Letlole La Rona Records 20% Profit
Pauline Dikuelo | Monday September 25, 2017 16:09
According to the CEO, Paul More, this was primarily due to increased revenue including an income of P6.3 million from the newly acquired investment in NBC as well as continued focus on creating operating efficiencies.
LLR acquired a third stake in NBC Partnership. This partnership has invested in a retail centre with an underlying asset valued at P110 million in Francistown and the retail centre occupies a dominant position within the hierarchy of retail developments in the city because of its proximity to the main bus/taxi terminus.
“The company has proved to be resilient despite the current challenging trading environment. The vacancy rate for industrial and commercial portfolio was insignificant, sitting at one percent with the gross yield for LLR portfolio for 2017 sitting at 10%,” he said.
Further, More said management is proactive in ensuring that vacancy levels are low, and at close of the current financial year, the vacancy rate for industrial and commercial portfolio was insignificant sitting at one percent.
About 44% of LLR’s property portfolio is occupied by the industrial, followed by leisure with 34%, retail with 10%, office with seven percent and residential with five percent.
More said LLR will continue finding ways and means of growing its property portfolio and optimising its assets to achieve competitive total return noting that this will benefit investors in the form of increased earnings, which will in time translate into increased generation of wealth through biennial distribution.
He said LLR continues to explore deals in the market with a view to creating a well-diversified and efficient portfolio, which could survive market shocks at any given time. He added that apart from pursuing a strategy that will see a consolidation of its investment base locally, LLR will target sectors and markets in the continent, highlighting that this will be informed by potential revenue and capital growth to be generated.
“Sustained growth through this initiative will be enhanced by the company’s capital structure that seeks to optimise investment returns.
LLR will also target acquisitions that come with tenants of a competitive covenant strength on long leases, as this will not only guarantee occupation, but also real growth in income through predetermined escalations,” he added. He said all investments targeted, whether locally or offshore, will be driven by value-based decisions with a view to generating sustainable higher future earnings and enhancing the company’s potential for paying competitive return in the future.