VCX
Vicinity out with a modest upgrade to guidance, citing strong retail conditions, and a slight increase in property valuations.
Our thesis in VCX was a very simple one, namely that over time life would largely return to normal.
People would return to shopping in person, rather than purely online, and that as such VCX’s rental negotiations would improve, or at the very least, be maintained, such that adjusted funds from operations would recover from their pandemic nadir.
Similarly, we thought that the fall in property valuations, as implied by discounts to net asset value, would be more modest than the market expected.
Pleasingly, this has largely played out, as expected.
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