Morgan Stanley sees risk for Vicinity Centres as speciality leases near expiry

Vicinity Centres

12/09/2022 02:10

** Morgan Stanley's analysis suggests that about 70% of
Vicinity Centres'  VCX.AX  shopping malls have 30% or more
speciality leases expiring by June 2023
    ** Brokerage says the analysis highlights that about 70% of
VCX's malls may have less predictable income over the next 6-18
months, than normal
    ** There is a large number of shopping centres with
front-loaded expiries, which may be a possible cause for concern
as FY23 is only the first time in 3 years whereby retailers are
trading under normal conditions post the pandemic - MS
    ** Says that the property investor will face more risk than
what common perception of a standard expiry profile would look
like
    ** Brokerage has a price target of A$1.90 and an
"underweight" rating on VCX
    ** One of 14 analysts rate the stock "buy", ten "hold" and
three "sell"; their median PT is A$2.03 – Refinitiv data
    ** Stock has risen 16.9% this year, as of last close 

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))