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Prime Time revenue up 19 %

Publishing Date : 20 May, 2019


Botswana Stock Exchange listed Property Group Primetime closed in on the first six months of their 2019 financial year with significant increase in their key revenue driving measures.

According to the Group’s unaudited financial results for the half year period ended February 2019 the business realized growth in contractual lease revenue registering over P71.7 million for the period under review compared to just over P60 million recorded in the six months’ period ended February 2018. In rental income space the Group gathered over P75.2 million compared to over P64.6 million posted for the 2018 half year ended.

According to the financial results commentary published on Wednesday the 19 % growth in rental income is attributable to inclusion of revenues contributed by new developments completed in the prior financial year. he three priorities being Chirundu Mall in Chirundu, Zambia which opened at the end of April 2018.Munali Mall in Lusaka and the Design Quarter at Setlhoa in Gaborone which were both completed right at the end of the last financial year in August 2018, with space steadily being taken up in this reporting period.  

On another positive note, during this half year period the PrimeTime registered significant shrink in vacancy rate signaling positive tenancy response from the property market across the rest of the company portfolio. According to the financial report, the vacancy rate has been diminishing since the last year end. Observing key changes in some portfolios, at Pilane Crossing, one of Prime Time new properties Exact and Options clothing retail outlets have signed leases, with Exact opening for trade just before Christmas.

The final tenant at PwC Office Park Lusaka took occupation at the end of 2018 following the extensive refurbishment made to the property. The financial report further revealed that Major tenants renewing their leases with PrimeTime includes Letshego Holdings Limited which is occupying PrimeTime properties at Letshego Place, the South African High Commission plus PEP and Ackermans at Nswazwi Mall, Francistown.

According to management, the combined effect of the above has been to normalize the Group’s vacancy rate back down to 3% from just over 5% where it stood at the last year end. “Our anticipation is that the vacancy should reduce further as Munali, Chirundu and Design Quarter complete their respective letting” highlight Primetime executives in the report.

Sharing on this current financial year’s projects, the company management says major refurbishments and maintenance plans predominantly the completion of the Pilane Crossing extension which is well underway and 50% let. Furthermore, Primetime says the road widening project in Setlhoa is complete improving the accessibility of both Sebele Centre and the Design Quarter.

“The ground lease extension agreements at both Boiteko Junction in Serowe and our retail centre in Ghanzi are scheduled to complete in the next few months,” highlighted A L Kelly Primetime Managing Director. On the future outlook the Kelly noted that under its investment property pipeline is a commercial development at Setlhoa, Pinnacle Park. The company says the estimated build cost for Phase I stands at over P30m excluding land which is already acquired noting that funds have already been secured and the construction is underway with completion scheduled for March 2020.

“Elsewhere we continue to assess other opportunities outside of our existing geographical bases and expect to make investments in the very near future,” added PrimeTime Boss. PrimeTime Properties is a variable loan stock company listed on the Botswana Stock Exchange. It is regarded as one of the major property investment vehicle for institutions and private investors in Botswana, with the number of shareholders growing from 1337 on listing in Dec 2007 to close to 2,000 today.

It is invested in a diversified portfolio of office, retail and industrial properties throughout Botswana and more recently in Zambia. The portfolio was valued at BWP 764 million at our 2015 financial year end, a figure we anticipate to rise substantially in the 2016 year end valuations as major acquisitions will be reflected in the 2016 figures.

The performance is reflected in the solid share price and consistent increase in valuation and distribution year on year.

Looking forward, MD Kelly shared that the company is pursuing a policy of risk diversification by seeking investments elsewhere beyond Botswana’s borders. To this end it acquired two properties in Zambia on a sale & leaseback basis from G4S Zambia and continues to look for opportunities outside the country.



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