RDC Properties records 20% jump in profit
Pauline Dikuelo | Friday August 15, 2014 13:37
The BSE listed company, which owns Masa Centre in the new CBD, said profits levels were pleasing as the Botswana property market becomes increasingly competitive-especially in Gaborone.
“Our profit before tax went up from P13 million last year to P 15.6 million this year. The results of the group have continued to rise and this trend will continue as Masa Centre strives for 100 percent occupancy,” RDC Properties Group managing director Jacob Pari stated during the half year, ended June, results presentation on Friday.
He said their investment and property portfolio now stands at P869 million, a 14 percent increase from the previous year.
“Industrial and residential developments continue to yield impressive results with an increase of total returns of up to 21.4 percent for the year ended 2013,” he said.
Further, Pari added that the acquisition of Chobe Marina Lodge positively impacted the overall results as bustling tourist activities in the Kasane region delivered excellent results. The results also showed that revenue went up by 25 percent to P37.98 million from the previous P30.5 million.
On the other hand, as a direct consequence of the segmental spread and leveraging on blue chip tenancies, the company says that the lease expiry profile shows that close to 61 percent of the leases will expire in about five years.
“About 15 percent of the leases expire this year, six percent next year, while 18 percent expire in 2016. At least 61 percent of them will expire by 2017 and after,” Pari said, adding that they have managed to secure some big contracts like the Standard Chartered Bank lease that has been extended.
“Super Index has taken up a five year fixed term lease within our industrial development in Phakalane to set up a packaging manufacturing firm. We also have some new additions at Masa Centre,” said Pari. He gave assurance that they have aligned their new development strategies to generate both appreciable income and capital growth for the group by planning its investment around viable sectors.
RDC properties also own Standard House and Real Estate office park. They also have some property in Madagascar.
“The Madagascar lodge closed in February this year due to the restructuring that is currently being done there. It’s expected to be back in operation in six months to generate income from its rental,” Pari noted, adding that they intend to repay the loan for the restructuring by February next year.