Operationally strong result from VCX.

Rents/revenues continue to climb…

Occupancy is high…

Gearing is quite low, amongst the REITs…

…and VCX still trades at a modest discount to NAV, suggesting mild negative expected property revals.

The issue is the slowing consumer sales / retail sales data. We know it is weak, from the ABS data, and, we can see the slowing quarterly trend below in Vicinity’s tenant sales data.

For a strong balance sheet company with good assets in great locations, trading at a reasonable yield that’s probably all okay, it’s fairly priced.

If conditions worsen, it won’t do great, but nor should it do too poorly, either.

The outlook statement does seem a touch conservative. In the FY guidance are -1% releasing spreads, but the spreads as of mid-Feb are still positive, and hence there is potentially some small upside.

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