José Snyders
L2D
Chief Executive
Liberty Two Degrees (L2D) has delivered a robust performance for the 2024 financial year, demonstrating resilience amid persistent macroeconomic pressures and operational challenges stemming from utility supply issues and municipal service delivery constraints. The company’s strategic focus on getting the fundamentals right, optimising lease returns, and refining its Net Zero strategy has positioned it well for sustainable growth and long-term value creation.
Performance Highlights:
Turnover growth of 4.9%
Trading density up 4.5% year-on-year
High demand for space, resulting in the renewal of 241 leases
Positive lease reversions in both retail and office portfolio
Significant strides towards Net Zero 2030, reinforcing L2D’s sustainability leadership
22 Footprint Marketing Awards from SACSC, recognising excellence in innovation and experiential retail
“Our 2024 performance reflects our ability to navigate a complex operating environment while remaining steadfast in executing our growth strategy,” says José Snyders, Chief Executive of L2D, a precinct-focused, retail-centred portfolio within Standard Bank Group’s Insurance and Asset Management (IAM) business unit. “We have maintained strong financial and operational metrics, despite economic headwinds, underscoring the quality of our assets and our commitment to innovation.”
Sustained Growth in Trading Performance
L2D’s retail portfolio achieved inflation beating turnover growth of 4.9%, reflecting continued consumer engagement. Trading density for the retail portfolio reached R56,477/m², a 4.5% increase from 2023, surpassing the Clur Q3 2024 all-centre benchmark of R41,539/m², which grew 2.9% year-on-year.
While December 2024 saw an expected moderation in spend—partly due to fewer weekends compared to 2023 – the Black Friday “period” significantly boosted November’s performance. Overall, festive season trading (November and December combined) grew 5.2% year-on-year.
Portfolio occupancy remained strong at 94.4%, with future pre-lets improving this to 94.7% (December 2023: 94.2%). Retail sector occupancies stood at 96.9%, increasing to 97.3% including pre-lets, while office occupancy showed improvement, reaching 86.1% including pre-lets.
L2D concluded new leasing deals totalling 44,074m² during the period, attracting high-profile brands such as Coricraft, Rochester, Puma, La Parada, and JD Sports at Eastgate Shopping Centre, along with UNIQ by Checkers in Sandton City and Midlands Mall.
“We continue to bring fresh retail concepts to our malls, creating dynamic and engaging environments that drive foot traffic and strengthen our competitive edge,” says Jonathan Sinden, Chief Operations Officer of L2D.
Hospitality Sector Outperforms Expectations
The hospitality segment saw higher event volumes at the convention centre and improved hotel occupancy rates, achieving 71.7% occupancy, up from 65.5% in 2023. The reopening of Sandton Towers in December 2024, along with preparations to host the G20 and B20 delegations later this year, further supports the sector’s positive trajectory.
Driving Operational Efficiencies and Sustainability
The stabilisation of electricity supply helped reduce operating costs, but persistent service delivery challenges underscore the need for continued investment in energy and water efficiency.
L2D remains committed to its Net Zero Journey, achieving a 5.9% reduction in non-renewable energy usage and a 5.2% reduction in municipal water consumption, both exceeding targets. Additionally, the company attained an 89% waste diversion rate, earning Net Zero Waste certification from the Green Building Council of South Africa. The retail portfolio’s Green Star recertification further affirms L2D’s leadership in environmental sustainability. Building on this momentum, L2D is advancing its renewable energy initiatives, including energy wheeling at Sandton City and Nelson Mandela Square.
Industry Recognition: Leading in Experiential Retail
L2D’s commitment to experiential retail continues to differentiate its portfolio. The company was awarded 22 Footprint Marketing Awards by the South African Council of Shopping Centres, recognising its impact in marketing, creativity, and financial performance.
Throughout the year, L2D hosted numerous high-impact activations, including the award-winning live performance of Momo’s Magical Adventure at Sandton City, attracting 15,000 attendees. Eastgate Shopping Centre transformed into a festive wonderland, reinforcing its position as a key retail and entertainment destination.
“Our experiential initiatives have strengthened customer engagement and supported trading growth, reinforcing L2D’s market leadership,” adds Sinden.
Outlook: Focused on Sustainable Value Creation
Looking ahead, L2D remains focused on extracting value from core assets through effective leasing, fair cost recovery, and driving efficiency in its property management function. Strategic capital recycling and targeted asset disposals will further enhance the portfolio’s growth prospects.
“While we anticipate continued macroeconomic pressures in 2025, our disciplined approach to asset management, sustainability, and operational excellence will ensure we remain competitive while delivering long-term income and capital growth for our stakeholders,” concludes Snyders.