Credit Suisse has lifted its funds from operations per share forecasts for Vicinity Centres by 3.8%, 2.6% and 2.7%, reflecting improved cash collection. The broker also notes the company is yet to declare its second half dividend, and anticipates a 95% payout.
The broker highlights Vicinity Centres was hit harder than peers by covid impacts given its high exposure to Victoria and CBD locations, but believes earnings recovery is possible in FY23.
The Neutral rating and target price of $1.97 are retained.
Sector: Real Estate.
Target price is $1.97.Current Price is $1.84. Difference: $0.13 – (brackets indicate current price is over target). If VCX meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
