VICINITY CENTRES TRUST — Annual Report 2020

Aug 18, 2020

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FY20 annual results
19 August 2020
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Vicinity Centres | FY20 annual results | 19 August 2020

Welcome

Agenda

• 3 FY20 annual results overview and FY21 outlook

• 7 Financial results

• 14 Portfolio performance

• 21 Development

• 26 Strategic growth initiatives

• 30 Summary

• 33 Appendices

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Grant Kelley CEO AND MANAGING DIRECTOR

Nicholas Schiffer CHIEF FINANCIAL OFFICER

Peter Huddle

CHIEF OPERATING OFFICER

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Carolyn Viney

Justin Mills

CHIEF DEVELOPMENT OFFICER

CHIEF STRATEGY OFFICER

Vicinity Centres | FY20 annual results | 19 August 2020

2

FY20 annual results overview and FY21 outlook

Grant Kelley CEO AND MANAGING DIRECTOR

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Chadstone, VIC

Vicinity Centres | FY20 annual results | 19 August 2020

FY20 annual results overview

Continued to deliver on strategy, however COVID-19 has significantly impacted the retail industry

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Results materially impacted by COVID-19 after a solid first half

Statutory net loss of $1,801.0m (FY19: net profit $346.1m) Funds from operations (FFO) of $520.3m[1] (FY19: $689.3m)

FFO per security of 13.7 cents (FY19: 18.0 cents)

Portfolio occupancy 98.6% (FY19: 99.5%)

Total MAT[2] growth -7.0% (FY19: +2.7%)

Portfolio quality enhanced

Acquired 50% interest in Uni Hill Factory Outlets for $68m

Divested three non-core assets for $227m at 0.4% discount[3]

Completed Hotel Chadstone, The Glen and Roselands developments

Development applications (DAs) advanced with five projects at Chadstone approved and first DAs submitted for Box Hill and Bankstown projects

Balance sheet strengthened

Completed $1.2b equity raising[4] in response to impact and uncertainty caused by COVID-19 and evolving retail landscape

$3.5b of new or extended debt including issuing €500m ($812m) of 10-year medium term notes (MTNs)

Gearing[5] of 25.5% at lower end of 25% to 35% target range

Strong investment-grade credit ratings of A/stable from S&P and A2/negative from Moody’s

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Roselands, NSW
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1. Refer to slide 42 for definition of FFO and reconciliation of FFO to statutory net loss/profit. FFO is a non-IFRS measure. 2. Moving annual turnover.

2. Discount to the combined June 2019 book value.

3. Comprising $1.2b institutional placement (Placement) and $32.6m securities purchase plan (SPP) which completed in July 2020.

4. Calculated as drawn debt at Note 8(a) of the Financial report, net of cash and cash equivalents, divided by total tangible assets excluding cash and cash equivalents, right of use assets, net investments in leases, investment property leaseholds and derivative financial assets.

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Vicinity Centres | FY20 annual results | 19 August 2020

4

Priorities in response to the challenging operating environment with COVID-19

Health, safety and wellbeing is our highest priority, along with the long-term success of Vicinity and our retailers

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Vicinity’s priorities in response to COVID-19

• Our • Fortified financial position ‒ $1.2b equity raising

• business ‒ $950m of new and extended bank debt negotiated

  • Reduced or deferred non-critical capital expenditure and operating costs

  • Focus on cash collection

• Rapid transition to ‘COVID safe’ centre operations

• Accessed JobKeeper subsidy and implemented a range of initiatives to assist our team members

• Staffing at centres adjusted to reflect movements in customer visitation and store openings

The Myer Centre Brisbane, QLD

• Smooth transition to working from home arrangements as required

• Our retailers • Proactively assisted SCCA[1] , which worked with government and industry, to develop the SME Code[2] and COVID-19 Retail Recovery Protocol

• and • Progressing short-term lease variations with retailers

• consumers • Property is one of the only industries where partial rent waivers, not just deferrals, are being offered notwithstanding legal lease obligations

  • Vicinity estimates that it will waive $109m and defer $33m of rent for the period to 30 June 2020

• Centres remained safely open

• Clear communications to retailers and consumers on latest government directives

1. Shopping Centre Council of Australia.

1. Federal Government’s SME Commercial Code of Conduct and Leasing Principles During COVID-19. SME = Small to medium sized enterprise.

Broadmeadows Central, VIC

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Vicinity Centres | FY20 annual results | 19 August 2020

5

Recovery and outlook

Retail industry recovering from COVID-19 at varying speeds

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Macro situation will impact portfolio into FY21

Resurgence of COVID-19 infections in Victoria with ongoing risk in other states and consequent increase in restrictions

2020 customer visitation by state¹

Weekly traffic as % of prior year

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120%
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Domestic and international travel restrictions

Ongoing working from home and low public transport utilisation impacting CBD assets

Mixed recovery profile experienced across portfolio

Victorian assets to be impacted by ongoing restrictions

CBD centres more gradual recovery

DFOs impacted by low tourist visitation and discretionary nature, partly offset by strong value proposition

Balance of portfolio trading well, supported by solid retail expenditure

Remain prepared for potential resurgence of COVID-19 in other states

Looking forward

Considerable uncertainty remains

Health, safety and wellbeing of everyone who works in or visits our centres, our team members and the broader community is our highest priority

Short-term focus on stabilising centre occupancy and rental income, and managing costs

Measured execution of strategy including advancement through planning of retail and retail-led mixed-use projects

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100%
80%
60%
40%
VIC
20%
NSW
Total portfolio ex-VIC and NSW
Total portfolio
0%
Feb Mar Apr May Jun Jul Aug
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1. Excludes centres deemed non-comparable – The Glen, QueensPlaza, The Myer Centre Brisbane, DFO Perth, DFO Brisbane and Roselands.

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Vicinity Centres | FY20 annual results | 19 August 2020

6

Financial results

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Nicholas Schiffer CHIEF FINANCIAL OFFICER

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Vicinity Centres | FY20 annual results | 19 August 2020

DFO Moorabbin, VIC

Financial results

Overview

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First half results solid

FFO per security of 8.95 cents, reflecting comparable[1] FFO growth of 1.5% Delivering on strategy through acquisition, divestment and development Maintained strong balance sheet with gearing of 27.3%[2]

• Inaugural Euro MTN issued with €500m of 10-year notes

• $1.7b of new or extended bank debt

Second half materially impacted by COVID-19

FFO per security of 4.71 cents, down 47.3% on prior corresponding period

Measures implemented to enhance liquidity

• $950m of new and extended bank debt facilities

• Reduced or deferred non-critical capital expenditure

• Reduced operating and corporate costs

• Cancelled June 2020 distribution

• $1.2b equity raising undertaken

Progressing short-term lease variation negotiations

• Incomplete short-term lease variations[3] at 30 June 2020 was ~62% (currently 41%[4] )

Valuation loss of $1.8b, or 11.4%, across the portfolio for the six-month period Goodwill impairment of $427m recognised

1. Adjusted for the impact of divestments. Unadjusted FFO per security decreased 1.2%.

2. As at 31 December 2019.

3. Includes all leases across the portfolio and excludes unimpacted leases and completed, or agreed in-principle, lease variations.

