VICINITY CENTRES TRUST - Annual Report 2018

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018
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FY18 annual results and strategy update 15 August 2018

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EGM SHOPPING CENTRE MANAGEMENT

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

The Galeries, NSW

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FY18 results overview Grant Kelley CEO AND MANAGING DIRECTOR

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Queen Victoria Building, NSW

FY18 results overview

Positioning Vicinity for long-term growth

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Results

Net profit of $1,218.7m

Funds from operations (FFO) of 18.2 cps, reflecting 2.2% comparable growth[1] Net tangible assets per security (NTA) up 5.3% to $2.97, total return of 11.1% Portfolio occupancy strong at 99.7%

Strategic initiatives

Planned divestment of up to $1.0b of non-core assets in FY19

Proposed establishment of ~$1.0b wholesale fund

Early stage assessment identified potential value upside of ~$1.0b for Vicinity from mixed-use opportunities

Achievements

Completed strategic Sydney premium asset swap with GIC Divested five non-core assets for $210m at 7.2% premium[2]

Mandurah Forum development completed

First two stages of The Glen opened

DFO Perth 100% leased and nearing completion

Rated by GRESB[3] as No.1 retail property company in Asia-Pacific for sustainability

Refer to slide 63 for details.
Includes the divestment of Flinders Square, WA, which was contracted for sale in July 2018, settlement expected in August 2018. 3. Global Real Estate Sustainability Benchmark.

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The Strand Arcade, NSW
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

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Strategy update: Unlocking Vicinity’s potential Grant Kelley CEO AND MANAGING DIRECTOR

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Emporium Melbourne, VIC

Vicinity’s strategy

Unlocking Vicinity’s potential

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Vicinity’s strategy is to deliver strong and
sustainable growth via focus on:
1.1 Market-leading destinations
2.2 Expanding our wholesale funds platform
3. Realising mixed-use opportunities Destination Listed (VCX)
assets
Wholesale Land parcel
assets carve outs
Capital Capital
and fees and fees
Wholesale Mixed-use
Unlisted Unlisted
assets developments
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Three strategic initiatives announced over the past six months

Implementing the strategy

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Divestment of up to $1.0b of non-core assets

Non-core Sub Regional and Neighbourhood centres to be divested

Sale campaign progressing well, with strong level of enquiry

Establishment[1] of ~$1.0b wholesale fund with Keppel Capital

~$1.0b of assets to be sold to Vicinity Keppel Australia Retail Fund (VKF)

Builds on Vicinity’s successful funds management platform

Significant mixed-use opportunities identified

across portfolio

Early stage assessment

Potential value upside for Vicinity of ~$1.0b

12 significant projects identified

Vicinity to earn fund and asset management fees

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Flinders Square, WA
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Chadstone, VIC – Artist’s impression

Subject to due diligence, definitive documentation and final board approval of both parties.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Delivering on strategy

Active capital recycling program driving future growth

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Completed

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Initial phase of capital recycling

Divested 24 assets for $1.9b

Reinvested into value-accretive developments, high quality acquisitions and securities buy-back

In progress

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Completing capital recycling strategy

Up to $1.0b of non-core Sub Regional and Neighbourhood centres to be divested

~$1.0b of shopping centres proposed to be injected into wholesale vehicle (VKF)

Reinvest into value-accretive development opportunities and potentially securities buy-back

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Strong and sustainable growth

Market-leading destinations Wholesale funds management Mixed-use opportunities

FY16 – FY18

FY19

FY19+

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Market-leading destinations

Highly productive portfolio with strong growth potential

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Post planned divestment of ~$2.0b of assets[1]

Destination asset portfolio (by value)[1]

~50 centres

~$11,000

~15.0%

Flagship portfolio

Chadstone, premium CBD and DFO assets represent ~50%[1]

High potential portfolio

Assets with development, remixing or mixed-use potential represent ~30%[1] Strong Regional and Sub Regional assets represent ~20%[1] Specialty MAT/sqm[1]

Resilient, highly productive assets in strongly growing catchments

Specialty occupancy costs[1]

Potential for strong growth due to higher sales productivity and relatively low occupancy costs

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Chadstone
Development
potential
High
potential Flagship
~50% ~50%
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Premium CBD
Strong
Regional and DFOs
Sub Regional
assets
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Adjusted for up to $1.0b of non-core assets planned to be sold in FY19, and the proposed establishment of a wholesale fund planned to be seeded with ~$1.0b of assets from Vicinity’s balance sheet.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Market-leading destinations

Flagship and high potential assets have strong growth prospects

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Flagship portfolio

High potential

Chadstone

Premium CBD assets

DFOs

Australia’s #1 shopping centre with over $2b in annual sales, over 60% higher than nearest peer

Unrivalled premium CBD retail portfolio across Australia’s three largest CBDs

Australia’s #1 outlet centre portfolio

Strong Regional and Sub Regional assets, and assets with development potential

Specialty MAT/sqm

Specialty occupancy cost

$18,831[1]

14.9%[1]

$18,020[2] 17.6%[2]

$9,934 10.9%

~$9,100 ~15.5%

Destination asset portfolio value[3]

21%

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21% 17% 11% 51%
Chadstone, VIC Queen Victoria Building, NSW DFO South Wharf, VIC Northland, VIC
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Includes Chadstone same-store sales.
Comparable centres excludes The Myer Centre Brisbane and QueensPlaza which are pre-development.
Adjusted for ~$2.0b of assets planned to be divested off Vicinity’s balance sheet in FY19.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Enhancing market-leading destinations

Retail development pipeline is a key growth driver

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8 projects

Development pipeline

Major pipeline projects include The Glen, Chadstone, Chatswood Chase Sydney, Galleria and The Myer Centre Brisbane

Improves sales performance and productivity, delivering sustainable NPI and valuation growth

15+ projects

Shadow pipeline

Projects include Box Hill Central, Bankstown Central, Northland, Sunshine Marketplace and Bayside

6-8%+ yields[1]

Targeted development returns

Attractive returns

10-15%+ IRR

Mandurah Forum, WA – Recently completed outdoor dining precinct

Development yields are stabilised.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Optimising the portfolio

Potential to further improve operational performance

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Tenant remixing

Ancillary income and operational efficiencies

Reweighting portfolio mix towards higher demand, stronger performing categories

Driving sales productivity and stronger rental growth

Transformational leasing deals driving higher visitation and sales

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Additional strong growth potential across ancillary income categories

Further operational efficiencies through data utilisation and technological innovation

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Chadstone, VIC – Artist’s impression
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Castle Plaza, SA – Installation
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Leveraging digital to reinforce physical

Opportunity to use data insights and technology to drive sales

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Want a seamless, omni-channel experience

Changing

consumer preferences

Shift in spending towards experiences

Closer integration of work, life and leisure

More discerning on store locations to expand market share Recognise need to be omni-channel but wide disparity in retailer capability to adapt

Retailers are

evolving

Pure e-commerce retailers expanding into physical locations

Majority of customers purchasing online visit a physical store before or after transaction

Physical to Majority of customers purchasing online visit a physical store before or after transaction continue to dominate but Physical stores provide unique experiences, on-sell opportunities, fulfilment and drive sales across channels enhanced through digital >90% of retail sales captured by those with a physical presence

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Opportunity for Vicinity to use data insights and technology to:

Improve retail mix
Enhance retailer performance
Provide enhanced omni-channel experiences

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Wholesale platform

Platform provides access to capital and income streams

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billion ~$1.0

of assets from VCX balance sheet

billion $1.2

VKF wholesale fund – proposed

Expands Vicinity’s funds management platform

Keppel Capital is an aligned partner, with strong capital relationships

Vicinity to provide property, leasing and development management services Vicinity and Keppel Capital to each initially hold up to a 10% equity interest Target close end March 2019

Funds under management (FUM)

Two existing funds and one mandate across six assets[1] Total returns of 11.5% p.a. (VRP[2] ) and 8.0% p.a. (VERF[2] ) since inception

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External
investors
Residual equity Up to 10%
Up to 10%
interest equity interest
equity interest
Vicinity Keppel Australia
Retail Fund (VKF)
~$1.0b of retail assets
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Excluding Gateway Plaza Leopold, VIC which was divested in July 2018.
VRP is Vicinity Retail Partnership and VERF is Vicinity Enhanced Retail Fund.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Mixed-use opportunities

Mixed-use development to unlock additional value within Vicinity’s existing portfolio

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Early stage assessment, potential value upside from mixed-use for Vicinity of ~$1.0b

12 significant

projects[1]

Significant opportunities Early stage assessment Density increasing in catchments and well located close to transport hubs Range of uses identified

10+ projects

Additional opportunities

Early stage assessment More modest scale projects

Capital-light approach

Build-to-sell residential Participation to be determined on a case-by-case basis Potential for land value to be used as equity contribution in projects Developer/manager model

NOTE: Refer to slides 47 to 49 for more detail.

Significant mixed-use projects identified at: Bankstown Central, Box Hill Central, Buranda Village, Carlingford Court, Chadstone, Emporium Melbourne, Oakleigh Central, QueensPlaza, Runaway Bay Centre, The Myer Centre Brisbane, Victoria Gardens Shopping Centre and Victoria Park Central.

