Vicinity Centres has reported retail sales figures for its 3Q, and expects funds from operations (FFO) for FY2023 to come in at the top end of its guidance range.

The REIT disclosed on 2 May that its portfolio retail sales for 3Q FY2023 is up 13% relative to 3Q of the previous financial year.

This increase came as retail sales growth remained resilient, although the REIT expects this to moderate in 4Q FY2023 given higher interest rates.

As a result, Vicinity Centres recorded positive leasing spreads during the quarter.

As part of its interim results announcement on 15 February 2023, Vicinity guided that its FY2023 FFO and AFFO per security to be in the ranges of 14.0 – 14.6 cents and 11.8 – 12.4 cents, respectively.

The REIT has indicated that it now expects these to be around the top end of the guidance ranges.

It is targeting a full-year distribution payout at the lower end of its target range of 95-100%.

Vicinity Centres was last done on the ASX at AUD2.03, down 1.93% from its previous close.