4. As at 10 August 2020.

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The Myer Centre Brisbane, QLD
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Vicinity Centres | FY20 annual results | 19 August 2020

8

Financial results

Income statement

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1H FY20 ($m) 2H FY20 ($m) FY20 ($m) FY19 ($m)	1H FY20 ($m) 2H FY20 ($m) FY20 ($m) FY19 ($m)	1H FY20 ($m) 2H FY20 ($m) FY20 ($m) FY19 ($m)
Net property income (NPI)	438.9 244.8 29.9 21.2 1.8 1.8	683.7 887.6
Property and development mgt fees		51.1 58.5
Fund mgt fees		3.6 4.5
Total income	470.6 267.8	738.4 950.6
Net corporate overheads	(34.6) (7.6) (99.0) (76.9)	(42.2) (68.3)
Net interest expense		(175.9) (193.0)
Funds from operations (FFO)1	337.0 183.3	520.3 689.3
Maintenance capex and lease incentives	(32.2) (28.0) - (42.6)	(60.2) (83.3) (42.6) -
Termination of interest rate swaps
Adjusted FFO (AFFO)2	304.8 112.7	417.5 606.0
Statutory net (loss)/profit1	242.8 (2,043.8)	(1,801.0) 346.1
FFO per security (cents)3	8.95 4.71 8.10 2.86 7.7 - 85.9 n.a. 94.9 n.a.	13.66 18.00
AFFO per security (cents)3		10.96 15.82
DPS (cents)		7.7 15.9
Payout ratio – FFO (%)4		55.6 87.7
Payout ratio – AFFO (%)4		69.3 99.8

Income result solid in first half and materially impacted by COVID-19 in second half[5]

COVID-19 related corporate overhead cost reductions of $31m

Cancellation of FY20 short term incentive award

Employee stand downs on a full or partial basis

Reduction in Directors’ fees and Executive Committee salaries for three months JobKeeper subsidy received

Restructure of interest rate swaps reduced second half interest expense, with further benefits into 1H FY21

Statutory net loss impacted by property valuation decline of $1,718m and impairment of goodwill of $427m

Note: Totals may not sum due to rounding.

1. Refer to slide 42 for definition of FFO and reconciliation of FFO to statutory net loss/profit after tax. FFO is a non-IFRS measure. 2. Refer to footnote 1 on slide 42 for definition of AFFO which is a non-IFRS measure.

2. The calculation of FFO and AFFO per security for each period uses the weighted average number of securities on issue. 4. Calculated as: Total distributions ($m)/Total FFO or AFFO ($m).

3. Refer to slide 10 for details.

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Vicinity Centres | FY20 annual results | 19 August 2020

9

NPI and rent collections

FY20 NPI reduced by 23% principally due to COVID-19 impacts

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FY19 to FY20 NPI waterfall ($m)

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24
109
60 11
887.5
COVID-19 estimated
683.7
impacts on rental income
FY19 Net impact of Rent waivers Rent provisions Other NPI FY20
NPI portfolio changes estimate estimate movements NPI
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Estimated impact of COVID-19 on FY20 rental income ~$169m[1]

Comprises $109m of estimated rent waivers and $60m of provisions on remaining debt, reflecting heightened collection risk in uncertain environment

Short-term lease variations negotiations remain ongoing

Cash collected of $381m[2] plus unpaid rent after estimated waivers and provisions of $30m[2] reflects ~71% income recognition in second half

Ongoing focus on cash collections

At 30 June 2020

• ~66% collected for 2H FY20

2H FY20 rental billings ($m)[2]

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$411m recognised
30
within FY20 NPI
60
2H FY20
total rent
109
billings of Collected (66%)
$580m 381 Waivers estimate (19%)
Provisions estimate (10%)
Unpaid rent (5%)
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• ~38% collected for June 2020 quarter

At 10 August 2020

• ~49% collected for June 2020 quarter

• ~47% collected for July 2020 month

Other NPI movements reflect reduction in variable income[3] partly offset by cost saving initiatives and growth in first half NPI

Note: totals may not add due to rounding.

1. Rent waivers and provisions estimates recognised as expected credit losses.

2. Approximate, as at 30 June 2020.

3. Principally ancillary income and percentage rent.

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Vicinity Centres | FY20 annual results | 19 August 2020

10

Valuations for the six months to 30 June 2020[1]

Reflecting impact of COVID-19 and the evolving retail landscape

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Portfolio valuations down 11.4% in second half

Materially impacted by COVID-19

Portfolio weighted average capitalisation rate softened 21 bps to 5.47%

Valuations reinforce strength of Flagship portfolio fundamentals

Chadstone and DFOs more resilient, down 7.8% and 7.6% respectively

Premium CBD assets expected to be impacted by prolonged office and tourist market recovery

Valuer allowances for COVID-19

Significantly increasing short to medium term allowances such as vacancy, downtime, leasing capital, and lowering expectations for sales and market rental growth

Valuation summary

Valuation summary
	Valuation Jun-20	Net gain/(loss) over six months		Valuation movement range
	($m)	($m)	(%)	(%)
Chadstone	3,119	(265)	(7.8)	(7.8)
Premium CBDs	2,218	(299)	(11.9)	(7.2) – (16.7)
DFOs	1,760	(144)	(7.6)	(2.6) – (15.9)
Flagship portfolio	7,097	(708)	(9.1)
Core2	7,016	(1,109)	(13.7)	(2.1) – (19.2)
Total portfolio	14,114	(1,818)	(11.4)

Continue to monitor COVID-19 impacts on centre performance relative to valuation assumptions

NOTE: Refer to slides 45 to 48 for more details.

1. 30 June 2020 valuations and valuation movements reflect:

2. Independent valuations as announced to ASX on 24 July 2020, less $24.5m of additional allowances made for Victorian assets as a result of the increase in COVID-19 cases observed in Victoria in late June 2020. Refer Note 4(c) to the financial statements in Vicinity’s 2020 Annual Report released to ASX on 19 August 2020 for further information.

3. Vicinity ownership interest.

4. Net valuation movements, which exclude statutory accounting adjustments.

5. Core comprises all assets excluding the Flagship portfolio, 45 centres in total.

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Vicinity Centres | FY20 annual results | 19 August 2020

11

Gearing waterfall Gearing at low end of target range

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$1.2b Placement undertaken in response to impact and uncertainty caused by COVID-19 and evolving retail landscape

Gearing returned to the lower end of target range

Significant capital preservation measures to remain in place in FY21 Development pipeline reviewed

Non-critical expenditure deferred

FY20 gearing waterfall (%)

Target gearing 25% to 35%

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Divested three Principally solar and 53m securities Reset hedge rate Payment of 1H FY20 $1.9b property $1.2b Placement
assets for $227m development projects bought back for 9 month distribution offset valuation decline in June 2020
and acquired at Ellenbrook Central, period from by 2H FY20
50% of Uni Hill Chadstone, The Glen March 2020 operating cashflow
Factory Outlets and Roselands Includes AFFO
for $68m capex of $60.2m
1
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1. Includes accounting amortisation and straight lining.