The Glen, VIC – Artist’s impression

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Vicinity’s strategy

Unlocking Vicinity’s potential

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Vicinity’s strategy is to deliver strong and
sustainable growth via focus on:
1.1 Market-leading destinations
2.2 Expanding our wholesale funds platform
3. Realising mixed-use opportunities Destination ~50 market-leading destinations
assets
Wholesale Land parcel
assets carve outs
Capital Capital
and fees and fees
Early stage assessment,
identification of
Proposed establishment Wholesale Mixed-use
12 significant projects
of ~$1.0b wholesale fund assets developments
and potential value upside
for Vicinity of ~$1.0b
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

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Financials and FY19 guidance Richard Jamieson CHIEF FINANCIAL OFFICER

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

QueensPlaza, QLD

Financial results

FFO per security growth of 2.2% on a comparable basis[1]

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Statutory net profit[2]

1 218.7 million $ ,

Comparable FFO per security[1]

2.2% growth

FFO per security

18.2 cents

Net corporate overheads

2.1% reduction

FFO of $708.7m and strong net valuation gains of $555.1m[3]

Development completions, comparable NPI growth of 1.0% (1.7% excluding pre-development centres) and securities buy-back benefit

Growth of 1.1% on FY17

Efficiency initiatives across the business driving savings

NOTE: Refer to slide 61 for segment income statement.

Refer to slide 63 for details. Reported FFO per security is up 1.1% due to impact of divestments.

Chatswood Chase Sydney, NSW

Refer to slide 62 for full reconciliation of FFO to statutory net profit. 3. The net valuation gain excludes statutory accounting adjustments and assets divested during the period.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Financial position

Strong balance sheet maintained, well positioned for the future

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NTA of $2.97

5.3% growth

Total return[1]

11.1%

Increase in investment properties[2]

852.3 million $

Gearing

26.4%

Asset valuation gains and securities buy-back

5.3% growth in NTA and 5.8% distribution yield on opening NTA

Net asset valuation gains of $555.1m and capital expenditure, partially offset by divestments

Up 170 bps due to the securities buy-back and capital expenditure, partially offset by divestments and asset valuation gains

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Emporium Melbourne, VIC
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NOTE: Refer to slide 64 for summarised balance sheet.

Calculated as: (Change in NTA during the period + distributions declared)/opening NTA.
Includes movement in directly owned and equity accounted investment properties.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Valuations

Net valuation gains[1] of $555.1m or 3.6%

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Net valuation gains[1] 555.1 million $

Weighted average capitalisation rate 5.36%

Sydney CBD Centres valuation gains 3.1% increase

Emporium Melbourne 8.2% uplift

3.6% growth, including strong Tightened 25 bps over the year valuation gains at Chadstone, City Centres and DFOs

Net of acquisition costs

Gain in asset valuation driven by strong income growth and the capitalisation rate tightening 50 bps

	Valuation	Net gain
	Jun-18	over 12 months
Highlights	($m)2	(%)
Chadstone	3,050	13%
City Centres	2,418	3%
DFO portfolio3	1,562	9%

Net valuation gain excludes statutory accounting adjustments and assets divested during the period.

Chadstone, VIC

Vicinity ownership interest.
Includes DFO Perth under construction.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Capital management

Well diversified funding sources, investment grade credit rating

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New or renegotiated debt 1.0 billion[1] $

Liquidity 1.1 billion $

Weighted average interest rate

4.3%

Weighted average debt duration

4.4 years

Fully repaid FY18 expiries, with sufficient liquidity to repay FY19 expiries

Sufficient capacity for planned investment and increased development expenditure over FY19, expected to be further enhanced by asset divestment program

Up 10 bps from FY17

Reduced over FY18 as we prepare to match debt expiries with expected asset sale proceeds

Debt maturity profile ($m)[1]

1,500

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USPP
AMTN
1,250
GBMTN
119
1,000 HKMTN
218
560 Bank debt drawn
750 Bank debt undrawn
607
655
500 667
615
250
400
182 309 108 284
38 150 40 200 59 200
84
0
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Beyond
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Debt sources (%)[1]

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15
34
2
12
17
20
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Based on facility limits and includes $50m FY19 bank debt extended by 12 months (executed post 30 June 2018).

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

FY19 guidance and focus

Comparable FFO per security growth of 3.4% to 4.6%[1]

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No major change to the current retail environment expected over the next 12 months

Portfolio well positioned to create long-term value and sustainable growth

FY19 FFO per security guidance range of 18.0 to 18.2 cents[2]

Assumes $1.0b of asset divestments and establishment of proposed $1.0b wholesale fund in FY19[3]

After adjusting for the impact of portfolio changes[1] , guidance reflects comparable FFO per security growth of 3.4% to 4.6%

Distribution payout ratio is expected to be at the upper end of target range of 95% to 100% of adjusted FFO (AFFO), or 85% to 90% of FFO[2]

FY19 FFO guidance of 18.0 to 18.2cps

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19 Comparable
growth
3.4% to 4.6%
18.2
FY19 FFO
18
guidance
(0.8) 18.0
range
18.2
17
17.4
16
FY18 Portfolio Adjusted Stable business FY19
FFO changes [1] FY18 FFO and FFO
(stable development guidance
portfolio) growth
Cents per security
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FY19 maintenance capex and incentives forecast of ~$80m to $90m or ~0.60% of gross asset value

Potential securities buy-back to enhance FFO per security

Adjusting for all divestments from 1 July 2017 to 30 June 2019.
Assuming no material deterioration to existing economic conditions.
Assumes average settlement date of 31 December 2018 for $2.0b of planned asset sales.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

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Portfolio

Michael O’Brien CHIEF INVESTMENT OFFICER

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

The Strand Arcade, NSW

Strong progress made since merger

Portfolio significantly repositioned, material value created and balance sheet strengthened

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Divestments since merger[1]

1.9 billion $

Capital reinvested

1.6 billion $

Value created

0.3 billion $

Interests in 24 assets sold at a 2.4% premium to book value

Developments of $0.8b, acquisitions of $0.6b and securities buy-back of $0.2b

From recycling into acquisitions, divestments, developments and securities buy-back

Comparable specialty stores

NTA

($MAT/sqm)

($ per security)

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+20%
10,133 [2]
+21%
2.97
8,412
2.45
Jun-15 Jun-18 Jun-15 Jun-18
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Includes the divestment of Flinders Square, WA, which was contracted for sale in July 2018, with settlement expected in August 2018.
Includes Chadstone same-store sales.

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Ellenbrook Central, WA
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Capital strength and disciplined allocation

Strengthened balance sheet with capacity to invest in FFO per security and NTA accretive opportunities

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The Glen, VIC – Artist’s impression
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Proforma gearing[1]

Proforma investment capacity ~ 2.5 billion $

~18%

Adjusting for proposed up to $1.0b of non-core divestments and ~$1.0b wholesale fund

To be reinvested into FFO per security and NTA accretive opportunities

Proforma FY18 gearing (%)

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Target range
25% to 35%
30% gearing
26.4
provides
~$2.5b capacity
~18 [1]
Jun-18 Proforma Jun-18
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Proforma 30 June 2018 gearing excludes current capital commitments.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Reinvestment opportunities

Disciplined capital allocation

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Reinvestment options	Rationale Target returns Risk Timeframe
Portfolio initiatives	Tenant remixing of select assets toward higher demand, stronger performing categories driving sales productivity and stronger rental growth 10%-15% IRR Low Near term
	Technology driven operational initiatives, such as solar and robotics, generating efficiencies 15% initial yield 10%-15% IRR Low Near term
Retail developments	Significant development pipeline across 20+ projects1 Developments are value accretive and sustainably increase NPI growth 6%-8%+ development yield2 10%-15%+ development IRR Medium Near/medium/long term
Mixed-use opportunities Securities buy-back	20+ assets within portfolio have mixed-use potential Stable, long-term cashflow generating assets e.g. office and hotel 6%-8%+ development yield2 10%-15%+ development IRR Medium Medium/long term
	Build to sell residential utilising capital light approach – participation considered on a case-by-case basis FFO per security and NTA accretive Variable depending on participation Medium/long term
	Invest in own high quality portfolio at a discount to NTA FFO per security and NTA accretive Low Opportunistic – post execution of divestments
1. Projects in the identified and shadow pipelines. 2. Development yields are stabilised.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018
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Leasing Stuart Macrae EGM LEASING

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Emporium Melbourne, VIC

Portfolio highlights

Portfolio occupancy improved

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Occupancy rate

99.7%

Comparable NPI growth

1.0%

Leasing spread[2]

+0.7%

Specialty occupancy cost[3]

14.7%

Improved from 99.5% at June 2017

Increases to 1.7% excluding pre-development centres[1]

Comprising +0.6% for renewals and +0.9% for replacements

Up marginally from 14.6% in FY17

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QueensPlaza, QLD
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Pre-development centres include: Bankstown Central, Chatswood Chase Sydney, Galleria, QueensPlaza and The Myer Centre Brisbane.
Leasing spreads include all shop types other than majors, offices, ATMs and storage. For leases greater than 18 months duration and excludes project-impacted leasing and divestments.
Includes Chadstone same-store sales.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Sales summary

Benefiting from ongoing active management

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Specialty MAT productivity 10 133 $ , /sqm[1]

Specialty MAT/sqm growth +7.5%

Total MAT growth 1 +1.2%

Specialty and mini major MAT growth 1 +1.6%

Up from $9,429/sqm in FY17

Reflecting portfolio repositioning and active tenant remixing

Up from 0.4% growth in the prior year

Comprised of 0.9% growth in specialty stores and 4.1% growth in mini majors

Emporium Melbourne, VIC

Excludes divestments and development-impacted centres in accordance with Shopping Centre Council of Australia (SCCA) guidelines (refer to slide 59 for details) and includes Chadstone same-store sales.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Sales performance

Services, food catering and leisure continue to show strong growth

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Retail services[1]

+6.1%

Leisure[1]

+5.2%

Food catering[1]

+2.6%

Supermarkets and discount department stores +1.4%

Hairdressing and beauty +8.1% and optometrists +4.5%

Sporting goods +9.3% and books +5.3%

Cafes and restaurants +3.3% and take-away food +2.0%

Performance is mixed across brands

MAT growth (%)

For the 12 months to 30 June 2018

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7 Majors Specialty stores and mini majors [1]
6
6.1
5
5.2 5.1
4
3
2 2.6
1 1.8 1.8
1.3
0
-1 -2.0 -0.4 -1.1 -1.2 -1.3
-2
-3
Dept DDS Super- Retail Leisure H'wares Food General Apparel Food Jewellery Mobile
2
stores markets services catering retail retail phones
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NOTE: Refer to slide 58 for additional sales data.

