Liberty Two Degrees warns of profit drop
However, it says trading conditions have improved in the light of easing lockdown restrictions
Property group Liberty Two Degrees warned on Thursday that profit for its six months to end-June could more than halve, with the group set to hold on to its interim distribution.
Distributable earnings per share are expected to fall between 40% and 55%, the group said in a trading update, although trading conditions have improved since the easing of lockdown restrictions.
“The first quarter generated results in line with expectations and we have seen a slow improvement in trading since the beginning of level 3 of the national lockdown on June 1,” Liberty Two Degrees said.
However, there had been a “severe impact” in its second quarter, the group said, and it would not be paying an interim distribution, having paid out 29.31c previously.
Liberty Two Degrees had a SA portfolio valued at R10.27bn at the end of December, and expects its valuation to have fallen 10%-20% over the six months to end-June.
The group's share price has fallen by about a fifth so far in 2020, while the JSE property index has plunged about 37%.