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Vicinity Centres | FY20 annual results | 19 August 2020

12

Capital management

Liquidity significantly enhanced during the past six months

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Liquidity New or extended debt 2.1 billion[1] 3.5 billion $ $

Gearing

25.5%

Weighted avg cost of debt 3.6%

Weighted avg debt duration

5.2 years

Sufficient capacity for 1H FY20: €500m EMTN (A$812m) and $1.7b repayment of near-term of new and extended bank debt debt expiries 2H FY20: $950m new and extended bank debt facilities post onset of COVID-19

At the lower end of target range

Down 90 bps from FY19

Likely to remain around similar levels in FY21, but increase from FY22

Debt duration maintained above five years

Debt maturity profile ($m)[2]

Debt sources (%)[2]

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1,500
9
13
1,250
1,000
1,045 14
750
350 655 812
34
500 582 50 2
230 60
250 400 11
40
218 309 108 284
150 200 200
0 59 84
17
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Beyond
USPP AMTN GBMTN HKMTN EUMTN Bank debt drawn Bank debt undrawn
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NOTE: Refer to slide 44 for more debt metrics and the hedging profile.

1. Includes $1,977m of undrawn bank debt limits and $150m term deposit.

2. Based on facility limits.

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Vicinity Centres | FY20 annual results | 19 August 2020

13

Portfolio performance

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Peter Huddle CHIEF OPERATING OFFICER

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Vicinity Centres | FY20 annual results | 19 August 2020

Roselands, NSW

Portfolio overview

Continued execution on portfolio strategy, while responding agilely to COVID-19

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Portfolio metrics strengthened in first half

Centre priorities in response to COVID-19

COVID-19 had a material impact, with a significant drop in visitation and increased store closures since March 2020

Store closures have impacted comparability of sales reporting

Our business

• Health, safety and wellbeing of everyone who works in or visits our centres, our team members and the broader community remains our highest priority

• Agile approach to following government directives

Active portfolio enhancement

One acquisition, three divestments, three developments and three asset enhancement projects completed

Major Woolworths portfolio leasing deal completed

Unlocks a number of retail and mixed-use projects

Secures longer tenure for Woolworths and Big W stores

Three Big W stores to close across portfolio

Key portfolio statistics	Jun-20	Dec-19	Jun-19
Number of centres in direct portfolio	60	59	62
Occupancy (%)	98.6	99.5	99.5
Specialty MAT1/sqm ($)	9,770	11,403	11,083
Total MAT1 growth (%)	(7.0)	3.2	2.7
Specialty and mini majors MAT1 growth (%)	(10.3)	3.7	3.1

• Strong focus on reducing costs

• Created industry-leading heat map program with real-time alerts on social distancing in-centre

• Working through short-term lease variations to support retailers

Our retailers

and consumers

• Clear communications on latest government advice

• Created COVID-19 Retailer Handbook to assist retailers to operate safely

• Centres remained safely open enabling:

  • Retailers to continue to trade, and

  • Consumers to access essential goods and services

• Excludes divestments and development-impacted centres in accordance with SCCA guidelines. Store closures during the period due to COVID-19 have impacted the comparability of sales reporting since March 2020.

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15

COVID-19 impact on portfolio

Flagship assets more impacted by COVID-19 in the short term, but we believe these assets have strong long-term fundamentals

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Flagship assets continue to have strong fundamentals

Chadstone: Australia’s leading retail, dining and entertainment destination, significant future mixed-use opportunities

Premium CBDs: CBDs well positioned as a key focal point of the national economy for workers, tourists and residents

DFOs: Strongly supported by the trade area together with domestic and international tourists. Quality product in the attractive value retail segment

Centre visitation and stores open by centre type

	Early Apr-20 (trough) Portfolio	Jun-20 Portfolio	Current3 Portfolio Ex-Victoria
Centre visitation1 (% of prior year)	Flagships 15 51 28 43 Core 54 86 71 91
Stores trading2 (% stores)	Flagships 17 90 41 88 Core 53 94 74 97

Flagship assets have a greater exposure to international visitors and CBD office workers

Impacting centre visitation in the near-term

Assets likely to experience a prolonged recovery period

Despite the weaker centre visitation and store trading figures, Flagship asset valuations affirm their long-term attractiveness

1. Excludes centres deemed non-comparable – The Glen, QueensPlaza, The Myer Centre Brisbane, DFO Perth, DFO Brisbane and Roselands.

2. Includes all centres and excludes vacancies.

3. As at 9 August 2020.

2020 customer visitation by centre type[1]

Weekly traffic as % of prior year

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120%
100%
80%
60%
40%
Flagships
20% Core
Total portfolio
0%
Feb Mar Apr May Jun Jul Aug
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Sales by store type

Portfolio sales performance

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	Actual	Actual	Actual	MAT Jun-20 (%)2	Monthly comparable1 growth	MAT Dec-19 (%)
	MAT Jun-20 ($m) Proportion of portfolio (%) By sales By rent
					Jun-20 (%)3 May-20 (%) Apr-20 (%) Mar-20 (%) Feb-20 (%) Jan-20 (%)
		By sales By rent
Specialty stores	5,823	39	57	(12.4)	(26.4) (46.8) (77.6) (35.1) (4.7) 1.7 (7.4) (17.7) (58.1) (19.9) 6.6 6.5	2.8 6.4
Mini majors	2,245	15	12	(4.1)
Specialties and mini majors	8,068	54	69	(10.3)	(21.5) (39.5) (72.6) (31.1) (1.9) 2.9	3.7
Supermarkets	3,819	25	7	3.1	(11.2) 6.6 0.4 22.2 4.6 4.3 (16.0) 23.9 (0.3) 7.6 2.9 4.9 (64.8) (64.6) (72.1) (45.2) (5.9) (5.3) (45.5) (49.7) (84.9) (39.1) (4.2) (4.5)	4.0 2.4 (0.3) (4.5)
Discount department stores	1,457	10	6	2.7
Other retail4	842	6	13	(19.7)
Department stores	836	6	4	(20.9)
Total portfolio	15,022	100	100	(7.0)	(22.6) (25.7) (72.6) (16.5) (0.1) 2.4	2.7
Flagship	4,931	33	42	(15.2)	(36.7) (53.6) (88.8) (39.9) (5.4) 2.5	4.3
Core	10,091	68	58	(2.2)	(14.1) (9.0) (23.3) (2.2) 2.8 2.3	2.6

Store closures have impacted comparability of sales reporting

Core portfolio performed better than other centres during COVID-19 reflecting higher weighting to non-discretionary retail

Outside of Victoria, Core total MAT growth was -0.6% and -3.0% for specialty store and mini majors combined

WA performing relatively well with MAT +0.1% and specialty store June 2020 monthly sales +3.4%

Sales at Flagship assets notably improved once restrictions lifted

Continue to be impacted by low tourist and office worker visitation and higher weighting to discretionary items

Some supermarkets and discount department stores (DDS) reported four weeks sales in June 2020, compared to five weeks sales in June 2019

Adjusting for this timing anomaly, total portfolio MAT was -6.5%

Note: Totals may not sum due to rounding.

1. Excludes divestments and development-impacted centres in accordance with SCCA guidelines (refer to slide 37 for details). Store closures during the period due to COVID-19 has impacted the comparability of sales reporting since March 2020.

