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Letlole La Rona Posts Positive Results

Publishing Date : 03 October, 2018

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Letlole La Rona (LLR), a home-grown loan stock company which engages in investment, rental, and trade in properties has recorded a whooping BWP94.8m in profits in the year ended 30 June 2018, a seven percent (7%) jump from the previous year. This marks an increase of 6% in earnings per share with over BWP1billion in assets.

The property portfolio increased by 25% and contractual revenues increased by 10% compared to the prior reporting period.  This followed a major acquisition of the Water Shed Piazza, a shopping mall in Mahalapye from Jus Posh Investments.  The retail property enhanced LLR’s property value and helped further diversify the portfolio in line with the strategic objectives of the Company. It also provides geographical spread opportunities.

Commenting on the results LLR CEO Mr. Chikuni Mutiswa commended the performance of the business despite a subdued economic environment, “The business continued to show resilience and perform above expectations in the current subdued economic environment. Our diversified property portfolio has ensured that both the financial and operational metrics of the business are solid.”

Increased revenues of BWP80.8m, which are 10% higher than BWP73.3 from the prior reporting period, were attributed to annual escalation of renewal of leases. Management’s ability to negotiate better deals and maintaining voids at a low level of 0.73% of gross lettable space also bolstered the business’s strong top line.  

“We have a solid asset tenant base, leading to the 25% year on year capital appreciation in market values of the underlying properties, which now stand at BWP930 million from BWP739 million the previous reporting period. The company’s debt burden remains at a low level reflecting available capacity in terms of both operating and cash flows and prudent borrowing guidelines,” says Mutiswa.

For his part, the LLR Chairman outlined a positive outlook premised on strong fundamentals. “The business remains focused on its vision of becoming a premier real estate company with a broad regional footprint and a well-diversified portfolio underpinned by high occupancies and quality tenants. It current low gearing and healthy pipeline, the company is well positioned to deliver its vision and strategy,” says Ms Boitumelo Mogopa.

The company's property portfolio includes hotel, commercial, industrial, retail, and residential. Letlole La Rona was founded on July 28, 2010 and is headquartered in Gaborone, Botswana.

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