Aventus See Strong Trading Conditions but low Rents

22 June 2020

Aventus Group advised today, that the operating performance of the Aventus portfolio has improved significantly through the months of May and June with all 20 centres open and trading at preCOVID-19 opening hours.


Notwithstanding this, the Group has only collected 83% of the average monthly rents billed in March, April and May.


Approximately 98% of leased stores by GLA are open and trading with 16 stores (out of approximately 600 stores) across the portfolio remain closed due to mandated closures in accordance with state government restrictions.


Traffic data from Aventus’ portfolio centres indicates a rebound in consumer shopping activity following the relaxation of government restrictions and the re-opening of stores. Customer traffic which fell by -3% at the start of COVID and -20% in the depths of COVID is now showing signs of +10% growth above last year .


Darren Holland, CEO of Aventus said, “Throughout this period, we have worked collaboratively across the portfolio and these early results demonstrate our strong relationships and the experience and hard work of our team. They also indicate the very robust and diverse nature of our tenant mix and the convenience of our centres. It has been very pleasing to see customer traffic rebound and to have most of our centres operating largely at pre-pandemic levels.”


In terms of leasing activity, portfolio occupancy remains high at circa 98% and Aventus has negotiated and executed 21 leases in May and June . Approximately a quarter of Aventus’ tenants fall within the National Cabinet Mandatory Code of Conduct and negotiations under that framework have resulted in agreements, including many lease extensions, with the majority of those tenants.


Aventus’ income is underpinned by its strong tenant profile which comprises approximately 87% national retailers, with the majority listed companies. Recent trading updates from key tenants including Bunnings, Officeworks, Harvey Norman, JB Hi-Fi, The Good Guys, Nick Scali, Super Retail Group, Beacon Lighting and Adairs, indicate strong sales growth and a pleasing rebound in trading in recent months.


The Board has approved a distribution of 75% of the June quarter earnings equivalent to 2.35 cents per security. The improved performance of the portfolio has provided the confidence to increase the distribution to more than double the distribution declared for the March quarter (1.065 cents per security). The lower than targeted payout ratio reflects the Board’s determination that this is an appropriate level of distribution while negotiations with Code affected tenants are being finalised.