2. Some majors tenants have reported 53 weeks sales for FY19. Normalising for 52 weeks sales, MAT growth for DDS was +4.6%, supermarkets was +4.8% and total portfolio was -6.5%.

3. Some majors tenants have reported four weeks sales in June 2020 compared to five weeks in June 2019. Normalising for four weeks sales, growth for Jun-20 month for DDS was +4.5%, supermarkets was +8.2% and total portfolio was -17.3%. 4. Other retail includes cinemas, travel agents, auto accessories, lotteries and other entertainment.

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Vicinity Centres | FY20 annual results | 19 August 2020

17

COVID-19 impacts on rental income

Short-term rental assistance negotiations progressing

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Government SME Code stipulated that rent assistance be offered to SME tenants in line with fall in sales

Negotiations with non-SME tenants undertaken in good faith to support retailer sustainability

Taking a strategic view to secure cashflows and extend lease tenure

16% of leases are unimpacted by COVID-19[1,2]

43% of leases have short-term variations completed or agreed in-principle[1,2]

Victorian retailer negotiations impacted by entering Stage 4 restrictions

Short-term lease variations[1,2]

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%
18 16
21
23
22
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Unimpacted
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Agreed^ - affected SMEs

Making good progress on cash collections with ~49% of June 2020 quarter rental billings collected[1]

Agreed^ - affected non-SMEs Incomplete - affected SMEs Incomplete - affected non-SMEs

For rent relief agreed to date, 86% has been in the form of waiver and 14% deferral[1]

1. As at 10 August 2020.

2. By number of leases.

3. ^ Completed or agreed in-principle.

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Short-term lease variations – additional detail

Lease negotiations impacted by prevailing market conditions

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Core centres have higher proportion of unimpacted leases

NSW and VIC have lower proportion of agreed[1] lease variations

VIC impacted by reintroduced restrictions

Further rent relief in Victoria is currently being discussed as required

CBD assets heavily impacted

Lower impact on majors and non-retail

Government restricted store categories impacted

1. Agreed in-principle.

2. As at 10 August 2020.

3. Non retail includes non sales reporting categories banks, ATMs, financial institutions, health insurance, tabs, gaming venues, amusements, professional services and suites and offices.

Status of short-term lease variations (% of leases)[2]

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No. of leases
Total 59 41 6,879
Asset type
Core 61 39 4,710
Flagships 55 45 2,169
Retailer size
Non-SME 64 36 3,391
SME 55 45 3,488
State
TAS 72 28 150
SA 67 33 434
QLD 65 35 847
WA 61 39 1,180
VIC 58 42 2,814
NSW 53 47 1,454
Store type
Majors 91 9 172
3
Non Retail 84 16 475
Leisure 73 27 353
Homewares 71 29 285
Other Retail 68 32 355
Jewellery 67 33 246
Food Retail 67 33 348
General Retail 59 41 487
Apparel & Footwear 53 47 1,875
Retail Services 52 48 902
Mobile Phones 49 51 215
Food Catering 49 51 1,166
Unimpacted or agreed1 Outstanding
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19

Portfolio outlook

Focused on operating through COVID-19 and recovery, and planning for future opportunities

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Prudent management through impacts of COVID-19

Maintaining vibrant and safe shopping centres Continue strong retail partnerships to create mutually beneficial outcomes

Tight capital budgeting and continued development planning Non-critical capital expenditure and developments reviewed Accelerate the planning of mixed-use projects

Capitalise on changes occurring within retail

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The Strand Arcade, NSW
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20

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Development

Carolyn Viney CHIEF DEVELOPMENT OFFICER

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Ellenbrook Central, WA

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Focused development pipeline provides growth opportunities Driving income and long-term asset values

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Successful delivery of multiple development projects

Final stage of major redevelopment of The Glen opened in October 2019, construction of three apartment buildings completed to ‘lock up’ and on track to settle with purchasers in December 2020

Hotel Chadstone opened in November 2019

The Markets fresh food precinct opened at Roselands in September 2019

Ellenbrook Central opened new Kmart store in July 2020

Significant progress on planning of next major retail and mixed-use development projects

Masterplan released and first development applications (DAs) lodged for major town centre mixed-use developments at Box Hill and Bankstown

DA approval received for five projects at Chadstone

Project planning substantially progressed for major mixed-use development at Victoria Gardens

COVID-19 has impacted prioritisation of development projects and timing

Review of staging and scope of Chatswood Chase Sydney major redevelopment

Focused resources on advancing planning of the next round of development, prioritising mixed-use projects in the near term

Hotel Chadstone, VIC

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Ellenbrook Central, WA
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Chadstone, VIC

Retail enhancements and mixed-use addition reinforcing centre as Australia’s leading retail, dining and leisure destination

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Artist’s impression
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Project cost

~$550 million (Vicinity’s share: ~$275 million)

Development in stages commencing

2021

DA approval for five new development projects

• New nine-storey office tower

• Expansion of dining terrace and leisure precinct

• Upgraded fresh food precinct

• Focus on workplace, wellness and lifestyle retailers

• Repurposing space to accommodate expanding luxury

• • More than 1,400 additional car spaces

Next phase of project planning underway, revising as necessary for anticipated COVID-19 impacts

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Box Hill Central, VIC

Long-term masterplan released and three DAs lodged

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Vision to create bustling town centre and residential, office and retail mixed-use precinct

Leveraging prime location

One of Melbourne’s busiest rail and bus transport hubs

Nearby health and education facilities

25m visitors annually

5.5 hectare site is 14km, or 20 minute train ride, to Melbourne CBD

Three DAs lodged

Creation of amphitheatre and town square and reconfiguring road network

25-level 42,000 sqm office tower adjacent to train station

48-level residential tower with 366 apartments and 10,000 sqm of office and retail space on ground level

New high quality public areas linking mixed-use precinct and creating a true town centre look and feel

Potential for up to 260,000 sqm in retail and mixed-use development

North site: Up to seven mixed-use towers with office, hotel, residential and public space uses

South site: Consolidate and build on strength of existing retail in a modern setting

Current and future development to be demand-led

Artist’s impression

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Bankstown Central, NSW

Long-term masterplan released and five DAs lodged

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Vision to create vibrant mixed-use urban neighbourhood to work, live, stay, dine and shop

Leveraging prime location

Within 100 metres of major bus interchange, train station and Sydney Metro station and new university campus

16m visitors annually

11 hectare site is 16km, or <30 minute Sydney Metro ride, to Sydney CBD

Five DAs lodged

Two office towers with 26,000 sqm of office GLA

Complimentary retail including a new ‘Eat Street’ with cafes and restaurants fronting onto almost half a hectare of landscaped public space

Enables introduction of new full-size Coles supermarket to the centre to better leverage existing strengths as a fresh food location

New basement car park with 320 spaces

Potential for up to 330,000 sqm of mixed-use and additional retail across 16 development sites in the future

Current and future development to be demand-led

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Strategic growth initiatives

Justin Mills CHIEF STRATEGY OFFICER

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Northland, VIC

Retail sector trends

COVID-19 implications and strategy moving forward

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COVID disruption

Consumer spending resilient in the short term as stimulus underpins discretionary income

Period of uncertainty exists as stimulus tapers and the timing of a recovery in domestic tourism unknown

Gradual recovery for CBDs as working from home reduced visitation, with suburban centres benefitting

Retailer omni-channel acceleration

Initial spike in online retail sales during lockdown reverted as stores reopened¹

Online retail sales forecast to continue solid growth, however half is expected to be from omni-channel retailers

• 90% of retail sales will involve retailers with physical stores

Physical stores proven to drive sales across all channels

• 100% increase in a retailer’s market share for shoppers who live within 3km of a store, ~50% within 10km¹

Vicinity is enabling retailers and embedding data and insights into core business

Retailers face challenges adapting to new environment and omni-channel model

Data and insights embedded into business processes creating growth and efficiency opportunities, as well as a more resilient retailer mix

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The Galeries, NSW
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1. Quantium data.

