For personal use only
Vicinity Centres Trust
ARSN 104 931 928 comprising
Vicinity Centres Trust and its Controlled Entities
Responsible Entity of Vicinity Centres Trust
Vicinity Centres RE Ltd
ABN 88 149 781 322
Vicinity Centres Trust
Financial Report for the half year ended 31 December 2021
Vicinity Centres Trust | Financial report for the half year ended 31 December 2021
Contents
onlyDirectors' Report
Auditor's Independence Declaration
Statement of Comprehensive Income
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
About This Report
Operations | ||
use | 1. | Segment information |
2. | Revenue and income | |
3. | Investment properties | |
4. | Equity accounted investments | |
Capital structure and financial risk management | ||
personalFor | 5. | Interest bearing liabilities and derivatives |
6. | Contributed equity | |
7. | Distributions | |
Working capital | ||
8. | Trade receivables and other assets | |
Other disclosures | ||
9. | Operating cash flow reconciliation | |
10. | Other accounting matters | |
11. | Events occurring after the end of the reporting period |
Directors' Declaration
Independent Auditor's Report
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Vicinity Centres Trust | Financial report for the half year ended 31 December 2021
Directors' Report
onlyThe Directors of Vicinity Centres RE Ltd, the responsible entity (RE) of Vicinity Centres Trust (the Trust or VCT), present the financial report of Vicinity Centres Trust and its controlled entities (VCT Group or the Trust Group) for the half year ended 31 December 2021.
The Trust is stapled to Vicinity Limited to form the stapled Group, Vicinity Centres (the Vicinity Centres Group), which is traded collectively on the Australian Securities Exchange (ASX) under the code 'VCX'. Accordingly, the financial report for Vicinity Centres Trust should be read in conjunction with the financial report of Vicinity Centres Group available at vicinity.com.au.
Directors
use | |
The following persons were members of the Vicinity Centres RE Ltd Board from 1 July 2021 and up to the date of this report | |
unless otherwise stated: | |
(i) | Chairman |
Trevor Gerber (Independent) | |
(ii) | Non-executive Directors |
personal | Clive Appleton |
David Thurin AM | |
Janette Kendall (Independent) | |
Karen Penrose (Independent) | |
Peter Kahan (Independent) | |
Tim Hammon (Independent) | |
(iii) | Executive Director |
Grant Kelley (CEO and Managing Director) |
Company Secretaries
Carolyn Reynolds
Rohan Abeyewardene
Principal activities
ForThe principal activity of the Trust Group during the period continued to be investment in a portfolio of retail investment properties. The principal place of business of the Trust and the RE of the Trust is Level 4, Chadstone Tower One, 1341 Dandenong Road, Chadstone, Victoria 3148.
Distributions
On 16 February 2022, the Directors declared a distribution for the half year ended 31 December 2021 of 4.7 cents per VCX stapled security, payable wholly by the Trust. This equates to total interim distributions of $214.0 million.
The interim distribution will be paid on 8 March 2022. The record date for determining entitlement to the interim distribution is 5pm, 22 February 2022.
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Vicinity Centres Trust | Financial report for the half year ended 31 December 2021
Significant changes in state of affairs
COVID-19 pandemic
The Trust Group's performance continued to be adversely impacted by the COVID-19 pandemic ('COVID-19' or 'the pandemic')
related disruptions during the six-month period. Key factors impacting VCT's financial and operational performance included:
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The duration and full extent of the pandemic and its impacts on the economy, consumers and investment markets remain personaluncertain. As a result, certain significant judgements, estimates and assumptions have been made in determining the carrying value of certain assets and liabilities at 31 December 2021. These are further discussed in the 'About this Report' section of the
financial report.
Further information on the impact of the pandemic and the Vicinity Centres Group's response can be found in the 'Review of results and operations' in the Vicinity Centres Group 31 December 2021 half year financial report available at vicinity.com.au.
Review of results and operations
The review of the results and operations for the Vicinity Centres Group including further information on strategy, operations, and risks is contained in the Directors' Report in the Vicinity Centres Group financial report which is available at vicinity.com.au. The following sections relate to the results and operations of the Trust Group only and therefore do not include items and amounts relating to Vicinity Limited.
(a) Financial performance
The statutory net profit after tax of the Trust Group for the half year ended 31 December 2021 was $639.3 million, an increase of $1,023.4 million on the prior period (31 December 2020: net loss after tax of $384.1 million). This result mainly comprised:
• Higher non-cash property revaluation increment on directly owned properties of $359.5 million (31 December 2020: decrement of $508.6 million);
For• Net profits1 contributed from investment properties of $333.3 million (31 December 2020: $311.0 million);
• Share of profits from equity accounted investments of $15.5 million, driven by net profits and property revaluation increment (31 December 2020: loss of $31.6 million); and
• Net mark to market gains on derivatives $81.2 million (31 December 2020: loss of $187.7 million); partly offset by
• Net foreign exchange losses of $25.6 million (31 December 2020: gain of $118.2 million); and
• Borrowing costs of $92.2 million (31 December 2020: $67.7 million).
Cash flows from operating activities for the half year were $237.3 million (31 December 2020: $293.3 million).
1 Property ownership revenue and income less direct property expenses and allowance for expected credit losses.
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Vicinity Centres Trust | Financial report for the half year ended 31 December 2021
Review of results and operations (continued)
(b) | Financial position |
At 31 December 2021 the Trust Group's net assets were $10,653.0 million, up $639.3 million from $10,013.7 million at 30 June | |
only | |
2021. This increase was due to the aforementioned net profits contributed from investment properties and property | |
revaluation increments recorded on directly owned investment properties and equity accounted investments. | |
(c) | Capital management |
During the half year, net drawdowns of $573.0 million of bank debt were made throughout the period to fund the acquisition of Harbour Town and capital expenditure requirements.
Apart from the activities noted above, no other significant financing activities occurred during the six months to 31 December 2021.
useAuditor's independence declaration
A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 (Cth) is included immediately following the Directors' Report.
Events occurring after the end of the reporting period
COVID-19 pandemic
personalThe duration, frequency and extent of restrictions and the financial, social, and public health impacts of the COVID-19 pandemic remain uncertain and therefore the Trust Group cannot quantify the impact that COVID-19 may have on future periods. The
financial report includes disclosures on the potential impact of the prevailing uncertainty on the reported amounts of relevant revenues, expenses, assets, and liabilities for the half year ended 31 December 2021 and future periods where relevant.
Extension of SME Codes
The New South Wales and Victorian state governments announced the extension of the SME Codes on 14 and 15 January 2022 respectively. The extensions are for a period of two months and will expire by 15 March 2022. The Trust Group will continue to provide rental assistance in the form of rental waivers, payment deferrals and other temporary modifications to the underlying lease agreements to eligible SME tenants and other tenants that operate in categories and locations that continue to experience financial hardship and distress.
Other than the matters described above, no other matters have arisen since the end of the period which have significantly affected, or may significantly affect, the operations of the Trust Group, the results of those operations, or the state of affairs of the Trust Group in future financial periods.
Rounding of amounts
The Trust Group is an entity of a kind referred to in Legislative Instrument 2016/191, issued by the Australian Securities and ForInvestments Commission (ASIC), relating to the "rounding off" of amounts in the Directors' Report. Accordingly, amounts in the Directors' Report have been rounded off to the nearest tenth of a million dollars ($m) in accordance with that Legislative
Instrument, unless stated otherwise.
Signed in accordance with a resolution of Directors.
Trevor Gerber
Chairman
16 February 2022
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Vicinity Centres RE Ltd. published this content on 16 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2022 01:33:01 UTC.