Property & Asset Management Limitedrdcbw.com/sites/default/files/Investor Information... · The Lease Expiry Profile shows 57% of the leases expiring well beyond 2020 2019 RDC PROPERTIES

Presented by:

Property & Asset Management Limited

28/03/2016

Construction

Hospitality

Realestate Group

Real Estate

• Introduction

• Our contribution to the Community

• 2016 Year End Results – Highlights

• Review of Financial Trends

• Projects and Market Overview

• Regional Prospects and Developments

Construction

Hospitality

Realestate Group

Real Estate

Engaging with communities through our various social responsibility programs

remains an experience very close to the Group. Thus we continually strive to live up

to our values of “improving the life of the communities” in which we operate in.

We will continuously drive annual charity campaigns such as to support:

Ngwapa Primary School,

Sefhare Primary Hospital,

Masa Food & Clothing for Charity campaign, and

Promoting local artists and interaction with the local community at Chobe Marina

Lodge.

Through our annual “Masa Centre Food and Clothing for Charity Campaign” we

supported the Mother Pontsho Foundation.

RDC PROPERTIES LIMITED

Our contribution to the Community Construction

Hospitality

Realestate Group

Real Estate


Ngwapa Primary School Prize Giving – 14th October 2016 Construction

Hospitality

Realestate Group

Real Estate


Masa Carols by Candle Light and Charity Handover Ceremony

1st December 2016 Construction

Hospitality

Realestate Group

Real Estate


Sefhare Primary Hospital In Patients Christmas Party

20th December 2016 Construction

Hospitality

Realestate Group

Real Estate

• Introduction






Construction

Hospitality

Realestate Group

Real Estate

EXCEPTIONAL NET INCOME FROM OPERATIONS BEFORE FAIR VALUE

ADJUSTMENT

Up by 31% to P59.8 million (2015: P45.7 million)

Due to the investment of the proceed from rights issue and good

performance of our properties

VERY STRONG STATEMENT OF FINANCIAL POSITION

Long Term Debt to Portfolio value: 3% net of cash

Very low borrowings & potential for gearing to take up opportunities

Construction

Hospitality

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INVESTMENT AND PROPERTY PORTFOLIO

Up by 12%, now stands at P1,237 million (2015: P1,103 million)

REVENUE

Up by 4.5% to P90.9 million (2015: P87.0 million)

NET INCOME FROM OPERATIONS BEFORE FAIR VALUE ADJUSTMENT


PROFIT BEFORE TAX


DISTRIBUTION TO UNIT HOLDERS

Up 38% to P29.5 million (2015: P21.3 million)

Construction

Hospitality

Realestate Group

Real Estate

STOCK MARKET STATISTICS

◦ Share price :

P2.70 up 10% (2015: P2.46)

◦ Linked units in issue:

347,547,222

◦ Adjusted NAV / Linked unit:

P2.84 up 11% (2015: P2.56)

◦ Return on equity:

Now stands at 11% (2015: 9%)

Construction

Hospitality

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Real Estate

RDC PROPERTIES SUMMARY FIVE YEARS OVERVIEW (P’000)

2012

2013

2014

2015

2016

Investment & Property Portfolio 764,992 858,842 950,328 1,103,835 1,236,919

Revenue 46,025 71,620 78,130 86,993 90,886

Net income from operations before fair value adjustment 15,617 33,734 37,455 45,704 59,810

Adjusted NAV P2.12 P2.27 P2.62 P2.56 P2.84

Share price per linked unit P1.39 P1.80 P2.03 P2.46 P2.70

Construction

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5 years Summary

Construction

Hospitality

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Real Estate


5 years Summary Market cap & share price growth – based at 100

Yearend

Market

Capitalisation

(Pmillions) %Increase

Priceper

linkedunit

(P) %Increase

2012 245.7 1.39

2013 396.6 161% 1.80 129%

2014 447.3 182% 2.03 146%

2015 855.0 348% 2.46 177%

2016 938.4 382% 2.70 194%

Construction

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5 years Summary

Portfolio growth analysis – based at 100

Construction

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5 years Summary

Adjusted NAV versus price per linked unit

SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2016 P’000

2015 P’000 % Change

Revenue 90,886 86,993 4

Operating expenses (27,834) (25,678)

