Our opinion on the current state of RMB
Rand Merchant Bank Holdings (RMH) is a company that transitioned from owning a 34.1% stake in FirstRand to focusing primarily on property investments since 2016. Established 41 years ago by GT Ferriera, Laurie Dippenaar, and Paul Harris, RMH listed on the JSE in 1992 and later spun off Rand Merchant Investment Holdings in 2011. RMH Property's portfolio includes stakes in Atterbury (27.5%), Propertuity (34.1%), and Genesis (40%). Following the sale of its FirstRand stake, RMH has been repositioned as a property-focused entity.
On 9th April 2021, RMH declared a special dividend of 80 cents per share, resulting from the decision not to proceed with the Bucharest development.
In its results for the six months ending 31st March 2024, RMH reported a headline loss of 2.9 cents per share and a 24% decline in net asset value (NAV) to 76.7 cents per share. The company stated, "RMH’s net asset value decreased from R1 449 million as at 30 September 2023 to R1 068 million as at 31 March 2024. This was predominantly as a result of the underlying net asset value of Atterbury Property Holdings Proprietary Limited (Atterbury) remaining static, the payment of the special dividend of R327 million in January 2024, and the further decrease in Divercity’s fair value following the repurchase of RMH’s interest for R50 million on 12 April 2024."
In a trading statement for the year ending 30th September 2024, RMH estimated that its NAV would decline by between 27% and 46%. The company has also recently changed its financial year-end from March to September.
Technically, the share price has been challenging to analyze due to its recent divestments but has entered an upward trend. The current share price remains significantly below the company's NAV, suggesting it could represent good value at current levels.
On 9th April 2021, RMH declared a special dividend of 80 cents per share, resulting from the decision not to proceed with the Bucharest development.
In its results for the six months ending 31st March 2024, RMH reported a headline loss of 2.9 cents per share and a 24% decline in net asset value (NAV) to 76.7 cents per share. The company stated, "RMH’s net asset value decreased from R1 449 million as at 30 September 2023 to R1 068 million as at 31 March 2024. This was predominantly as a result of the underlying net asset value of Atterbury Property Holdings Proprietary Limited (Atterbury) remaining static, the payment of the special dividend of R327 million in January 2024, and the further decrease in Divercity’s fair value following the repurchase of RMH’s interest for R50 million on 12 April 2024."
In a trading statement for the year ending 30th September 2024, RMH estimated that its NAV would decline by between 27% and 46%. The company has also recently changed its financial year-end from March to September.
Technically, the share price has been challenging to analyze due to its recent divestments but has entered an upward trend. The current share price remains significantly below the company's NAV, suggesting it could represent good value at current levels.
Penafian
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