Letlole La Rona has completed its first year of operation as a listed company on the Botswana Stock Exchange and says its investment strategy is acquired in order to achieve benchmark weightings and diversify the portfolio.
Letlole La Rona Chief Executive Officer, Dimitri Kokinos, revealed that the company is eyeing for more development opportunities in Botswana as well as acquisitions and partnerships outside of Botswana.
He added that the company is currently working to invest cleverly on the long term to provide long term sustainable income growth the investors and to support the distribution they expect. He added the company’s distribution has exceeded expectation in 2012.
“We believe in our portfolio and we will unlock this value as and when leases come to an end during their term when they get renewed at high rental rate that will always be sustainable,” he said.
Kokinos pointed out that the company’s growth plans included industrial and leisure and added that they would like to acquire additional asserts that acquire to wait debenture mark differently looking at retail specifically within the Botswana market and the SADC region. He added the need to investment for the company’s growth demographically and economically. Letlole La Rona CEO stated that Letlole La Rona was listed in June 2011 and has been operating for over a year and has put investment strategy. ┬á┬á
“Letole La Rona is also eyeing to maximise current portfolio and added that will also grow the portfolio from P450m to P 800m in five years. Also, the company gears the portfolio in order to finance future acquisitions as well as long term sustainable income growth and distributions,” said Kokinos.
He also revealed the financial highlights of the rental income which amounted to P59.9 million as well as straight-line adjustment of P9.7 million. He stated that there was an increase in investment portfolio value of P41.93m which was 10.2 percent increase. He said there has been income distribution of P42m of which P0.28m related to dividends and P41.72m related to debenture interest, adding that the company had 11.4 percent dividend yield.
┬á┬á┬á“The company has 100 percent occupancy rate throughout the portfolio,” he said.
Among the company’s prospects, he said they expected net income growth 7-9 percent and added that it maintains the vacancy level low as well as forward yield 10.8 percent.
On the leasing and tenancy, Kokinos said the portfolio is hundred percent let with the average lease period of three to five years for industrial and retail. He added that hotels have eight year leases remaining as well as the commercial space that has two years left on the lease. He stated that rental rates achieved at market related rentals on renewals.
“Our property profile consists of President Hotel, Cresta, Thapama, Moedi House as well as Shoppers in place such as Gaborone, Francistown and Seleibe Phikwe,” said Kokinos.