(Loss)/income arising from joint venture (310) 238

Other foreign exchange (losses)/gains (240) 52

Other operating income 2,673 1,220

Investment income 12,176 1,767

Finance costs (17,541) (18,888)

Net income from operations before fair value adjustments 59,810 45,704 31

Surplus arising on revaluation of properties 90,350 80,618

Profit before tax 150,160 126,322 19

Income tax expense (25,659) (25,965)

Profit for the year 124,501 100,357 24

Other comprehensive income

Exchange differences on translation of foreign operations 566 175

Net fair value gain on available for sale financial asset 1,276 -

Total comprehensive income for the year 126,343 100,532 26

Total comprehensive income for the year attributable to:

Owners of the company 106,342 76,754

Non-controlling interest 20,001 23,778

126,343 101,532 26

Earnings per linked unit (thebe) 31.64 31.19 1

Distribution per linked unit (thebe) 8.48 7.52 13

Construction

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SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

2016 2015

Assets P’000 P’000

Property, plant and equipment 10,168 1,146

Intangible asset 1,000 1,000

Available for sale investment 14,415 -

Investment in a joint venture 26,434 26,528

Investment properties 1,169,268 1,075,161

Rental receivable - straight line rental adjustment 10,839 9,656

Long-term trade receivables 2,052 8,197

Current assets 205,180 201,981

Asset classified as held for sale 15,634 -

Total Assets 1,454,990 1,323,669

Equity and Liabilities

Equity attributable to the owners of the parent 927,806 840,319

Non-controlling interests 177,559 160,706

Long term borrowings 224,048 211,621

Deferred tax liabilities 86,537 66,714

Current liabilities 39,040 44,309

Total Equity and Liabilities 1,454,990 1,323,669

Construction

Hospitality

Realestate Group

Real Estate

Construction

Hospitality

Realestate Group

Real Estate

• Introduction






The 2016 period came with challenging economic climate and financial

institutions faced with constrained liquidity issues.

The Group’s strategy of creating a well balanced portfolio located in prime areas

helped provide the required resilience necessary to mitigate the challenges faced

by the property market in 2016.

Industrial and good quality residential properties still remain in good standing.

Office and Retail Segment appears to be witnessing increased developments

which is a source of concern.

The Gaborone Hospitality sector is facing increased development activities which

might lead to risk of over supply in future if current trend continues.


Market Overview Construction

Hospitality

Realestate Group

Real Estate

BOTSWANA:

Masa Suites development now completed and recording good

results.

Gaborone West warehouse extension development now completed

and fully let.

The ICC flats development commenced in 18th April 2016 and is

currently ahead of planned progress and within budget - should be

completed early 2018.


Response to local market Construction

Hospitality

Realestate Group

Real Estate

Vacancies within the group is currently at 3.24% against total portfolio.

The Lease Expiry Profile shows 57% of the leases expiring well beyond

2020


Portfolio Analysis Lease Expiry Profile Construction

Hospitality

Realestate Group

Real Estate

2017

13%

2018

19%

2019

11%

2020+

57%

RDC PROPERTIES LEASE EXPIRY PROFILE


Portfolio Analysis Segment and Geographical Spread Construction

Hospitality

Realestate Group

Real Estate

Maun 1%

Kasane 14%

Gaborone 79%

Jwaneng 2%

Palapye 2%

Serowe 2%

Madagascar 0%

PORTFOLIO GEOGRAPHICAL SPREAD BY REVENUE

Hospitality 42%

Industrial 5%

Office 33%

Residential 2%

Retail 18%

SEGMENT SPREAD BY REVENUE

The Segment Spread by revenue below shows a well balanced portfolio resilient

to dynamic economic / market conditions.

