L2D adds up Black Friday shoppers. Black Friday specials attracted 15% more visitors to Liberty Two Degrees'

shopping centres than last year.

Liberty Two Degrees (L2D) has been installing a new camera system at its

shopping centres so it can count how many visitors they attract. The Syenap

foot count system has already been installed at Sandton City and the results

show that 8.2% more shoppers visited the centre in the year to end-September.

It's also seen encouraging foot-count growth at its other centres. This Black

Friday, 15% more shoppers visited centres in its portfolio than last year.

The shopping centre owner said by studying data analytics, it can better

understand customers' needs and preferences, enabling its centres to set

trends in the retail sector

In an investor update, it said it had seen a marked improvement in retail

vacancies over the period. Trading density at its centres rose 3.4% excluding

the Midlands Lifestyle Centre and Botshabelo Mall. Sandton City and Eastgate

both grew trading densities by more than 5%, with densities slipping slightly

at Nelson Mandela Square and declining by 5.6% at Melrose Arch. It said it was

continuing its engagement with the management of Edcon and was taking

proactive measures to reduce the exposure of its portfolio to the retail

group.

Although the Edcon brands in the portfolio continue to show positive trading

density growth, managing L2D's exposure to the market risks of Edcon remains a

high priority," L2D said.

In the office sector, the competitive environment, an oversupply of space in

the Sandton CBD and the weak economy remained a challenge. It said it was

making considerable efforts to attract the right tenants and retain existing

tenants. Office fancies declined to 8.7% in September from 9.7% in June.

L2D said it remained on track to deliver its forecast 60c distribution share

this year. It said its conversion from a collective investment scheme to a

corporate real estate investment trust (REIT) earlier this month improved its

structure to optimise shareholder value. The conversion resulted in the

cancellation of a PUT option by Liberty Group and the internationalisation of

the property management company. At the same time, it acquired 1.2 rand billion in

property assets from the Liberty Property Portfolio, funding it with debt. It

said the introduction of a conservative level of debt had enhanced its capital

structure, with a current loan-to-value of 116%.

The new leases concluded in the period are indicative of the continued strong

retail demand at the centres," L2D said. "The portfolio remains well

positioned for operational growth, supported by good quality underlying

property income and supplemented by yield-enhancing developments."

Its shares ended trade 4.3% higher at 7.50 rand.