retailer expansion and store fit-outs across Vicinity’s centres. The company’s strong partnerships with luxury and international brands position it well for future retail trends linked to tourism recovery and urban population growth.
Investor Outlook
Vicinity Centres’ stock (ASX: VCX) closed at $2.56, up 4.07% on the day of the AGM, reflecting renewed investor confidence following the update. The company’s market capitalisation stands at $11.31 billion, with a 52-week range between approximately $2.25 and $2.68.
Year-to-date performance shows steady appreciation, supported by earnings visibility and dividend stability. Analysts have noted Vicinity’s consistent rent collection and positive re-leasing spreads as indicators of strong asset management execution.
Chairman Gerber reaffirmed the company’s capital management discipline, saying, “We remain focused on maintaining a strong balance sheet to support strategic investments while delivering sustainable returns to security holders.”
Outlook and Strategic Positioning
The 2025 AGM by Vicinity Centres strengthened the determination of the management towards sustainable development with disciplined implementation, retail innovation, and the leadership of the ESG. The combination of good-performing retail assets and a development pipeline gives the company a good foundation to create value in the medium term.
With consumer expenditure even and the revitalization of urban areas, Vicinity Centres (VCX) stands to gain structural growth in retail and mixed-use property.
The forward-looking statements provided in the AGM outlined a sense of optimism in the strategic path taken by the company and its capacity to overcome the changing market environment successfully.
FAQs
- When and how will the 2025 AGM be held?
The 2025 Annual General Meeting will take place at 10.30 am (AEDT) on Thursday, 6 November 2025. It will be conducted in a hybrid format, allowing attendance either in person at Hotel Chadstone in Victoria or online through the company’s virtual meeting platform.
- How can security-holders vote if they cannot attend?
Security-holders who cannot attend the meeting in person or online can appoint a proxy to vote on their behalf. Proxy nominations must be submitted no later than 10.30 am (AEDT) on Tuesday, 4 November 2025.
- How can shareholders ask questions or participate online?
Shareholders can submit written questions in advance by email to the investor relations team by 5.00 pm (AEDT) on Thursday, 30 October 2025. Those joining online can also ask questions during the meeting through the digital platform or via phone.
- How can I update my security-holding or communication preferences?
Investors can update their details, such as address or banking information, through the company’s security registry. They can also opt to receive all future communications electronically instead of by mail.
- What resolutions will be voted on at the 2025 AGM?
The key items for consideration include:
- Adoption of the 2025 Remuneration Report
- Re-election of non-executive directors Tiffany Fuller, Georgina Lynch, Dion Werbeloff, and Trevor Gerber
- Grant of performance rights to CEO and Managing Director Peter Huddle
- Renewal of partial takeover provisions in the constitutions of the company and Vicinity Centres Trust
- What were the main messages from the Chairman’s address?
Chairman Trevor Gerber reaffirmed Vicinity Centres’ strong operational foundations, high occupancy rates, and disciplined capital management. He emphasised the company’s commitment to long-term growth, sustainable development, and shareholder value creation.
- What were the key points from the CEO’s presentation?
CEO Peter Huddle highlighted robust trading conditions, rising retail sales, and steady leasing activity. He also outlined progress on the $2 billion development pipeline and reinforced the company’s focus on mixed-use projects and sustainability initiatives.
- How did Vicinity Centres’ financial performance compare with market trends?
Vicinity reported portfolio occupancy above 99 per cent and retail sales growth of 3.8 per cent year-on-year, outperforming several sector peers in the Australian retail REIT market.
- What is the company’s current market position?
Vicinity Centres remains one of Australia’s largest retail property groups, managing assets valued at more than $24 billion. Its portfolio includes flagship centres such as Chadstone, The Fashion Capital and the DFO network.
- How have Vicinity Centres’ shares performed recently?
Vicinity Centres (ASX: VCX) closed at $2.56 on the day of the AGM, rising 4.07 per cent. The company’s market capitalisation stands at approximately $11.31 billion, with steady performance across the 52-week range
