Liberty Two Degrees CEO: What we learnt from Stuttafords and how we are dealing with Edcon

Retail and property company Liberty Two Degrees, which owns shopping centers like Eastgate Mall and Sandton City, recently released its interim results. CEO Amelia Beatty expressed optimism about the company's performance, noting that they have weathered a challenging period over the last two years. Despite facing setbacks due to the closures of Stuttafords and Edcon stores, Liberty Two Degrees is seeing positive signs of recovery. Beatty highlighted that vacancies in the company's portfolio remain low, currently at 2.4%. This is a slight increase from December but still well below the industry average. Beatty emphasized the successful strategy of swiftly filling the spaces left by Stuttafords and Edcon, ensuring minimal downtime in tenant occupancy. She mentioned the repositioning of standalone stores previously occupied by Edcon as a significant driver of growth. New tenants are already in the process of fitting out these spaces, indicating a proactive approach to property management. Moreover, despite office vacancies posing a challenge, Beatty remains optimistic about the company's outlook, citing positive reversion rates in retail spaces like Liberty Promenade in Mitchell's Plain. The portfolio's CCI ratio stands at 15%, reflecting ongoing efforts to address vacancies and optimize property utilization. Beatty also noted the industry's adoption of the new L2D CCO ratio, signaling a positive trend in benchmarking performance metrics. Analysts remain cautious about Liberty Two Degrees but are hopeful that adherence to guidance will guide the company towards sustained growth and stability.