SWAPROP’s E60m Matata acquisition
MBABANE - SWAPROP will, subject to regulatory approval, be acquiring Matata Properties (Proprietary) Limited for approximately E60 million.
This was mentioned by Swaziland Property Investments Limited (SWAPROP) in their consolidated statement results for the year ended June 30, 2022.
The group said they would also be disposing of one of the properties from Tincwadzi Properties. During the year, the group’s occupancy levels were higher and rental income before the straight lining of leases adjustment increased from E22.3 million to E22.6 million. Total revenue increased from E22.6 million to E23.6 million. The group expenditure in 2022 increased as a result of increases in insurance, repairs and maintenance and management expenses.
Group
Against this backdrop, the distribution of E9.0 million for the year is slightly lower than that declared last year of E12.0 million.
The group said the external surveyor revalued the property portfolio during the current year using the income yield method, resulting in a E74.5 million upward fair value adjustment. They said 21.52 cents was declared on November 4 2022 payable to unitholders registered in the books of the company at the close of business on December 3 2022.
The register of members closed on December 2 2022 for the purpose of identifying unitholders to whom the distribution will be made. The above mentioned final distribution will be paid out of current earnings. The equities in Eswatini Stock Exchange (ESE) have recorded gains up to 3 per cent in the past three months.
The strong movement was owed to the hike in financial activities for companies trading locally. Noticeable changes were observed in some of the equities which acquired new businesses, thus enabling the market capitalisation to increase.
The all share index of Swazi Empowerment Limited (SEL) recorded a 2.7 per cent increase about two weeks ago. SEL had a market capitalisation of E666 000 000 last week which has since increased to E684 500 000.
The all share index of Inala Capital recorded a 3.7 per cent increase about a week ago. Inala Capital had a market capitalisation of E97 191 900 last week which has since increased to E100 791 600.
Nedbank Eswatini yielded the most gains as their market capitalisation hiked by 3.9 per cent.
Nedbank Eswatini had a market cap of E298 770 363 which adjusted to E310 721 177.
Capitalisation
ESE overall market capitalisation remain stagnant at E4 327 237 158.
The Royal Eswatini Sugar (RES) Corporation Limited have the highest market capitalisation of E1 464 467 104. At this rate, RES Corporation is likely to have a larger share of dividends in the current financial period.
ESE announced that dividends from local companies listed in their markets should be paid directly to client’s bank accounts.
ESE said this was in line with the Central Bank of Eswatini’s media statement issued on July 20 2021, announcing the elimination of cheques as a mode of payment effective from January 2022.
A majority of investors in Eswatini both as individuals and companies use the Buy and Hold Strategy when buying stock on public listed companies under ESE.
They seek out undervalued stocks and buy them with the intent to hold on to these positions for months, if not years, with the intent to benefit from the company’s dividends.
The strategy is advantageous to investors looking to benefit from dividends but further contributes to the slow movement of the local market.
Investors
This was mentioned by ESE analysis department in an interview with this publication.
They said they had seven enlisted companies under ESE but most investors use the buy and hold strategy which is beneficiary to the dividends.
ESE said investors come with the mantra of ‘buy low, sell high’, and seek out undervalued stocks and buy them with the intent to hold on to these positions for months, if not years.
They said this was because investors believe the company’s management and performance supersede all the chaos and flux that is inherent in the market, and in time, the stock will reward them with a large return on their capital.
“A buy and hold strategy is a longterm, passive strategy in which investors keep a relatively stable portfolio over time, regardless of short-term fluctuations,” said ESE.