Excludes divestments and development-impacted centres in accordance with SCCA guidelines (refer to slide 59 for details). Includes specialty stores, mini majors and Chadstone samestore sales.
General retail includes giftware, pharmacy and cosmetics, pets, discount variety, tobacconists, florists and toys.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Data and technology enhancing retailer partnerships and re-mixing

Market-leading infrastructure providing insights that will significantly improve retailer performance

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Highly advanced data capture and analysis capability

All centres and corporate offices connected to single high-speed digital network with WiFi connectivity throughout

Over 12m unique devices identified on our network over the past 12 months

Aligning retail mix to the consumer

Using data to tailor lease pricing, retail mix and precinct planning to improve retailer performance

Enhancing retailer experience and market knowledge

Data insights – sharing insights with retailers to drive retailer performance

Retailer Portal – digital destination for our retail partners to connect, discover and communicate with Vicinity

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WiFi traffic – Chadstone Ground Floor
Saturday 12 May 2018, 11am to 2pm
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Creating new physical presence for pure-play online retailers

Attracting pure-play online retailers to our assets to broaden their customer base and increase brand awareness

catch.com.au opening in Chadstone by end of 2018

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Active remixing

Responding to consumer demand and driving sales productivity

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FY18 tenant replacements[1]

48%

Expanding food catering[2] +59%

Expanding retail services[2]

+19%

Actively remixing towards stronger performing categories with 360 new tenants

Growth over the past five years[2]

Reflecting increased demand for out-of-home eating

Growth over the past five years[2]

Reflecting movement towards a more serviceorientated economy

Change in portfolio weighting past five years (%)[2]

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60
Majors 59.4 Specialty stores and mini majors
50
40
30
20
19.3
10
2.6 4.0 12.9 3.5
9.3
0
-7.1
-0.9 -10.3
-10 -5.3
-18.9
-20
Dept DDS Super- Food Retail Food General Mobile Leisure Apparel Jewellery H'wares
stores markets catering services retail retail phones
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Chadstone, VIC – SNEAKERBOY

For leases greater than 18 months duration and excludes project-impacted leasing and divestments.
Comparable portfolio, for centres owned in both Jun-13 and Jun-18 and excluding Chadstone.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

DFOs actively remixed

Significant value created

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$9,934

Specialty MAT/sqm up 36% since acquisition

Annualised total return since acquisition 15.6%

High-profile tenants added over time Including: Furla, Bally, Coach, Michael Kors, Salvatore Ferragamo, MJ Bale, Tommy Hilfiger, New Max Mara, Hugo Boss, Victoria’s Secret and Superdry

17.7%[Average leasing spread for FY18]

4.6%[MAT growth for FY18]

DFO Homebush, NSW

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Chadstone is Australia’s #1 retail centre with over $2.0b of MAT

International flagships, expanded luxury, quality dining and entertainment driving increased visitation

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#1 MAT across Australia for 17th consecutive year[1]

60% higher than next peer

Luxury precinct in Australia

New: Hermès, Van Cleef & Arpels, Kennedy, Piaget #1 Expanded: Louis Vuitton, Chanel, Gucci

Annual growth in visitation to almost 23m 7.0%

Same-store specialty MAT growth 12.3%

Same-store specialty MAT/sqm 18 831 $ ,

Same-store specialty occupancy costs 14.9%

1st Australian flagship store Victoria’s Secret (opening 2018)

7% Development yield on $666m redevelopment completed in June 2017 [2]

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Chadstone, VIC
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Big Guns Survey 2018. 2. Represents stabilised yield.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

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Shopping
Centres
Justin Mills
EGM SHOPPING CENTRE
MANAGEMENT
Vicinity Centres | FY18 annual results and strategy update | 15 August 2018
Chadstone, VIC
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High growth ancillary income streams benefiting centre operations

Strong pipeline of new initiatives

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FY18 ancillary income[1]

89.9 million $

Three-year growth[1] 8.0% p.a.

FY18 growth[1]

5.4%

Additional income streams planned

Four

$19m incremental growth since FY15

Consistently strong performance of existing and new income streams benefiting operations and retailers

Driven by electricity on-sell and Vicinity Media, up 10.6% and 17.1% respectively

Digital external billboard pipeline Website and on-device advertising Brand sponsorship and partnerships Network service on-sell (data usage)

Comparable centres, which excludes acquisitions, divestments and development-impacted centres.

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The Glen, VIC – External digital billboard (planned Sep-18) – Artist’s impression
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Australia’s largest digital supersite screen network

91 digital screens across 26 centres Three-year income growth of 47% p.a. FY18 - 40 new screens installed

FY19 - 30 new screens targeted

Strong return on capital investment

15-strong in-house media sales team

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Driving operational cost reductions

Transforming operations through scale, technology and focus on key cost categories

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Controllable outgoings in FY18 Procurement savings <1% 1.4 million growth $

Robotics and automation savings > 1.0 million $

Operational initiatives

Five

FY18 controllable outgoings of $177.6m

Savings delivered across completed tenders in FY18

Enhancing presentation and productivity in waste and cleaning

Successful trial to operate Oakleigh Central remotely

Including Chatswood material recovery facility – waste diversion improved from 49% to 73% with a 20% ROI. Four further facilities planned in FY19

Largest shopping centre solar investment in Australia

Controllable outgoings comparable growth rates (%)

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3
2.6
2
1
0.9
0
FY17 FY18
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Global recognition of ‘Most Intelligent Buildings Retail’

Recognising broad range of value-creating innovations
Over 150 innovations trialled or implemented over past three years

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Integrated energy strategy generating significant benefits

Reducing grid reliance and exposure to volatile energy prices whilst providing strong investment returns

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Integrated energy strategy developed

Four pillars

Largest retail solar investment[1] 28 million $

Solar program stage two ~ 50 million $

Strong investment returns 12% IRR

Integrated energy strategy:

Renewables
Storage
Energy efficiency
Management

11.2MW capacity across five centres in SA and WA to be completed early 2019 Australian shopping centre first, 500kWH battery to be installed in SA

Next stage solar program commencing in FY19

Strong sustainability outcomes, community impact and financial returns

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Castle Plaza, SA – Installation
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In shopping centres in Australia.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

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Development Carolyn Viney EGM DEVELOPMENT

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

The Glen, VIC

Development – A key driver for portfolio enhancement

An active period of successfully delivering current live projects and planning future projects

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Projects due to open later this year are all 100% leased

DFO Perth is fully leased

On track to open in October 2018

Stage three of The Glen due to open October 2018 fully leased First two stages successfully opened

Mandurah Forum successfully completed

Chadstone Hotel construction commenced

Chadstone continues to add to its existing retail strength Victoria’s Secret flagship store due to open Christmas 2018 Major remixes well advanced including expanded luxury precinct

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Mandurah Forum, WA
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Investing to create long-term value

Extensive development pipeline provides significant opportunities

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Project	FY18	FY19	FY19	FY20	FY20	FY21+	Project cost ($m) Vicinity Partner Total
The Glen, VIC							215 215 430
DFO Perth, WA							75 75 150
Chadstone Victoria’s Secret and atrium dining, VIC							25 25 50
Chadstone hotel, VIC							65 65 130
Roselands refurbishment, NSW							45 45 90
Chatswood Chase Sydney, NSW							tbc tbc tbc
Galleria, WA							tbc tbc tbc
The Myer Centre Brisbane, QLD							tbc tbc tbc

Under construction Planning1

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Timing and costs of projects are indicative only and may change as projects advance.

Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Live projects

Delivering portfolio enhancement

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Victoria’s Secret and atrium dining

$50m[1] redevelopment

Victoria’s Secret flagship store due to open Christmas 2018

First time the full product range will be sold in Australia

Introduction of contemporary lower ground Dining Atrium

Includes new casual dining options, expanded youth fashion precinct and sporting goods specialty stores

To be completed by December 2018

Forecast development yield[2] of >6% and IRR of >10%

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Hotel

$130m[1] redevelopment

Construction commenced in June 2018 and on track to be delivered on time and on budget

Premium features catering for tourists to Melbourne, business travellers to Monash region and visitors to Chadstone

Accor to operate under premium brand MGallery by Sofitel

Project completion expected in late 2019

Forecast development yield[2] of >8% and IRR of >10%

Chadstone, VIC – Artist’s impression

100% interest. Vicinity’s share is 50%. 2. Represents stabilised yield.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Live projects

Delivering portfolio enhancement

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The Glen

$430m[1] redevelopment

Stages one and two opened, trading strongly and exceeding expectations. Stage three fully leased, opening October 2018. Includes H&M and Uniqlo

Over 500 apartments to be built by residential partner by 2021

Expected to exceed project feasibility

Forecast development yield[2] of >7% and IRR of >13%

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DFO Perth

$150m[1] development

100% leased

On track for early October 2018 opening

Best in class tenancy mix – Polo Ralph Lauren, Kate Spade, Coach, Furla, Tommy Hilfiger

