Letlole La Rona (LLR) has announced that its P40 million new Plot 32084 project is well underway and 80 percent of it has been covered forecasting to be completed in April 2014.
LLR acting Chief Executive Officer Sethebe Manake said that the new project rental is expected to increase income by 26 percent.
On the operational performance of the company, Manake pointed out that the average lease period is 3-5 years for industrial and retail while for hotels seven-year leases are remaining.
She added that commercial lease terminates end of July 2014, with re letting in progress. “Rental rates achieved at market related rentals on renewals.”
“On leasing and tenancy 2 percent of GLA got renewed during the half year period while 5 percent of GLA to be renewed in the last half of the year 2013/2014. 72 percent of rental was collected and we still have 28 percent outstanding debtors,” said Manake.
She highlighted that the company got rental income of P30.82m and also saw an increase in Investment Portfolio value of 13 percent increase. She added that income distribution of 6.60 thebe per share, dividends, P0.05 and debenture interest of 6.55 thebe were achieved.
The company’s unaudited interim results and distribution announcement for the six months period ended 31 December 2013 indicated that profit after fair value adjustment and before tax for the six months ended 31 December 2013 amounted to P50.17m.
“This is inclusive of a fair value revaluation of P25.62m following Directors internal valuation of the portfolio,” she stated.
She emphasized that LLR continues in its quest to develop sound investments for the investor and added the company continues to maintain a 100 percent portfolio occupancy level.
Information contained in LLR interim results also highlighted that the Asset Manager contract terminates on 31 March 2014 and recruitment of an appropriately qualified and experienced individual is under way.
The statement indicated that in the interim and until such individual is appointed, the Board of Directors has engaged Marina Bathuleng-Mookodi as Executive Director to oversee LLR operations.