Summary of Financial Results
- This interim report reflects a robust performance for RDC Properties Limited given the macroeconomic challenges.
- The investment portfolio increased to P5.9 billion, from P5.8 billion during the previous comparable period.
- Group revenue increased by 9% to reach P272.9 million compared to the prior period.
- Profit from operations saw a 12% increase, amounting to P159.3 million.
- However, the profit before tax decreased by 60% due to unrealised fair value reductions on interest rate derivatives and fair value adjustments made on investment properties held for sale.
- The net profit before tax, excluding the aforementioned items, increased by 27% or P13.6 million compared to the previous period.
- The company has managed to reduce the loan to value by 1.1%, bringing it down to 44.9%.
- The Group is in a strong cash flow position, with an increase in cash from operations by 12%.
Operations, Highlights and Prospects
- Amid economic changes and inflation rates, RDC was able to reduce its portfolio vacancy rate to 9.9%.
- Property management was effective as tenant retention was 97% of the Gross Lettable Area.
- New Zambian asset is expected to contribute to the operations moving forward.
- Non-core properties were disposed, of primarily to pay down debt.
- In response to the energy crisis in South Africa, RDC ramped up its solar generation program.
- The company has also focused on water consumption and waste management as part of its ESG strategy.
- RDC has supported various sectors such as education, women’s upliftment and the arts as part of their Corporate Social Responsibility (CSR) program.
- The report indicated the presence of RDC Properties Limited in the IFSC registry from 1st January 2023.
About RDC Properties Limited (RDCP.bw)
RDC Properties Limited is a Botswana Stock Exchange-listed real estate company with a focus on industrial, commercial and residential properties in Gaborone and surrounding areas. The company’s mission is to provide innovative and reliable services for the acquisition, development, and leasing of quality real estate. RDCP is primarily operating in Botswana, South Africa, United States of America (USA), Mozambique, Madagascar and Namibia.
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