Projects profit before tax to be up to 90% lower than the figure for 2019
Diversified property outfit, RDC properties Limited Group, expects its profit before tax for the year ended 31 December 2020 to be more than P128 million, this publication has learnt.
In a communique to its shareholders published with the Botswana Stock Exchange (BSE) recently, the RDC Board of Directors noted that the company’s profit before tax for the period will be approximately between 80 percent and 90 percent or P129.7 million to P145.9 million lower than the P162.1 million reported for the period ended 31 December 2019.
“The main reasons for the decrease are management’s conservative approach to the valuation of the investment property portfolio in the current period (effect of approx P110.0 million or 70 percent) and a reduction of income from hospitality properties due to the challenging operating conditions in the extended COVID-19 national lockdowns in Botswana,” the RDC Board said. “The nature of the Group portfolio, diversified by geographical area, has enabled the company to mitigate the impact of fair value adjustments on the portfolio.”
The RDC Board disclosed that the acquisitions in South Africa and the USA in Q1 of 2020 have been accretive and supported the Group. The Board noted that full details of the company’s performance will be provided upon release of the final audited financial results for the period by end of March 2021 and that the actual results may differ from those disclosed.
RDC Properties is a property management, development and rental company in Botswana. It also has interests in Madagascar through a Mauritius-based subsidiary. The company develops and manages commercial, industrial and residential developments which are based in prime locations in major towns and cities of Botswana.
RDC Properties offers long-term value to its shareholders through construction income, rental income, hospitality income, capital appreciation and sale of premium properties. Landmark properties in its portfolio include Masa Centre, Standard Chartered House, Chobe Marina Lodge and Isalo Rock Lodge. RDC Properties is investigating investment opportunities to expand its footprint in South Africa, Mozambique and Namibia.