RDC Properties’ profit up 22%

SHARE   |   Sunday, 29 March 2015   |   By Keitebe Kgosikebatho
RDC Chairman Giachetti presenting the companys financial results RDC Chairman Giachetti presenting the companys financial results

• ROE is at 14%
• Profit up from P83m to P101m
• Rental revenues up 23%

RDC Properties Limited has announced its intentions of expanding investments and property portfolio after recording an impressive turnover for the year ended 31 December 2014.
Presenting the company’s audited results on Thursday Guido Giachetti, Group Managing Director, revealed that the results reflect solid contractual lease revenue which was up by 23 percent before the straight line rental adjustment.
The company‘s profit for the year is up by 22 percent to P101.0 million from P83.0 million in 2013. According the Managing Director, the investment and property portfolio grew 11 percent to P950.3 million. “The largest contributors to the growth in the portfolio value relate to two of our hospitality properties, namely Masa Centre and Chobe Marina Lodge, with each increasing by P28 million in value in line with their growth in rental income,” he said.
Rental revenues are up by 23 percent to P81.1 million from P66.2 million in 2013. According to Giachetti, Masa Centre continues to play a vital role in the heart of the Gaborone CBD, creating a unique and important entertainment destination for all Gaborone inhabitants and visitors from overseas. “Lansmore Masa Square Hotel, anchor tenant at Masa Centre, is also a success story as it continues to be one of the most sought after business hotels in the city of Gaborone,” he said.
The Return on Equity achieved for the year is 14 percent. The company, he said, will be increasing its exposure to the industrial and the residential sectors while exploring potential foreign diversifications. The company’s diverse portfolio, he said, creates the basis for long-term diversification of rentals both in terms of property sector and currency hedge.
“The Isalo lodge is now held as an investment property and accounted for at its fair value. The valuation held at book is conservative as it is at an amount lower than the independently received valuation,” said Giachetti.
According to the RDC management, they will continue responding to the market’s needs by being committed towards carrying out selective developments after carefully conducting market research. The board, he said, is considering the acquisition of a residential property portfolio well located and with substantial re-development opportunity. RDC also plans to increase the hospitality offering at Masa Centre through the introduction of Masa Suites. This project is expected to be completed early 2016. The company’s new ware house units development at Gaborone West are said to be on track and on budget.

Related news