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Data analytics and insights

Powering decision-making through COVID-19 and beyond

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Data has aided COVID-19 response

Real time centre density ‘heat map’ monitoring with automated SMS to assist with adherence to government social distancing requirements

Consumer database surveys combined with external data point analysis to monitor sentiment towards shopping and adjust operational response

Post-recovery, advanced analytics to provide value uplift

Vicinity has built an in-house advanced analytics platform to optimise tenant selection for leasing, and a retailer insights product to partner with retailers to drive performance and sales

Live Wi-Fi enabled on-device platform and refreshed customer database providing greater opportunity for customer engagement Smart centres IoT[1] program creating efficiencies

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Wi-Fi ‘heat-map’
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Analytics platform
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1. Internet of Things.
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Ancillary income: leveraging physical and digital assets

Re-building existing and driving new income streams for growth

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COVID-19 impact drives 11.8% decline in ancillary income

5.7% growth in the first half offset by 30.7% decline in second half largely due to reduced casual mall leasing and car parking revenue

Strong physical and digital foundation; recovery in less affected states

FY20 projects in energy, media screens and carparks provide a platform for growth Ancillary income driven by foot traffic is improving outside of Victoria

A number of emerging new income opportunities

Energy

• Solar battery storage

• Automated energy demand management

Media

• Programmatic media selling

• Corporate sponsorship partnerships utilising physical and digital assets

Digital & Data

• Consumer database now 1m

• Last mile distribution platform: Parcel Concierge launched August 2020 to engage with customers close to point of purchase

FY20 progress

Solar	• Eight major projects completed, +10MW added
	• New projects commenced at Karratha City, WA
	and Whitsunday Plaza, QLD
Media	• 29 new digital screens added
	• Further expansion planned for FY21
Parking	• QueensPlaza, QLD management brought in-house
	• Carlingford Court, NSW live and Bankstown Central, NSW DA
	approved
Energy	• New 7-year contract with Red Energy (VIC/NSW)
	driving Electricity On Sell margins
New income	• Launched new services to support retailers during COVID-19
streams	(e.g. Parcel Concierge) • On-device advertising now live across multiple centres
Managed	• Awarded management of supplementary income activities
services	across three additional assets in WA

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Summary

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Grant Kelley CEO AND MANAGING DIRECTOR

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Queen Victoria Building, NSW

Vicinity Centres | FY20 annual results | 19 August 2020

Leading retail platform

High quality portfolio and experienced team to drive performance

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Clear strategy to deliver long-term growth

Focused on market-leading destinations

Realising retail-led mixed-use opportunities

Leveraging third party capital

High quality leading destination assets that access large catchment areas

Our centres have an essential role as community hubs

Providing essential and discretionary retail, with enhanced experiences Employment, commerce and transport hubs create potential mixed-use opportunities

Diversity of ‘in-demand’ tenants and evolving retail offer

Tenancy mix will continue to evolve in line with consumer preferences Increased focus on health and wellbeing, services and experiences

Highly experienced management team

Market leading capabilities, with excellence in asset management and data analytics

One of the most sustainable retail REITs globally

Recognised in CDP’s[1] Climate A-list

Ranked 3rd global listed retail company by GRESB[2]

Ranked 6th most sustainable real estate company globally in DJSI[3] survey

1. Formerly Carbon Disclosure Project.

2. Global Real Estate Sustainability Benchmark.

Chatswood Chase Sydney, NSW

1. Dow Jones Sustainability Index.

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Summary and guidance

Strategy positions Vicinity well to drive future growth

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Played a significant role in shaping the industry response to COVID-19

While COVID-19 has been challenging, consumers are quick to return to shopping centres when COVID-19 is contained

Strong balance sheet with liquidity enhanced

We will continue to deliver on strategy in a measured way

Cannot presently provide earnings and distribution guidance for FY21 as it would not be reliable in the current uncertain circumstances

We will continue to monitor trading conditions, and will provide further updates as appropriate

QueensPlaza, QLD

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Appendices

34 Sustainability 42 Financial results 35 Strategy 45 Asset summaries 36 Direct portfolio 49 Contact details and disclaimer 41 Assets under management

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Emporium Melbourne, VIC
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Leadership in sustainability

Delivering sustainable long-term value for our securityholders and communities

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Strong sustainability survey results

Included in CDP 2019 Climate A-list

Ranked 3[rd] global listed retail company by GRESB[1]

Ranked 6[th] most sustainable real estate company globally in DJSI[2] survey

Tracking well towards Net Zero carbon emissions by 2030 target[3]

Reduced energy intensity by 20%[3,6] since June 2016 and continued to progress our onsite solar program

Responsible Procurement Action Plan underway to address modern slavery

First modern slavery statement to be released by 31 March 2021

Contributed $5.6m towards communities across Australia

Over $730,000 contributed towards bushfire relief and recovery

Social return on investment assessed for Beacon Foundation partnership

National jobs fair program implemented for the second time across 19 centres

Approximately $4m spent with social enterprises and $1m with Indigenous businesses since FY18

Environmental efficiency improvements across the managed portfolio

Reduced our carbon intensity by 17%[4,5] compared to FY19 and rolled out 25.9MW of onsite solar by end of FY20

Achieved a 49% recycling rate[4]

Portfolio NABERS Energy Rating increased to 3.9 Stars (Dec-18: 3.5) and NABERS Water Rating increased to 3.4 Stars (Dec-18: 3.1)[7]

17% 25.2MW reduction of onsite solar in carbon installed intensity[4,5] (managed portfolio) #3 $5.6m 49% global listed contributed waste diverted retail company towards from landfill[4] communities 4 Star Green Star $730,000+ performance portfolio rating contributed to bushfire relief and recovery

1. Global Real Estate Sustainability Benchmark.

1. Dow Jones Sustainability Index.

2. For our wholly-owned retail assets. Consistent with global carbon measurement standards, this applies to common mall areas.

3. Across managed portfolio. Data is for the full year to June 2020, for comparable portfolio.

4. Carbon intensity reduction was 8% for non COVID-19 impacted performance period (12 months to 29 February 2020) surpassing target of 3%.

5. 12 months to February 2020 (excluding COVID-19 impacted performance period from 1 March 2020). 7. Based on ownership interest as at December 2019. FY20 ratings will be reported via sustainability.vicinity.com.au when available.