Gaborone Still remains the prime location for the group’s portfolio with strategy

of regional diversification already in progress.

Status:

ahead of planned progress;

Completion expected Q2 2018

Development now progressing to Finishes stage.

Location: Extension 9

Comprise:

20 Nos. 1 bedroom,

15 Nos. 2 bedrooms and

10 Nos. 2 bedroom lofts.

Held for rental income.


ICC Flats Extension Plots 2551/2/59/60 - New Development Construction

Hospitality

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ICC Flats Extension Plots 2551/2/59/60 - New Development Construction

Hospitality

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Typical Floor Layout

Construction

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Realestate Group

Real Estate

• Introduction






We do not forget THE LOCAL MARKET – LOCAL OPPORTUNITITES INVESTIGATED.

We have taken advantage of opportunities for sale…

We are completing the ICC Flats;

We are investigating a new segments of the market.

GEOGRAPHICAL GROWTH - LOCAL vs PAN AFRICAN GROWTH

We are creating JV’s as a mean for development / review of potential markets (other markets):

Realestate Group

REGIONAL DIVERSIFICATION

NAMIBIA:

Secured sites for development of convenience shopping centres in Katima

Mulilo & Tsumeb;

Land allocations for 3 other sites in progress. Construction is expected to

start within the next six months.

MOZAMBIQUE:

Agreements signed for the development of two shopping centres;

Acquisition of a partially completed convenience centre in Xai-Xai;

acquisition of a 55% shareholding of a company that holds 60% of the

Centre. Construction is expected to start as soon as the Reserve bank

approval is received.

Acquisition of a 58,000 m2 undeveloped land in Zimpeto (Maputo Suburb);

acquisition of a 60% shareholding of a company that holds 100% of the land.

Construction is expected to start within the next three months.

SOUTH AFRICA:

We acquired shares in a private placement of a Property Listed REIT.

Various other opportunities are being explored.


REGIONAL GROWTH Construction

Hospitality

Realestate Group

Real Estate

ALL DEVELOPMENTS ARE CARRIED FORWARD WITH THE ASSISTANCE OF RGS

XAI XAI – JV WITH KMR Incorporation of local company – in progress (60% held by RDC-KMR Mauritius) RDC-KMR – in progress (55% held by RDCP International) Our commitment : $1,32K (P13,2M) estimated cost $0.9K Construction tenders below our budget – should be on site by early Q2

ZIMPETO – JV WITH LALGY GROUP Incorporation of local company – in progress (100% held by RDC ZIMPETO Mauritius) RDC ZIMPETO Mauritius – in progress (60% held by RDCP International) Our commitment : USD3,300,000 (P33,300,000) Design in progress, Petrol Station component being negotiated (Total, Galp), Choppies

Committed and Broll starting the marketing; trying to be on site before END OF Q2

Realestate Group

Incorporation of local companies – completed;

RDCP Namibia (100% held by RDCPI); RDC Property Dev Namibia (70.3% held by RDCP Namibia)

We have a Namibian employee working in Windhoek (offices are our partners); team will be increased with a resource we know well by mid of the year.

RETAIL ---

KATIMA MULILO

Land purchased and notarial deed signed, being registered; land rezoning in progress;

Tender Design completed; BOQ being prepared and should be out soon for tender;

Expression of Interest ready – awaiting tender results

TSUMEB

Land offered, subdivision in progress; Pre-design completed;

GROOTFONTEIN

Land allocation in progress;

EENHANA

Land allocation in progress;

OUTAPI

Land allocation in progress.

Realestate Group


Regional Prospects & Developments – Namibia

RDC Katima Mulilo Mall

Construction

Hospitality

Realestate Group

Real Estate

–3/28/2017

THANK YOU! Construction

Hospitality

Realestate Group

Real Estate

Documents

Property & Asset Management Limitedrdcbw.com/sites/default/files/Investor Information... · The Lease Expiry Profile shows 57% of the leases expiring well beyond 2020 2019 RDC PROPERTIES