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Investment Strategy

Investment Strategy

Strategy Overview

L2D is focused on delivering sustainable growth, derived from quality property income to institutional and retail unitholders. This strategic goal has been the cornerstone of L2D since the inception of trading activities in 2016. L2D continuously re-assesses its strategic priorities in order to evaluate the effectiveness and growth sustainability of the portfolio.

The evaluation of our financial and non-financial performance indicators against benchmarks confirms that the current strategy is effective and assists management to in achieving the objectives set to deliver on performance. Management’s focus is to maintain the robust nature of the current assets that are held by L2D and the quality of the underlying income stream. L2D implemented the following steps to ensure the continuation of robust returns from its existing property portfolio:

Growth

L2D’s growth is supported by the mandate to expand its current property portfolio through the acquisition and development of new properties and the expansion of the current property portfolio. L2D was listed without gearing. This places it in the enviable position of utilising gearing capacity to fund quality acquisitions and expansions as appropriate.

The Board and the Investment Committee evaluate potential property acquisitions against the following requirements to ensure that investments are aligned to the current property portfolio and that the returns will remain robust in challenging trading conditions:

Robust super-regional and/or regional retail centres;
Premium quality, retail biased real estate;
Sustainable trading metrics;
Lifestyle and leisure destinations;
Precinct focused management; and
Predictable growth prospects.

The Business Model

L2D understands the importance of continuously enhancing the quality and value proposition of its properties. It is this continuous advancement that enables the properties to remain unique within their respective communities and subsequently attract more tenants and shoppers, thus increasing unitholder value.

As a sector benchmark in innovative property asset management capabilities, the underlying strong performance of L2D’s portfolio has sustained a strategic focus on the delivery of key operational metrics to maintain the portfolio’s robust nature. The ultimate result of providing a premium quality product to stakeholders is the trust earned from the quality product that L2D provides. This is a major driver in ensuring robust and sustainable returns for investors. L2D’s Property investment is associated with the capital growth of properties. The longer business cycle associated with property investment will create a more stable and predictable income stream for the unitholders of L2D.

L2D prides itself in understanding the needs of its stakeholders. Our efficient management team and asset management capabilities have the ability to adapt and deliver on the expectations of stakeholders. L2D predominantly focuses on the high and medium income households located in premium business nodes.

The geographical location and reputation of L2D’s properties ensures greater robustness against an array of economic factors such as urbanisation, income disparities and slower economic growth.