Perth Airport precinct to grow, including introduction of Costco, bringing additional potential consumers to the site Forecast development yield[2] of >11% and IRR of >16%

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The Glen, VIC
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DFO Perth – Artist’s impression

100% interest. Vicinity’s share is 50%. 2. Represents stabilised yield.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Other near-term retail development pipeline opportunities

Significant opportunities exist to invest in locations and assets which are positioned to grow strongly

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Galleria The Myer Centre Brisbane Northland Sunshine Marketplace A strongly performing centre with an CBD asset in the heart of the growing Significant gentrification occurring to the The Government endorsed ‘activity hub’ excellent trade area Brisbane city south of the centre in Melbourne’s west, akin to Box Hill in terms of its future place in a A range of project options significantly Detailed masterplan work underway to The Northland Urban Renewal Precinct densification of Melbourne advanced, including the option to invest reposition the retail offer is a former industrial estate expected in the centre across multiple stages to be repurposed for 10,000 new Announced Melbourne Airport Link will Will take advantage of the investment residential dwellings make Sunshine a ‘super hub’ Nature and timing of investment to being made in Brisbane, including the appropriately respond to timing of Queens Wharf Integrated Resort Opportunity identified for a significant New Melbourne Metro, regional rail links recovery of WA economy Development and Cross River Rail project ELP precinct facing east towards the to Geelong, Ballarat and Bendigo and Darebin Creek green belt Airport Link will converge at Sunshine

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Artist’s impression Artist’s impression
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Melbourne Airport
Sunshine Marketplace
CBD
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Other near-term retail development pipeline opportunities

Significant opportunities exist to invest in locations and assets which are positioned to grow strongly

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Victoria Gardens Shopping Centre Located close to Melbourne CBD in a sought after residential area Average income in catchment significantly higher than Melbourne average Densification of area over last decade set to continue

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Box Hill Central

Significant residential, commercial and other development in immediate area surrounding centre

Centre sits on busy train line with significant population passing through centre each day to access transport links Changing demographics, with growing middle class making Box Hill and surrounds their home

Artist’s impression

Bankstown Central

Centre sits adjacent to new Sydney Metro station planned on a major transport line for Sydney

Site has significant opportunity for office, hotel and residential development Significant development already underway in surrounding area

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Chatswood Chase Sydney

Centre sits in Sydney’s most affluent catchment

Premium brand position of centre supports expansion of retail offer to include luxury and lifestyle Well located to take advantage of tourism retail spend

Major transport interchange located nearby

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018
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The Glen, VIC – Artist’s impression

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Mixed-use Carolyn Viney EGM DEVELOPMENT

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Mixed-use

Focuses on unlocking latent value within the portfolio and the creation of destinational centres

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Completed comprehensive review of portfolio to evaluate highest and best use of each site

Identified mixed-use potential while retaining flexibility for retail masterplanning

Additional uses primarily residential, office and hotel

Early stage assessment, ~$1.0b of potential value upside for Vicinity

12 sites[1] with significant potential and strong location fundamentals

Early stage assessment

Work underway to create viable development schemes and obtain the required zoning and/or approvals

Leverages government support for increased density in these locations

Most of these sites have potential for more than one additional property use

10+ more modest and future opportunities also identified

Early stage assessment

Significant future pipeline potential

Enhancing in-house capability

Established Mixed Use Development business unit

Significant mixed-use projects identified at: Bankstown Central, Box Hill Central, Buranda Village, Carlingford Court, Chadstone, Emporium Melbourne, Oakleigh Central, QueensPlaza, Runaway Bay Centre, The Myer Centre Brisbane, Victoria Gardens Shopping Centre and Victoria Park Central.

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Chadstone Hotel, VIC – Artist’s impression
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Mixed-use approach

Approach to be determined depending on nature of opportunities

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Enabling growth in retail income remains priority for each asset

Maintain flexibility for retail masterplan

Vicinity’s participation in each opportunity to be considered on a case-by-case basis

Participation to reflect relative risk and reward of each opportunity at the relevant time having regard to market conditions

Collaboration models to be established with best-in-class partners

Office and hotel opportunities may be funded on balance sheet

These opportunities have a similar profile to retail developments and represent long-term ownership and earnings growth opportunities

Specialist management agreements to be entered into for specialist uses (i.e. hotel)

Build-to-sell residential to be capital-light

Partnerships to be established with well-credentialed residential groups

Capacity for land value to be used as equity contribution into a project

Otherwise, option for Vicinity to sell development rights outright (i.e. The Glen)

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Chadstone Hotel, VIC – Artist’s impression
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Mixed-use development pipeline

Delivering portfolio enhancement

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Box Hill Central

Bankstown Central

Buranda Village

Growing precinct identified as an Activity Centre, with active residential development underway in areas around the centre

Existing hub of retail, office, education and health facilities

Located 20km (20 mins) from Melbourne CBD, with major transport connections

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Convenient transport links to Sydney CBD, Parramatta, Liverpool and Kogarah

Located adjacent to existing heavy rail line and metro line under development

Major retail development considered as part of the project

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Located 4km south of Brisbane CBD and adjacent to Princess Alexandra Hospital – Brisbane’s largest teaching hospital

Close to major rail and bus links to Brisbane CBD, South Bank, Gold Coast and University of Queensland

Significant development activity underway within the surrounding area

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018
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Questions

Grant Kelley CEO AND MANAGING DIRECTOR

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The Galeries, NSW

	52	Sustainability	66	Capital management
	~~53~~	~~Economic environment~~	~~67~~	~~Development~~
Appendices	54 55	Destination asset portfolio Assets under management	68 76	Asset summaries Key dates
	56	Direct portfolio	77	Contact details
	61	Financial results

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018
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The Galeries, NSWChadstone, VIC

Sustainability

Delivering sustainable long-term value for our communities and securityholders

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#1 retail property company

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In Australia and Asia-Pacific and #4 globally by GRESB[1]

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16% reduction

Carbon intensity reduction since FY15[3]

Vicinity’s sustainability approach and performance recognised by external ratings agencies

GRESB[1] rated Vicinity as #1 retail property company in Australia and Asia Pacific RobecoSAM Sustainability Award Silver Class 2018 for DJSI[2] (top 5% of 150+ real estate companies globally)

CDP rated Vicinity as A- (‘Leadership’ score level) for climate change disclosure

Ongoing improvements in environmental efficiency

Energy intensity[3] reduced by 2% from FY17

Carbon intensity[3] reduced by 3% from FY17

Waste diversion from landfill improved to 43%, up from 36% in FY17

million[4] $3.0

Community investment

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Reconciliation

Reflect Reconciliation Action Plan (RAP) launched

Community investment program focused on youth unemployment

Strengthened Beacon Foundation partnership through development and roll out of bespoke student mentoring, skilled volunteering and work experience programs

Vicinity’s Reflect Reconciliation Action Plan (RAP) launched

Progressing Vicinity’s diversity and sustainability objectives

Note: Latest performance reporting, metrics and achievements can be found on our website sustainability.vicinity.com.au 1. Global Real Estate Sustainability Benchmark - 2017 Real Estate Assessment.
Dow Jones Sustainability Indices.
Resource usage on a per sqm basis.
The total community investment spend in FY18 has been calculated using the London Benchmark Group framework, and includes 50% of $1.6m in operational spend made with social enterprises and indigenous businesses.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Economic environment

Retail sales expected to be boosted by increased consumer sentiment and strengthening labour market

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Low wages growth and rising living costs have impeded retail sales growth

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7%
Wages Growth
Living Costs Growth
6%
5%
4%
3%
2%
1%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: ABS.
Strong employment growth continues and wages growth is forecast to improve
5.0%
Wages Growth
4.5% Employment Growth Forecasts
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Growth Rate (YoY)
Growth Rate (YoY)
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But business confidence is strong and consumer sentiment has continued rising
125 Consumer Sentiment 30
Business Confidence
120
20
115
110 10
105
0
100
-10
95
90 -20
85
-30
80
75 -40
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Melbourne Institute, NAB and Vicinity Centres.
Business Confidence Index
Consumer Sentiment Index
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Forecast rebound in household cashflow to support retail sales growth

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16 UBS Household cash flow (nominal) Forecasts 16
Retail sales (nominal)
14 14
12 12
10 10
8 8
6 6
4 4
2 2
Latest data is quarter to date when applicable
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
% y/y (4-quarter average)
% y/y (values, 12-month average)
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Source: ABS (historical) and Melbourne Institute (forecasts).

Source: UBS and ABS

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Destination asset portfolio

Indicative portfolio statistics – proforma for the planned sale of ~$2.0b of assets

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Key metrics	Destination	assets1	Jun-18
Retail assets	~50		74
Average asset value ($m)	~500		354
Average centre size (GLA, sqm)	~40,000		34,569
Average capitalisation rate (%)	~5.00		5.36
Specialty MAT/sqm ($)	~11,000		10,1332
Specialty occupancy costs (%)	~15.0		14.7
	Portfolio	Specialty	Specialty
	value3	MAT/sqm	Occ Cost
Destination asset portfolio1	(%)	($)	(%)
Chadstone2	21	18,831	14.9
City Centre	17	18,020	17.6
DFO portfolio	11	9,934	10.9
Development, remixing or mixed-use1	31
	51	~9,100	~15.5
Strong Regional and Sub Regional	21
Total	100	~11,000	~15.0

Adjusted for up to $1.0b of non-core assets planned to be sold in FY19, and the proposed establishment of a wholesale fund planned to be seeded with ~$1.0b of assets from Vicinity’s balance sheet.
Includes Chadstone same-store sales.

