Johannesburg - Calgro M3 Holdings, the listed affordable housing and
private memorial parks developer, has strategically repositioned the group in
the anticipation of tough economic conditions.The group said on Monday this repositioning involves diversifying
into other sectors within the integrated residential development business,
advancing the memorial parks business and establishing a real estate investment
trust (REIT).
“This was done to ensure that risk is optimally mitigated
and managed in these uncertain times, setting a solid foundation for future
growth. While navigating the current business landscape, as wellas diversifying
risk across sectors and businesses, the group has remained focused on
maintaining the underlying theme of property development that is synonymous
with Calgro M3,” it said.
Calgro M3 late last year joined forces with listed SA
Corporate Real Estate to build what it believed would become one of the biggest
residential REIT’s in South Africa in the coming five to six years, with a
planned asset base of R10 billion to R15 billion.
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The group said this would yield annuity income to the
company in future, which would stabilise “lumpy” cash flows generally
associated with property development.
Calgro M3 said the integrated residential development
business experienced a challenging period in the year to February, resulting in
lower than expected growth.
The group said it expected its headline earnings a share for
this reporting period to be between 3.23 percent and 5.23 percent lower than in
the previous year.
This equates to headline earnings a share of between 131.69c
and 134.47c for this period compared to 138.96c in the previous year. Calgro M3
expects to publish its annual financial results on May 15.