Fund Manager Summary
Vicinity Centres (ASX:VCX) is recognized by fund managers for its high-quality diversified retail portfolio, which is expected to benefit from declining interest rates and improving consumer trends. As of June 2025, occupancy levels have reached 99.4%, returning to pre-COVID levels, while re-leasing spreads have shown substantial improvements, with premium centres achieving a 6.7% uplift and Chadstone and outlet centres combined at 10.5%. This positive momentum indicates stabilized valuation trends and an increase in Net Tangible Assets. Fund managers view Vicinity’s FY25 guidance as attainable, suggesting a reasonable growth outlook. However, investors should consider potential market pressures ahead, especially in the broader economic landscape, as these could impact consumer spending and operational performance.
Source: Trading View
Commentary From The Managers
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Share Price
Summary
Date
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Thesis Tracker gives investors direct access to professional fund-manager commentary on ASX-listed companies, all in one structured database.
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By reporting on thousands of qualitative investment insights, Thesis Tracker helps investors make better decisions beyond just financial metrics.
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Trusted by active, Retail and Professional ASX investors, Thesis Tracker saves research time by surfacing institutional-grade perspectives that are difficult to find elsewhere.
Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Equity Trustees Asset Management
30 June 2025
$2.47
Summary
- Vicinity Centres is recognized as a leading owner and manager of diversified shopping centre assets in Australia.
- The portfolio includes regional, sub-regional, and neighbourhood assets.
- Equity Trustees Asset Management continues to hold because VCX is seen as having one of the highest quality retail portfolios in the market.
- Anticipated benefits as interest rates reduce and consumption patterns improve.
- In the December half, occupancy levels increased to 99.4%, reaching pre-COVID levels and marking the highest since FY19.
- Re-leasing spreads improved significantly, with premium centres achieving a 6.7% uplift and Chadstone and outlet centres combined at 10.5%.
- The portfolio's focus on premium products has contributed to a stabilisation in valuation trends.
- Net Tangible Assets have increased, reflecting positive trends.
- Equity Trustees Asset Management views VCX's FY25 guidance as achievable, offering a reasonable growth outlook.
Yarra Capital Management
30 Sept 2024
$2.21
Summary
- Yarra Capital Management maintains an overweight position in Vicinity Centres (VCX), the second largest pure play shopping centre REIT on the ASX.
- The portfolio consists of 59 centers across Australia.
- The recent quarter was positively impacted by the FY24 result, which aligned with guidance.
- Strong leasing activity and high portfolio occupancy (99%+) supported cash flow resilience.
- With the cap rate cycle peaking, there is potential for updated valuations.
- The stock has benefitted from effective balance sheet management, with gearing remaining below 30%.
- Management has indicated ongoing divestment activity to fund both development projects and acquisitions.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Vicinity Centres (ASX:VCX)?
Fund managers including Yarra Capital Management and Equity Trustees Asset Management have invested in Vicinity Centres (ASX:VCX).
Why do fund managers invest in Vicinity Centres?
Fund managers invest in Vicinity Centres due to its diversified portfolio of high-quality retail assets in Australia, including regional and neighbourhood centres. With occupancy levels reaching 99.4%, the company demonstrates strong demand and operational stability. Improved re-leasing spreads, particularly in premium centres, support solid revenue growth. Additionally, Vicinity Centres is poised to benefit from a positive consumption environment as interest rates decrease, making its outlook for FY25 achievable and attractive for investors seeking reasonable growth and yield.
What happened to Vicinity Centres (ASX:VCX)?
There have been no recent updates from fund managers regarding Vicinity Centres although fund managers including Yarra Capital Management and Equity Trustees Asset Management have previously commented.
What is the short interest in Vicinity Centres (ASX:VCX)?
The short interest in Vicinity Centres (ASX:VCX) is 2.49% which makes it the 106th most shorted stock on the ASX. Of the 4.6B shares that Vicinity Centres has on issue, 114.7M have been sold short.
What does Vicinity Centres (ASX:VCX) do?
Vicinity Centres is a retail company primarily focused on managing shopping centers. It engages in leasing retail space to various brands and retailers, facilitating consumer access to various products. The company operates in the retail property industry and is based in Australia.