Myer Bourke Street, VIC

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Vicinity share of Jun-18 valuation.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Assets under management

~8,200 tenants across 82 assets under management[1,2]

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Direct portfolio1,2 Wholly-owned Co-owned Total	Managed	Total AUM
	Third party/ co-owned
Number of retail assets2 45 29 74 8/29 82 Gross lettable area (000’s)(sqm) 1,113 1,445 2,558 229 2,787 Number of tenants 3,474 4,135 7,609 658 8,267 Annual retail sales ($m) 7,360 9,494 16,854 1,298 18,152 Total value ($m)2,3 7,243 9,122 16,365 1,506/9,860 27,731

Note: Totals may not sum due to rounding.

Includes DFO Brisbane.
Includes DFO Perth (under construction).
Reflects ownership share in investment properties and equity-accounted investments.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Direct portfolio

Key statistics by centre type

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As at 30 June 2018	Total portfolio	Regional1	Sub Regional	Neighbourhood	Outlet Centre2
Number of retail assets3	74	25	30	13	6
Gross lettable area (m)(sqm)	2.6	1.6	0.7	0.1	0.2
Total value3 ($m)	16,365	10,690	3,429	684	1,562
Portfolio weighting by value3 (%)	100	65	21	4	10
Capitalisation rate (weighted average)3(%)	5.36	4.92	6.27	6.31	6.04
Comparable NPI growth4 (%)	1.0	(1.4)	2.3	(0.9)	7.4
Occupancy rate (%)	99.7	99.6	99.7	99.4	100
Total MAT growth5 (%)	1.2	1.5	0.3	(0.2)	4.6
Specialty and mini major MAT growth5 (%)	1.6	1.4	0.6	(3.1)	4.6
Specialty sales per sqm5 ($)	10,133	11,250	8,637	7,363	9,934
Specialty occupancy cost5 (%)	14.7	16.5	13.2	13.0	10.9

Note: Totals may not sum due to rounding.

Includes Super Regional, Major Regional, City Centre and Regional centres. 2. Includes DFO Brisbane business. 3. Includes DFO Perth (under construction).
Excludes acquisitions, divestments and development-impacted centres and is calculated on a like-for-like basis versus the prior corresponding period.
Excludes divestments and development-impacted centres in accordance with SCCA guidelines (refer to slide 59 for details) and includes Chadstone same-store sales.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Direct portfolio

Well diversified by geographic and retail sub-sector exposure

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Centre type composition[1]

Geographic exposure[1]

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13
2 City Centre
4
3 Regional
1717
Regional 2 4 Sub Regional
Outlet Centre 10%
Major Regional 2
Sub Regional 2 3 Neighbourhood
Super Regional 1 1 Outlet Centre
Neighbourhood 4% 19% Regional Sub Regional 7
Neighbourhood 6
Outlet Centre (u/c) 1 12% QLD 15
3 Major Regional
Major
Sub Regional 21% $16.4b [2] 20% 3 City Centre
Regional
14% WA 7 Sub Regional
5% SA
1 Neighbourhood
1 Outlet Centre
25
Regional 12% 15% City Centre 19% NSW
Super Regional 1
Sub Regional 10 Major Regional 3
Neighbourhood 3 City Centre 2
Outlet Centre 3 Regional 3
Note: Totals may not sum due to rounding. 50% VIC and TAS
1. Includes DFO Brisbane business and DFO Perth (under construction).
2. Includes equity accounted investments and excludes finance lease assets and planning and holding costs.
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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Direct portfolio

Additional sales information

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	Actual	Actual	Actual	Comparable1 growth	Comparable1 growth		Jun-182	Jun-182	Jun-17	Jun-17
	MAT Jun-18 ($m) Proportion of portfolio (%) By sales By rent					Comparable MAT growth (%)1	MM and SS4	SS4	MM and SS4	SS4
				Jun-182 (%)	Jun-17 (%)
						Apparel	(0.4)	(1.1)	1.1 3.0 (10.0) 4.6 3.1 2.9 6.8 (3.2) (7.0)	0.3
		By sales By rent
						Food catering	2.6	2.9		2.2
Specialty stores	6,684	40	56	0.9	0.5 2.1
						Homewares	5.1	1.2		(5.3)
Mini majors	2,106	12	11	4.1
						General retail	1.8	2.4		1.8
Specialties and mini majors	8,790	52	67	1.6	0.8
						Leisure	5.2	3.6		1.3
Supermarkets	4,465	26	8	1.3	0.8 (2.1) 0.9 (2.2)
						Food retail	(1.1)	(1.4)		0.2
Discount department stores	1,560	9	6	1.8
						Retail services	6.1	6.1		6.8
Other retail3	1,237	7	15	(0.5)
						Jewellery	(1.2)	(1.2)		(3.2)
Department stores	802	5	4	(2.0)
						Mobile phones	(1.3)	(1.3)		(7.0)
Total portfolio	16,854	100	100	1.2	0.4	Total	1.6	0.9	0.8	0.5

Note: Totals may not sum due to rounding.

Excludes divestments and development-impacted centres in accordance with SCCA guidelines (refer to slide 59 for details).
Includes Chadstone same-store sales.
Other retail includes cinemas, travel agents, auto accessories, lotteries and other entertainment.
MM: Mini majors; SS: Specialty stores.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Direct portfolio

Non-comparable centres for sales reporting

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Centre Comment Broadmeadows Central, VIC Major tenant changeover Chadstone, VIC Development Mandurah Forum, WA Development QueensPlaza, QLD Pre-development The Myer Centre Brisbane, QLD Pre-development Roselands, NSW Development The Glen, VIC Development Warriewood Square, NSW Development

The Myer Centre Brisbane, QLD

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Note: All divestments during the period are excluded.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Direct portfolio

Key portfolio tenants

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Top 10 tenants	Top 10 tenants	Top 10 tenants	Top 10 tenants
Rank Retailer Retailer type Number of stores % of income
1	Supermarket	46	4.0
2	Supermarket	43	3.7
3	Discount department store	27	2.8
4	Department store	10	2.2
5	Department store	5	2.0
6	Discount department store	20	1.6
7	Discount department store	19	1.6
8	Specialty/Mini major	32	0.8
9	Specialty/ATM	32	0.7
10	Mini major	28	0.7
Top 10 Total		262	20.1

Top 10 tenant groups	Top 10 tenant groups	Top 10 tenant groups	Top 10 tenant groups
Rank Retailer Number of leases % of income Brands
1	118	9.0	Coles, First Choice Liquor, Kmart, Liquorland, Target, Vintage Cellars
2	97	5.9	Big W, BWS, Dan Murphy’s, Food For Less, Woolworths, Woolworths Liquor,Woolworths Petrol
3	37	2.9	Country Road, David Jones, Mimco, Politix, Trenery, Witchery
4	16	2.4	Marcs, Myer, sass & bide
5	125	1.5	Dotti, Jacqui E, Jay Jays, Just Jeans, Peter Alexander, Portmans, Smiggle
6	87	1.2	Cotton On, Cotton On Body, Cotton On Kids, Cotton On Mega, Factorie, Rubi Shoes, Supre,Typo
7	153	0.9	BankWest, Commonwealth Bank
8	59	0.9	Hype DC, Merrell CAT, Platypus Shoes, Podium Sports, Skechers, The Athlete’s Foot,Timberland,Vans
9	112	0.8	Bank of Melbourne, Bank of South Australia, St George Bank, Westpac
10	23	0.8	JB Hi-Fi, JB Hi-Fi Home, Good Guys Discount Warehouse
Top 10 Total	827	26.3

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Financial results

FFO per security growth of 2.2% on a comparable basis[1]

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For the 12 months to Jun-18 ($m) Jun-17 ($m) Change ($m) Change (%)	For the 12 months to Jun-18 ($m) Jun-17 ($m) Change ($m) Change (%)	For the 12 months to Jun-18 ($m) Jun-17 ($m) Change ($m) Change (%)	For the 12 months to Jun-18 ($m) Jun-17 ($m) Change ($m) Change (%)	For the 12 months to Jun-18 ($m) Jun-17 ($m) Change ($m) Change (%)
Net property income (NPI)2	894.3	887.8	6.5	0.7
Partnerships and other income	76.2	66.0	10.2	15.4
Total income	970.5	953.8	16.7	1.8
Net corporate overheads	73.3	74.9	(1.6)	(2.1)
Net interest expense	188.5	166.0	22.5	13.6
Total expenses	261.8	240.9	20.9	8.7
Funds from operations (FFO)	708.7	712.9	(4.2)	(0.6)
Maintenance capex and lease incentives	75.6	71.4	4.2	5.9
Adjusted FFO (AFFO)	633.1	641.5	(8.4)	(1.3)
Statutory net profit2	1,218.7	1,583.6	(364.9)	(23.0)
DPS (cents)	16.3	17.3	(1.0)	(5.8)
FFO per security (cents)3	18.2	18.0	0.2	1.1
AFFO per security (cents)3	16.3	16.2	0.1	0.3
Payout ratio – FFO (%)4	89.1	96.1	(700 bps)
Payout ratio – AFFO (%)4	99.7	106.7	(700 bps)

Note: Totals may not sum due to rounding.

