Picture: Ivan Alvarado/Reuters
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.