Presented by:

Property & Asset Management Limited

26/03/2015

Construction

Hospitality

Realestate Group

Real Estate

• Update on Governance

• 2014 Year End Results – Highlights

• Review of Financial Trends

• Projects and Market Overview

• Prospects and Developments

Construction

Hospitality

Realestate Group

Real Estate

RDC PROPERTIES LIMITED Update on Governance

Board Appointments/Resignations

March 2014, Dr.Keith Jefferis appointed on the Board

August 2014, Mr.Lesang Magang appointed Lead Independent Director

August 2014, Mrs. Kate Maphage appointed on the audit and risk committee

August 2014, Mr.Marco Antonio Giachetti passed away (Founding Chairman)

Construction

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INVESTMENT AND PROPERTY PORTFOLIO

Up by 11%, now stands at P950.3 million (2013: P858.89 million)

RENTAL REVENUE

Up by 23% to P81.1 million (2013: P66.2 million)

PROFIT FOR THE YEAR

Up by 22% to P101.0 million (2013: P83.0 million)

LONG TERM BORROWINGS

Down by P10.3 million to P212.6 million (2013: P222.9 million) – now

stands at 22% of portfoilio value (2013: 26%)

DISTRIBUTION TO UNIT HOLDERS

Up 11% to 8.76 thebe per linked unit (2013: 7.88 thebe)

Construction

Hospitality

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Real Estate

STOCK MARKET STATISTICS

◦ Share price :

P2.02 up 12% (2013: P1.80)

◦ Linked units in issue:

222,182,055

◦ NAV / Linked unit:

P2.67 up 16% (2013: P2.31)

(clearly leg room for share price appreciation - trading at

2.13)

Construction

Hospitality

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Real Estate

RDC PROPERTIES SUMMARY FIVE YEARS OVERVIEW (P’000)

2010

2011

2012

2013

2014

Investment & Property Portfolio 469,513 626,409 764,992 858,842 950,328

Contractual lease rental revenue 28,898 30,954 48,259 66,167 81,057

Profit from operations before fair value adjustment 23,584 18,805 29,544 54,039 58,264

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RDC PROPERTIES LIMITED

5 years Summary

Construction

Hospitality

Realestate Group

Real Estate

RDC PROPERTIES LIMITED

5 years Summary

-

50

100

150

200

250

300

2010 2011 2012 2013 2014

Investment & Property Portfolio

Rental revenue

Profit from operations before

fair value adjustment

SUMMARISED CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

2014

P’000

2013

P’000 % Change

Rental revenue 81,057 66,167 23

Straight line rental adjustment (2,927) 5,453

Revenue 78,130 71,620 9

Operating expenses (23,545) (19,204)

Income arising from joint venture 2,416 1,152

Other operating income including foreign exchange gains 1,263 471

Profit from operations before fair value adjustments 58,264 54,039 8

Surplus arising on revaluation of properties 77,924 63,253 23

Profit from operations 136,188 117,292 16

Net finance costs (20,809) (20,305)

Profit before tax 115,379 96,987 19

Income tax expense (14,334) (13,980)

Profit for the year 101,045 83,007 22

Other comprehensive income

Exchange differences on translation of foreign operations 927 (1,518)

Total comprehensive income for the year 101,972 81,489 25

Total comprehensive income for the year attributable to:

Owners of the company 83,069 69,412

Non-controlling interest 18,903 12,077

101,972 81,489 25

Earnings per linked unit (thebe) 39.02 41.26 (5)

Distribution per linked unit (thebe) 8.76 7.88 11

Construction

Hospitality

Realestate Group

Real Estate

SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL

POSITION

2014 2013

Assets P’000 P’000

Property, plant and equipment 1,295 1,444

Intangible asset 1,000 1,000

Investment in a joint venture 22,548 16,145

Investment properties 925,485 840,253

Rental receivable - straight line rental adjustment 6,423 8,788

Long-term trade receivables 7,373 -

Current assets 29,427 30,201

Total Assets 993,551 897,831

Equity and Liabilities

Equity attributable to the owners of the parent 549,046 473,642

Non-controlling interests 136,928 118,025

Long term borrowings 212,602 222,851

Deferred tax liabilities 44,961 35,544

Current liabilities 50,014 47,769

Total Equity and Liabilities 993,551 897,831

Construction

Hospitality

Realestate Group

Real Estate

The property market in Botswana has still retained good ranking on the list of

emerging markets.