Refer to slide 63 for further details.
Refer to slide 62 for full reconciliation of FFO to statutory net profit.
The calculation of FFO and AFFO per security for each period uses the weighted average number of securities on issue.
Calculated as: Total distributions/total FFO and AFFO.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Financial results

FFO reconciliation to net profit after tax

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For the 12 months to	30-Jun-18 ($m)	30-Jun-17 ($m)
Net profit after tax 1,218.7 1,583.6 Property revaluation increment for directly owned properties (634.7) (906.7) Non-distributable gain relating to equity accounted investments (15.2) (9.1) Amortisation of static lease incentives 15.0 11.3 Amortisation of other project items 21.3 16.8 Straight-lining of rent adjustment (16.8) (16.8) Stamp duty and transaction costs written off on acquisition of investment properties 67.7 9.9 Net mark-to-market movement on derivatives (12.6) 55.1 Net foreign exchange movement on interest bearing liabilities 59.0 (60.7) Integration costs - 26.7 Amortisation of intangible assets 4.5 3.0
Other non-distributable items 1.8 (0.2)
Funds from operations (FFO) 708.7 712.9

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Financial results

Adjusting for acquisitions and divestments, comparable FFO per security growth was 2.2%

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Reconciliation of actual and comparable FFO per security growth

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----- Start of picture text -----

19
Comparable growth
2.2%
18 0.39
(0.20)
18.20
18.01
17.81
17
Adjusted Jun-17 Growth from
Jun-17 Impact of FY18
FFO per security stable business, buy-back
FFO per security portfolio changes FFO per security
(stable portfolio) and developments
Represents the FFO from Driven by 1.0% comparable
13 retail assets divested NPI growth, Vicinity securities
since 1 July 2016, and the 25% bought back in 2017 and
interest in DFO South Wharf incremental FFO from
acquired in April 2017 developments
FFO (cps)
----- End of picture text -----

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Financial results

Strong balance sheet maintained

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As at Jun-18 ($m) Jun-17 ($m) Change ($m)	As at Jun-18 ($m) Jun-17 ($m) Change ($m)	As at Jun-18 ($m) Jun-17 ($m) Change ($m)	As at Jun-18 ($m) Jun-17 ($m) Change ($m)
Cash 42.1 42.2 (0.1)
Investment properties held for sale - 33.5 (33.5)
Investment properties1 15,892.7 15,633.5 259.2
Equity accounted investments 681.1 88.0 593.1
Intangible assets 594.9 599.4 (4.5)
Other assets 270.8 262.2 8.6
Total assets	17,481.6	16,658.8	822.8
Borrowings 4,437.6 3,893.7 543.9
Other liabilities 936.5 1,017.4 (80.9)
Total liabilities	5,374.1	4,911.1	463.0
Net assets	12,107.5	11,747.7	359.8
Securities on issue (m)	3,871.6	3,958.6	(2.2%)
Net tangible assets per security ($)	2.97	2.82	5.3%
Net asset value per security ($)	3.13	2.97	5.4%

Note: Totals may not sum due to rounding. 1. Vicinity’s ownership interest.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Financial results

NTA growth of 5.3% contributing to a 12-month total return[1] of 11.1%

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Key drivers of NTA

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----- Start of picture text -----

3.40
3.20 0.01 NTA growth
5.3%
0.14 (0.16)
(0.02)
3.00
0.18
2.80
2.60
2.97
2.40 2.82
2.20
2.00
Jun-17 FY18 FFO Asset Buy-back Distributions Other Jun-18
NTA per security valuation increment declared movements NTA
gains
NTA ($)
----- End of picture text -----

Note: Totals may not sum due to rounding.

Calculated as: (Change in NTA during the period + distributions declared)/opening NTA.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Capital management Strong balance sheet maintained

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Debt statistics summary

As at Jun-18 Jun-17	As at Jun-18 Jun-17	As at Jun-18 Jun-17
Total debt facilities $5.5b $5.1b Drawn debt1 $4.4b $3.9b Undrawn debt $1.1b $1.1b Weighted average interest rate2 4.3% 4.2%
Gearing3	26.4%	24.7%
Proportion of debt hedged 86% 90%
Debt duration4 4.4 years 5.3 years
Interest cover ratio (ICR) 4.8x 5.6x
Credit ratings/outlook - Moody’s - Standard & Poor’s	A2/stable A/stable	A2/stable A/stable

Hedging profile[5,6]

	4,000												5.0%
	3,500												4.9%
	3,000												4.8%
Notional A$m	0 500 1,000 1,500 2,000 2,500												4.2% 4.3% 4.4% 4.5% 4.6% 4.7%	Hedge rate
			FY19		FY20	FY21	FY22	FY23	FY24		FY25	FY26
		Fixed rate		debt (lhs)		Interest	rate swaps (lhs)			Weighted average hedge rate (rhs)

Key hedging statistics

As at period end	30-Jun-18	30-Jun-17
Weighted average hedge rate (%)5	4.6	4.3
Proportion of debt hedged (%)	86	90

Calculated using the hedged rate on foreign denominated borrowings and excludes fair value adjustment and deferred borrowing costs.
The average over the reporting period and inclusive of margin, drawn line fees and establishment fees.
Calculated as: Drawn debt net of cash/Total tangible assets excluding cash, derivative financial assets and finance lease assets. 4. Based on facility limits.
The weighted average hedge rate includes margin and establishment fees on fixed rate debt and margin, line and establishment fees on floating debt that has been hedged with interest rate swaps.
Hedge rate is the average for the financial years.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Vicinity’s share of costs to complete projects under construction is $228m

Development

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	Total		Vicinity’s share
	project	Project	Spent to	Cost to
$m	cost	cost	30-Jun-18	complete
The Glen, VIC	430	215	126	89
DFO Perth, WA	150	75	53	22
Chadstone Victoria’s Secret and atrium dining, VIC	50	25	6	19
Chadstone hotel, VIC	130	65	10	55
Roselands refurbishment,NSW	90	45	2	43
Total under construction	850	425	197	228

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Asset summaries

Centre statistics

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					Moving
					annual			Specialty
		Ownership		Occupancy	turnover	Centre	Specialty	occupancy
	Centre type	interest	GLA	rate	(MAT)	sales	sales	costs1
		(%)	(sqm)	(%)	($m)	($/sqm)	($/sqm)	(%)
New South Wales
Chatswood Chase Sydney	Major Regional	51	63,764	100.0	557.0	10,044	14,926	14.8
Bankstown Central	Major Regional	50	85,736	99.8	451.1	6,044	7,936	18.9
Roselands2	Major Regional	50	62,027	100.0	n.a.	n.a.	n.a.	n.a.
Queen Victoria Building	CityCentre	50	13,762	98.5	280.1	23,114	26,361	19.1
The Galeries	CityCentre	50	14,985	100.0	197.0	13,259	20,343	13.9
The Strand Arcade	CityCentre	50	6.024	99.5	130.9	28,433	26,303	13.7
Lake Haven Centre	Sub Regional	100	43,102	100.0	307.9	9,195	9,948	13.6
Nepean Village	Sub Regional	100	23,217	100.0	243.6	10,739	12,320	12.3
Warriewood Square2	Sub Regional	50	29,909	99.6	n.a.	n.a.	n.a.	n.a.
Carlingford Court	Sub Regional	50	33,311	100.0	184.7	7,019	10,412	15.8
West End Plaza	Sub Regional	100	15,939	100.0	88.0	5,595	6,657	13.5
Lavington Square	Sub Regional	100	20,471	99.4	121.3	6,824	9,049	9.4
Armidale Central	Sub Regional	100	14,746	99.4	91.4	6,344	6,449	10.7
Lennox Village	Neighbourhood	50	10,060	100.0	121.1	12,762	6,579	18.6
DFO Homebush	Outlet Centre	100	29,882	100.0	318.1	10,547	14,641	10.0
Tasmania
Eastlands	Regional	100	33,316	100.0	249.7	7,776	7,797	13.3
Northgate	Sub Regional	100	19,465	99.4	139.3	7,956	9,529	12.3

Inclusive of marketing levy and based on GST inclusive sales.
Non-comparable sales. Refer to slide 59 for details.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Asset summaries

Centre statistics (continued)

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					Moving
					annual			Specialty
		Ownership		Occupancy	turnover	Centre	Specialty	occupancy
	Centre type	interest	GLA	rate	(MAT)	sales	sales	costs1
		(%)	(sqm)	(%)	($m)	($/sqm)	($/sqm)	(%)
Queensland
QueensPlaza2	City Centre	100	39,066	100.0	n.a.	n.a.	n.a.	n.a.
TheMyerCentreBrisbane2	City Centre	25	63,708	98.8	n.a.	n.a.	n.a.	n.a.
GrandPlaza	Regional	50	53,328	99.9	360.7	7,104	10,125	15.5
RunawayBay Centre	Regional	50	42,999	99.7	294.4	8,132	10,338	12.1
Mt Ommaney Centre	Regional	25	56,613	99.4	314.3	6,645	7,716	15.4
TaigumSquare	SubRegional	100	23,079	99.7	108.5	6,171	6,612	12.6
Gympie Central	SubRegional	100	14,148	100.0	130.0	9,773	12,220	9.3
WhitsundayPlaza	SubRegional	100	22,392	100.0	126.3	6,557	13,769	6.4
BurandaVillage	SubRegional	100	11,565	99.4	66.9	6,563	9,381	12.8
OxenfordVillage	Neighbourhood	100	5,815	100.0	77.3	18,604	15,886	8.1
Milton Village	Neighbourhood	100	2,873	100.0	27.6	18,383	16,071	9.7
NorthShoreVillage	Neighbourhood	100	4,077	100.0	53.9	15,906	8,530	10.2
DFOBrisbane	Outlet Centre	100	26,318	100.0	221.1	8,661	8,801	11.0
South Australia
ElizabethCity Centre	Regional	100	80,309	99.4	350.7	5,729	7,606	15.8
Colonnades	Regional	50	83,952	99.2	314.8	5,941	6,440	15.3
Castle Plaza	Sub Regional	100	22,842	99.3	148.0	7,034	8,862	14.8
Kurralta Central	Sub Regional	100	10,676	100.0	87.1	8,381	9,880	11.7

