Letlole La Rona Limited (“LLR” or “the Company” or “the Group”), a diversified real estate company listed on the Botswana Stock Exchange, has reported robust revenue growth for the fiscal year ending June 30, 2024. This impressive performance is underpinned by the consolidation of its investment in JTTM (Railpark Mall), contributing significantly to the revenue surge.
Group revenue surged by 69%, increasing from P102.2 million to P173.2 million, marking a P71 million rise. The primary driver of this growth was the inclusion of JTTM (Railpark Mall) in the financial results for nine months of the fiscal year, which contributed P63 million, equating to 89% of the total revenue growth. Additionally, organic growth from the existing portfolio added P8 million, accounting for the remaining 11% of the increase.
The Group’s investment property value also saw a substantial rise, climbing from P1.5 billion in the previous financial year to P1.9 billion as of June 30, 2024. This increase is largely attributed to the consolidation of JTTM.
LLR demonstrated an exceptionally high occupancy rate of 99.03%, with collection rates averaging 100%. Escalation rates were maintained between 6% and 8%, aligning with market standards.
In October 2023, LLR acquired an additional stake in JTTM Properties Proprietary Limited (JTTM), increasing its shareholding from 32.79% to 57.79%. This acquisition rendered JTTM a subsidiary of LLR under International Financial Reporting Standards.
LLR CEO, Ms. Kamogelo Mowaneng, commented: “The consolidation of JTTM resulted in strong growth in LLR’s investment portfolio, from P1.5 billion in the prior financial year, to P1.9 billion as at 30 June 2024. JTTM was only consolidated for nine months in this financial year and contributed P63 million to the total revenue growth of P71 million, while the direct property investments contributed P8 million or 11% to the revenue growth.”
Ms. Mowaneng further remarked that these financial results represent a historic milestone for LLR, marking the first time the company presents group consolidated results. This achievement is a result of the gradual increase in LLR’s shareholding in JTTM over recent years, culminating in JTTM becoming a subsidiary in October 2023.
The Botswana portfolio’s stellar performance at a fundamental level, with a 99.03% occupancy rate, is attributed to the quality of assets and strong tenant relations. Collection rates averaged 100% during the reviewed year, with arrears being well-managed.
For the fiscal year ending June 30, 2024, LLR produced Group Financial Statements for the first time, encompassing both Company and Group consolidated results in accordance with International Financial Reporting Standards.
