Retail billionaire Brett Blundy ‘cautious’ on coronavirus with Aventus

Latest distribution cut ‘to further improve the group’s capital position’.

Listed jewellery chain Lovisa has a near 450-store network globally that has been hit by the coronavirus crisis.

Retail billionaire Brett Blundy has signalled he is taking a cautious approach to the spreading coronavirus with the Aventus property fund he founded declaring a distribution at just a quarter of previous levels.

Mr Blundy, who is also one of the country’s most successful retailers, has a stake of about 29 per cent in the trust that owns about $2bn worth of centres that focus on selling essential items.

Aventus says everyday-needs tenants make up the largest category in the portfolio with about 38 per cent of income but that is followed by furniture and homewares. It has no department stores and few fashion and apparel outlets.

Mr Blundy is also the major shareholder in listed jewellery chain Lovisa, which has a near 450-store network globally that has been hit by the crisis.

He has also has stakes in homewares group Adairs and Accent Group, the owner of brands such as Platypus, Athlete’s Foot, Skechers and Hype DC, that have been hit.

Aventus said in an after market statement that the operating performance of the portfolio up to the escalation of the COVID-19 pandemic had been solid and the group’s balance sheet remains robust with no debt expiring before May 2022 and over $100m of cash and undrawn facilities available.

“However, in light of the increasing uncertainty concerning the impact of COVID-19 on society, the economy and retailers, the board has adopted a conservative approach for the March 2020 quarter distribution,” the company said.

The distribution of 1.065c per unit was equivalent to 25 per cent of distributions paid last quarter with the cut made to further improve the group’s capital position.

“The board has not taken this decision lightly but believes it is in the best interest of the group to preserve liquidity at this point in time,” Aventus said.

The company also followed other retail landlords in dumping guidance on the back of uncertainty concerning the virus impact.

Mall companies Scentre and Vicinity Centres as well as Stockland, GPT and Mirvac dumped guidance over the last week.

Aventus said it was prudent to withdraw guidance “in light of the uncertainty as to the duration and extent of COVID-19 and the measures to manage its spread”.

The company further flagged it would assess the June 2020 quarter distribution at the end of the financial year.