The Aventus Group (ASX: AVN) share price was a very strong performer on Tuesday.
The shares of the largest fully integrated owner, manager and developer of large format retail centres in Australia raced a sizeable 9% higher to end the day at $1.54.
Its shares will be on watch again on Wednesday after the release of an announcement after the market close.
What did Aventus announce?
According to the release, Aventus' operating performance up to the escalation of the COVID-19 pandemic had been solid.
Management also notes that its balance sheet is strong, with over $100 million of cash and undrawn facilities available. It also has no debt expiring before May 2022.
However, due to the increasing uncertainty concerning the impact of COVID-19 on society, the economy, and retailers, the Aventus board has adopted a conservative approach for the March 2020 quarter distribution.
The release explains that the company has declared a distribution of 1.065 cents per unit. This is the equivalent to 25% of distributions paid in the previous quarter.
Management advised that this was done to further improve the capital position of the group during these volatile times.
It explained: "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 has also suspended its distribution reinvestment plan until further notice.
FY 2020 guidance update.
As with many companies before it, Aventus has withdrawn its guidance for FY 2020.
Management considers it prudent to do so in light of the uncertainty as to the duration and extent of COVID-19 and the measures to manage its spread.
Looking ahead, management advised that it will assess the June 2020 quarter distribution at the end of the financial year.
