31 Mar 2014

RDC Properties Limited group has managed to generate a revenue increase of 56 per cent from P46 million in 2012 to P71 million in 2013.

This was announced by Property and Asset Management financial reporting manager, Mr Keineetse Saleshando, when presenting the groups’ audited financial results for the year ended December 2013 on March 28. 

Mr Saleshando said 2013 had been a good year for the company because it saw a substantial shift from profits generated by valuations of properties to a substantial increase in revenue growth, mainly due to the contribution by Masa Centre to the overall results. 

“The company managed to generate P71 million in revenue, which is a huge shift mainly because it was the first year that Masa Centre contributed a four years trading to the financials,” he said. 

He said the company’s profit from operations before fair value adjustments also increased by 83 per cent from P30 million in 2012 to P54 million, whilst investment and property portfolio, increased by 12 per cent from P765 million in 2012 to P859 million. 

Again, he noted that the company achieved a 14 per cent return on equity in 2013. 

The surplus arising from revaluation of properties, Mr Saleshando said decreased by 41 per cent from P107 million in 2012 to P63 million. That, he said was “mainly because in 2012 Masa Centre was moved from being work in progress to investment property and this created a huge surplus in revaluation. The figure was about P83 million. So, this year we didn’t have that which is why our revaluation surplus is slightly lower.”

Furthermore, he said profit from operations also decreased by 14 per cent from P137 million in 2012 to P117 million in 2013. 

In addition, Mr Saleshando said the long term borrowing also decreased again in 2013, from P232 million in 2012 to P223 million.

At the year end, he said the share price was up by 41 per cent from the 2012 share price, something he said was “a good indication that anybody investing in the company was getting their money’s worth.”

He also noted that the current share price was 1.98 per cent as of March 25 last year adding that the net asset value had also increased. RDC Properties Limited is the first variable rate loan stock company listed on the Botswana Stock Exchange since 1996. 

It selectively develops and invests in modern commercial and industrial buildings in prominent locations in Botswana and Madagascar. The group’s main strategic objective is to be developers and investors in prime properties, contributing to the improvement of the quality of life in developing countries. Ends