Aventus provides little comfort30 April 2020
Aventus Group are continuing to work through the COVID19 impacts whilst cutting back non essential expenditure and executive remuneration.
The group announced that all 20 centres in the Aventus portfolio remain open and trading with slightly reduced trading hours, but has not made any announcements or reference to the anticipated drop in sales, the impacts to rental or the numbers of SME in their portfolio.
The group has advised that approximately 87% of the portfolio by GLA is open and trading, including everyday needs tenants such as supermarkets, pharmacies, pet, office supplies and hardware. Most pleasingly, 30 retailers have re-opened in the last two weeks.
Aventus expect this trend to continue with state governments planning to work towards the lifting of a number of restrictions soon.
Aventus stated that the team is focused on reducing nonessential operating centre expenses with savings to be passed on to tenants, however given the nature of their Centres, there are unlikely to be significant savings from this initiatives.
The Group has reviewed its capital expenditure program and delayed non-core expenditure with the exception of the re-development and expansion of Caringbah Super Centre, which is underway in metropolitan Sydney and due for completion late 2020.
Aventus has also cut remuneration for key executive for 3 months with a 100% cut in fees to Brett Blundy a 60% cut to all other Non-Executive Independent Directors, a 50% cut to the fixed remuneration for Darren Holland, CEO, and a 30% cut for the fixed remuneration for CFO Lawrence Wong.