JSE-listed Liberty Two Degrees (L2D) says retail occupancies remain strong, with high foot count across its portfolio as shoppers return to malls.
Demand for retail space is also high with occupancies at more than 97% in April from about 96% in December 2021. New tenants who have taken up space include One, Sea Folly, Cotton On Kids, Sidestep and Relay Jeans.
The growth in turnover for the first three months of the year has consistently remained in double digits, exceeding 13% in March, said the company in its pre-close investor update.
“We are encouraged that despite increasing pressure on household discretionary spend, the L2D retail portfolio turnover growth is showing good recovery,” said Amelia Beattie, CEO of L2D.
L2D is an internally managed, precinct-focused Reit which co-owns retail property assets including Sandton City, the Eastgate Complex, Nelson Mandela Square, Melrose Arch precinct, Liberty Promenade Shopping Centre and Botshabelo Mall.
Beattie said L2D malls continue to evolve and operate as iconic spaces with large shopping centres that offer a variety of options. In 2021, Sandton City attracted nearly 17-million customers.
“With our current tenant mixes and future tenants opening soon across our malls, we expect to see a positive trend continue throughout the year,” said Beattie.
As corporate travel starts picking up, hospitality average occupancies are increasing. Sandton Sun and Garden Court, the group’s two hotels currently operating, have shown an increase in average year-to-date occupancy levels of more than 69% and more than 35% in April, respectively. For the full-year 2021, Sandton Sun’s average occupancy levels were 47% and Garden Court recorded nearly 10%.
The Sandton Convention Centre, which hosted 60 events in 2021, has already hosted 47 events year to date. L2D said that in early July it will open the rebranded five-star hotel, the Sandton Towers which replaces the Sandton Intercontinental Towers.
Beattie said that due to uncertainty in local and global economies, L2D will remain focused on value preservation and improving operational performance. This will be done through turning around non-performing assets and cost containment while strategically positioning the business for sustainable value.
She said the company is well capitalised with a low gearing of 24.43%, from 23.87% in December.
“Our commitment to investing in quality assets underpins our financial and operational performance by ensuring our offerings remain relevant,” said Beattie.
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