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A strategy focused on sustainable growth

Well positioned to create value over the long term

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Our business model

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Our business model
Horizon 1
Current value driver
Ongoing Strengthening
portfolio the portfolio
review
Market-leading
destinations
Accretive
developments,
Wholesale
Land parcel divestments and
carve outs acquisitions assets
Horizon 2 Capital Capital
and fees and fees
Future value drivers
Realise
Funds
mixed-use
opportunities Mixed-use assets management
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Our investment proposition #1 retail destination Premium locations Leading Outlet Centre portfolio Leading luxury landlord Strong balance sheet Leader in sustainability Significant growth opportunities

Our values

We always collaborate We embrace difference We imagine a better way

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Direct portfolio Key statistics by centre type

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	Total
	Portfolio	Chadstone	Premium CBD	DFO1	Core
Number of retail assets	60	1	7	7	45
Gross lettable area (000’s)(sqm)	2,419	234	223	231	1,732
Total value2 ($m)	14,114	3,119	2,218	1,760	7,016
Portfolio weighting by value (%)	100	22	16	12	50
Capitalisation rate (weighted average) (%)	5.47	3.88	4.81	5.94	6.27
Occupancy rate (%)	98.6	99.4	98.4	99.1	98.5

Note: Totals may not sum due to rounding.

1. Includes DFO Brisbane business.

2. Reflects ownership share in investment properties and equity-accounted investments.

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Non-comparable centres for sales reporting

Direct portfolio

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	Non-comparable status
Centre	Jun-20	Dec-19
DFO Perth, WA	Post development	Post development
Roselands, NSW	Post development	Post development
The Glen, VIC	Post development	Post development
QueensPlaza, QLD	Post development	Under development
Bankstown Central, NSW	Pre-development	Pre-development
Chatswood Chase Sydney, NSW	Pre-development	Pre-development
Galleria, WA	Pre-development	Pre-development
The Myer Centre Brisbane, QLD	Pre-development	Pre-development

Note: All divestments during the period are excluded.

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Direct portfolio Sales by specialty category

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Proportion of total MAT Jun-20 Comparable MAT growth(%)1 MM and SS2 SS2	Dec-19
	MM and SS2 SS2
Apparel 18 (14.6) (16.5) Food catering 7 (14.4) (13.9) Homewares 7 (3.3) (15.3) General retail 6 (7.2) (7.8) Leisure 5 (6.1) (6.8) Food retail 4 (3.5) (5.5) Retail services 3 (8.4) (8.4) Jewellery 3 (14.4) (14.3) Mobile phones 2 (0.3) (0.3)	4.3 2.9 5.0 4.0 2.1 (1.1) 0.1 0.9 6.8 2.4 (1.0) (1.5) 5.1 5.1 3.9 2.9 9.9 9.9
Total portfolio 54 (10.3) (12.4)	3.7 2.8
Flagship 26 (14.6) (16.7)	5.6 4.5
Core 28 (4.9) (7.5)	1.3 0.8

Note: Totals may not sum due to rounding.

1. Excludes divestments and development-impacted centres in accordance with SCCA guidelines (refer to slide 36 for details).

2. MM: Mini majors; SS: Specialty stores.

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Direct portfolio Key portfolio tenants

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Top 10 tenants by income	Top 10 tenants by income	Top 10 tenants by income	Top 10 tenants by income	Top 10 tenants by income
Rank Retailer Retailer type Number of stores % of income
1		Supermarket	37	3.4
2		Supermarket	35	2.9
3		Discount department store	23	2.5
4		Department store	5	2.2
5		Department store	8	2.1
6		Discount department store	20	1.7
7		Discount department store	16	1.4
8		Specialty/Mini Major	26	0.7
9		Cinema	5	0.7
10		Specialty/Mini Major	24	0.7
Top 10 total			199	18.2

Top 10 tenant groups by income	Top 10 tenant groups by income	Top 10 tenant groups by income	Top 10 tenant groups by income	Top 10 tenant groups by income
Rank Retailer Number of leases % of income Brands
1		65	4.6	Big W, BWS, Dan Murphy’s, Woolworths, Woolworths Liquor, Woolworths Petrol
2		43	4.2	Kmart, Target
3		55	3.7	Coles, First Choice Liquor, Liquorland, Vintage Cellars
4		40	3.1	Country Road, David Jones, Mimco, Politix, Trenery, Witchery
5		15	2.2	Marcs, Myer, sass & bide
6		86	1.3	Cotton On, Cotton On Body, Cotton On Kids, Cotton On Mega, Factorie, Rubi Shoes, Supre,Typo
7		99	1.1	Dotti, Jacqui E, Jay Jays, Just Jeans, Peter Alexander, Portmans, Smiggle
8		70	1.1	The Athlete’s Foot, Dr Martens, Hype DC, Platypus Shoes, Skechers, Merrell, Timberland,Vans
9		81	1.1	Connor, Johnny Bigg, Rockwear, Tarocash, YD
10		66	1.0	Bonds, Bonds Kids, Bonds Outlet, Bras N Things, Champion, Champion Outlet, Sheridan
Top 10 total		620	23.5

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Direct portfolio Lease expiry profile

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Lease expiry profile (by income)
25%
Majors 21
20% All other retailers
15 15
15%
13 13
12
10%
8
5%
1 1 1 1
0
0%
Holdover FY21 FY22 FY23 FY24+ FY25+
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Weighted average lease expiry (years)

	Jun-20	Jun-19
by Area	4.6	4.8
by Income	3.6	3.8

Victoria Gardens Shopping Centre, VIC

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Assets under management

~7,300 tenants across 64 assets under management[1]

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Direct portfolio1 Wholly-owned Co-owned Total	Managed	Total AUM1
	Third party/ co-owned
Number of retail assets 32 28 60 4/28 64 Gross lettable area (000’s)(sqm) 944 1,475 2,419 134 2,552 Number of tenants 2,817 4,080 6,897 405 7,302 Annual retail sales ($m) 5,955 9,067 15,022 881 15,903 Total value ($m)2 5,846 8,268 14,114 814/8,678 23,606

Note: Totals may not sum due to rounding.

1. Includes DFO Brisbane business.

2. Reflects ownership share in investment properties and equity-accounted investments.

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FFO reconciliation to statutory net loss/profit after tax

Financial results

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	FY20 ($m)	FY19 ($m)
Net (loss)/profit after tax (1,801.0) 346.1 Property revaluation decrement for directly owned properties 1,717.9 237.1 Non-distributable loss relating to equity accounted investments 145.3 13.2 Amortisation of incentives and leasing incentives 57.8 44.6 Straight-lining of rent adjustment (8.8) (15.1) Net mark-to-market movement on derivatives (59.8) (15.8) Net foreign exchange movement on interest bearing liabilities 13.1 57.9 Impairment and amortisation of intangible assets 427.0 3.7 Income tax expense 12.1 - Stamp duty 3.7 - Movement in deferred performance fee - 5.4 Other non-distributable items 13.0 12.2
Funds from operations (FFO)1 520.3 689.3

1. Funds from operations (FFO) and adjusted funds from operations (AFFO) are two key measures Vicinity uses to measures its operating performance. FFO and AFFO are widely accepted measures of real estate operating performance. Statutory net profit is adjusted for fair value movements and certain unrealised and non-cash items to calculate FFO. FFO is further adjusted for maintenance capital expenditure and static tenant leasing costs incurred during the period to calculate AFFO. FFO and AFFO are determined with reference to the guidelines published by the Property Council of Australia (PCA) and are non-IFRS measures.