Inclusive of marketing levy and based on GST inclusive sales.
Non-comparable sales. Refer to slide 59 for details.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Asset summaries

Centre statistics (continued)

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					Moving
					annual			Specialty
		Ownership		Occupancy	turnover	Centre	Specialty	occupancy
	Centre type	interest	GLA	rate	(MAT)	sales	sales	costs1
		(%)	(sqm)	(%)	($m)	($/sqm)	($/sqm)	(%)
Victoria
Chadstone2	Super Regional	50	211,451	100.0	n.a.	n.a.	n.a.	n.a.
Bayside	Major Regional	100	88,980	98.8	424.0	5,246	8,301	15.9
Northland	Major Regional	50	98,540	99.9	543.9	6,168	9,120	18.3
The Glen2	Major Regional	50	44,943	100.0	n.a.	n.a.	n.a.	n.a.
Emporium Melbourne	CityCentre	50	45,219	99.4	445.8	10,166	13,135	18.7
Myer Bourke Street	CityCentre	33	39,924	100.0	n.a.	n.a.	n.a.	n.a.
Broadmeadows Central2	Regional	100	61,555	99.7	n.a.	n.a.	n.a.	n.a.
Cranbourne Park	Regional	50	46,934	99.6	247.8	6,119	7,805	16.2
Box Hill Central(South Precinct)	Sub Regional	100	23,723	100.0	186.0	8,715	10,919	14.9
Victoria Gardens ShoppingCentre	Sub Regional	50	35,161	99.6	201.2	6,806	10,312	14.0
Corio Central	Sub Regional	100	31,497	98.8	157.8	6,534	5,876	14.4
Roxburgh Village	Sub Regional	100	24,744	99.4	151.3	6,475	5,990	14.8
Box Hill Central(North Precinct)	Sub Regional	100	14,593	100.0	74.2	6,436	6,694	17.5
Altona Gate	Sub Regional	100	26,226	99.5	148.5	6,297	7,410	15.0
Sunshine Marketplace	Sub Regional	50	34,051	100.0	154.1	5,129	6,797	15.1
Belmont Village	Sub Regional	100	14,035	100.0	96.8	7,094	10,433	11.1
Mornington Central	Sub Regional	50	11,774	100.0	99.5	8,405	9,072	15.4
Bentons Square	Neighbourhood	100	10,027	97.7	147.2	16,403	7,727	13.2
Oakleigh Central	Neighbourhood	100	13,939	100.0	126.3	9,546	5,757	14.1
The Gateway	Neighbourhood	100	10,871	98.9	87.8	9,907	9,109	8.2

Inclusive of marketing levy and based on GST inclusive sales.
Non-comparable sales. Refer to slide 59 for details.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Asset summaries

Centre statistics (continued)

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					Moving
					annual			Specialty
		Ownership		Occupancy	turnover	Centre	Specialty	occupancy
	Centre type	interest	GLA	rate1	(MAT)	sales1	sales1	costs1,2
		(%)	(sqm)	(%)	($m)	($/sqm)	($/sqm)	(%)
Victoria(continued)
DFO South Wharf	Outlet Centre	100	56,192	100.0	409.1	10,499	10,184	10.5
DFO Essendon	Outlet Centre	100	52,325	100.0	250.4	10,072	9,646	12.0
DFO Moorabbin	Outlet Centre	100	24,678	100.0	158.2	6,845	7,114	12.0
Western Australia
Galleria	Major Regional	50	82,287	100.0	495.7	6,843	10,449	19.5
Mandurah Forum3	Major Regional	50	68,922	100.0	n.a.	n.a.	n.a.	n.a.
Rockingham	Regional	50	62,364	98.4	405.2	7,146	8,044	18.3
Ellenbrook Central	Sub Regional	100	36,673	99.8	236.6	7,934	8,945	11.2
Warwick Grove	Sub Regional	100	32,097	99.4	208.5	8,534	7,822	14.8
Maddington Central	Sub Regional	100	27,756	99.0	185.8	7,417	7,328	14.6
Warnbro Centre	Sub Regional	100	21,414	100.0	140.4	7,024	6,632	17.7
Livingston Marketplace	Sub Regional	100	15,569	100.0	118.8	8,370	9,265	11.5
Halls Head Central	Sub Regional	50	19,315	100.0	133.1	7,184	7,674	11.8
Karratha City	Sub Regional	50	23,978	99.8	206.9	9,054	9,280	10.4
Currambine Central	Neighbourhood	100	17,061	99.3	153.9	9,983	5,510	18.6
Dianella Plaza	Neighbourhood	100	17,151	99.7	104.0	7,105	6,583	14.3
Stirlings Central	Neighbourhood	100	8,535	99.0	75.7	9,666	6,678	12.6
Kalamunda Central	Neighbourhood	100	8,357	99.3	72.9	9,697	6,414	13.0
Flinders Square	Neighbourhood	100	6,007	100.0	60.6	11,795	8,617	10.8
Victoria Park Central	Neighbourhood	100	5,778	100.0	50.6	9,924	5,718	16.6

Excludes DFO South Wharf and DFO Essendon Homemaker retailers.
Inclusive of marketing levy and based on GST inclusive sales.
Non-comparable sales. Refer to slide 59 for details.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Asset summaries

Valuations

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Centre type Ownership interest (%) Net revaluation movement1,2 ($m) Value As at 30-Jun-181 ($m)	Capitalisation rate	Discount rate As at 30-Jun-18 (%)
	As at 30-Jun-18 (%) As at 30-Jun-17 (%) Movement
New South Wales
Chatswood Chase Sydney Major Regional 51 19.5 586.9 4.75 4.75 - 6.75
BankstownCentral Major Regional 50 (1.5) 355.0 5.75 6.00 (0.25) 7.00
Roselands Major Regional 50 (19.5) 161.7 6.25 6.25 - 7.25
Queen VictoriaBuilding City Centre 50 3.3 320.0 4.75 n.a. n.a. 6.75
The Galeries City Centre 50 12.3 163.5 4.75 n.a. n.a. 7.00
The StrandArcade City Centre 50 1.9 120.0 4.50 n.a. n.a. 6.75
LakeHavenCentre SubRegional 100 16.8 320.0 6.25 6.50 (0.25) 7.25
Nepean Village SubRegional 100 7.8 192.0 5.75 5.75 - 7.75
Warriewood Square SubRegional 50 4.6 148.0 5.75 5.75 - 7.50
Carlingford Court SubRegional 50 5.5 121.0 5.75 6.00 (0.25) 7.25
WestEndPlaza SubRegional 100 (0.8) 71.5 6.50 6.75 (0.25) 7.75
LavingtonSquare SubRegional 100 (4.7) 58.0 7.50 7.25 0.25 7.50
Armidale Central SubRegional 100 (0.7) 46.0 7.00 7.00 - 7.50
Lennox Village Neighbourhood 50 2.3 39.0 5.75 6.00 (0.25) 7.25
DFOHomebush Outlet Centre 100 53.9 480.0 5.50 6.00 (0.50) 7.25
Tasmania
Eastlands Regional 100 (1.2) 170.0 6.50 6.50 -		7.25
Northgate Sub Regional 100 0.9 110.0 6.75 6.75 -		7.50

Based on ownership interest.
Net revaluation movement excludes non-cash adjustments for the amortisation of lease incentives and straight lining of rent.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Asset summaries

Valuations (continued)

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Centre type Ownership interest (%) Net revaluation movement1,2 ($m) Value As at 30-Jun-181 ($m)	Capitalisation rate	Discount rate As at 30-Jun-18 (%)
	As at 30-Jun-18 (%) As at 30-Jun-17 (%) Movement
Queensland
QueensPlaza CityCentre 100 (0.2) 774.0 4.75 5.00 (0.25) 7.00
TheMyerCentreBrisbane City Centre 25 (3.2) 195.0 5.50 5.75 (0.25) 7.25
GrandPlaza Regional 50 3.5 220.0 5.50 5.50 - 7.25
RunawayBay Centre Regional 50 (1.4) 157.5 5.75 5.75 - 7.50
Mt Ommaney Centre Regional 25 (1.0) 105.2 5.75 6.00 (0.25) 7.25
TaigumSquare SubRegional 100 0.1 101.0 6.25 6.25 - 7.25
Gympie Central SubRegional 100 1.2 81.3 6.50 6.50 - 7.75
WhitsundayPlaza SubRegional 100 0.2 69.0 6.50 6.50 - 7.50
BurandaVillage SubRegional 100 (0.5) 42.5 6.25 6.50 (0.25) 7.25
OxenfordVillage Neighbourhood 100 (0.1) 33.2 6.00 6.25 (0.25) 7.25
Milton Village Neighbourhood 100 2.3 30.3 6.25 6.50 (0.25) 7.75
NorthShoreVillage Neighbourhood 100 1.9 27.0 6.00 6.25 (0.25) 7.50
DFOBrisbane Outlet Centre 100 0.6 61.0 7.50 7.50 -		8.00
South Australia
Elizabeth City Centre Regional 100 (8.3) 380.0 6.75 7.00 (0.25) 7.75
Colonnades Regional 50 (9.9) 147.5 6.75 6.75 - 7.75
CastlePlaza SubRegional 100 (0.6) 175.0 6.75 6.75 - 8.00
Kurralta Central Sub Regional 100 1.3 43.5 6.00 6.00 - 6.75

Based on ownership interest.
Net revaluation movement excludes non-cash adjustments for the amortisation of lease incentives and straight lining of rent.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Asset summaries

