property & asset management limited · • june 2014 half year results ... of financial...

Presented by:

Property & Asset Management Limited

06/08/2014

• June 2014 Half Year Results – Highlights

• Review of Financial Trends

• Projects and Market Overview

• Prospects and Developments

FINANCIALS:

REVENUE GROWTH UP BY 25%

PROFIT BEFORE TAX UP BY 20%

INVESTMENTS AND PROPERTY PORTFOLIO UP BY 14%

ABRIDGED UN-AUDITED GROUP STATEMENT OF Six months Six months

COMPREHENSIVE INCOME Ended 30 June Ended 30 June

For the six months ended 30 June 2014 2014 2013

P’000 P’000

Revenue 37,978 30,462

Operating expenses -10,057 -9,245 25%

Other operating income 1,195 308

Loss arising from joint venture -1,439 -

Net foreign exchange gains (losses) -904 3,825

Profit from operations 26, 773 25,350 6%

Net finance costs -11,205 -12,343

Profit before tax 15,568 13,007 20%

Income tax expense -140 -325

Profit for the period from continuing operations 15,428 12,682 22%

Other comprehensive income

Exchange differences on translation of foreign operations -2,369

Total comprehensive income for the period 15,428 10,313

Profit for the period attributable to:

Owners of the company 11,021 10,153

Non-controlling interest 4,407 2,529

Number of linked units in issue at period end 222,182,055 178,266,260

Earnings per linked unit (thebe) 4.96 5.7

Interim dividend (thebe) 0.054 0.064

Interim debenture interest (thebe) 2.717 3.242

Total distribution (thebe) 2.771 3.306

ABRIDGED UN-AUDITED GROUP STATEMENT

OF FINANCIAL POSITION Six months Six months

As at 30 June 2014 Ended 30 June Ended 30 June

2014 2013

Assets P’000 P’000

Property, plant and equipment 2,693 24,603

Intangible asset 1,000 1,000

Investment properties 849,501 736,605

Investments - 1,894

Investment in a joint venture 15,635 -

Deferred tax asset - 1,983

Current assets 33,319 28,159

Total Assets 902,148 794,244

Equity and Liabilities

Equity attributable to the owners of the company 478,485 356,227

Non-controlling interests 122,432 132,227

Long term borrowings 222,850 234,038

Deferred tax liabilities 35,544 26,011

Current liabilities 42,837 45,901

Total Equity and Liabilities 902,148 794,224

INVESTMENT AND PROPERTY PORTFOLIO

Up by 14%, now stands at P869 million (2013 : P 766 million)

REVENUE

Up by 25% to P37, 978 (2013: P30,462)

PROFIT BEFORE TAX

Up by 20% to P15, 568 (2013: P13, 007)

LONG TERM BORROWINGS

Down by P11,188 million to P222, 850 (2013: P234, 038)

DISTRIBUTION TO UNIT HOLDERS - INTERIM

Interim dividend (thebe) 0.054

Interim debenture interest (thebe) 2.717

Total distribution (thebe) 2.771

STOCK MARKET STATISTICS

◦ Share price :

P 2.03 , up by 45% (2013: P 1.40* )

◦ Linked units in issue:

222, 182, 055

◦ NAV / Linked unit:

P 2.15 UP 7.5% ( 2013 – P2.00)

* adjusted for share split

RDC PROPERTIES SUMMARY FIVE YEARS OVERVIEW

June 2010

June 2011

June 2012

June 2013

June 2014

Property Portfolio 390,468 508,289 669,19 766,085 868,829

Revenue 15,393 15,352 19,145 30, 462 37, 978

Operating costs 3,315 5,397 5,782 9, 245 10, 057

Operating profit 10,043 7,855 10,329 25, 350 26, 773

Profit before tax 9,492 10,073 11,530 13,007 15,568

Botswana is said to have the most efficient and transparent developing

commercial real estate markets while ranking number one among 42 emerging

and frontier property market around the world (Cushman & Wakefield).

Industrial and residential developments continues to yield impressive results with

an increase total returns up to 21.4% for the year 2013 (IPD reports).

