Vicinity updates market as David Jones enters administration
Vicinity Centres (VCX.ASX) has acknowledged the appointment of voluntary administrators and receivers and managers to David Jones, issuing a market update on 5 November 2026.
David Jones operates four stores across Vicinity’s portfolio, contributing approximately $34 million or 2.4% of portfolio gross rental income (Vicinity share).
The administration and receivership process remains at an early stage, and the outcome for individual stores and leases is not yet known. For investors, the exposure is a defined, minority slice of portfolio income, with management engaged on the process.
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David Jones exposure at a glance
The table below sets out the key exposure facts disclosed by Vicinity.
| Item | Detail |
|---|---|
| Stores | 4 (Chadstone and The Glen in Melbourne, Chatswood Chase in Sydney, QueensPlaza in Brisbane) |
| Share of portfolio gross rental income (Vicinity share) | 2.4%, approximately $34 million |
| Outstanding unpaid rent as at 31 October 2026 | Approximately $2.2 million |
| Bank guarantees held for the four stores | None |
| Contractual lease expiries | 2029 at Chadstone to 2041 at Chatswood Chase |
Vicinity noted that the stores at Chadstone, Chatswood Chase and QueensPlaza rank among the retailer’s most productive, measured by retail sales per square metre:
- Chadstone
- Chatswood Chase
- QueensPlaza
Those rankings point to the quality of demand for the space. Contractual lease terms running from 2029 to 2041 add further context to the tenancies.
How Vicinity is responding
Vicinity will engage with the administrators and receivers and will assess the position of each store as the process progresses.
The group maintains contingency plans for each of its David Jones locations and routinely assesses alternative uses for major tenancy space as part of its asset planning. That preparedness allows a store-by-store response as outcomes emerge.
What administration and receivership mean for a landlord
Voluntary administration is a process in which an independent administrator assesses the future of a business. Receivers and managers are appointed to manage and realise assets, typically on behalf of secured creditors.
For a landlord, the result for each lease drives the income impact. A lease may continue, be renegotiated or be exited, and each path affects rental income differently.
FY27 guidance under review
Given the range of potential scenarios, the impact on Vicinity’s FY27 guidance is currently uncertain and remains under review. Vicinity cited the need for further information on the administration and receivership process and the treatment of individual stores and leases.
Existing FY27 guidance is:
- Funds From Operations (FFO) of 16.0-16.2 cents per security
- Adjusted FFO of 13.9-14.1 cents per security
That guidance is subject to unforeseen circumstances and material changes in operating conditions, including retailer performance and financial circumstances.
The FY27 range was set alongside Vicinity’s FY26 annual results in August, which paired record leasing spreads with near-full occupancy and a shrinking development-related rent drag.
Vicinity will update the market when it is able to reliably assess if there is any material impact on its FY27 earnings outlook.
Vicinity has $26 billion in retail assets under management across 48 shopping centres, making it the second largest listed manager of Australian retail property. David Jones income represents 2.4% of portfolio gross rental income.
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