Liberty Two Degrees (L2D), the owner of Sandton City Mall and Eastgate, yesterday reported sustained recovery during 2022 despite load shedding, escalating municipal rates and Covid-related in-force reversions, which continued to put pressure on the portfolio.
The South African retail-centred REIT, reporting ahead of its year-end close period, said its portfolio continued to see improved annual trading density growth with September being 18.6% ahead of 2021, and 12.1% ahead of 2019.
The top five retail categories with the most improved trading density performance in 2022 compared to 2019, included luxury brands (149.2%), technology (44.5%), luggage and leatherware (35.4%), grocer/supermarket (18.8%) and health/beauty/grooming/wellness (9.0%).
L2D CEO Amelia Beattie said, “We are pleased with both our financial and operational performance in the period, which continues to show encouraging improvement in key indicators. As the leadership, our focus remains on driving positive outcomes to counter and address the challenges presented by the operating environment through the various initiatives in place and ensure that we continue to track the positive momentum in our business performance for the long term."
L2D achieved a 29.6% growth in footcount for the nine months at 2022 compared to 2021 and 9.8% ahead of 2019, with super-regional malls achieving double-digit growth over the past five months – May to September – compared to 2019.
L2D concluded a total of 281 leases (68 885m²) in the period including 102 new deals (32 701m²) and 179 (36 183m²) renewals.
Occupancy levels remained high at 93.2%, with future pre-lets improving to 93.9%. The occupancy rate in the retail portfolio improved to 98.0% at October, 2022 versus June, 2022 at 97.2%.
In the office space, the group said its portfolio continued to face pressure with occupancy levels at 78.8% at October, 2022 versus June, 2022 at 83.3%.
“The decline seen was due to the sale of the fully let Standard Bank building. The occupancy level in the remaining office portfolio excluding the sale of Standard Bank has improved since June due to increased leasing in Sandton, Atrium on 5th and Nelson Mandela Square offices,” it said.
BUSINESS REPORT