RDC profit goes up
Multinational property investment company, RDC Properties showed resilience against the challenging trading conditions brought by Covid- 19 pandemic.
The group recorded 19 percent increase in profit to P27.2 million in its half year period ended June 2021. Commenting on the published results, RDC Properties Group Chairman, Guido Giachetti said The Group benefited from both the strengthening rand and acquisitions resulting in a six percent increase in the investment portfolio to P2.3 billion. Group revenue increased by 17 percent to P72.5 million due to the positive impact of the acquisitions in Capitalgro. The resultant profit from operations of P45 million has increased by nine percent, despite the reduced impact of foreign exchange. “The surplus arising on investments relates to the Group’s USA assets. Returns on Research Court are cash backed while The Manning will be realised on completion. The profit for the period is therefore up by 19 percent, demonstrating the resilience of the RDC portfolio and robustness of the diversification strategy.”
He highlighted that in Botswana, the group performed well in line with budget in all segments, including commercial, retail, industrial and residential portfolio. “The leasing activity is taking traction, with some 40 leases being either renewed or entered afresh in the period.” However, the hospitality, leisure and entertainment sector along with the company’s food retailers are still seeing a depressed trading environment and have not yet experienced the much rebound. Guido said they expect to see a pick up as soon as the State of Public Emergency and its restrictions are lifted and normalization in 2022. “These results are underpinned by strong collection numbers as the tenants most affected by the restrictions have agreed to a restructuring of their debt.”
In the United States, the Group completed the second tranche of The Manning in July 2020, completing the Group’s investment program for the USA. “The Research Court Asset continues to perform well with low vacancy and strong demand underpinning an 8percent yield, realised monthly. The Manning development continues with US$ 81.5 million of sales committed and only 11 units remaining, and the project remains on target with an expected realisation date of mid 2022.”
The Group also completed the acquisition
the Xiquelene property in Maputo, Mo
zambique for a consideration of approximately P14 million. The company reported that it has obtained all the relevant authorizations from the local authorities and should be in a position to start the phased refurbishment, amounting to about P7 million worth of investment in the short term. The development of the phase 1 Zimpeto property continues with the petrol station and line shops due for completion by the end of 2021. Xai Xai Shopping Centre is also starting to attract Line Shop tenants, but the business environment in Mozambique is subdued due to the terrorism threat in the north of the Country as well as the economic effects of the pandemic.