Despite co-owning what is widely regarded as two of Gauteng’s most prized retail assets — Sandton City and Eastgate Shopping Centre — Liberty Two Degrees (L2D) has had a disappointing run since listing nearly two years ago. The share price has been on a steady decline since the Liberty Group brought a portion of its property assets to the JSE via L2D in early December 2016, with the stock shedding around 30% of its value — from R10.50 at listing to R7.14 this week. L2D has also not lived up to dividend growth expectations. Distributions were down around 1% for the latest reporting period (six months ended June). However, loyal investors are likely to be rewarded for their patience over the next few years following the successful completion of a major restructuring exercise, through which the company began trading in its new guise as a corporate real estate investment trust (Reit) last week.

L2D’s restructuring was prompted by what many believed was an ill-advised and complicat...

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

REGISTER

SIGN IN

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.