property & asset management limited · • june 2014 half year results ... of financial...
TRANSCRIPT
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: [email protected] or [email protected] 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!