Vicinity Centres $400m Eastern Creek acquisition adds to Outlet exposure

Research evidence excerpt

Vicinity Centres $400m Eastern Creek acquisition adds to Outlet exposure

J P M O R G A N Asia Pacific Equity Research

15 May 2026

Vicinity Centres Neutral

VCX.AX, VCX AU

$400m Eastern Creek acquisition adds to Outlet Price (15 May 26):A$2.51

exposure ▲Price Target (Dec-26):A$2.55 Prior (Dec-26):A$2.50

VCX is acquiring Eastern Creek Quarter (ECQ) in Western Sydney for $400m

from Frasers Property on a ~6% cap rate. The transaction will be debt funded and Australia

lift gearing ~200bp (Dec-25: 26.3%); it has minimal impact on our earnings Australian REITs

forecasts. The asset is described as being a hybrid retail asset with a ~20,000 sqm AC Richard Jones, CFA

outlet (recently opened), an integrated ~10,000sqm neighbourhood centre with a (61-3) 9633-4038

separate ~11,000sqm large format retail centre. The centre is broadly fully leased richard.b.jones@jpmorgan.com

and has approved consent to expand the outlet ~8,500ksqm. We are a touch Adam West

surprised to see VCX acquiring a 'hybrid’ centre: the acquisition of the outlet is (61-2) 9003-8010

certainly on strategy, the neighbourhood centre also makes sense given it is adam.west@jpmorgan.com

integrated within the outlet, but the LFR seems a touch off-strategy given the Connor Eldridge

portfolio improvement VCX has been undertaking in recent years. We wouldn’t be (61-2) 9003-6415

surprised if VCX divests the LFR in the future. VCX trades broadly in line with connor.eldridge@jpmorgan.com

NTA ($2.52) and our Price Target $2.55 (+5¢ mainly due to our roll forward). J.P. Morgan Securities Australia Limited

Retain Neutral.

Half Yearly Forecasts (FYE Jun)

• Eastern Creek Quarter comprises: FFO per share (A$)

2025A 2026E 2027E

• A~20,000 sqm outlet centre, which opened in March 2026 with ~100 H1 0.08 0.08A 0.08

stores.