January 23, 2025 07:41 GMT
REAL ESTATE: Vicinity (VCXAU: A2/A): Equity raised to overweight at JPM
REAL ESTATE
VCXAU is trading wide for the rating. Results 19th Feb.
- VCXAU issued a 7yr AUD this week which swaps in EUR at z+101. VCXAU 5.6051 2032 Compares to VCXAU 29s z+110a for 2yrs shorter. They are clearly not going to issue in € any time soon.
- VCXAU 29s trade wide to BBB curves such as URWFP and LIFP. It is also wide to SCGAU, another Aussie name with A2/A rating
- Gearing is currently sitting at 27% after a number of disposals at the end of last year. This is at the low-end of the rating threshold from Moody's.
- JPM is positive on the Retail environment in Australia with 5% growth in consumption expected. Rates market is pricing in 0.72% of rate cuts this year which will help.

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