There is demand for residential properties in the country (both for lease and

outright purchase) especially for affordable housing.

The current liquidity challenges faced by the financial institutions is however

having an impact on the ability of buyers to secure funding for the purpose of

property purchases.

The CBD continues to witness increased developments with more office buildings

being constructed. This also increases the number of office spaces available

while some businesses keep migrating from other parts of the metropolis to take

up spaces in the CBD.

RDC PROPERTIES LIMITED Market Overview

Construction

Hospitality

Realestate Group

Real Estate

RDC is committed towards carrying out selective developments after carefully

conducting market research so as to respond to the market needs. (Ext 9

redevelopment/ Tlokweng Affordable Housing)

The new warehouse units development at Gaborone West are on track and on

budget. (3,234 sqm of industrial units)

Plans to increase the hospitality offering at Masa Centre through the introduction

of Masa Suites. This is expected to be completed early 2016.

The Board is considering the acquisition of an existing residential property

portfolio in an excellent locations; it is work in progress and currently undergoing

various regulatory approval.

Considering opportunities regionally.

RDC PROPERTIES LIMITED Response to market by RDC Properties

Construction

Hospitality

Realestate Group

Real Estate

The group currently records a 5.2% vacancy result.

Current Segmental Analysis shows a well balanced Portfolio for the group with

future plans to improve on the diversity so as to mitigate segmental risks.

The Lease Expiry Profile shows 53% of the leases expiring well beyond 4 years

RDC PROPERTIES LIMITED Portfolio Analysis

Segmental and Lease Expiry Profile

Office

38%

Hospitality

42%

Retail

17%

Industrial

3%

RDC PORTFOLIO SEGMENTAL SPREAD

2015

11%

2016

23%

2017

13%

2018 -

Onwards

53%

RDC LEASE EXPIRY PROFILE

Construction

Hospitality

Realestate Group

Real Estate

The Gaborone West Industrial development of works is currently on going and is

approximately 52% complete

It comprises of – 14nos Warehouse units of approximately 231sqm each with

flexibility of design to adapt to various business needs.

The Project is well on track and is expected to be completed by July 2015.

RDC PROPERTIES LIMITED G/West Warehouse Extension Development

on Plot 22018 - New Development

Construction

Hospitality

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This comprises of 30 Units of serviced of apartments of 1 bedroom suites and

studios.

This shall cater for long staying guests (Tourists, corporates, Citizens etc)

Premises to be managed by the prestigious Lansmore Masa Square Hotel.

Approval for change of use granted by DTRP awaiting City Coucil approval.

Works to commence soon and finishes are expected to be of high standards.

RDC PROPERTIES LIMITED Masa Suites – Hospitality Extension

Construction

Hospitality

Realestate Group

Real Estate

RDC PROPERTIES LIMITED Marketing

Maintaining visibility of the group’s portfolio remains a priority. Thus

implementing strategies aimed at reducing existing vacancies and creating

awareness of the group continue to be key focal areas.

Masa Centre continues to be “the destination of choice” through its various

service offerings, centre activities and charity endeavours.

For more information on letting opportunities and all upcoming events,

please contact us through: pamservices@rdc.bw or masacentre@rdc.bw or

call 391 4548/3910290 or fax 3973441

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RDC PROPERTIES LIMITED Social Responsibility

Masa Charity/ Ngwapa Primary School/Sephare

We continue to engage fully with the communities as we believe in

improving lives of Batswana. We are implementing social responsibility

initiatives aimed at assisting the less privileged in our society.

Masa Centre will undertake for the second year “the Food and Clothing

Charity campaign”

We shall continue supporting Ngwapa Primary School with our contributions

and awards to the best performing PSLE students.

We also embarked on actions towards improving the festive mood of the

Sefare Primary Hospital patients during the Christmas festivities.

Construction

Hospitality

Realestate Group

Real Estate

RDC PROPERTIES LIMITED

Social Responsibility Contd. Construction

Hospitality

Realestate Group

Real Estate

–3/26/2015

THANK YOU! Construction

Hospitality

Realestate Group

Real Estate