Vicinity Centres is going to earn less than it expected this year because of dwindling numbers of people shopping at its centres since the coronavirus outbreak began.
The retail property group has downgraded its funds from operations guidance to between 17.2 and 17.4 cents per share compared with the previous forecast of 17.6 to 17.8 cents a share.
“This revision takes into account the impact that novel coronavirus is expected to have on variable income at key centres within the portfolio in the second half of fiscal 2020,” the group’s outlook statement said.
Since late January they have noticed material declines in foot traffic at key centres, particularly where there is a high proportion of international tourists, and this is affecting sales.
Vicinity posted a net profit for the six months to December 31 of $242.8 million compared with $235.3 million.
Its preferred metric of funds from operations was $337 million for the first half compared with $349.5 million in the prior first half.
The group will pay shareholders 7.70 cents per stapled security, down from 7.95 cents at the same time last year.
AAP
Be the first to comment