Shopping centre owners Vicinity Centres and Scentre Group have suspended their FY20 outlook on Friday in light of the coronavirus outbreak.

Vicinity said its balance sheet remains solid, with $1.3 billion of undrawn facilities, but said it is withdrawing its FY20 earnings and distribution guidance due to the increased uncertainty surrounding the COVID-19 outbreak and its impact to retail trading and operating environment.

Grant Kelley, Vicinity CEO and managing director, said the shopping centre owner has seen further deterioration in the retail trading and operating environment since it announced interim results in mid-February, with increasing uncertainty around the impacts of COVID-19.

“Given this, we have made the decision to withdraw our FY20 earnings and distribution guidance provided at that time,” Kelley said.

Kelley said Vicinity recognises the impact COVID-19 is having in Australia and will continue to work with retailers during this period of adjustment.

A spokesperson told Inside Retail, “We don’t generally comment on our negotiations with individual retailers, but as the spread and impacts of COVID-19 (Coronavirus) continues to evolve, we are continuing to maintain an open dialogue and support our retailers on a case-by-case basis.”

Scentre Group said its operations have performed in line with its expectations during the early part of 2020, as shown in its 2019 full year results released on February 18, 2020.

Contained in that announcement was an outlook statement including guidance for Funds from Operations (FFO) and Distribution for the 12 months ending December 31, 2020.

The company said in light of the COVID-19 pandemic and volatility in markets globally it’s suspending the outlook for 2020 that was previously announced.

The company will give further updates on its annual general meeting on April 8.