Liberty Two Degrees didn’t collect more than 60% of April rent
The part-owner of Sandton City says rental collection has improved in May as some tenants resume trading
Liberty Two Degrees (L2D), which owns a quarter of Sandton City, collected just more than a third of rent due from tenants in April, but says this has improved in May as some tenants resumed trading.
Rental collections based on full amounts due and before any discounts totalled 38.2% in April, while May collections have since increased with 43% of current billing being received as at May 18, with this expected to significantly increase as the group concludes negotiations with tenants that are now trading.
The rental collection rates are affected by a large retail exposure, which has been the worst affected sector during the Covid-19 lockdown, the group said.
At the beginning of May a number of stores opened as part of the level 4 provisions and between 60% and 70% of gross lettable areas of the group’s malls have resumed trading, it said.
This varies, however, and Nelson Mandela Square has only 11% trading due to a high number of restaurants.
During the first two weeks in May, the malls saw about 60% of footcount return and L2D said it expects that figure to steadily increase as more of the stores open.
In morning trade on Wednesday, L2D’s share price had fallen 0.95% to R5.20, having fallen 22.93% so far in 2020, a period in which the JSE’s property index has lost 47.55%.