Over supply of offices resulted to its poor performance in the market with

vacancies increasing to 5.9% (IPD reports).

RDC has aligned its new development strategies to generate both appreciable

income and capital growth for the group by planning its investment around the

viable sectors.

RDC PROPERTIES LIMITED

Market Overview

The Group has commenced development of new warehouse units at Gaborone

West and now planning towards carrying out residential developments in

response to market needs.

RDC is currently investigating on the possibility of increasing the hospitality

offering at Masa Centre which is most sought after as this will mitigate the risk of

over supply of office spaces which has led to possible vacancies.

The acquisition of Chobe Marina Lodge had a significant impact on the overall

result as the tourist activities in the Kasane region is now booming with the

Lodge delivering excellent results.

The PAM Team continues to implement efficient management practices to boost

the group’s activities while improving Clients’ leasing experiences.

RDC PROPERTIES LIMITED

Response to market by RDC Properties

Segmental Analysis and Lease Expiry Profile

Current Segmental Analysis shows a much diversified and well balanced

Portfolio which we are planning on improving to mitigate office space risks:

Office Space 42% - comprising prime space in key areas

Hospitality 38% - ever growing and strategic sector

Retail 16%

Industrial 4%

As a direct consequence of the Segmental Spread and leveraging on Blue Chip

Tenancies the Lease Expiry Profile shows close to 61% of the Lease expiring

well beyond 5 Year plus

15% by 2014

6% by 2015

18% by 2016

61% by 2017 and after

RDC PROPERTIES LIMITED Segmental Analysis and Lease Expiry Profile

Masa Centre still remains the social hub of Gaborone.

Lansmore Hotel has maintained its place as the preferred business Hotel in town and constantly implementing improvement activities to boost customer experience.

Lush Life Style, Godding & Godding, Reeca Travels, OBP Consulting and Yusata Investments are the new additions to Masa Centre.

Super Index has taken up a 5 year fixed term lease within our industrial development in Phakalane to set up a packaging manufacturing firm while Standard Chartered Bank has taken up more space in Standard House.

RDC PROPERTIES LIMITED Portfolio Highlights of the last months

STANDARD HOUSE

MASA CENTRE

LANSMORE HOTEL…

SNAPSHOTS OF MASA TENANTS

REALESTATE OFFICE PARK

CHOBE MARINA LODGE

CHOBE MARINA LODGE

RDC has commenced the development of new warehousing units – 14nos of

approximately 231sqm each.

High flexibility of design was maintained to permit the subdivision of the development

into smaller or larger units to meet various business needs.

The Project is well within time and budget, and is expected to be completed by the

second quarter of 2015.

RDC PROPERTIES LIMITED G/West Extension Development on Plot 22018

New Development

PAM has now commenced with the feasibility and plans for the development of

108 apartments with ample parking and recreational areas.

The development comprises of 1bedroom / 2 bedroom / 2 bedroom Lofts with

magnificent terraces.

Designs are currently at an advanced stage.

RDC PROPERTIES LIMITED Residential: New Development being studied

RDC PROPERTIES LIMITED

Marketing

We are still ensuring proper visibility and strategic marketing plans are

continuously implemented within the group’s portfolio to reduce existing

vacancies and also promote healthy CSR in the organization.

Masa Centre constantly hosts events to promote centre activities while

giving all Batswana the opportunity to have a share of the exciting

experience of improved social life in the country.

For more information on letting opportunities and all upcoming events,

please contact us through: pamservices@rdc.bw or masacentre@rdc.bw or

call 391 4548/3910290 or fax 3973441

Masa Centre is hosting a Food and Clothing Charity campaign which

commenced in June 2014 to end in November 2014.

There will be two handover ceremonies scheduled for 18th August in Masa

Centre and 1st December at a nominated charity premises.

We will continue supporting Ngwapa Primary School with our contributions.

The School performed 3rd in the Sub-District and TWO Children were

recognized as top performers at a ceremony on the 1st May 2014

RDC PROPERTIES LIMITED

Social Responsibility

Masa Charity/ Ngwapa Primary School

RDC PROPERTIES LIMITED

Social Responsibility Contd.

–8/8/2014

THANK YOU!