Highlights

  • Vicinity reported 99.6% portfolio occupancy in its 3Q FY26 update, with leasing spreads of +5.1%.
  • Total portfolio retail sales increased 3.4% in 3Q FY26, while specialty sales productivity rose to about $13,500 per square metre.
  • The Chatswood Chase luxury precinct opened during the quarter, with the centre expected to be about 95% open and trading by 30 June 2026.
  • The Galleria redevelopment remained on track for a pre-Christmas 2026 opening and was more than 75% leased.
  • Vicinity reaffirmed FY26 guidance, with FFO and AFFO per security expected around the top end of their stated ranges.

Vicinity Centres (ASX:VCX) is one of Australia's leading retail property groups, operating a fully integrated asset management platform across a national shopping-centre portfolio. Its 2026 disclosures point to continued retailer demand, higher specialty sales productivity and progress on major redevelopment projects, while management maintained its FY26 Earnings and distribution framework.

Retail Sales and Leasing Metrics Remain Central

In its 5 May 2026 quarterly update, Vicinity reported total portfolio retail sales growth of 3.4% for 3Q FY26. Mini-major sales increased 3.7%, while specialty sales productivity reached approximately $13,500 per square metre. Portfolio occupancy was 99.6%, leasing spreads were +5.1%, and holdovers represented 3.1% of income on the company's stated basis. These measures provide a view of tenant Demand and the income-generating performance of the portfolio during the quarter.

Vicinity also reported an occupancy cost ratio of 14.3% and said retailer Debt remained low. The company nevertheless noted rising retailer costs and broader macroeconomic and geopolitical uncertainty, keeping the focus on tenant trading conditions as well as headline sales growth.

Chatswood Chase and Galleria Progress Through FY26

Development activity remained a major part of Vicinity's 2026 operating agenda. The new luxury precinct at Chatswood Chase began opening on 30 April 2026, with early visitation and retailer feedback described positively by the company. Vicinity expected the reimagined centre to be approximately 95% open and trading by 30 June 2026.

At Galleria in Western Australia, redevelopment work was progressing toward a pre-Christmas 2026 opening. The project was more than 75% leased at the time of the May update. These projects are intended to refresh major Assets and support future rental income through updated retail, dining and entertainment offerings.

FY26 Guidance and Funding Position

Vicinity reaffirmed FY26 guidance in May 2026. Funds from operations per security and adjusted funds from operations per security were expected to be around the top end of the company's existing ranges of 15.0-15.2 cents and 12.8-13.0 cents, respectively. Vicinity also continued to expect its full-year distribution payout to remain within its stated target range of 95-100% of AFFO.

The group also highlighted debt-market activity during the quarter, including new long-dated funding that extended its weighted average drawn debt Maturity profile to 4.6 years. Vicinity reported that 89% of total drawn debt was hedged for FY26 and 85% for FY27, reducing near-term exposure to movements in interest rates.

Key Insights

Vicinity's 2026 disclosures show a retail property portfolio operating with high occupancy, positive leasing spreads and improving specialty sales productivity while major redevelopment projects move through delivery. The balance between tenant performance, development execution and funding costs remains central to the group's financial profile. Ongoing disclosures on retail sales, occupancy, leasing conditions and project completion provide the clearest measures of how the portfolio is progressing through FY26.