Major shopping centres owner Vicinity has reported a $309 million rise in book values for December.
This represents a 2.2 per cent rise, which Vicinity CEO Grant Kelley credits to a resilient retail sector. He said that demand for flagship stores in CBD centres is strong, despite the trading restrictions and ongoing uncertainty.
“DFO valuations continue to grow as tightening capitalisation rates and income growth highlight the strength of our DFO portfolio and its resilience through cycles,” Kelley explained.
DFO centres offer a curated selection of premium outlets within one shopping mall.
“Pleasingly, our CBD portfolio recorded a modest uplift in valuations over the period, supporting our view that the outlook for CBD retail is improving and these centres will return to their former vibrancy over time.”
Vicinity did not provide earnings guidance for FY22. Shares last traded at $1.74.