Vicinity Centres Offers Dividend with Currency Choice and DRP Discount
Vicinity Centres has announced an ordinary unfranked dividend of AUD 0.062 per security for the half-year ending December 2025, featuring a Dividend Reinvestment Plan and currency payment options.
- Ordinary unfranked dividend of AUD 0.062 per security
- Dividend payable on 12 March 2026 with ex-date 23 February
- Dividend Reinvestment Plan (DRP) offered with 1% discount
- Securityholders can elect payment in AUD or NZD
- No regulatory approvals required for this distribution
Vicinity Centres Declares Half-Year Dividend
Vicinity Centres (ASX – VCX), a leading Australian real estate investment trust, has announced an ordinary dividend of AUD 0.062 per security for the six months ending 31 December 2025. The dividend is unfranked, reflecting the trust’s current tax position, and will be paid on 12 March 2026. The ex-dividend date is set for 23 February 2026, with the record date following on 24 February.
Dividend Reinvestment Plan and Currency Options
Investors have the option to participate in Vicinity Centres’ Dividend Reinvestment Plan (DRP), which offers a 1% discount on the reinvestment price. The DRP price will be calculated based on the average daily volume weighted average price over the period from 26 February to 4 March 2026. Eligible securityholders, specifically those with registered addresses in Australia or New Zealand, can elect to participate by 25 February 2026.
Notably, Vicinity Centres provides flexibility in currency payments. While distributions are ordinarily paid in Australian dollars, securityholders can elect to receive their dividend payments in New Zealand dollars, provided they submit a valid request by the record date. This currency election caters to the trust’s significant New Zealand investor base and reflects a growing trend among ASX-listed entities to accommodate cross-border investors.
Regulatory and Tax Considerations
The distribution does not require any securityholder, court, or regulatory approvals, streamlining the payment process. The dividend is 100% unfranked, meaning it carries no franking credits for Australian tax purposes. Vicinity Centres has also disclosed that detailed tax component information will be made available on its website in March 2026, providing transparency for investors, particularly non-resident securityholders.
Implications for Investors
This dividend announcement underscores Vicinity Centres’ commitment to delivering steady income to its investors amid a complex real estate market environment. The availability of a DRP with a discount and currency payment options may encourage reinvestment and broaden appeal to international investors. However, the unfranked nature of the dividend may influence tax outcomes for Australian investors depending on their individual circumstances.
Bottom Line?
Vicinity Centres’ dividend announcement balances steady income with investor flexibility, setting the stage for market response ahead of payment.
Questions in the middle?
- How will investor uptake of the DRP and currency election options influence Vicinity Centres’ capital structure?
- Will the unfranked dividend policy persist amid changing tax and market conditions?
- How might the dividend and DRP terms affect Vicinity Centres’ attractiveness to international investors?