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Financial results

Balance sheet

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As at Jun-20 ($m) Jun-19 ($m)	As at Jun-20 ($m) Jun-19 ($m)	As at Jun-20 ($m) Jun-19 ($m)
Cash and cash equivalents 227.4 34.9
Investment properties1 13,801.4 15,351.8
Equity accounted investments 527.6 670.1
Intangible assets 164.2 591.2
Other assets 518.8 345.6
Total assets	15,239.4	16,993.6
Borrowings 3,929.8 4,436.1
Other liabilities 750.0 968.4
Total liabilities	4,679.8	5,404.5
Net assets	10,559.6	11,589.1
Securities on issue (m)	4,529.6	3,771.8
Net tangible assets per security ($)	2.29	2.92
Net asset value per security ($)	2.33	3.07

Note: Totals may not sum due to rounding.

1. Vicinity’s ownership interest.

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Capital management

Financial results

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Key debt statistics

As at: Jun-20 Jun-19	As at: Jun-20 Jun-19	As at: Jun-20 Jun-19
Total debt facilities1	$5.8b	$5.8b
Drawn debt2	$3.9b	$4.4b
Gearing3 25.5% 27.1%
Weighted average cost of debt 3.6% 4.5%
Weighted average debt duration 5.2 years 4.1 years
Weighted average hedge rate4,5 2.7% 4.4%
Proportion of debt hedged 89% 89%
Interest cover ratio (ICR) 3.9x 4.4x
Credit ratings/outlook – Moody’s Investor Services – S&P Global Ratings	A2/negative6 A/stable7	A2/stable A/stable

Hedging profile[4,8]

0 500 1,000 1,500 2,000 2,500 3,000 3,500 Notional A$m Fixed	0 500 1,000 1,500 2,000 2,500 3,000 3,500 Notional A$m Fixed	0 500 1,000 1,500 2,000 2,500 3,000 3,500 Notional A$m Fixed	2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Hedge rate rate debt (lhs) Interest rate swaps (lhs) Weighted average hedge rate (rhs)	2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Hedge rate rate debt (lhs) Interest rate swaps (lhs) Weighted average hedge rate (rhs)
		Fixed	rate debt (lhs)

1. Based on facility limits (Jun-19: adjusted for $225.0m of bank debt cancelled in Jul-19).

2. Calculated using the hedged rate on foreign denominated borrowings and excludes fair value adjustments and deferred borrowing costs.

3. Calculated as drawn debt at Note 8(a) of the Financial report, net of cash and cash equivalents, divided by total tangible assets excluding cash and cash equivalents, right of use assets, net investments in leases, investment property leaseholds and derivative financial assets.

4. 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.

5. As at end of period.

6. Outlook changed March 2020.

7. Outlook changed to negative, April 2020 and post equity raising changed back to stable, June 2020.

8. Hedge rate is the average for the financial years.

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Asset summaries

Centre statistics and valuations

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Centre type Ownership interest (%)	Occupancy rate (%) Moving annual turnover (MAT) ($m)	Net revaluation movement1,2 ($m) Value As at 30-Jun-201 ($m)	Net revaluation movement1,2 ($m) Value As at 30-Jun-201 ($m)	Capitalisation rate	Discount rate As at 30-Jun-20 (%)
				As at 30-Jun-20 (%) As at 31-Dec-19 (%) Movement
New South Wales
Chatswood Chase Sydney3 Major Regional 51 n.a. n.a.		(106.1) 474.2 5.00 4.75 0.25 6.50
Bankstown Central3 Major Regional 50 n.a. n.a. (59.1) 275.0 6.00 5.75 0.25 7.00
Roselands3 Major Regional 50 n.a. n.a. (31.6) 142.2 6.25 6.00 0.25 7.00
Queen Victoria Building CityCentre 50 97.9 213.4 (33.3) 300.0 5.00 4.75 0.25 6.50
The Galeries CityCentre 50 98.7 158.0 (12.7) 164.0 5.00 4.75 0.25 6.50
The Strand Arcade CityCentre 50 100.0 116.0 (10.2) 125.0 4.50 4.25 0.25 6.50
Lake Haven Centre Sub Regional 100 99.1 296.8 (31.6) 283.9 6.50 6.25 0.25 7.25
Nepean Village Sub Regional 100 100.0 250.7 (8.6) 204.0 5.75 5.50 0.25 7.00
Warriewood Square Sub Regional 50 98.0 241.8 (12.7) 137.5 6.00 5.75 0.25 7.00
Carlingford Court Sub Regional 50 99.5 182.6 (17.1) 105.0 6.25 6.00 0.25 7.00
Armidale Central Sub Regional 100 98.4 97.5 (6.5) 36.0 7.50 7.00 0.50 7.50
DFO Homebush Outlet Centre 100 100.0 285.3 (16.0) 590.0 5.25 5.25 -					6.75
Tasmania
Eastlands Regional 100 99.5 268.0 (18.6) 156.8 7.00 6.50 0.50 7.25
Northgate Sub Regional 100 98.8 142.9 (15.7) 85.0 7.75 7.25 0.50 8.00

Note: Some asset metrics have not been reported this period due to COVID-19 impacts.

1. Based on ownership interest.

2. Net revaluation movement excludes non-cash adjustments for the amortisation of lease incentives and straight lining of rent.

3. MAT and occupancy rate non-comparable for reporting purposes.

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Asset summaries

Centre statistics and valuations

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Centre type Ownership interest (%)	Occupancy rate (%) Moving annual turnover (MAT) ($m)	Net revaluation movement1,2 ($m) Value As at 30-Jun-201 ($m)	Net revaluation movement1,2 ($m) Value As at 30-Jun-201 ($m)	Capitalisation rate	Discount rate As at 30-Jun-20 (%)
				As at 30-Jun-20 (%) As at 31-Dec-19 (%) Movement
Queensland
QueensPlaza3 CityCentre 100 n.a. n.a. (97.5) 700.0 4.75 4.75 - 6.25
The Myer Centre Brisbane3 CityCentre 25 n.a. n.a. (28.0) 140.0 5.75 5.50 0.25 6.75
Grand Plaza Regional 50 99.2 361.7 (26.0) 185.0 6.00 5.75 0.25 7.00
RunawayBayCentre Regional 50 98.2 262.6 (23.4) 112.5 6.25 5.75 0.50 7.00
Taigum Square Sub Regional 100 98.4 108.7 (9.8) 85.0 7.00 6.50 0.50 7.75
Gympie Central Sub Regional 100 98.4 137.6 (3.5) 72.5 7.25 6.75 0.50 7.75
WhitsundayPlaza Sub Regional 100 99.8 126.2 (4.6) 61.6 7.25 6.75 0.50 7.50
Buranda Village Sub Regional 100 100.0 72.1 (5.2) 38.0 6.00 6.00 - 6.75
Milton Village Neighbourhood 100 94.5 26.3 (1.5) 34.3 6.00 5.75 0.25 7.25
DFO Brisbane Outlet Centre 100 98.5 213.2 (2.7) 62.5 7.75 7.50 0.25 8.25
South Australia
Elizabeth CityCentre Regional 100 98.0 343.9 (71.1) 300.0 7.50 7.00 0.50 8.25
Colonnades Regional 50 99.3 332.2 (22.4) 113.2 7.50 7.00 0.50 8.00
Castle Plaza Sub Regional 100 99.2 148.8 (24.4) 151.4 7.00 6.75 0.25 7.75
Kurralta Central Sub Regional 100 100.0 91.7 (2.3) 42.0 6.25 6.00 0.25 6.75

Note: Some asset metrics have not been reported this period due to COVID-19 impacts.