Valuations (continued)

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Centre type Ownership interest (%) Net revaluation movement1,2 ($m) Value As at 30-Jun-181 ($m)	Capitalisation rate	Discount rate As at 30-Jun-18 (%)
	As at 30-Jun-18 (%) As at 30-Jun-17 (%) Movement
Victoria
Chadstone Super Regional 50 346.5 3,050.0 3.75 4.25 (0.50) 6.25
Bayside Major Regional 100 1.6 630.0 5.75 5.75 - 7.50
Northland Major Regional 50 (6.0) 490.0 5.50 5.50 - 7.25
The Glen Major Regional 50 0.2 306.4 5.75 5.75 - 7.75
Emporium Melbourne City Centre 50 50.7 685.0 4.25 4.75 (0.50) 7.00
Myer Bourke Street City Centre 33 (5.0) 160.0 4.75 4.75 - 6.75
Broadmeadows Central Regional 100 (6.2) 330.5 6.50 6.50 - 7.25
CranbournePark Regional 50 7.5 161.3 5.50 6.00 (0.50) 7.25
Box HillCentral(South Precinct) SubRegional 100 21.8 217.0 6.00 6.25 (0.25) 7.25
Victoria Gardens Shopping Centre SubRegional 50 0.7 140.3 5.75 5.75 - 7.25
Corio Central SubRegional 100 (3.7) 130.0 7.25 7.25 - 7.25
Roxburgh Village SubRegional 100 (0.1) 122.1 6.25 6.25 - 7.25
Box HillCentral(North Precinct) SubRegional 100 15.0 119.0 6.00 6.50 (0.50) 7.00
Altona Gate SubRegional 100 0.4 106.5 6.25 6.50 (0.25) 7.50
Sunshine Marketplace Sub Regional 50 1.1 61.0 6.25 6.50 (0.25) 7.00
Belmont Village Sub Regional 100 0.3 51.0 6.00 6.00 - 7.25
MorningtonCentral SubRegional 50 0.6 37.0 6.00 6.00 - 7.50
Bentons Square Neighbourhood 100 (0.8) 82.0 6.25 6.25 - 7.50
Oakleigh Central Neighbourhood 100 0.3 76.0 6.00 6.50 (0.50) 7.00
The Gateway Neighbourhood 100 4.4 51.2 6.25 6.50 (0.25) 7.25

Based on ownership interest.
Net revaluation movement excludes non-cash adjustments for the amortisation of lease incentives and straight lining of rent.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Asset summaries

Valuations (continued)

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Centre type Ownership interest (%) Net revaluation movement1,2 ($m) Value As at 30-Jun-181 ($m)	Capitalisation rate	Discount rate As at 30-Jun-18 (%)
	As at 30-Jun-18 (%) As at 30-Jun-17 (%) Movement
Victoria (continued)
DFO South Wharf OutletCentre 100 56.7 655.0 5.75 6.00 (0.25) 8.00
DFOEssendon Outlet Centre 100 6.8 178.0 6.75 6.75 -		8.25
DFOMoorabbin Outlet Centre 100 2.1 126.0 7.50 7.50 -		8.75
Western Australia
Galleria Major Regional 50 (16.9) 380.0 5.50 5.50 -		7.25
Mandurah Forum Major Regional 50 20.0 335.9 5.25 5.75 (0.50) 7.00
RockinghamCentre Regional 50 (9.8) 305.0 5.50 5.50 - 7.25
EllenbrookCentral SubRegional 100 3.0 244.0 5.50 5.75 (0.25) 7.50
WarwickGrove SubRegional 100 (1.1) 200.0 6.50 6.50 - 8.00
MaddingtonCentral SubRegional 100 (2.9) 120.0 7.00 6.75 0.25 8.00
Warnbro Centre SubRegional 100 (20.7) 105.0 7.00 6.25 0.75 8.50
Livingston Marketplace SubRegional 100 0.9 89.0 6.00 6.00 - 7.50
HallsHead Central SubRegional 50 1.9 57.1 6.00 6.00 - 7.25
Karratha City SubRegional 50 (2.1) 51.3 7.00 7.00 - 7.50
Currambine Central Neighbourhood 100 (10.1) 96.0 6.75 6.50 0.25 8.00
Dianella Plaza Neighbourhood 100 (1.2) 89.8 6.50 6.50 - 7.75
Stirlings Central Neighbourhood 100 (2.7) 48.0 7.00 7.00 - 8.00
Kalamunda Central Neighbourhood 100 2.8 42.0 6.25 6.75 (0.50) 7.75
Flinders Square Neighbourhood 100 6.7 39.5 6.00 6.50 (0.50) 7.50
Victoria Park Central Neighbourhood 100 (1.4) 30.1 6.25 6.25 - 7.50

Based on ownership interest.
Net revaluation movement excludes non-cash adjustments for the amortisation of lease incentives and straight lining of rent.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Key dates

Investor calendar

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	Key dates
	Ex-distribution date for June 2018 distribution	28 June 2018
	Record date for June 2018 distribution	29 June 2018
	FY18 annual results	15 August 2018
	June 2018 distribution payment	29 August 2018
	2018 Annual General Meeting	1 November 2018
	Ex-distribution date for December 2018 distribution	28 December 2018
	Record date for December 2018 distribution	31 December 2018
	FY19 interim results	15 February 2019
	December 2018 distribution payment	2 March 2019
	Ex-distribution date for June 2019 distribution	27 June 2019
	Record date for June 2019 distribution	28 June 2019
	FY19 annual results	14 August 2019

Note: These dates are indicative only and may be subject to change.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

Contact details and disclaimer

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For further information please contact:

Penny Berger Head of Investor Relations T +61 2 8229 7760 E [email protected]

Troy Dahms

Senior Investor Relations Manager T +61 2 8229 7763 E [email protected]

Disclaimer

This document is a presentation of general background information about the activities of Vicinity Centres (ASX:VCX) current at the date of lodgement of the presentation (15 August 2018). It is information in a summary form and does not purport to be complete. It is to be read in conjunction with the Financial Report for the full year ended 30 June 2018 lodged with the Australian Securities Exchange on 15 August 2018. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment objective is appropriate.

This presentation contains certain forecast financial information along with forward-looking statements in relation to the financial performance and strategy of Vicinity Centres. The words ‘anticipate’, ‘believe’, ‘expect’, ‘project’, ‘forecast’, ‘estimate’, ‘outlook’, ‘upside’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘target’, ‘plan’ and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings, financial position, performance and distributions are also forward-looking statements. The forward-looking statements included in this presentation are based on information available to Vicinity Centres as at the date of this presentation. Such forward-looking statements are not representations, assurances, predictions or guarantees of future results, performance or achievements expressed or implied by the forward-looking statements and involve known and unknown risks, uncertainties, assumptions and other factors, many of which are beyond the control of Vicinity Centres. The actual results of Vicinity Centres may differ materially from the anticipated results, performance or achievements expressed, projected or implied by these forward-looking statements and you should not place undue reliance on such forward-looking statements.

Except as required by law or regulation (including the ASX Listing Rules), Vicinity Centres disclaims any obligation to update these forward-looking statements.

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Vicinity Centres | FY18 annual results and strategy update | 15 August 2018

AI assistant

VICINITY CENTRES TRUST — Annual Report 2018

65995_rns_2018-08-14_04873889-e890-4907-b940-962fc2d56544.pdf

FY18 results overview

Positioning Vicinity for long-term growth

Results

Strategic initiatives

Achievements

Strategy update: Unlocking Vicinity’s potential Grant Kelley CEO AND MANAGING DIRECTOR

Vicinity’s strategy

Unlocking Vicinity’s potential

Three strategic initiatives announced over the past six months

Divestment of up to $1.0b of non-core assets

Establishment[1] of ~$1.0b wholesale fund with Keppel Capital

Significant mixed-use opportunities identified

across portfolio

Delivering on strategy

Active capital recycling program driving future growth

Completed

Initial phase of capital recycling

In progress

Completing capital recycling strategy

Strong and sustainable growth

Market-leading destinations

Post planned divestment of ~$2.0b of assets[1]

Destination asset portfolio (by value)[1]

~50 centres

~$11,000

Flagship portfolio

High potential portfolio

Specialty occupancy costs[1]

Market-leading destinations

Flagship and high potential assets have strong growth prospects

Flagship portfolio

High potential

Chadstone

Premium CBD assets

DFOs

Enhancing market-leading destinations

Retail development pipeline is a key growth driver

8 projects

Development pipeline

15+ projects

Shadow pipeline

6-8%+ yields[1]

Targeted development returns

10-15%+ IRR

Optimising the portfolio

Potential to further improve operational performance

Tenant remixing

Ancillary income and operational efficiencies

Leveraging digital to reinforce physical

Changing

Retailers are

evolving

Wholesale platform

Platform provides access to capital and income streams

billion ~$1.0

billion $1.2

VKF wholesale fund – proposed

Funds under management (FUM)

Mixed-use opportunities

Early stage assessment, potential value upside from mixed-use for Vicinity of ~$1.0b

12 significant

projects[1]

10+ projects

Capital-light approach

NOTE: Refer to slides 47 to 49 for more detail.

Vicinity’s strategy

Unlocking Vicinity’s potential

Financial results

FFO per security growth of 2.2% on a comparable basis[1]

1 218.7 million $ ,

2.2% growth

18.2 cents

2.1% reduction

NOTE: Refer to slide 61 for segment income statement.

Financial position

Strong balance sheet maintained, well positioned for the future

5.3% growth

VICINITY CENTRES TRUST Annual Report 2018