L2D publishes first operational performance update since joining Standard Bank

Liberty Two Degrees (L2D) has published its first operational performance update since becoming a part of the Standard Bank Group and subsequently delisting from the JSE in November 2023.

L2D recorded portfolio trading densities of R54 693 per m2 (6.7%) year-on-year for its retail assets with strong demand for space during Q1 2024. Its portfolio saw newly renovated store openings of Under Armour and Sketchers at Sandton City which also saw the revamp of IWC, Elegance Jewellers, and Panerai.

This result is strengthened by quality tenancies and the positive effects of our experiential offerings, which have provided the positive momentum. The apparel category performed well, contributing 27.3% of the overall turnover and occupying 26% of the lettable area. Department stores contributed 16.8% to turnover, while occupying 24.4% of the lettable area, however management continues to execute on the tenant rightsizing initiatives to ensure we continue to be proactive on derisking our environments,” comments Jonathan Sinden, L2D’s COO. 

The athleisure tenant mix was revamped, which further enhances our experiential mall offering. Luxury continues to play an important role in the performance of our portfolio. Our strategy for this category is to continue to bring Luxury to the Sub-Saharan Africa region and create unique and immersive shopping experiences to serve as a drawcard and a differentiator for customers.

Occupancies within its office portfolio continue to track well, according to management.

The company’s renewable energy initiatives include the reduction of its reliance on the grid which forms a core part of its Net Zero strategy, aiming to reduce operating costs. In total to date, its portfolio has installed solar capacity generating 4.3% of energy.

Eastgate Shopping Centre debuted as the largest registered rooftop installation in South Africa. The 6MW [AC] installation covers most of the available mall roof space, an area of approximately 28 100m². The energy generated will be used to power the mall’s daily operations. In its investment into solar energy, L2D will look to further expand its solar coverage to a total of 16.1MW across the portfolio by the end of 2025, of which 18% of the total mall consumption will come from the rooftop solar energy that has been installed. In addition, L2D is actively exploring opportunities in energy wheeling for Sandton City and Nelson Mandela Square.