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ASX Announcement 5 VICINITY CENTRES 17 February 2021 FY21 interim results reflect COVID - 19 impacts and retail activity recovery First half operational and financial performance materially impacted by COVID - 19 - - Funds from operations ( FFO ) ¹ of $ 267.1m or 5.87cps ( 1H20 : $ 337.0m or 8.95cps ) Distribution of 3.4cps , reflecting a payout ratio of 62.4 % of adjusted FFO ( AFFO ) ( 1H20 : 7.7cps , payout ratio 94.9 % ) Statutory net loss after tax of $ 394.1m ( 1H20 : statutory net profit after tax of $ 242.8m ) • Strong balance sheet maintained , with low gearing of 24.5 % and liquidity of $ 2.4b • Two consecutive quarters of positive sales growth ( ex - CBDs and Victoria ) • • • • • Cash collection rate increased to 72 % of gross rental billings² , or 90 % of billings net of waivers COVIDSafe plans implemented across all Vicinity assets Accelerated planning progress across multiple mixed - use and retail development projects One of only two Australian property companies recognised in CDP's global Climate A - list Due to ongoing uncertainty , full - year earnings guidance cannot be provided for FY21 . Vicinity Centres ( Vicinity , ASX : VCX ) today announced its results for the half - year ended 31 December 2020 ( 1H21 ) , with a statutory net loss after tax of $ 394.1 million . This is comprised primarily of FFO of $ 267.1 million , a net property valuation loss of $ 572.4 million³ and non - cash mark - to - market and foreign exchange movements . The FFO result was significantly impacted by the continued effects of COVID - 19 , particularly rental waivers and provisions for unpaid rent , which were offset partly by the benefits of lower interest expense and operational cost savings . Distribution per security of 3.4 cents was declared for 1H21 , compared to 7.7 cents in the prior corresponding period . The reduced distribution payout ratio of 62.4 % was conservatively positioned in light of continued uncertainty around FY21 full - year earnings and COVID - 19 impacts . Mr Grant Kelley , CEO and Managing Director , said : “ Although the pandemic led to significant financial and operational challenges , Vicinity is well - positioned to benefit from improving economic conditions , with consumer and business confidence now approximating pre - pandemic levels , fuelled by fiscal stimulus measures , record low interest rates and robust COVID management nationally . 1 A reconciliation of FFO to statutory net profit is in Note 1 ( b ) of the Half Year Financial Report released to ASX today . FFO is a non - IFRS measure . 2 Cash collected for 1H21 as a percentage of gross rental billings . As at 10 February 2021 . 3 Excludes statutory accounting adjustments . Vicinity Centres Chadstone National Office Chadstone Shopping Centre 1341 Dandenong Road PO Box 104 Chadstone VIC 3148 T +61 3 9936 1222 F +61 3 9936 1333 vicinity.com.au Vicinity Limited ABN 90 114 757 783 and Vicinity Centres RE Ltd ABN 88 149 781 322 As responsible entity for : Vicinity Centres Trust ARSN 104 931 928