1. Based on ownership interest.

2. Net revaluation movement excludes non-cash adjustments for the amortisation of lease incentives and straight lining of rent.

3. MAT and occupancy rate non-comparable for reporting purposes.

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46

Asset summaries

Centre statistics and valuations

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Centre type Ownership interest (%)	Occupancy rate (%) Moving annual turnover (MAT) ($m)	Net revaluation movement1,2 ($m) Value As at 30-Jun-201 ($m)	Capitalisation rate	Discount rate As at 30-Jun-20 (%)
			As at 30-Jun-20 (%) As at 31-Dec-19 (%) Movement
Victoria
Chadstone Super Regional 50 99.4 1,972.0 (265.2) 3,119.2 3.88 3.75 0.13 6.00
Bayside Major Regional 100 98.7 394.7 (101.8) 459.8 6.25 6.00 0.25 7.00
Northland Major Regional 50 98.4 498.2 (60.4) 422.1 5.50 5.25 0.25 7.00
The Glen3 Major Regional 50 n.a. n.a. (41.8) 350.0 5.50 5.25 0.25 7.25
Emporium Melbourne CityCentre 50 93.5 308.5 (99.7) 640.0 4.50 4.25 0.25 6.50
Myer Bourke Street CityCentre 33 100.0 n.a. (17.7) 149.0 5.25 4.75 0.50 7.00
Broadmeadows Central Regional 100 99.0 298.4 (43.5) 269.7 6.75 6.50 0.25 7.50
Cranbourne Park Regional 50 99.1 249.8 (18.7) 130.0 6.25 5.75 0.50 7.50
Box Hill Central(South Precinct) Sub Regional 100 99.3 195.3 (26.5) 219.5 6.00 6.00 - 7.00
Victoria Gardens ShoppingCentre Sub Regional 50 98.7 213.3 (14.9) 147.0 6.00 5.50 0.50 7.00
Box Hill Central(North Precinct) Sub Regional 100 79.6 71.3 (3.4) 127.5 6.00 6.00 - 6.75
Altona Gate Sub Regional 100 95.5 146.1 (13.0) 100.0 6.25 6.00 0.25 6.50
Roxburgh Village Sub Regional 100 98.9 159.6 (17.0) 95.7 7.25 6.75 0.50 7.75
Sunshine Marketplace Sub Regional 50 98.7 146.7 (4.2) 60.1 6.50 6.25 0.25 7.00
Mornington Central Sub Regional 50 100.0 89.6 (0.8) 36.0 6.00 6.00 - 6.50
Oakleigh Central Neighbourhood 100 98.0 133.9 (10.2) 72.6 6.00 5.75 0.25 6.75
DFO South Wharf Outlet Centre 100 98.8 351.9 (73.3) 663.0 5.75 5.50 0.25 7.00
DFO Essendon Outlet Centre 100 99.5 239.7 (13.4) 167.3 6.75 6.75 - 7.50
DFO Moorabbin Outlet Centre 100 96.7 144.7 (14.1) 111.9 8.00 7.75 0.25 9.00
Uni Hill FactoryOutlets Outlet Centre 50 98.6 104.2 (11.5) 60.6 6.75 6.50 0.25 7.50

Note: Some asset metrics have not been reported this period due to COVID-19 impacts.

1. Based on ownership interest.

2. Net revaluation movement excludes non-cash adjustments for the amortisation of lease incentives and straight lining of rent.

3. MAT and occupancy rate non-comparable for reporting purposes.

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Vicinity Centres | FY20 annual results | 19 August 2020

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Asset summaries

Centre statistics and valuations

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Centre type Ownership interest (%)	Occupancy rate (%) Moving annual turnover (MAT) ($m)	Net revaluation movement1,2 ($m) Value As at 30-Jun-201 ($m)	Net revaluation movement1,2 ($m) Value As at 30-Jun-201 ($m)	Capitalisation rate	Discount rate As at 30-Jun-20 (%)
				As at 30-Jun-20 (%) As at 31-Dec-19 (%) Movement
Western Australia
Galleria3 Major Regional 50 n.a. n.a. (48.7) 250.0 6.00 5.75 0.25 7.00
Mandurah Forum Major Regional 50 94.8 358.0 (45.3) 227.5 6.25 5.75 0.50 7.00
Rockingham Regional 50 95.5 377.7 (40.8) 217.5 6.00 5.75 0.25 7.25
Ellenbrook Central Sub Regional 100 98.7 249.9 (31.0) 242.0 6.00 5.50 0.50 7.00
Warwick Grove Sub Regional 100 98.9 229.0 (30.4) 150.0 7.50 7.00 0.50 8.50
Maddington Central Sub Regional 100 96.4 188.0 (14.7) 93.0 7.75 7.50 0.25 8.00
Livingston Marketplace Sub Regional 100 98.6 118.0 (9.3) 83.0 6.25 6.00 0.25 7.25
Halls Head Central Sub Regional 50 97.9 128.0 (7.6) 40.0 7.00 6.50 0.50 7.50
Karratha City Sub Regional 50 97.7 227.0 (8.3) 40.0 7.75 7.25 0.50 7.75
Dianella Plaza Neighbourhood 100 96.8 110.9 (12.3) 63.0 7.50 7.00 0.50 8.00
Victoria Park Central Neighbourhood 100 98.1 51.9 (3.4) 25.3 6.25 6.25 - 7.00
DFO Perth4 Outlet Centre 50 99.0 n.a. (13.1) 105.0 6.00 5.75 0.25 7.25

Note: Some asset metrics have not been reported this period due to COVID-19 impacts.

1. Based on ownership interest.

2. Net revaluation movement excludes non-cash adjustments for the amortisation of lease incentives and straight lining of rent.

3. MAT and occupancy rate non-comparable for reporting purposes.

4. Non-comparable for sales reporting purposes.

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Vicinity Centres | FY20 annual results | 19 August 2020

48

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 penny.berger@vicinity.com.au

Troy Dahms

Senior Investor Relations Manager T +61 2 8229 7763 E troy.dahms@vicinity.com.au

Authorisation

The Board has authorised that this document be given to ASX.

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 19 August 2020. It is information in a summary form and does not purport to be complete. It is to be read in conjunction with the 2020 Annual Report lodged with the Australian Securities Exchange on 19 August 2020. 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 | FY20 annual results | 19 August 2020

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Thank you
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Vicinity Centres | FY20 annual results | 19 August 2020