Vicinity Centres today announced the retirement plan of its CEO and Managing Director, Grant Kelley. After more than five years in the role, Kelley will retire from Vicinity by 30 June 2023, to facilitate a smooth and coordinated transition to his successor.
Vicinity will commence a search for Kelley’s replacement which will comprise both internal and external candidates from Australia and internationally.
Vicinity’s Chairman, Trevor Gerber said, “On behalf of the Board, I would like to acknowledge and thank Grant for his multiple achievements and contributions to Vicinity over the past five years. Over this period, Grant has drawn on his long history and experience in private equity and overseen change and strategic progress at Vicinity. Of particular note, under Grant’s leadership, Vicinity executed a major asset recycling program that transformed the quality of Vicinity’s retail asset portfolio.
“Grant successfully led Vicinity through the significant and unprecedented challenges of the pandemic while at the same time, ensuring the Company was well positioned to deliver on its long-term growth objectives.
“Testament to Vicinity’s post-COVID operational and financial recovery, is the Company being the best performing stock in the A-REIT index over the past 12 months, with Vicinity outperforming the A-REIT index by 30%.
Grant Kelley (left) launching Vicinity’s solar program in 2018
“Furthermore, the curation of a strong and flexible balance sheet, together with Vicinity’s consistently prudent approach to financial stewardship and sustainable growth, are the hallmarks of Grant’s leadership at Vicinity. These hallmarks now underpin the Company’s ability to pursue its next phase of growth, notably its $2.9 billion retail and mixed-use development pipeline.”
Kelley commented, “The past five years at Vicinity have been extremely rewarding and having made the difficult decision to leave the Company, I am especially proud to be leaving Vicinity in a strong financial and operational position that will support continued growth and value creation in the future.
“I would like to thank the Board, my Executive Leadership Team and everyone at Vicinity for their support, drive, and commitment; working with you has been my great privilege.”
One Middle Road, Chadstone
Last week, Vicinity released its quarterly update for the three months ended 30 September 2022 (1Q FY23).
Key highlights include:
• Leasing activity momentum in FY22 continued in 1Q FY23 with flat leasing spreads of -0.4% (FY22: -4.8%)
• Slight increase in occupancy to 98.4% (Jun-22: 98.3%)
• 95% of gross rental billings collected for 1Q FY23; focus remains on collection of SME tenant debt
• 1Q FY23 retail sales up 21.2% compared to September 2019 quarter, representing a three-year CAGR of 6.6%
• Apparel & Footwear – Vicinity’s largest specialty category – underpinned strong retail sales and delivered positive leasing spreads
• Visitation continued to recover in 1Q FY23; total portfolio visitation (excluding CBDs) was 92% of pre-COVID levels
• Spend per visit remains elevated at 1.3x times 2019 levels (FY22: 1.3x); Luxury sales and price inflation amplify impact of higher visitation and dwell times
• Development of Chadstone’s new entertaining and dining precinct (‘The Social Quarter’) remains on track for opening this coming Summer and construction of the One Middle Road office tower and the fresh food and dining precinct has commenced
• Vicinity named Oceania Sector Leader by Global Real Estate Sustainability Benchmark (GRESB)
• Vicinity reaffirmed FY23 earnings guidance with FFO per security expected to be in the range of 13.0-13.6 cents with AFFO per security expected to be in the range of 10.9-11.5 cents; targeting a full-year distribution payout range of 95-100% of AFFO.
