World Bank advocates change in Mozambican land law
Mara Delta, the multi listed property fund formerly known as Delta Africa that offers investors access to high growth opportunities on the continent, reported on Friday a huge quarterly jump in profit as its rental income boosted the company’s earnings for the quarter.
The shares, however, closed 1.07 % lower on Friday at R18.50. For the three months to end September, it profits soared 139.78 % to $4.34 million (R62.03m), up from $1.81m reported in the same quarter in 2015.
“The group’s strategy remains to expand its property portfolio throughout targeted countries in Africa, with assets that will provide sustainable long-term, hard currency-based income from high quality counterparts with a core focus on enhancing shareholder value and dividend yield,” the group said.
Rental income together with income from associates gained 49.3 % compared with the first quarter of the 2016 financial year on the back of asset acquisitions in the latter half of the previous financial year.
Operating costs were maintained at expected levels and the operating cost %age decreased to 24.3 % for the first quarter of the 2017 financial year from 25.7 % for the 2016 financial year.
Headline earnings per share were up 214.5 % to 4.34 US cents, up from 1.38 US cents as compared with the quarter of 2015.
Mara Delta had paid a distribution of 5.58 US cents per share, taking the full year distribution of the 2016 financial year to a total of 11.75 US cents per share, a growth of 4.13 % as compared with 2015’s distribution.
Mara Delta has property assets in Zambia, Mauritius, Kenya, Mozambique and Morocco.
In Mozambique, the firm said even though this country faced macroeconomic challenges, Mara Delta’s portfolio was proving to be resilient to these challenges due to the strength of the underlying tenant base.
In Mauritius, Mara Delta had entered into negotiations with New Mauritius Hotels (NMH) for the acquisition of a 45 % interest in an entity owning three hotel assets in Mauritius, namely Le Victoria, Le Canonnier and Le Mauricia.
The transaction would be on a sale and leaseback basis, no operational risk would be assumed and would generate euro denominated earnings from a 15-year triple net lease from NMH, Mara Delta said.Source: Business Report