Revenue jump 51% to P66.5m
Botswana contributes 79 % of earnings
Trades in Mozambique, South Africa, Namibia, Madagascar and the USA
Listed property giant RDC Properties attributes its good results for the six year period ended 30 June, 2018 to its stable Botswana portfolio and the solid performance of Capitalgro portfolio in South Africa.
RDC, which is one the many listed property company, has a 26 percent increase in profit before tax, from P28.3 million in the previous corresponding period to P35.6 million for period under review. Revenue for the group increased by 51 percent from P43.9m to P66.5m.
The group has a broad portfolio in the region which includes Botswana, Mozambique, South Africa, Namibia, Madagascar and the USA.
However, it is the Botswana sector that remains the bedrock of the group, contributing 79 percent to RDC’s overall results while the rest is split among the remaining markets with South Africa coming second.
The Capitalgro portfolio in South Africa had early this year acquired The Edge building for a total of R307 million which was financed through a bank mortgage loan and a Capitalgro rights issue.
RDC’s participation on the rights issue of R120 million resulted in the group shareholding in Capitalgro increasing from 34.85 percent 62.99 percent.
“We are presently evaluating a number of opportunities presented to the Capitalgro team and we are confident of the prime portfolio that we are building in the Cape Town area,” said RDC Executive Chairman, Guido Giachetti.
Locally, Giachetti says the ICC Flats in Gaborone’s Extension 9 location are progressing well as well as leasing, adding that they are also evaluating more opportunities for development in the local market.
“In Mozambique, we are pleased to report that Xai Xai works have been completed and the anchor tenant is expected to commence shopping centre building their fit-out as soon as possible,” said the group Executive Chairman, adding that he advanced earthworks have commenced at the Zimpeto project and is expected to be a 24 months project. RDC is also continuing to look for further opportunities in this market according to Giachetti.
The City Lights project in the USA is said to be progressing well and the plan is to convert proceeds on the development sales into a yielding portfolio, Giachetti said adding that in Namibia they will start building works for the convenience centres following ministerial approval of the land transfer and finalisation of the deeds of sale. For the period under review, the board has declared a dividend of 0.124 Thebe per ordinary share and an interest of 6.206 Thebe per debenture.
“It is the intention of the directors, subject to the approval of the Botswana Stock Exchange, to propose, to those linked unit holders, who qualify, an elective distribution of 50 percent of the net interim distribution by way of a capitalisation option,” said Giachetti.